EDITORIAL

Growth of SME’s Depends On
Commitment And Strategy

by Ernesto T. Solidum

The Asian Development Bank forecast, the Philippines’ Gross Domestic Product (GDP) will reach 4.7 percent this year instead of 5.1 on account of sluggish exports, public under spending and lacklustre job creation.

The Weekly Kapihan forum on September 17, 2011 discussed local issue with provincial Economic Managers who are Jarius M. Lachica, Provincial Director, DOST, Blas M. Solidum – Provincial Census Officer, Ely G. Arensol – TESDA, Vivian Ruiz Solano – Provincial PESO Manager, Stella R. Caldera, TIDS, and Rosalie A. Panganiban, TIDS–DTI, and Roselle Q. Ruiz – Provincial Tourism Officer.

Ms. Caldera said, their August 2011 report revealed Aklan exports grew from $.20 million in 2010 to $.94 million or 369 percent over last year. Investments rose from P126.76 million to P197.31 million or 47 percent higher for the same period. Robust performance came from nitto, natural fibers: abaca-silk, and piña handicraft, woodcraft all consigned to the US and Japan. Domestic sales are yet to catch up with P114.92 million during the period, lower than 11.5 percent than last year. The same is true with jobs generation of 2,855 or negative 3.5 percent.

As to new businesses registered, there is a total of 997 and 198 renewed.

Ruiz revealed that provincial tourism receipts as of August 31, 2011 totalled P11.53 billion. This is broken down into P7.93 billion representing 229,444 foreigners and P5.30 billion locals numbering 398,167. Compared to the same period last year, there is a nine percent increase in tourist arrivals due to the upgraded KIA facility and increased flights frequency from Beijing, Hangchow, Taipei, and Fusan.

Due to the influx of tourists, DOT is conducting socio-economic profiling to know better clientele needs and preferences. Foreign tourists stay at an average of 8.3 days and spend P4,166 while locals stay 4.7 days and spend P2,833, Ruiz declared.

Solano reported PESO Aklan recently has sent 82 contractual overseas jobs in Hongkong, Kuwait, and Kingdom of Saudi Arabia, majority of whom are Nurses, Caregivers, Masons, Cooks, and Domestic Helpers. Records show, four fifths or 8 of every 10 applicants fail in the job interview.

A number of hotels, banks, and shopping malls are in need of qualified cashiers, tellers, cooks, waiters, waitresses, and clerks reported the Lady Manager.

Lachica revealed DOST is into technology transfer and commercialization. It has agencies implementing its vision and mission particularly in development and strengthening of Small and Medium Enterprises (SME’s) like: a) food processing industry, b) manufacturing – metalcraft, woodcraft, bamboocraft, handicraft (abaca – piña, loom weaving and mat weaving, and c) agriculture and fisheries – high value crops and aquaculture.

DOST is engaged in upgrading business operation like financing acquisition of machines, improvement of manufacturing process, and right packaging materials. Loans from P50,000 to P2 million based on the need of clientele at no interest, and payable within 3 years are available.

There is funding release of P428,000 worth of equipment for bamboocraft in Malinao, P302,200 – bariw impacting machine for palm weavers in Nabas, and P400,000 for Fiber Development in coordination with ASU. DOST will strengthen the capability of small businessmen producing coco sugar with initial purchase order from Norway of 4 tons every two months. According to Lachica, Iloilo and Negros are already into commercial production of fruit wines from duhat and mangoes.

Arensol reported TESDA is involved in vocational skills program at its Training center in Laguinbanwa, Numancia. Scholarship is offered to all high school graduates who passed the competency test. Courses that are in demand here and abroad are given emphasis. For those now employed but without proper proficiency credentials, TESDA will give them opportunity to pass competency assessment that entitles them to a stable professional career.

Solidum announced, there is no official NSO confirmation yet on Aklan’s population. However, it is more than 500,000. According to Solidum, considering Aklan’s tourism potentials, it is a wrong notion to concentrate it wholly to Boracay. Other scenic spots like hidden caves and waterfall of Buruanga, Tangalan, and Ibajay have quaint potentials awaiting discovery.

Considering agriculture, the contri-bution to the national GDP, Agriculture representation was not in the forum. More than half of labor force is in agriculture and fisheries. Therefore, the overall economic picture of Aklan cannot be ascertained. Performance wise, the P14.2 billion in annual tourism receipts do not filter to the local economy. High poverty incidence of 38.1 percent force families to avail of conditional cash transfer. Underemployment and unemployment are more pervasive.

DOST, TESDA, and DTI complement each other in export and job generation. Market exposure for engineered bamboo, nitto, abaca, piña and coco sugar is very promising. Maintenance of high quality standard will go a long way to expand in traditional and non-traditional markets.

Marketing tourism strategy of Aklan surprisingly relies solely on word of mouth. There is no comprehensive Aklan Tourists promotion project, the reason why tourism development like Sto. Niño Ati-Atihan is eclipsed by Dinagyang and Sinulog. Tourism in Aklan is trailing behind Palawan by 22 percent in 2008. Obviously more cultural shows, museum exhibit, outdoor sports like water rafting cliff hanging and bike tours must be regularly held.

Aklan may have positive and comparative edge as to generation of revenues in industrial exports, agricultural and fisheries and tourism. The growth of SME’s is on the right track but high fuel prices, labor, and sluggish world market demand may weaken it. Strong commitment, dedication, and sound business strategy are needed to survive this crisis. /MP