Trade and Industry Secretary Cesar V. Purisima has urged the Filipino-Chinese community to rally behind the country’s economic development by supporting the government’s efforts at improving the productivity of the small and medium-scale enterprises (SMEs).
In a speech before the 500-member Chinese and Filipino Business Club’s 3rd National Convention, Purisima cited the association goals to contribute to nation building and its openness to the challenge of assisting government in pursuing its priority programs particularly the SMEs.
Purisima has urged for the Chinese and Filipino Business Club’s support for SMEs because even if the country’s businesses are largely composed of SMEs they suffered low productivity compared to ASEAN neighbors’ SMEs.
"The low productivity level is readily apparent from the fact that even if Philippine SMEs account for 70 percent of the total employment generated in the country, the collective value added they produce is only 30 percent," Purisima pointed out.
Purisima stressed the need to boost the productivity of SMEs because a 10 percent increase in their productivity can translate to 3 percent growth in gross domestic product.
"SMEs are catalysts for growth, especially in the countryside where they can easily disperse industrial activities," Purisima said.
In the Philippines, while big firms account for only 0.4 percent of the total registered firms, SMEs compose the balance of 99.6 percent, and hire 70 percent of the total number of employes, and generate 30 percent of the country’s total value added. (BCM)
