Philippine Business

for Social Progress

“Our vision is to be the leader in promoting business sector

commitment to social development.”

Business Advisory Program

 The PBSP Beginnings
• Established in 1970 by 50 business
leaders

• Collective Response of Business to

Development Imperatives

• Patterned after Dividendo Voluntario

para la Comunidad in Venezuela, where
voluntary corporate contributions based
on an annual percentage of profits finance
social development projects

Business Advisory Program

 MISSION
PBSP is committed to the
empowerment of the poor
by promoting business
sector leadership in, and
commitment
to poverty alleviation
programs
that lead to self-reliance.
reliance
Business Advisory Program
 TYPES OF INVOLVEMENT

CEO Time & Financial Grants &

Leadership Program
Assistance

Employee Product
Engagement Giving/
(Volunteering In-Kind
& Giving) Donation
Business Advisory Program
 POVERTY ALLEVIATION PROGRAMS
• Area Resource Management
• Education
• Water and Health
• Small and Medium Enterprise
Development
• Information Technology

Business Advisory Program

 Enterprise Development
Through Business Advising
The PBSP Business Advisory Program

Business Advisory Program

 • PBSP-BAP
delivers business
advisory services,
through the
assistance of
Filipino volunteer
advisers, to help
micro and small
enterprises
improve and grow
their business

Business Advisory Program

 Business Advisory
Program (BAP)

• A program in partnership with the

Canadian Executive Service
Organization (CESO) supported
by the Canadian International
Development Agency (CIDA)

CESO l SACO

Business Advisory Program

 Canadian Executive
Service Organization (CESO)
• A private non-profit Canadian organization of
expert business advisers providing assistance
to small and medium sized enterprises,
communities and organizations. It has over
3,500 volunteers with solid experience in
more than 150 professional, management
and technical areas who serve as advisers,
trainers, and mentors to Clients in Africa,
America, Asia, Central and Eastern Europe.

Business Advisory Program

 Canadian International
Development Agency (CIDA)

• Supports sustainable development in

developing countries in order to reduce
poverty and to contribute to a more secure,
equitable and prosperous world.

Business Advisory Program

 Why SMEs development?

• The SME sector is the backbone of

the Philippine economy*:
– comprises about 99.2% of all
registered firms nationwide
– employs 69.9% of the labor force
– contributes 32% to the economy.

*SME Development Plan 2004-2010

Business Advisory Program

 Focus on Micro and Small
Enterprises*
• help ensure a more equitable
distribution of income
• disperse economic activities to the
countryside
• potent force in the war against
poverty.

*SME Development Plan 2004-2010

Business Advisory Program

 Business Advisory Services:

• Organizational Management
• Marketing
• Accounting & Finance
• Production/Operations Mgt.
• Information Technology

Business Advisory Program

Focus Sectors:

SMALL MFG. TOURISM

AGRIBUSINESS FOOD PROCESSSING

Business Advisory Program

 Client Profile
• Asset size:
– P150,000-P3M 60%
– P3M–P15M 35%
• Ownership:
– Single Proprietorship
– Family-owned
• Sector:
– Food, 33%
– Small Manufacturing, 41%
– Tourism/Services, 17%
– Agribusiness, 9%
Business Advisory Program
 How do we deliver?
• Application
• Client visit & diagnostics
• Client-VA matching
• Entry conference / VA deployment
• Assignment progress monitoring
• Closing / debriefing
• Evaluation of outcome & impact

Business Advisory Program

 Advisory Service
Delivery
163 Applications for assistance (33 Clusters)
128 Advisory assignments (17 Clusters)
68 Completed assignments (3 Clusters)

Business Advisory Program

 Increase in
Sales

Increase in New
Productivity More Products/Markets
Enterprises
Advancing in
Business
Performance
Levels

Operating Addtl
Efficiency Investment
Business Advisory Program
 MORE ENTERPRISES ADVANCING
IN BUSINESS PERFORMANCE LEVELS

Increase in
Sales

SLERS Industries, Inc.

Market Devt ( May 2006)
Orgl Structure Enhancement (On-going)

• Expanded business from meat processing to SLERS Express Restaurant.

