Women at the Helm - Planters Development Bank

Previously, the department introduced the “One-Town,One-Product” (OTOP) approach that proved to be lesseffective in the labor-intensive nature of majority of SMEsin the country. The OTOP approach, which Thailand usesfor its own SME development, was implemented during theArroyo administration.Market competition, financial problems amongSME issues in Asia PacificMajority of SMEs in the Asia Pacific region including thePhilippines have been struggling because of key issuesidentified by industry experts during the 27th Confederationof Asia-Pacific Chambers of Commerce and Industry (CACCI).Likewise DTI Cebu business developmentchief Elias Guia Tecson echoed thesame sentiments and proposals byAbraham. He pointed out that PhilippineSMEs make up to 62% of the totalemployment in the country and 35.7%of value-added contribution to theeconomy which is why it is pertinentto give them access to more flexiblefinancing schemes and businessopportunities here and abroad.New electricity distributionscheme to benefit SMEexportersThe Department of Trade and Industry(DTI) said that small and mediumenterprise (SME) exporters will soonbe able to choose their power supplierthrough the Retail Competition andOpen Access (RCOA) scheme by theDepartment of Energy (DOE).The scheme is seen to benefit SMEexporters since it will let them choosea supplier with the most reasonableelectricity rate resulting in lowering theircost of doing business.The RCOA caters to contestablecustomers or electricity end-users witha monthly average peak consumption ofat least one megawatt for the preceding12 months.Certain problems of business owners in this area are thosethat involve competition, manpower, operating costs, lackof opportunities, depleting cash flows, and bank financing.CACCI SME Development Council chairman George Abrahamrecommended that SMEs should learn how to handle marketchanges and forge healthy relationships with other merchantsso they can compete against industry leaders.Abraham further encouragd the SME board to establishan efficient financing system within the union, to help puttogether readily available government resources, and tohelp encourage SMEs to be proactive in trade fairs andindustry shows.According to DOE, a contestablecustomer must register with thePhilippine Electricity Market Corporation(PEMC) before commercial operationsstart on June 26. The migration to openaccess is mandatory for all entities in thelist of contestable customers prepared bythe Energy Regulatory Commission (ERC).There are 818 and 91 firms in Luzonand Visayas respectively which canparticipate in the retail market.The RCOA scheme is only available toLuzon and Visayas at the present, butthe DOE said that the Interim MindanaoElectricity Market (IMEM), which isbeing set up to address power shortagein Mindanao will start operations inSeptember this year.SME | 7