Project Design

GTZ Philippines SME Development for Sustainable Employment Program Design, 2004

    The goal of the Small and Medium Enteprrise Development for Sustainable Employment Program (SMEDSEP) (previously called the Private Sector Development Program) is that state and private institutions shape the investment climate in the Philippines, and particularly the Visayas, in a way that enables the development and use of entrepreneurial potential and stimulates competition.

    The project is focused on four major constraints to SME development in the Philippines - the lack of a conducive enabling environment for business at national and local levels, the lack of appropriate business services, the lack of market driven technical and vocational skills training and the financial sector's inadequate (medium- to long-term) financing for SMEs. The SMEDSEP includes one component to address each of these constraints.

    Each component includes national and local level activities to foster cooperation and create opportunities for synergy between the different projects operating in the region. The project focuses on the Visayas region in particular and targets SMEs and micro enterprises with growth potential, their staff, and those looking for work (particularly women), artisans in rural areas, and potential entrepreneurs (graduates, youth).

    Guiding principles for the program include mobilization of local resources (particularly public and private institutions willing to contribute financial and human resources) and coordination with other programs to avoid duplication and over-lap; synchronization of different, but compatible business services (business and financial); and resource sharing (advisory personnel, data banks, etc.).

    Component 1, which addresses the enabling environment, is being carried out by and with the Department of Trade and Industry of the Philippine Government.

    Two documents on the right hand side were written in 2002 and constitute the original design of the program. The third document was written in 2004 by Simon White and presents design options for Component 1 on the enabling environment for SMEs.

    Associated Activities and Documents
    B.E. Assessment
    »Business Licensing Procedures in Bocolod and Ormoc, Philippines, GTZ SMEDSEP, 2005
    »Policy Review and Tools, GTZ SMEDSEP Philippines, 2004-
    »Cities Competitiveness Ranking, GTZ Philippines, 2004