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99.61% (823,558) are classified as micro, small and medium scale enterprises (MSMEs). MSMEs account for 53% of total employment generated by registered enterprises and represent around 60% of all exporting firms in the country. (NSO data) Recognizing the critical role of MSMEs in generating employment, earning foreign exchange and stimulating growth and development particularly in the rural areas, President Gloria Macapagal Arroyo has refocused economic policies to support and sustain the growth of the manufacturing sector through the development of MSMEs. The President also called for efforts to expand domestic markets and assist MSMEs in penetrating nontraditional markets for sustained growth and competitiveness. To help provide some if not all of these needs, the Department of Science and Technology (DOST) launched the Small Enterprises Technology Upgrading Program (SETUP) in response to the Presidents call for more focused programs of assistance for MSMEs. SETUP is a nationwide strategy to encourage and assist MSMEs to adopt technological innovations to improve their operations and thus boost their productivity and competitiveness. The program enables firms to address their technical problems through technology transfer and technological interventions to improve productivity through better product quality, human resources development, cost minimization and waste management, and other operation related activities. OBJECTIIIVES OBJECT V ES OBJECT VES SETUP hopes to assist MSMEs improve their productivity and competitiveness through the: Infusion of new/advanced technologies to improve operations of MSMEs; Provision of limited funds for technology acquisition; Manpower training, technical assistance and consultancy services; Design of functional packages and labels; Assistance in the establishment of product standards including testing; Database information system.

PRIIIORIIITY SECTORS PR O R T Y SECTORS PR OR TY SECTORS SETUP will cover the following sectors: Food Processing Furniture Gifts, toys, housewares, handicrafts, natural fibers and dyes; Marine and aquatic resources Horticulture (Cut flowers, fruits and high value crops) Metals and Engineering

BENEFIIITS BENEF T S BENEF TS The beneficiaries shall be able to: 1. 2. 3. 4. 5. 6. Address current problems Get free technical advice from the consultants Avail of technical training courses for workers/employees Acquire new equipment to mechanize and/or improve production line through venture funds Standardize and improve the quality of products Be competitive

DOST STRATEGIIIES TO ASSIIIST MSMEs DOST STRATEG E S TO ASS S T MSMEs DOST STRATEG ES TO ASS ST MSMEs To attain its objectives, the program has five major strategies. Provision of Technology Technology needs assessment and sourcing technology Seed fund for technology acquisition Manpower training Consultancy and Technical Advisory Services of

Who may Appllly? Who may App y? Who may App y? 1. 2. 3. Any company or individual firm that is based in the Philippines and wholly owned by Filipinos citizens. Any small and medium scale business firm that can be classified under the identified priority sectors. Individual firm that is willing to apply technological improvements in their existing operations.

How tto Appllly? How to App y? How o App y? 1. 2. Identify current problems, improvements, and potential technological interventions needed. Send a letter of interest to avail of the SETUP assistance together with the requirements to the DOST Regional Directors Office where the company is based. If the project is found viable, the DOST Regional Office endorses it to the National Program Managerment Office for evaluation and final approval.

Product Standards and Testing Development of product standards with DTI-BPS (Dept. of Trade & Industry-Bureau of Product Standards) Product testing and enhancement of testing laboratories

Packaging and Labeling Development of functional designs for packages Identification and development of suitable or alternative packaging materials especially from indigenous materials


Whatt documentts mustt be submiiittted? What documents must be subm ttte d? Wha documen s mus be subm ed?

Database Management and Information System List of available technologies List of S&T experts List of testing laboratories including available testing services Development of website for MSMEs for product promotion and access to information

Linkaging and Networking Raw material sourcing Marketing Financing Equipment design and fabrication

Full-blown project proposal o Technical Aspect o Marketing Aspect o Management/Administrative Aspect o Financial Aspect o Waste Disposal Copy of business permit and licenses (LGU) Certificate of Registration of Business Name with DTI, SEC or CDA Board resolution authorizing the availment of SETUP assistance and designating authorized signatories for project documents such as MOA (if applicable) Endorsement of the Regional Director Three (3) quotations from suppliers/ fabricators if equipment is needed

PROJECT PROPOSAL FORMAT / CONTENTS Project Title: (Must already be able to reflect the goal of the project ) Proponent : (Company Name, Contact Person - position, Address, Tel/Fax, No., E-mail) Project Cost: (Total project cost including counterpart of the proponent) Amount Requested: ( DOST counterpart or amount requested from DOST ) Objective/s: ( Purpose / target accomplishment of the project ) Background: a. Company profile (other information ownership, registration, type of business, capitalization, year established, processes, business activity, no. of employees/skills/expertise, etc.) b. Organizational structure c. Production site area / location d. Products e. Cost of production f. Product selling price g. Production volume h. Production capacity of the plant/shop i. Raw materials used j. Source of raw material Marketing Aspect: a. Market Situation (status of the market / demand for products) b. Current market outlets for the products (local/export) c. Competitors d. Existing problems (if any) e. Market plans / strategies Technological Aspect: a. Production process/es b. Existing equipment c. Production capability d. Technical constraints on production line e. Personnel skills that are handicapped without the technology(ies) f. Proposed technology and skills upgrading intervention g. Equipment specifications (rated capacity, power supply, dimensions, drawings), h. Cost of equipment i. List of equipment fabricators (if any) j. Importance of additional equipment and personnels training k. DOST intervention / schedule of activities l. Expected output / Impact results (measured results) contribution to the production line / process additional volume of products percentage decrease in rejects percentage increase in productivity percentage increase in sales Number of clients added improved quality / appearance of the product/s Others (please specify) Waste Management / Disposal: a. volume of waste generated monthly b. kinds of wastes (plastics, paper, metals, chemicals, pollutants, etc.) c. how they are disposed Financial Aspects: a. Financial capacity b. Financial constraints c. Cash Flow / Financial Statement d. Proposed project budget / capital outlay (Line-item-budget) e. Proposed repayment scheme / mode of payment

For more details, write or call: ENGR. RENE BURT N. LLANTO Regional Director Email: ENGR. EDILBERTO L. PARADELA Asst. Regional Director for Technical Operations Email: ENGR. JESUS F. ZAMORA, JR. Executive Manager for Tech. Support Services Email: Department of Science & Technology Regional Office No. 7 Gov. Manuel Cuenco Ave., Cebu City Telefax Nos. 231-1916; 416-2335; 231-7014; 232-8632 Or you may contact the Provincial S&T Centers in Central Visayas: ENGR. SAMUEL A. PARCON Provincial S&T Director Cebu Provincial S&T Center Gov. Manuel Cuenco Ave., Cebu City Telefax No. 232-8632 Email ENGR. MARCIAL M. TANGGAAN Provincial S&T Director Bohol Provincial S&T Center Unit B, Ceballos Bldg. 118 JA Clarin St., Tagbilaran City, Bohol Telefax Nos. (038)411-3620; 501-7070 Email ENGR. GILBERT R. ARBON Provincial S&T Director Negros Oriental Provincial S&T Officer 24 Yakal St., Daro, Dumaguete City, Negros Oriental Telefax No. (035) 225-4551; 422-2300 Email ENGR. MARIO E. DE LA PEA Provincial S&T Director Siquijor Provincial S&T Officer Siquijor, Siquijor Telefax No. (035) 480-9018; 344-2008 Email DEPARTMENT OF SCIENCE & TECHNOLOGY Regional Office No. 7

Small Enterprises Technology Upgrading Program






SETUP Brochure Revision 1 May 17, 2010