ENTREPRENEURSHIP
GRAVITAS
ACTION RESEARCH IN THE
SETTING OF AEC 2015
UP ISSI
27 August 2014
UPIEAA Associate Professor Nestor O. Raneses
Director
Institute for Small Scale Industries
&
Assistant Vice President for Administration
University of the Philippines
PROF. NESTOR O RANESES
Technology-Based
Business Innovation and
incubation ( TBII)
Symposium Workshop
14-15 August 2014
MABUHAY ! WELCOME TO
INVENTIVE PHILIPPINES
GREETINGS
•
Creating and Empowering Filipino
Entrepreneurs Today & Tomorrow
•
National Institute for
Innovation and
Entrepreneurship
GREETINGS
ASEAN CENTER OF
EXCELLENCE for SME
DEVELOPMENT – PHL
• Usaping Pangnegosyo, Ilaw,
Salamin at Sandata ng
Industryang Pilipino
•
•
UP ISSI P
GLOBAL & COMPETITIVE MINDSET
GREAT IMAGINATION
GREAT ENTREPRENEURIAL SOLUTIONS
ASEAN INTEGRATION 2015
ISSI RESEARCH MANDATE-
Republic Act 6041
• Undertake
– Technical studies and research on request of
various government agencies concerned with
industrial development , interested private
industries and committees of Congress
concerned with industry ;
– Study programs and research for
the promotion of SMIs ;
– Publication of studies, monographs,
research papers , articles, and other
written works on SMEs
ACTION RESEARCH
• Design studies which seek to inform and influence
practice – ( Reason and Bradby, 2006)
• Approach employed by practitioners to improve
practice as part of the process of change
• Observe, Reflect, Plan and Act , Iterate .
• Characteristics :
– participative and collaborative;
– situation-based and context specific.
– reflection based on interpretations
– Knowledge through action and at the point of
application.
– involve problem solving
– findings will emerge as action develops, but these
are not conclusive or absolute.
ACTION RESEARCH –
BUSINESS DICTIONARY
• A process of
uncovering solutions through progressive
problem solving activities.
• The outcome is intended
to improve practices and address issues.
• Often performed by
a group of participants, the process
involves investigation through activity
rather than theoretical response.
Also called participatory action
research.
Voice
of our Leader
• “ As the national research university , we will
encourage more graduates to take the path of
innovation as the life-long researchers and creative
minds critical to our nation’s progress. UP as a national
university should lead in developing a culture of
innovation , entrepreneurship and competitiveness
among its students, faculty , and staff “ - UP
President Alfredo E . Pascual
Improving Human Capital
with Entrepreneurial
Research
22nd Annual Conference
Philippine Society for Educational Research
and Evaluation , Inc
14 May 2014
Nestor O. Raneses
UPIEAA Associate Professor of industrial Engineering &
Operations Research
University of the Philippines Diliman
Director
UP Institute for Small Scale Industries
Assistant Vice President for Administration
University of the Philippines
ENTREPRENUERIAL
WISDOM
“Entrepreneurship is not
magic. It’s not mysterious;
and it has nothing to do
with genes. It’s a discipline
and like any discipline, it
can be learned “
– Peter Drucker
Entrepreneurship
– A Mind-set
“An integrated
concept
permeating
business in an
innovative manner”
“Entrepreneurship
is about continual
innovation and
creativity “
Kuratko, Introduction to Entrepreneurship ,South
Western Cengage Learning , 2009
SUCCESS FACTORS FOR FOSTERING
ENTREPRENEURSHIP EDUCATION ( NECESSARY
FRAMEWORK CONDITIONS)
Source : European Commission, Promotion of SMEs Competitiveness,
Entrepreneurship ( March 2008) “ Best Procedure Project : Entrepreneurship for
Higher Education Especially with Non- Business Studies Final Report of the
Experts Group”
• ENTREPRENEURIAL UNIVERSITY WITH ENDEMIC
ENTREPRENEURIAL CULTURE
• ENTREP EDUCATION as a STRATEGIC GOAL
• CLEAR SOCIETAL IMPACT OF ENTREP EDUCATION
• BUREAUCRATIC CULTURE to ENTREPRENEURIAL
CULTURE
• AT LEAST ONE MANDATORY COURSE ON ENTREP FOR
ALL STUDENTS
• ACADEMIC ESTEEM FOR
ENTREPRENEURSHIP WITH GOOD
RESEARCH PROGRAMS
SUCCESS FACTORS FOR FOSTERING
ENTREPRENEURSHIP EDUCATION ( NECESSARY
FRAMEWORK CONDITIONS)
•
REWARD MECHANISMS FOR ENTREP- RELATED ACTIVITIES
UNDERTAKEN BY TEACHERS & STUDENTS
•
CLEAR UNIVERSITY POLICY ON INTELLECTUAL PROPERTY THAT
ENTICES ENTREPRENEURIAL ENDEAVORS
•
ACCREDITATION SYSTEM FOR NON-FORMAL COURSES ( i.e. CHED
LADDERIZED PRGRAMS)
•
HIGHLY- QUALIFIED “PRACDEMICS” ( practicing academics )
•
QUALITY ASSURANCE IN PLACE
•
DIVERSITY of ACTION-ORIENTED, INTER-DISCIPLINARY ,
EXPERIENCED- BASED, STUDENT –CENTERED LEARNING
METHODOLOGIES
•
MEASURING ENTREP EDUCATION EFFECTIVENESS
PLETHORA of GLOBAL
ENTREPRENEURIAL UNIVERSITIES
•
HIGH TECH TECHNOPRENEURSHIP
– Stanford University, US
– Arizona State U , US
– MIT , US
• Science-based High Technopreneurship
–
–
–
–
–
–
–
–
INSEAD , France
University of Nottingham ,UK
University of Cambridge , UK
National University of Singapore – technology
commercialization and body of intellectual capital
Technical University of Munich University , Germany
