Strategic Directions of MSME Development

• Vision

• Focus areas, goals, strategies, and action plans

• Cross-cutting strategies

• Institutional support

• Other priority areas

MSME Plan Development 2017-2022 Framework Elements

Vision

The Plan's development framework is anchored on the medium-term vision that by 2022: More globally competitive MSMEs that are regionally integrated, resilient, sustainable, and innovative thereby performing as key drivers of inclusive Philippine economic growth.

• Globally competitive MSMEs

• Productive and innovative MSMEs

• Regionally integrated MSMEs in the ASEAN

• Resilient MSMEs

• Highly sustainable MSMEs

MSME Plan Development framework Vision implies:

Globally competitive MSMEs

Which can deliver innovative products and services that are. preferred by consumers locally and internationally;

Productive and innovative MSMEs

Which can continuously develop and transform competitive products and services that satisfy the demands of a discriminating market;

Regionally integrated MSMEs in the ASEAN

With diversified markets and partnerships in global markets

Resilient MSMEs

Which are capable of coping and overcoming negative effects of human-made and natural adversities

Highly sustainable MSMEs

Which can withstand the ever changing demands of the market, make profits without harming society and environment, and turn challenges into business opportunities.

FOCUS AREA 1: BUSINESS ENVIRONMENT

This pertains to the general background, situation, or milieu - the "ecosystem" as it were — in which businesses are born and thrive in.

FOCUS AREA 2: BUSINESS CAPACITY

Business capacity can be described as the highest output that an enterprise, business or organization can deliver its products or services in a given amount of time with the available resources.

FOCUS AREA 3: Business Opportunities

A business opportunity may be explained as a bundled investment that allows an MSME to utilize knowledge and opportunities of the market successfully engage in it.

Cross-cutting Strategies

Encompassing all the above-mentioned that need to be pursued because of their significance to the overall strategies.

• Expand MSME Assistance Centers

• Strengthen LGUs' roles

• Promote Green Growth

• Promote Women and Youth Entrepreneurship

• Promote Digital and Internet Economy

The five cross-cutting strategies that may be pursued are:

Expand MSME Assistance Centers

In the implementation of the previous Plans, the presence of MSME assistance centers were seen as crucial to the immediate success and long-term viability of the MSMEs.

Strengthen LGUs' roles

A supportive LGU will spell the difference in getting a local MSME get its product or service to market or not.

Promote Green Growth

Resource efficiency and cleaner production is essential to competitiveness. MSMEs have to implement environment-friendly and climate-smart processes and practices to reduce production costs, produce green products and services, and prepare for the impacts of climate change.

Promote Women and Youth Entrepreneurship

The need for a heightened focus on women and youth entrepreneurship is integral in achieving inclusive growth and development in the country.

Promote Digital and Internet Economy

The pervasiveness of fast-paced advances in Information and Communication Technology (ICT) affects both MSMEs and enablers alike on multiple levels. The digital and internet economy facilitates growth and inclusiveness that allow MSMEs to be more competitive, and foster greater integration among government policies through modernization.

Effective coordination, complementation, and sharing among national and local government agencies together with MSME business groups, academe and NGOs advocating MSMEs.

Institutional Support may include:

Generation of relevant information/data in plan implementation and its needed analysis for timely dissemination to stakeholders and MSMEs for use in planning, budgeting, and M&E.

Institutional Support may include:

Responsive, timely, graft-free, and effective services by implementing agencies and its personnel complement to the MSMEs.

Institutional Support may include:

Close geographical and sectoral monitoring and evaluation of plan implementation so that timely update and adjustments can be undertaken.

Institutional Support may include:

Necessary budget allocation equitably distributed regionally for all indicated programs/projects/activities and its timely releases for effective plan implementation.

Institutional Support may include:

Policy review of existing laws, rules, and procedures, and formulation of timely, responsive, and relevant policies/amendments to promote and sustain MSMEs.

Institutional Support may include:

• Registering informal MSMEs (particularly Micro)

• Graduating businesses to the next level

• Resilience and business recovery

• Academe-Industry Collaboration on Research & Development

• Industry Cluster Development

Other Priority Areas

Registering informal MSMEs (particularly Micro)

As the vast majority of small businesses are micro, moving them into the formal sector will greatly. boost their chances of accessing formal, cheaper financing as well as government assistance to connect them to customers and suppliers.

Graduating businesses to the next level

Registering businesses and entering them into the formal sector will give them greater opportunities to move up the value chain.

Resilience and business recovery

Business resilience in the face of natural and man-made disasters is vital to the continuity of communities.

Academe-Industry Collaboration on Research & Development

Academic circles such as universities, colleges, and technical/vocational schools provide many new ideas for businesses that create new products or services, or innovate on existing products and services that promise to bring satisfaction and delight to the customer.

Industry Cluster Development

The development and promotion of industry clusters are identified as a major strategy in helping achieve its vision of a globally competitive and innovative industry and services sector that contributes significantly to inclusive growth and employment generation.