Philippine Business for Social Progress

Transcription

1 Philippine Business for Social Progress Our vision is to be the leader in promoting business sector commitment to social development.

2 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

3 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.

4 TYPES OF INVOLVEMENT CEO Time & Leadership Financial Grants & Program Assistance Employee Engagement (Volunteering & Giving) Product Giving/ In-Kind Donation

5 POVERTY ALLEVIATION PROGRAMS Area Resource Management Education Water and Health Small and Medium Enterprise Development Information Technology

6 Enterprise Development Through Business Advising The PBSP

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

8 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

9 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.

10 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.

11 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

12 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

13 Business Advisory Services: Organizational Management Marketing Accounting & Finance Production/Operations Mgt. Information Technology

14 Focus Sectors: SMALL MFG. TOURISM AGRIBUSINESS FOOD PROCESSSING

15 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%

16 How do we deliver? Application Client visit & diagnostics Client-VA matching Entry conference / VA deployment Assignment progress monitoring Closing / debriefing Evaluation of outcome & impact

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

18 Increase in Sales Increase in Productivity More Enterprises Advancing in Business Performance Levels New Products/Markets Operating Efficiency Addtl Investment

19 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

20 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

21 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

22 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

23 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

24 JOBS GENERATED: 414 DOCHSEI: Male 228 (55%) Female 186 (45%) 115 coconut farmers in 4 municipalities in Davao Or. provided jobs MANCOR: 290 organic rice farmers assisted in marketing their produce JOB GENERATION

25 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

26 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

27 Volunteer Advisers Total of 572 VAs nationwide

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

29 CREATING PARTNERS 1. DEVELOPING CLUSTER 2. DEVELOPING LGU-LED (LOCAL ECONOMIC DEVELOPMENT) PROJECTS

30 DEVELOPING PARTNERSHIP THROUGH CLUSTERING Grouping of enterprises to collaborate towards commonly articulated and agreed results and directions

31 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 1 Sub-Contractor 2 Sub-Contractor 3 Sub-Contractor 4 Increased Production Capacity More Orders Lead Enterprise Increased Export Sales Example. Cebu GTH Subcontractors Development Program

32 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 for raw materialproducers Increased business for service providers Increased business for processors Increased business for consolidators Increased Production of RM Improved Business Lead Product Improved Technology Example. Furniture is lead product of Guagua.

33 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 Production Improved Product Designs Improved Marketing Improved Technology Example. SKMFMC sought to develop and link members to export markets

34 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.

35 31 MARCH 2008

36 CHALLENGE BRINGING BAP TO PBSP BENEFICIARIES

37 PBSP Enterprise Development Framework Subsistence Livelihood Micro Small Medium Micro (non-business) Growth oriented (business) FINANCING -Grant -In kind assistance(group/individual) -Agri/non-agri -Advocacy Capital (SMEC,OPN,others) Group/individual Agri/non-agri NON-FINANCING -Organizing -Establishment of infra -Value formation -Technology Transfer -Advocacy Business Development Service BAP, CRTD, SAMAR, TC Competitive MSMEs that create job opportunities

38 CHALLENGE SUSTAINING DEVELOPMENT

39 SME ENVIRONMENT: THE HORIZONTAL DEVELOPMENT CONTINUUM Distinct Need Mode of Assistance Enterprise Level Dev t. -Sustaining business -Coping with growing business intricacies - One-on-one provision of basic mgt. skills Sector Level Dev t - Creating partners with other members in the sector - Creating synergy to be competitive - Developing edge & sustain mkt. foothold -Sector cluster collaboration w/ other sector members - Enhancement of optn. and mgt. skills Industry Level Dev t - Creating partners with other sectors in the industry - Creating support mechanisms - Sustaining edge and expand markets -Multi sector cluster -Convergence w/ other sectors & partners -Enhance industry support systems Inter- Industry Level Dev t -Creating partners with other industries - Consolidating support mechanism -Sustaining brand image, confidence of market and penetrate markets -Multi industry cluster programmatic convergence w/ other industries & partners -Multi industry support for program dev t.

40 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

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