Center for Innovation and Entrepreneurship ,University of
Cape Town South Africa
Australian School of Entrepreneurship , Australia
Babson College, USA
GLOBAL MODELS FOR
ENTREPRENUERSHIP EDUCATION
– GLOBAL ENTREPRENEURSHIP
MONITOR ( GEM) MODEL
– US DEPARTMENT OF LABOR
ENTREPRENEURSHIP
COMPETENCY MODEL ( FIVE-TIER
COMPETENCIES)
– NATIONAL CONTENT STANDARDS
FOR ENTREPRENEURSHIP
EDUCATION - LIFELONG LEARNING
MODEL
THE WHATS, HOWS, WHOS AND WHERES OF
ENTREPRENEURSHIP
Source : Volkman, Christine ,et.al ( 2009) ‘ Educating the Next Wave of
Entrepreneurship Unlocking Entrepreneurial Capabilities to Meet the Global Challenges
of the 21st Century , A Report of the Global Education Initiative” World Economic
Forum Switzerland p. 16.
ENTREPRENEURIAL ECOSYSTEM
Source : Volkman, Christine ,et.al ( 2009) ‘ Educating the Next Wave of
Entrepreneurship Unlocking Entrepreneurial Capabilities to Meet the Global
Challenges of the 21st Century , A Report of the Global Education Initiative”
World Economic Forum Switzerland p. 16.
ENTREPRENEURIAL UNIVERSITY MODEL
Source : Volkman, Christine ,et.al ( 2009) ‘ Educating the Next Wave of Entrepreneurship
Unlocking Entrepreneurial Capabilities to Meet the Global Challenges of the 21st Century
, A Report of the Global Education Initiative” World Economic Forum Switzerland p. 55.
Measuring Entrepreneurship
Education Effectiveness
• Number of start-ups created by students
( within 5 years )
• Number of jobs created by the start-ups
• Number of patents issued as an outcome
• Level & quality of employment of students
• Number of new companies founded by the
overall population of university graduates
• Progress in entrepreneurship
attitudes , perceptions and
intentions
Establishment of a Regional Program
for the Promotion of Internship Schemes
for Staff Exchanges and Visits for Skills Training
FINAL REPORT
Department of Trade and Industry
Bureau of Micro, Small and Medium Enterprise Development (BMSMED)
University of the Philippines
Institute for Small-Scale Industries
1
About the PROJECT
Objective:
TO IMPROVE THE COMPETITIVENESS
OF SMEs
Sector Focus:
FASHION, FURNITURE, HANDICRAFTS, AND
INTERACTIVE DIGITAL MEDIA
University of the Philippines Institute for Small-Scale Industries (UP ISSI)
Department of Trade and Industry - Bureau of Micro, Small and Medium Enterprise Development (BMSMED)
“Establishment of a Regional Program for the Promotion of Internship Scheme”
2
OUTPUTS
Review of Related Literature
FGD, Survey, Consultative Meeting, AMS Visits
Regional Discussion-Workshop
Proposed ASEAN Internship Framework Pilot Testing
13 Interns Trained
Monitoring and Evaluation of Pilot Phase
ASEAN Internship Guidebook
ASEAN Internship Final Report
ASEAN Internship Project Network
University of the Philippines Institute for Small-Scale Industries (UP ISSI)
Department of Trade and Industry - Bureau of Micro, Small and Medium Enterprise Development (BMSMED)
“Establishment of a Regional Program for the Promotion of Internship Scheme”
3
ASEAN Internship Summit/ Roundtable
Discussion: Sharing of Best Practices
University of the Philippines Institute for Small-Scale Industries (UP ISSI)
Department of Trade and Industry - Bureau of Micro, Small and Medium Enterprise Development (BMSMED)
“Establishment of a Regional Program for the Promotion of Internship Scheme”
12
University of the Philippines Institute for Small-Scale Industries (UP ISSI)
Department of Trade and Industry - Bureau of Micro, Small and Medium Enterprise Development (BMSMED)
“Establishment of a Regional Program for the Promotion of Internship Scheme”
10
Thailand
University of the Philippines Institute for Small-Scale Industries (UP ISSI)
Department of Trade and Industry - Bureau of Micro, Small and Medium Enterprise Development (BMSMED)
“Establishment of a Regional Program for the Promotion of Internship Scheme”
11
Presentation of ASEAN Internship PROGRESS Report
Thailand
University of the Philippines Institute for Small-Scale Industries (UP ISSI)
Department of Trade and Industry - Bureau of Micro, Small and Medium Enterprise Development (BMSMED)
“Establishment of a Regional Program for the Promotion of Internship Scheme”
11
ASEAN Regional
Discussion-Workshop
held on 10 January 2014
University of the Philippines Institute for Small-Scale Industries (UP ISSI)
Department of Trade and Industry - Bureau of Micro, Small and Medium Enterprise Development (BMSMED)
“Establishment of a Regional Program for the Promotion of Internship Scheme”
12
ASEAN Internship Pilot Phase
University of the Philippines Institute for Small-Scale Industries (UP ISSI)
Department of Trade and Industry - Bureau of Micro, Small and Medium Enterprise Development (BMSMED)
“Establishment of a Regional Program for the Promotion of Internship Scheme”
Guidebook on ASEAN
SME Staff Exchanges and
Internships
http://asean.entrepreneurship.org.ph/ASEAN_guidebook.pdf
http://asean.entrepreneurship.org.ph/ASEAN_final_report.pdf
ASEAN INTERNSHIP PROJECT WEBSITE
WHAT IS COMPETITIVENESS ?