• Developed new product - chicharon
• Business expansion to franchising of chicharon called “pica’pica”: 2 in Limketkai, 2 in Oro
Rama, 1 in Gaisano Mall in Cagayan de Oro; 1 Gaisano mall in Davao City
• Increased in sales from Php3,337,000/day in 2006 to Php4,583,000/day in 2007 or 37%
increase
Business Advisory Program
 MORE ENTERPRISES ADVANCING
IN BUSINESS PERFORMANCE LEVELS

New
Products/Markets

Bulacan GTH Cluster (4 enterprises)

Product Design & New Product Devt ( Sept 2007)

• At least 3 new products/designs developed by each of the enterprises

• New products/designs being sold in all National Bookstore outlets nationwide

Business Advisory Program

 MORE ENTERPRISES ADVANCING
IN BUSINESS PERFORMANCE LEVELS

Additional
Investment

Mindanao Agri-Network Corp.

Market Plan Devt ( Mar 2006)
Business Plan Devt (Aug 2007)

• Acquired P2 Million loan from FPSDC using the business plan developed with VA

Business Advisory Program

 MORE ENTERPRISES ADVANCING
IN BUSINESS PERFORMANCE LEVELS

Operating
Efficiency

Lailen’s Pastries
Productivity Improvement ( Mar 2005)
Product Quality & Production Process Improvement (May 2007)

• Improved production process flow observing safety & sanitation standards

• Standardized product specs using scientific measurements
• Product shelf-life increased

Business Advisory Program

 MORE ENTERPRISES ADVANCING
IN BUSINESS PERFORMANCE LEVELS

Increase in
Productivity

Katakus, Inc.
Computerization of Inventory System ( July 2006)
Marketing Plan Devt (Feb 2008)

• Proper monitoring of stock inventory

• Timeliness in designing and producing products

• 75% increase in production volume due to computerized inventory system

Business Advisory Program

 JOB GENERATION
JOBS GENERATED: 414
Male – 228 (55%)
Female – 186 (45%)
DOCHSEI:
115 coconut farmers in 4
municipalities in Davao Or.
provided jobs
MANCOR:
290 organic rice farmers
assisted in marketing their
produce
Business Advisory Program
 MORE ENTERPRISES ACCESSING
BUSINESS RESOURCES EFFECTIVELY

• 3 Clients provided P1.9M from LGUs and Govt. Line Agency

• Bohol Poverty Reduction Mgt Office – provided P1M budget by

Bohol Provl Govt for centralized acctg system, purchase of
computer, staff training & other logistical requirements per VA
recommendation
• Sultan Kudarat Muscovado Farmers & Millers Corp – provided
P600K loan by Pres. Quirino Municipal Govt for re-lending to
muscovado sugar producers to improve production equipment
• Charis Nutri-Fruit Bars – provided P300K equipment loan by
DOST for ice cream mixer designed by VA

Business Advisory Program

 MORE ENTERPRISES ACCESSING
BUSINESS RESOURCES EFFECTIVELY

• 2 Clients provided P2.3M by foreign funding agency and

private financial credit institution

• Mindanao Agri-Network Corp – provided P2M loan by FPSDC

for additional working capital using business plan developed
with VA
• Katakus, Inc. – provided P300K grant from a US donor (Geneva
Global) for fabrication of new production equipment

Business Advisory Program

 Volunteer Advisers
Total of 572 VAs nationwide

Business Advisory Program

 CHALLENGE
INCREASED CLIENT REACH VIS-À-
VIS AN EFFICIENT AND EFFECTIVE
SERVICE DELIVERY

Business Advisory Program

 CREATING PARTNERS

1. DEVELOPING CLUSTER

2. DEVELOPING LGU-LED (LOCAL ECONOMIC

DEVELOPMENT) PROJECTS

Business Advisory Program

 DEVELOPING PARTNERSHIP
THROUGH CLUSTERING

Grouping of enterprises to collaborate towards

commonly articulated and agreed results and directions

Business Advisory Program

 How We do Clustering?
The value-chain-clustering model in three variations, namely, lead enterprise
cluster, the lead product cluster and lead operating results is adopted.

