MAKATI CITY—Pushing to set the directions of the next six years towards MSME growth and development, Department of Trade and Industry (DTI) Secretary Fred Pascual convened the Micro, Small and Medium Enterprise Development (MSMED) Development Council during the 18th National MSME Development Council Meeting held on 2 December 2022 at the Philippine Board of Investments.
Accounting for 99% of business establishments and employing 64% of its workforce in the country based on the 2021 report of the Philippine Statistics Authority (PSA), MSMEs are hard-hit by the COVID-19 pandemic and related economic downturn.
One of DTI’s strategic actions is to develop innovative micro, small, and medium enterprises (MSMEs), including entrepreneurial startups. This strategy will accelerate MSMEs’ growth by enabling them to scale up from micro to small, small to medium, and medium to large, while further preparing them for digital transformation.
“For the next six years, we hope to push for the digitalization and innovation of MSMEs. Innovation and digitalization will enable MSMEs to participate in global value chains, enhance their digital and entrepreneurial competencies and access management and workforce skills”, said Secretary Pascual.
One of the Council’s major plans for 2023 includes the development of the Omnibus MSME Code that will address prevailing gaps on existing MSME laws and measures. This will also create a more uniform source of information for all MSMEs and for the general public. The meeting also discussed possible redefinition of MSMEs, the celebration of 2023 National MSME Week, and further updates on the crafting of the MSME Development Plan 2023-2028.
With the need for a conducive enabling environment for MSMEs becoming more pressing in the wake of the pandemic, the Council affirms its commitment to building a well-supported and engaged space for MSMEs and to address constraints related to access to finance, technology, and the market for MSMEs to continue to expand their knowledge, upscale their digital capabilities, and improve their business operations.
The Republic Act (RA) No. 6977 also known as the Magna Carta for MSMEs, which is further amended by RA No. 10644, facilitated the creation of the MSMED Council to effectively spur the growth and development of MSMEs.