( WEF 2013)
INSTITUTIONS, POLICIES,
and FACTORS……
….PRODUCTIVITY
SUSTAINABLE
PROSPERITY
LEVEL
PRODUCTIVITY WISDOM
• “ The most direct way of
increasing productivity is doing
the same thing in a lesser of
time – turning things faster.
• And productivity is the key to
everything – greater
productivity increases
economic growth “
–Andy Grove, Intel
2013 GII ASEAN RANKING
•
•
•
•
•
•
•
•
•
ASEAN
CLASS
Singapore
HI
Malaysia
UMI
Thailand
UMI
Brunei
UI
Vietnam
LI
Indonesia
LMI
Philippines LMI
Cambodia
LI
Global
8
32
57
57
74
85
90
110
ASEAN
1
2
3
4
5
6
7
8
PH GLOBAL RANKING VS ASEAN
GLOBAL COMPETITIVENESS
SCORECARD
PH RANKING VS ASEAN
2012 WEF GLOBAL
COMPETITIVENESS INDEX
6TH OUT OF 8
2013 IMD WORLD COMPETITIVENESS
REPORT
5TH OUT OF 5
2012 WB/IFC EASE OF DOING
BUSINESS
8TH OUT OF 9
2012 WEF INFORMATION AND
TECHNOLOGY REPORT
6TH OUT OF 7
2012 WEF TRAVEL AND TOURISM
REPORT
7TH OUT OF 8
2012 WIPO GLOBAL INNOVATION
INDEX
6TH OUT OF 9
2012 FUTURE COUNTRY BRAND INDEX
8TH OUT OF 8
2012 LEGATUM INSTITUTE
PROSPERITY INDEX
6TH OUT OF 8
PH INVESTMENT
ATTRACTIVENESS
th
•6
out of 10
» 2011- 2012 ASEAN
Business Advisory
Survey on ASEAN
Competitiveness
ASEAN SME POLICY INDEX
• Structured Policy Guide
• Support for improvement
• Regional collaboration and
peer review
• Public & private sector
involvement
• Planning and resource
allocation
ASEAN POLICY INDEX RUBRICS
1.Institutional framework
2.Access to support services
3.Start-up & legislation and
regulation for SMEs
4.Access to finance
5.Technology and technology transfer
6. International market expansion
7. Promotion of entrepreneurial
education
8.Representation of SMEs’ interests.
ASEAN POLICY INDEX
RANKING
• ASEAN
•
•
•
•
Singapore
Malaysia
Thailand
Indonesia
• Phl
•
•
•
•
•
Vietnam
Brunei
Mynmar
Lao
Cambodia
CLASS
SCORE
RANK
HI
UMI
UMI
LMI
5.4
4.7
4.1
4.1
LMI
3.8
5
LI
UI
LI
LI
LI
3.7
3.0
2.9
2.5
2.4
6
7
8
9
10
1
2
3.5
3.5
SME SIGNIFICANCE IN
ASEAN
• 96% of ASEAN enterprises
• 50-95% of domestic
employment
GDP
•19-31% of exports
•30-53%
of
SME SIGNIFICANCE IN ASEAN
ASEAN
Country
SHARE : TOTAL
ESTABLISHMENT
SHARE : TOTAL
EMPLOYMENT
GDP SHARE: GDP
SHARE : TOTAL
EXPORTS
Share
Year
Share
Year
Share
Year
Share
Year
BRUNEI
DARUSSALAM
98.4%
2008
58.0%
2008
23.0%
2008
-
-
CAMBODIA
99.8%
2011
72.9%
2011
-
-
-
-
INDONESIA
99.9%
2011
97.2%
2011
58.0%
2011
16.4%
2011
LAO PDR
99.0%*
-
-
-
-
-
-
-
MALAYSIA
97.3%
2011
57.4%
2012
32.7%
2012
19.0%
2010
MYANMAR
88.8%**
-
-
-
-
-
-
-
PHILIPPINES
99.6%
2011
61.0%
2011
36.0%
2006
10.0%
2010
SINGAPORE
95.9%
2011
43.6%
2011
-
-
-
-
THAILAND
99.8%
2012
76.7%
2011
37.0%
2011
29.9%
2011
VIETNAM
97.5%
2011
51.7%
2011
40.0%
-
20.0%
-
Source: Country’s Reports
Note: * ADB (2013), ** Registered numbers
ASEAN
EXPORTS
Source : ASEAN
Produ
cts
Brun
Oil
products
X
Chemical
s
x
Metals
Myan
Camb
x
Indon
Malays
Phl
Singa
Thai
Vietn
TOT
x
x
x
x
x
x
7
x
x
x
x
x
x
8
x
x
x
x
x
x
x
x
8
x
x
x
x
x
9
x
x
x
x
x
10
x
x
x
x
x
8
x
x
x
x
x
10
x
x
3
x
x
9
x
x
6
x
x
7
Machiner
y/Equipm
ent
x
x
x
x
Textiles/
Clothing
x
x
x
x
x
x
x
x
x
x
Travel
Goods/B
ags
Wood
x
Fish
x
Food
x
x
x
Rubbe
r
Coco
Coffee
x
x
x
Rice
Bever
ages
Lao
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
4
x
x
9
X
3
ASEAN INTEGRATION
•SHARED MARKET
SHARED BENEFIT
FROM 10 to 1
ASEAN INTEGRATION
•MARKET BASE >
616 Million
people
GDP > 3.0.
