SMEs need to improve productivity to grow

MANILA, Philippines - More small and medium enterprises (SMEs) in the manufacturing industry, including the exporters, are encouraged to participate in productivity improvement programs deemed key towards big business.

Jean Maligaya, executive director of the ECOP Institute for Productivity and Competitiveness (EIPC) Foundation Inc., said 225 small companies and 25 big ones benefited from joining the ECOP Big Enterprise-Small Enterprise (EBESE) Productivity Improvement Program between 2005 to 2010.

Maligaya, during a recent presentation, said of the total, nine exporter members of Philexport in Luzon and Cagayan de Oro (Mindanao region) and 22 SMEs in Cebu were provided support through the program.

With this, she bared that the foundation intends to institutionalize the EBESE program within the Philexport members across the country in a bid to create more competitive exporters.

Maligaya said the productivity improvement program covers the automotive, food, agro-industries, semiconductor, printing and packaging, fashion accessories and furniture and decors sectors.

Under the EBESE program, big enterprises are encouraged to partner with their small firm-suppliers to achieve higher productivity and competitiveness.

The small ones, on the other hand, are urged to improve their respond to quality, cost and delivery demands of customers and buyers.

Maligaya said improvements would be applied only on three areas: 5S or good housekeeping, plant layout and production process.