SERVICES: The TSKI DEVELOPMENT BUSINESS. Upscaling. Experience. Taytay Sa Kauswagan, Inc. Director, MSI-BDS Division. by: ENGR. REYNALDO T.

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1 Upscaling BUSINESS DEVELOPMENT SERVICES: The TSKI Experience by: ENGR. REYNALDO T. AMBAO Director, MSI-BDS Division Taytay Sa Kauswagan, Inc.

2 Microfinance Microfinance has evolved as an economic development approach and intended to benefit low income women and men. It is mainly oriented towards making financial services making financial services more accessible to the self-employed, who conduct most of their economic activities in the informal sector.

3 MICROFINANCE OPERATIONAL FRAMEWORK MFI MF Loan Repay- ment Client Business Income Quality Life

4 The BURNING PASSION The BURNING PASSION 90-95% 95% of clients are into: Buy and sell Trading Sari Sari-sari store Others

5 Studies conducted Impact Survey in Northern Iloilo Branch (NIB) Psychosocial and Economic Contributions of Micro-financing to Women Marketing Constraints and Opportunities of Client-Producers

6 Impact Survey in NIB Impact Survey in NIB The participants claimed that they have received very limited technical assistance from the program Recommendation: more training & technical assistance should be implemented.

7 Psychosocial & Economic Contributions of Micro-financing to Women The study has proven that micro-enterprise development can help improve the personal life and change the attitude of clients after their participation in the program. There is significance in the number of technical consultancy or business advises availed. The more technical consultancy or business advises availed, the greater the likelihood that the clients will fully invest their program loan.

8 Marketing Constraints and Opportunities of Client-Producers of TSKI Nearly one-fourth of the clients reported that competition is their major marketing problem. Product rejections reported are due to: transportation/handling damage problems in preservation product quality unacceptable design.

9 Marketing Constraints and Opportunities of Client-Producers of TSKI Many of the clients identified their neighboring communities, big stores and supermarkets, households, and offices as potential market Potential markets are not entered because production capacity is low insufficient capital inadequate advertising. Those who have tried penetrating these markets stop because of: insufficient capital Competition small production capacity poor collection problems in manpower

10 Marketing Constraints and Opportunities of Client- Producers of TSKI CONCLUSIONS: Need to improve product quality Need for additional capital for production Need to advertise their products Increase manpower Come up with a good marketing strategies Products should be properly packed and handled to avoid damages.

11 Marketing Constraints and Opportunities of Client- Producers of TSKI RECOMMENDATIONS: Need to improve the ff: Product quality Packaging Preservation Design Client exposure to different production processes to acquaint them with techniques to improve product quality, packaging and design. Business tours Skills training and/or workshop

12 MFI MF Loan Repay- ment Client Business Income Quality Life BDS Marketing Production Finance Organization & Mgt Technical Technology

13 BDS Defined BDS Defined BDS refers to a wide range of services used by entrepreneurs to help them operate efficiently and operate efficiently and grow their business with the broader purpose of contributing to economic growth, employment generation, and poverty alleviation

14 CLIENT BUSINESS TSKI MARKETING Product Quality YES TRADE FAIRS MARKET MATCHING MARKETING VAN TRADE CENTER IN BORACAY

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17 CLIENT BUSINESS TSKI MARKETING Product Quality YES TRADE FAIRS MARKET MATCHING MARKETING VAN TRADE CENTER IN BORACAY

18 CLIENT BUSINESS TSKI MARKETING Product Quality YES NO TECHNO LOGICAL SERVICES TRADE FAIRS MARKET MATCHING MARKETING VAN TRADE CENTER IN BORACAY PACKAGING LABELING PRODUCT DEV T FOOD ANALYSIS BFAD REGISTRATION

19 CLIENT BUSINESS TSKI MARKETING Product Quality YES NO TECHNO LOGICAL SERVICES TRADE FAIRS MARKET MATCHING MARKETING VAN TRADE CENTER IN BORACAY PACKAGING LABELING PRODUCT DEV T FOOD ANALYSIS BFAD REGISTRATION

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23 CLIENT BUSINESS TSKI ORGANIZATION & MANAGEMENT LEADERSHIP SUPERVISORY MANAGEMENT Product Quality NO MARKETING YES TECHNO LOGICAL SERVICES TECHNICAL SERVICES FINANCE & ACCOUNTING TRADE FAIRS MARKET MATCHING MARKETING VAN TRADE CENTER IN BORACAY PACKAGING LABELING PRODUCT DEV T FOOD ANALYSIS BFAD REGISTRATION TECHNICAL TRAINING PRODUCT STANDARDIZATION ENTREPRENEURIAL TRAINING BOOKKEEPING ACCOUNTING FINANCIAL MANAGEMENT

24 C L C L I I E N T S E N T S MANUFACTURING/ PRODUCTION ANIMAL RAISING TRADING BUY & SELL SARI-SARI STORE PRODUCT ASSESSMENT FOR PRESENTATION & QUALITY KAUSWAGAN STORE (BRANCH OR MUNICIPALITY) MARKETING NO YES DESIGN & PACKAGING CENTER AND LABORATORY FACILITY LABELLING PACKAGING LABORATORY KAUSWAGAN STORE (OTHER BRANCHES)

25 A TYPICAL PHILIPPINE COMMUNITY A TYPICAL PHILIPPINE COMMUNITY

26 Learnings/Insights on BDS establishment 1. Strong decision from the top management 2. Deliberate advocacy for buy-in among staff and clients. 3. Competent staff 4. Focus in growing micro entrepreneurs 5. Strong linkage with other institutions 6. Difficulty in integrating BDS with MF operation

27 Challenges 1. Sustainability 2. Replication to other areas of operation 3. Inclusion of BDS in MF performance indicators 4. Development of new loan products for growing MEs

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