Trillion US $
ASEAN INTEGRATION
•SIMPLIFIED
RULES
•GREATER ACCESS
& TRADING ON A
BIGGER STAGE
ASEAN INTEGRATION
•MAKING CAPITAL
FOR YOU.
•EXPANDING
ACCESS TO
FINANCE
KEY ASEAN MESSAGE
•ASEAN
PROFESSIONALS
ON THE MOVE
•BEST PEOPLE &
BEST PRACTICES
ASEAN HARMONIZED
STANDARDS
WHAT KEY AGREEMENTS ARE
OPERATIONAL ?
• ASEAN TRADE IN GOODS AGREEMENT
(ATIGA) IN FORCE ON 17 MAY 2010
-
99.65% of goods sourced
from ASEAN TARIFF-FREE
– For the Philippines, agricultural
products such as rice, sugar, live
swine, live chicken, meat of swine,
meat of chicken, manioc (cassava)
and sweet potato on protected list
potatoes, and maize are exempt from
duty elimination.
WHAT KEY AGREEMENTS ARE
OPERATIONAL ?
•
from duty elimination.
ASEAN Framework Agreement on Services (AFAS)
negotiated since 2007
• ASEAN Mutual Recognition Arrangement (MRAs) have
also been negotiated and agreed on
•
• - Engineering Services
• - Nursing Services
• - Architectural Services
• - Surveyors
• - Medical Practitioners
• - Dental Practitioners
• - Accountancy Services
Tourism
AEC BLUEPRINT : SME
ACTION PLAN
PHILIPPINE SME GEOGRAPHICAL
DISTRIBUTION ( NSO, 2009 )
PHILIPPINE SME DISTRIBUTION BY
INDUSTRY SECTOR ( NSO, 2009)
UNIDO 3C STRATEGIC APPROACH
FOR SME DEVELOPMENT
PHL STRATEGY FOR AEC
2015
• Compliance to
Commitments
• Enhance
Competitiveness
• Intensive
Communications to
Stakeholders
PH GOVT AEC 2015 SME Game
Plan – MSMED FLAGSHIP
PROGRAMS
 Clustering , SME Roving Academy &
Shared Service Facilities (DTI)
 SET UP/ MPEX ( DOST )
 Industry Road Maps (BOI)
 Doing Business in FTAs Campaign
(DTI)
 Inclusive Finance/ CSF (BSP)
 Halal Industries (Bangsamoro, DTI))
 Trade Facilitation for SMEs (Customs)
 Philippine Digital Strategy – SMARTER
SMES – ( DOST)
COMPETITIVE EDGE
COST?
QUALITY?
TIME?
FLEXIBILITY ?
• ALL OF THE ABOVE?
© Wiley 2010
80
COMPETING ON COST
–
Competitive material costs
– Limit product range & offer little
customization
– Invest in technology to reduce unit
costs
– Use better methods and work flows
– More efficient production methods
© Wiley 2010
81
COMPETING ON
QUALITY
–HIGH PERFORMANCE
DESIGN
–PRODUCT &
SERVICE
CONSISTENCY
© Wiley 2010
82
WHY TQM?
“Do the right
things right the
first time, every
time.”
