The magnitude and importance of SMEs, especially in the Philippines where it comprises more than 95 percent of local businesses, have been emphasized many times in the media and government speeches. But the reality is that most SMEs are not harnessing the power of technology because of financial constraints.
This weakness in the growth cycle is what the local subsidiary of tech icon IBM is intending to address by providing a financing program to SMEs through an expanded initiative called Express Advantage.
"SMEs think that they’re not the market which IBM is serving. That’s not true because they’re actually a big part of our target market," said Erwin Chuaunsu, country manager for mid-market at IBM Philippines, during a recent press briefing.
In fact, Chuaunsu said 70 percent of the company’s local clients belong to the SME segment, growing 12 percent this year compared to the previous year. As far as Big Blue is concerned, the mid-market space represents a 0-million opportunity for the company.
But one of the things that have stifled this growth, Chuaunsu said, is the lack of access to capital that would have allowed small companies to integrate IT in their commercial operations.
"Furthermore, IT is intangible so companies afraid to spend," he added. "Undoubtedly, financing helps defray the cost of putting up an IT system."
The Express Advantage program, the official said, provides a package that includes a financing scheme for the IT requirements of SMEs. It also combines a set of mid-market offerings, Business Partner resources, and customer experience capabilities.
Under the program, IBM dispenses with third party lending institutions and directly offers mid-size clients a loan package which they can use at low interest rates.
A Cebu-based software development firm, Alliance Software Inc., provided a customer testimonial during the media briefing and narrated how the program has allowed it to expand overseas, particularly Japan.
Robert Cheng, president of Alliance Software, said Express Advantage has given the company the following benefits which now extends to its own cutomers: IBM quality, ability to leverage IBM technology in designing best-fit solutions, solutions were made with local requirements, local support, and a solution with a local price tag.
Alliance, which is headquartered in Cebu but maintains offices in Manila and Tokyo, was established only in 2000 but has since grown to become one of the largest Filipino-owned software companies. (Melvin G. Calimag)
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