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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE:
The Small Enterprise Technology Upgrading Program (SETUP) is the flagship nationwide program of the Department of Science and Technology (DOST), which aims to address the technological requirements and challenges faced by micro, small, and medium enterprises (MSMEs).
The Small Enterprise Technology Upgrading Program (SETUP) is the flagship nationwide program of the Department of Science and Technology (DOST), which aims to address the technological requirements and challenges faced by micro, small, and medium enterprises (MSMEs).
In 2016, the DOST issued Administrative Order No. 02-16, or the revised SETUP Guidelines. The notable points of the Revised Guidelines include the priority sectors for the program, and the specific strategies and support to assist MSMEs. Noteworthy as well are the provisions on SETUP’s “Innovation System Support”, and the qualifications to be eligible beneficiaries of such support.
Priority Sectors
SETUP focuses assistance on the following priority sectors:
- Food processing;
- Furniture;
- Gifts, decors, handicrafts;
- Agriculture/Marine/Aquaculture/Forestry/Livestock;
- Metals and engineering;
- Information and communication technology (ICT);
- Health and wellness products;
- Halal products and services; and
- Other regional industry priorities.
Strategies and Support to Assist MSMEs
The Revised SETUP Guidelines emphasize that the primary assistance provided by DOST to MSMEs are technology and/or knowledge-based interventions. In particular, assistance through the program shall include but not be limited to the following:
- Technology Needs Assessment (TNA);
- Access to and acquisition of appropriate technology;
- Innovation System Support (ISS) funding assistance; and
- Access to the DOST and SETUP’s information systems.
Innovation System Support (ISS)
The DOST recognizes that the biggest challenge for MSMEs in adopting new technologies and implementing their innovations is the cost of science and technology (S&T) interventions. As a result, the DOST expanded SETUP to include the provision of financial support or assistance to qualified MSMEs and other beneficiaries. This financial support is called the Innovation System Support (ISS).
Funds from the ISS shall cover S&T interventions and/or technologies that:
- Introduce improvement in product quality, production processes, and production efficiency;
- Enable MSMEs and other entities to comply with regulations and market requirements;
- Commercialize technologies developed by the DOST;
- Involve packaging solutions that cover the application of packages/label designs developed by the DOST; and
- Engage in ICT-based technologies needed to improve operations.
To be eligible for financial assistance under the ISS, the Revised SETUP Guidelines provide eligibility requirements, as follows:
1. For MSMEs.
The MSME must be
- Wholly owned by Filipino citizens, and
- Willing to apply technological innovations to improve their existing products, services, and/or operations.
Priority shall be given to MSMEs as defined by the Magna Carta of MSMEs, with particular consideration to MSMEs with total asset values falling under the following categories:
- Micro – less than PHP3,000,000.00
- Small – PHP3,000,000.00 – PHP15,000,000.00
- Medium – PHP15,000,000.00 – PHP100,000,000.00
2. For Other Entities.
Any government entity (including state universities and colleges), cooperative, civil society organization, and academic institution which operates business-like projects or activities for entrepreneurs or graduates of entrepreneurship, such as Common Service Facilities, innovation/incubation centers.
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Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 0917-5772207/ 09778050020.
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