Total Quality Management
•
TQM
T = TIME
•Q = QUALITY
•M = MONEY
84
QUALITY
• Quickly
•
•
•
•
•
•
Understand &
Act On
Losses
Innovatively
Technical ( Theoretical )
Yield
85
TOTAL QUALITY
 “ QUALITY is the transformation
in the way we think and work
together, in what we value and
reward, and in the way we
measure success. “
“All of us collaborate to
design and operate a
seamless value-adding
system– all optimizing for a
common purpose “
TOTAL
QUALITY
MODEL
TRANSFORMATIVE
INNOVATION AS THE NEW BASIS
FOR COMPETITION
Innovation
Source of
performance
improvement
& growth
Cost
1970s
Quality
&
Service
1980s
1990s
st
21
Century Innovation: the iPod
The Apple iPod = 299$ of
Chinese exports to US
Distribution of the value added
•
299 US$
– 75$ profit to US (Apple)
– 73$ wholesale/retail US
(Apple)
– 75$ to Japan (Toshiba)
– 60$ 400 parts from Asia
– 15$ 16 parts from the US
– 2$ assembly by China
• iTunes Music Store
(2003)
– 70% digital market
share
– Big 5 recording
companies
http://blogs.computerworld.com/node/572
4
90
© Breakthrough Forum
“INNOVATE” OR
DIE “
COMPETING ON
TIME
• Time/speed one of most
important competition
priorities
• First that can deliver often wins the
race
• Time related issues involve
– Rapid delivery
© Wiley 2010
– On-time delivery
93
COMPETING ON
FLEXIBILITY
• Enterprise environment changes
rapidly
• Company must accommodate change
by being flexible
– Product flexibility:
• Easily switch production from one item to
another
• Easily customize product/service to meet
specific requirements of a customer
– Volume flexibility:
• Ability to ramp production up and down
to match market
demands
© Wiley
2010
94
RESILIENCE FOR AEC
2015
• FLEXIBILITY
• OPERATIONAL EXCELLENCE
• COST COMPETITIVENESS
• UPGRADING & SCALE UP
•SUSTAINABILITY
STRATEGIC ROLE OF
TECHNOLOGY
• Technology should support competitive
priorities
• Three Applications: product
technology, process technology, and
information technology
– Products – vacuum packed
– Processes – bar-coding; automation
– Information Technology – POS, EDI, ERP,
B2B
© Wiley 2010
96
E-WASTE
ICT TECHNOLOGY
ADOPTION DRIVERS
• Perceived Benefits
• Perceived costs
• ICT Knowledge and skills
• External pressures
• Government support
© Wiley 2010
99
ICT ADOPTION – SME
OWNERS/ENTREPRENEURS
• Perceived Usefulness
• Perceived Ease of Use
• ICT Knowledge and skills
• Innovation
• Attitude
© Wiley 2010
100
AEC IMPERATIVES ENTREPRENEUR
•
•
•
•
•
•
•
•
•
•
Capability building for entrepreneurs – experiential-based
Accelerated Training by Public Training Institutes
Subsidized Training for SMEs
Compulsory Training for SMEs
Training Levies
Apprenticeship
Best Practices Network
General Taxation to Finance Training
Fiscal Incentives to Reward Training
Education and training institutes on quality, productivity and
technology.
• Accelerated skills training and certification for SMEs
AEC IMPERATIVES –
NETWORKS
• Set-up the national quality infrastructure that will
converge and standardize the metrology, calibration,
standardization, testing, certification, accreditation,
and conformance systems that will cater especially to
the SME sector.
• Establish the best practices network for SMEs that will
develop and share best practices in all aspects of
business operations and technology acquisition and
diffusion.
• Accelerate the use of internet and ICT for SMEs.
Internet marketing for SMEs. Establish e-centers to
enhance access knowledge and technology especially
those in remote areas. Bundle communication
technologies with business applications and other
services for SMEs.
AEC IMPERATIVES –
NETWORKS
• Certify SME clusters to internationally
acceptable global standards and
requirements.
• Accelerate sustainable common service
facilities and technology assistance
centers. DTI SSF / DOST SETUP
• Establish a formal SME measurement,
evaluation and performance improvement
based on a credible statistical system .
AEC IMPERATIVES –
NETWORKS
• Align the Export Pathway Program Priority
Sectors with the OTOP Regional clusters and
the SETUP Sectors and the innovative ISTIV to
achieve optimum impact and focus
• Converge and bundle the services offered to
target individual SMEs and SME clusters to
optimize benefits from the assistance
• Accelerate the setting up
of TBI and Small Business
Incubation Centers (SBIC)
AEC IMPERATIVES - NETWORKS
AND BUSINESS ENVIRONMENT
• 24/7 SME assistance center
• Information and market materials in
different languages
• Public Marketing of SME products –
SME restricted procurement
•
Big brother small brother supply
chaining
• Clustering and market “
hubbing “
AEC Imperatives - Networks
and Business environment
• Expanded micro-financing and riskbased lending services
• Interest-free loans and credit
guarantee systems
• Streamlined and efficient government
services provision
• Cooperatives and SME upgrade
collaborative programs
CALL TO ACTION
Collaborate
CLUSTER
• COMPLEMENT
• COALESCE
CALL TO ACTION
•Adapt best
practices
.
Benchmark
KEY MESSAGES
• ASEAN INTEGRATION 2015 WILL
HAPPEN –whether we like or not
• ASEAN INTEGRATION 2015 brings
myriad opportunities & seducing
challenges – there will be winners and
losers .
• To win, we must systematically
improve our abilities &
capacities to compete NOW .
