DOST allocates P54 million for small businesses in CV

CEBU, Philippines- The Department of Science and Technology has allocated around P54 million this year for Central Visayas to help small businesses adopt technological innovations to improve their productivity.

In an interview, DOST-7 Director Edilberto Paradela announced the budget for the agency’s Small Enterprise Technology Upgrading Program (Setup) this year is higher compared to P45 million allotted in 2014.

Paradela said the department is targeting 50 to 60 small firms this year in the region to benefit from the Setup. He said there is no particular ceiling as to how much funding can be extended to a small business.

“In 2014 [there was] no ceiling based on S&T (science and technology) interventions on the firms,” he said, noting that the highest funding the agency had spent for a project was P7.5 million.

He disclosed that as of the first quarter this year, around P15 million of the budget were already used.

Last year, DOST-7 had spent about P31.4 million of the P45 million total budget, helping around 40 small and medium enterprises.

In the last 12 years since the Setup started, the science department had already utilized P128 million for the whole region, benefiting around 184 small companies seeking for technology aid, the director revealed.

For 2016, DOST-7 has proposed a P90 million budget for the program, up by 40% compared to this year’s budget.

Innovation

DOST said Setup wants to encourage SMEs to adopt technological innovations to improve their operations, productivity and competitiveness.

Paradela, however, claimed that some SMEs do not consider availing the Setup funds due to requirements asked by the agency such as business name registration with Department of Trade and Industry or Securities and Exchange Commission, financial report, business permits, licenses, etc.

The agency said: “[It] enables firms to address their technical problems through technology transfer and technological interventions to improve productivity through better product quality, human resources development, cost minimization and waste management and other operation related activities.”

The program’s priority sectors include metals and engineering, gifts, housewares and decors, food processing, furniture, electronics, information and communications technology, pharmaceutical and others.

DOST said the services that Setup offers are consultancy, training, laboratory testing, innovation system support and technical assistance. (FREEMAN)