The Lead Enterprise Cluster builds critical backward linkages around a

lead enterprise. It assumes that business gains of the latter directly benefits
backward links.
Sub-Contractor Sub-Contractor Sub-Contractor Sub-Contractor
1 2 3 4

More Orders
Increased Increased
Production Lead Enterprise Export
Capacity Sales

Example. Cebu GTH Subcontractors’ Development Program

Business Advisory Program

 Lead Product Cluster
This model focuses on the product with the best competitive advantage.
Clustering around the lead product assumes that participants will be
catalyzed to collaborate in promoting and developing the lead product.

Increased business Increased Increased Increased

for raw material- business for business for business for
producers service providers processors consolidators

Improved Business
Increased Improved
Production Lead Product Technology
of RM

Example. Furniture is lead product of Guagua.

Business Advisory Program

 Lead Operating Result Cluster
This clustering model focuses on key performance areas leading to a central
value. It assumes that improvement in particular key performance areas will
trigger creation of desired conditions sought by cluster participants.

Increased Access to
Exports

Better Qualified
Exporters

Improved Improved Product Improved Improved

Production Designs Marketing Technology

Example. SKMFMC sought to develop and link members to export markets

Business Advisory Program

 WHAT IS LGU-LED?

LGU-LED IS A PARTNERSHIP STRATEGY CENTERED ON ENABLING

LGUs TO LEAD LOCAL BUSINESS TO HARNESS LOCAL ECONOMIC
POTENTIALS

THE PROCESS BEGINS BY IDENTIFYING AN ENTRY POINT THAT WILL

PERSUADE LGUs TO WELCOME PARTNERSHIP

LIKE CLUSTERING, STRATEGIC PLANNING IS USED AS PRIMARY TOOL IN

DEFINING THE GOAL FOR THE PARTNERSHIP, PROBLEMS TO ADDRESS WITH
RESPECT TO THE GOAL, OBJECTIVES, ACTION PLAN AND DEFINITION OF
ROLES.

Business Advisory Program

 31 MARCH 2008

Business Advisory Program

 CHALLENGE
BRINGING BAP TO PBSP
BENEFICIARIES

Business Advisory Program

 PBSP Enterprise Development Framework
Subsistence Livelihood Micro Small Medium

Micro (non-business) Growth oriented (business)

FINANCING
-Grant Capital (SMEC,OPN,others)
-In kind assistance(group/individual) Group/individual
-Agri/non-agri Agri/non-agri
-Advocacy

NON-FINANCING

-Organizing Business Development Service

-Establishment of infra BAP, CRTD, SAMAR, TC
Competitive MSMEs
-Value formation that create job
-Technology Transfer opportunities
-Advocacy

Business Advisory Program

 CHALLENGE
SUSTAINING DEVELOPMENT

Business Advisory Program

 SME ENVIRONMENT: THE HORIZONTAL DEVELOPMENT CONTINUUM
Inter- Industry
Industry Level Level Dev’t

Sector Level Dev’t

Dev’t - Creating partners with
- Creating partners with other industries
Enterprise
other sectors in the - Consolidating support
Level Dev’t. - Creating partners
industry mechanism
with other
members in the - Creating support - Sustaining “brand
sector mechanisms image”, confidence of
Distinct -Sustaining - Creating synergy - Sustaining edge and market and penetrate
Need to be competitive expand markets markets
business - Developing edge &
- Coping with sustain mkt.
growing business foothold
intricacies
- Multi sector cluster - Multi industry cluster
- Sector cluster -Convergence w/ other programmatic
- One-on-one collaboration w/ other sectors & partners convergence w/ other
Mode of provision of basic sector members - Enhance industry industries & partners
Assistance mgt. skills - Enhancement of optn. support systems - Multi industry support for
and mgt. skills program dev’t.

Business Advisory Program

 LESSONS LEARNED
1. Individual SMEs have limited resources thus the
need to source outside resources to complete
requirement for growth
2. Working with partners harmonizes actions
toward the same direction & creates synergy
towards more & better development results
3. Mainstreaming the informal sector to the formal
sector requires structured interventions based
on their category level and identified role in the
value chain

Business Advisory Program

 PBSP-BAP
Helping micro and small
enterprises grow through
business advising.

Business Advisory Program