AEC CLARION CALL
• COMPETITIVE MINDSET
• CONFORMANCE to
GLOBAL STANDARDS
• COMPLIANCE to GLOBAL
BEST PRACTICES
• CONNECTIVITY
MARKETS
TO
SUPPORT THE PCCI
ADVOCACY
•PRODUCT OF
THE
PHILIPPINES
Proudly Philippine Made
FINAL MESSAGES
•AEC 2015
IS
SYNERGY
AEC FINAL MESSAGE
• Symphonious
• You and Me – TEAM
• Networking
• Excellence
• Relationships
• Global mindset & chaining
• Y-generation
Entrepreneurship
Research
Opportunities
MSME DEFINITION IN THE
PHILIPPINES
ASSET VALUE
EMPLOYMENT
• MICRO
<P3M
1 to 9
• SMALL
P3M - P15M
10 to 99
• MEDIUM P15 - P100M
100 to 199
• LARGE
> P100M
> 200
Source : RA 9501, Magna Carta for
Micro, Small and Medium Industries
PHILIPPINE SMEs
• 99.6% : TOTAL FIRMS
• 62% : EMPLOYMENT
• 35.7% :VALUE-ADDED
MSME
99.6%
Ph
ENTERPRISES
(820,255)
MICRO
90.6%
SMALL
LARGE
0.4%
Source: 2011 List of
Establishments, NSO
8.6%
MEDIUM
0.4%
PHILIPPINE SME GEOGRAPHICAL
DISTRIBUTION ( NSO, 2009 )
PHILIPPINE SME DISTRIBUTION BY
INDUSTRY SECTOR ( NSO, 2009)
40% VALUE ADD CONTRIBUTION
ADDITIONAL 2 MILLION EMPLOYMENT
Busines
s
Environ
ment
(BE)
Access
to
Finance
Access
to
Market
(A2F)
(A2M)
Productivity
& Efficiency
(P&E)
SOME RELEVANT
DEVELOPMENTS
• SHIELDING the Philippines from
the MIDDLE INCOME trap
• Philippines entering into the
Demographic Sweet Spot
• ASEAN integration in 2015
• Philippine Development Plan
Inclusive Growth Challenges
• Missing Middle Phenomenon
Relevance & Significance of Research to
Philippine SME Policy Development
• Can re-shape Philippine SME policy to
hasten SME growth that is inclusive
and robust to propel faster economic
development .
– NSO statistics ( 2003- 2008)
• Negative CGR for micro ( 1.3%)
• Negative CGR for small ( 0.7%)
• Negative CGR for medium ( 0.4%)
• Since 1990, MSMEs distribution stationary
• Medium enterprises - paltry at 0.4% on the average.
• Small enterprises oscillated from 7.7% to 8 .1 % with a graduation
rate from micro-enterprises estimated at a measly rate of 1 to
2%.
• MSME sector characterized by a “missing “or “hollowed” middle
PH SME BARRIERS and CHALLENGES
OVERALL BUSINESS ENVIRONMENT
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–
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–
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–
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High cost of doing business in the country
Burdensome bureaucratic procedures
Inadequate physical infrastructure
Weak public-private policies
Weak or missing links with large enterprises
Myopic entrepreneurial mindset
Inadequate support to start up entrepreneurs
– Laws and policies supporting SME
development not fully enforced.
– Lack of holistic and integrated approach to
enterprise development implementation and
growth .
PH SME BARRIERS and CHALLENGES
ACCESS TO FINANCE
– Banks remain wary to SME lending
– Information asymmetries on SME credit
– SMEs lack of financial documentation and
records
– SMEs lack of banking relations
– SMEs lack of financial literacy
– Collateralized credit
– Mismatch of financing programs to SMEs
– Under-utilization of funds for SMEs in
government-owned and controlled
corporations
PH SME BARRIERS and
CHALLENGES
ACCESS TO MARKETS
• Not responsive to market needs
• No access to market hubs
• No formal marketing plans
• Limited access to organized marketing networks
• Limited access to mainstream domestic markets
• Poor packaged and labelled products.
• Limited capacity for product development and design.
• Lack the capacity to use modern technology
• Lack the certification and accreditation
needed to penetrate new markets.
• Lack access to market information.
PH SME BARRIERS and CHALLENGES
PRODUCTIVITY AND EFFICIENCY
– Low productivity of SMEs
– Lack of access to new and more efficient technology
– Weak technological foundations and capabilities
– Failure to engage in innovation and research and development
– Inadequate awareness on alternative technologies and support
services
– Lack of education and promotion on productivity improvement
– Not compliant to international quality standards , requirements, and
good manufacturing practices
– Use of information and communications technology is not pervasive.
– Low level and intensity of technology content in the whole supply
chain
– High cost of electricity , water and other utilities
– Inadequate human resource development
– Government programs on productivity improvement are not
coordinated and convergent
• Page
UP ISSI’s Programmatic and Focused Research
and Development Agenda
– Green Enterprises Research Program
Focusing on introducing community of practice (COP) and innovative
programs on clean production technology (CPT) , sustainable consumption
and production (SCP), productivity and quality improvement ( PQI) , greening
and leaning through energy and environment ( GLEEM) , safety and risk
management ( SaRiM) , Climate change Adaptation & Disaster Reduction (CADre)
for SMEs .
– Enterprise Upgrade Models and Studies
- Development of multi-causal models for enterprise upgrade that can be used for
–
growing techno-based enterprises
Continuing Impact Evaluation Studies - Impact evaluation studies of
intervention programs on entrepreneurship and SME development using
experimental and quasi-experimental methods for policy and program
improvement .
– Intellectual Property Rights (IPR)/
Innovation Research
•
•
•
Enterprise Kiosk ( copyright ) ; e-syob™ ( trade/service mark )
Pioneering programs - GLEEM™, PLANET™, PROFIT™, ROVEER™ IOSA™
,BITES™, MAKINA™
Small Business Innovation Incubation Center (SBIIC) and the Business
Innovation Techno-based Entrepreneurship Students (BITES) Mentorship
program.
Programmatic and Focused Research and
Development Agenda
– Mechatronics Acquisition Knowledge
and Innovation Action Center ( MAKINA)
• Factory automation and process controls
• IT applications and enterprise technology solutions
including web design
– Publication of the Philippine Journal on
Innovation and Entrepreneurship
– International Publications and International
Conference Presentations
– Green Enterprises Community of Practice
•
•
•
•
•
Biodiversity Enterprises
Bamboo Industry Value Chain Development
Climate Resiliency for SMEs
Wastewater Development
Energy Efficiency and Environmental Management
PREMIER POLICY THINK TANK ON INNOVATION
TECHNOLOGY ENTREPRENEURSHIP , QUALITY
AND PRODUCTIVITY IMPROVEMENT
– Position papers /White Papers / monographs
/think papers on House /Senate Bills on
Entrepreneurship and burning SME issues
– Public forums/ Symposiums/ Roundtable
discussions / Strategic conversations/
dialogues on burning and critical
technology, innovation and entrepreneurial
issues
• Burning SME Issues and Solutions
Interactions ( BUSISI) – ASEAN
Integration 2015
National Knowledge Management
Nucleus on Innovation, Quality,
Productivity and Entrepreneurship
– Digital Innovation and SME
information Hub and Nucleus and enetworking with other SME networks
nationally and internationally
– E-book store
– E-emporium
– Phl SME Benchmarking Center
– Small Enterprise /Start Up
Incubation
Entrepreneurship
Research
Trajectories
•
•
•
•
•
•
•
•
•
•
Some Policy Implications and
Strategies- Entrepreneur
Capability building for entrepreneurs – experiential-based
Accelerated Training by Public Training Institutes
Subsidized Training for SMEs
Compulsory Training for SMEs
Training Levies
Apprenticeship
Best Practices Network
General Taxation to Finance Training
Fiscal Incentives to Reward Training
Education and training institutes on quality, productivity
and technology.
• Accelerated skills training and certification for SMEs
Some Policy Implications and
Strategies – Networks
• Set-up the national quality infrastructure that will
converge and standardize the metrology, calibration,
standardization, testing, certification, accreditation, and
conformance systems that will cater especially to the
SME sector.
• Establish the best practices network for SMEs that will
develop and share best practices in all aspects of
business operations and technology acquisition and
diffusion.
• Accelerate the use of internet and ICT for SMEs. Internet
marketing for SMEs. Establish e-centers to enhance
access knowledge and technology especially those in
remote areas. Bundle communication technologies with
business applications and other services for SMEs.
Some Policy Implications and
Strategies – Networks
• Certify SME clusters to internationally accept
global standards and requirements. This is a
cost-effective and efficient option for levelling up
the technology and competitiveness of the SMEs
especially those exporter- SMEs and those that
belong to the industry cluster chain.
• Set up common service facilities and technology
assistance centers. DTI SSF
• Establish a formal SME measurement,
evaluation and performance improvement based
on a credible statistical system .
Some Policy Implications and
Strategies – Networks
• Align the Export Pathway Program Priority
Sectors with the OTOP Regional clusters
and the SETUP Sectors and the
innovative ISTIV to achieve optimum
impact and focus
• Converge and bundle the services offered
to target individual SMEs and SME
clusters to optimize benefits from the
assistance
• Accelerate the setting up of TBI and Small
Business Incubation Centers (SBIC)
Some Policy Implications and StrategiesNetworks and Business environment
• 24/7 SME assistance center
• Information and market materials in different
languages
• Public Marketing of SME products – SME
restricted procurement
•
Big brother small brother supply chaining
• Clustering and market “ hubbing “
Some Policy Implications and StrategiesNetworks and Business environment
•
Expanded micro-financing and risk-based
lending services
• Interest-free loans and credit guarantee
systems
• Streamlined and efficient government
services provision
• Cooperatives and SME upgrade
collaborative programs
nraneses @gmail .com
nestor.raneses @upd.edu.ph
WAR
We Are Ready
VOICE OF THE FUTURE: VISION 2015
• National Institute for Innovation and Entrepreneurship (
NIIE) & UP's catalyst for an Entrepreneurial University (
2013- 2015)
– Virtual graduate degree program on technology entrepreneurship and innovation
with the Technology Management Center, College of Engineering, College of Business
Administration, College of Home Economics, College of Fine Arts , Asian Institute of
Tourism etc.
– UP Executive Arm for Operational Excellence and Innovation with UP Executive
Leadership Academy and Management Development Institute for UP Non-Teaching
– Research and development powerhouse on Innovation, Technology, Quality and
Productivity and Entrepreneurship
– Preferred total capability building (training) and development service provider on
Innovation, Quality, Productivity , and Entrepreneurship
– National Knowledge Management Nucleus on Innovation, Quality, Productivity and
Entrepreneurship
– Premier Policy Think Tank on Innovation , Technology Entrepreneurship , Quality and
Productivity improvement
– Globally certified organization ( IMS- ISO 9001+ISO 1401+ISO 50001 + OSHAS 18001)
Virtual Graduate Degree Program on
Technology Entrepreneurship and Innovation
(2014)
– Joint program with TMC, College of Engineering , College of
Business Administration , College of Home Economics, College of Fine
Arts, Asian Institute of Tourism, and other UP constituent units and
even other HEIs
– UP Entrepreneurship Council and Industry Advisory Council to be
chaired by UP President
– Internationalization program with selected international institutes
– in progress is with German Development Institute for graduate
students advisorship/sandwich program
– Visiting professorship or research exchange program
– Expertise and specialization on Cluster Analysis, Value Chain
Analysis and TRIZ-based Innovation
UP Center for Operational Excellence (2013- 2015)
Executive arm for UP’s Strategic Initiatives on Operational Excellence
& Administrative Efficiency
• UP Management Development Institute
• Training, certification , competency development and
professionalization of the leadership and support services of the
University – Human resources planning and performance
management , Procurement and logistics, Facilities and utilities
management , Process management, improvement initiatives
• UP Executive Leadership Academy
• Training and orientation of deans, directors and
other university officials
– Leadership, Strategic planning, Customer Focus , Human
Resources Financial Planning and Budgeting, Process
Management, Measurement , Analysis and improvement
Programmatic and Focused Research and
Development Agenda ( 2013-2015)
– Green Enterprises Research Program
Focusing on introducing community of practice (COP) and innovative
programs on clean production technology (CPT) , sustainable
consumption and production (SCP), productivity and quality improvement (
PQI) , greening and leaning through energy and environment ( GLEEM) ,
safety and risk management ( SaRiM) , Climate change Adaptation &
Disaster Reduction (CADre) for SMEs .
–
Enterprise Upgrade Models and Studies
- Development of multi-causal models for enterprise upgrade that can be used
–
for growing techno-based enterprises
Continuing Impact Evaluation Studies - Impact evaluation studies of
intervention programs on entrepreneurship and SME development using
experimental and quasi-experimental methods for policy and program
improvement .
– Intellectual Property Rights (IPR)/ Innovation
Research
• Enterprise Kiosk ( copyright ) ; e-syob™ ( trade/service mark )
• Pioneering programs - GLEEM™, PLANET™, PROFIT™, ROVEER™ IOSA™
,BITES™, MAKINA™
• Small Business Innovation Incubation Center (SBIIC) and the Business
Innovation Techno-based Entrepreneurship Students
Programmatic and Focused Research
and Development Agenda (2013-2015)
– Mechatronics Acquisition Knowledge
and Innovation Action Center ( MAKINA)
• Factory automation and process controls
• IT applications and enterprise solutions including web
design
– Publication of the Philippine Journal on
Innovation and Entrepreneurship ( 2013 )
– International Publications and International
Conference Presentations
– Green Enterprises Community of Practice
•
•
•
•
•
Biodiversity Enterprises
Bamboo Industry Value Chain Development
Climate Resiliency for SMEs
Wastewater Development
Energy Efficiency and Environmental Management
Most preferred total capability
building (training) and development
service provider (2013-2015)
– Grow target outreach and geographical coverage
– Level up at least 15 regular programs as fullpledged certification programs with continuing
education units
– Establish the ROving Virtual academy on
Excellence in Entrepreneurship ( ROVVER) program
– Internationalize at least 6 to 9 programs (2
to 3 programs/year)
Most preferred total capability
building (training) and development
service provider (2013-2015)
– Institutional accreditation of programs
– Ladderized Programs for selected HEIs
– Specialized innovative targetted capability
building programs
•
•
•
•
•
Biodiversity enterprises with DENR, DTI, and LGUs
PROFIT, GLEEM & P-TRACE -Food Industry
Technology Solutions for SMEs
Packaging Solutions for SMEs
Enterprise Management Solutions for Cooperatives
National Knowledge Management Nucleus on
Innovation, Quality, Productivity and
Entrepreneurship ( 2013-2015)
– Digital Innovation and SME information Hub
and Nucleus and e-networking with other SME
networks nationally and internationally
– E-book store
– E-emporium
– UP ISSI website
– That’s Entreptainment DZUP
– Documents Management System ( DMS)
–UP ISSI Wallnews
Premier Policy Think Tank on Innovation ,
Technology Entrepreneurship , Quality and
Productivity improvement (2013-2015)
– Position papers /White Papers / monographs /think
papers on House /Senate Bills on Entrepreneurship
and burning SME issues
– Public forums/ Symposiums/ Roundtable
discussions / Strategic conversations/ dialogues on
burning and critical technology, innovation and
entrepreneurial issues
• Burning SME Issues and Solutions Interactions (
BUSISI) – AFTA Integration 2015
Globally certified organization ( IMS- ISO
9001+ISO 1401+ISO 50001 + OSHAS 18001) (
2013-2015)
–Green and lean UP ISSI –
demonstration model for UP (
energy efficient lighting, inverter
technology air-conditioning and
passive cooling, rain harvesting,
solar-powered ,motion sensors ,
–BERDE/LEED compliant )
Globally certified organization (
IMS- ISO 9001+ISO 1401+ISO 50001
+ OSHAS 18001) ( 2013-2015)
– Professional staffing and succession
planning – qualified and certified to
his/er positions per ISSI
organizational plantilla
• training saturation rate of 100% ,
saturation rate of at least 80 hours per
staff/year
• One training module or one publication
or conference paper per staff per year
• Stable of top-notch affiliate faculty ,
pracdemics, industry practioners, and
entrepreneurs