Butuan City – For many years, the Department of Science and Technology (DOST) has continuously recognized the significant role of the Micro, Small and Medium Enterprises (MSMEs) in driving innovation, creating employment opportunities, and fostering economic growth in the country through its Small Enterprise Technology Upgrading Program (SETUP).
SETUP is DOST’s key strategy to stimulate investments in urban, peri-urban, and rural areas. Through the years, the SETUP has been transitioned to different phases of program implementation to make it relevant to the changing needs and requirements of MSMEs.
Under the program, assisted MSMEs have been empowered to address their technological problems through the acquisition of appropriate technologies, and the adoption of DOST-generated systems and other science and technology (S&T)-based interventions, such as consulting and training services.
Among others, the SETUP assists MSMEs in testing their products for compliance with international standards, package and label their products, and create and manage databases and information systems. It also links them to national and international organizations for the provision of raw material sources, markets, training, financing, and equipment design and fabrication.
A visit to two of the successful SETUP-assisted MSMES in the Caraga Region – the RM Wood Product Industry and the Villa Tuna Foods Corporation – offers a glimpse to how these firms generated economic opportunities for local production in the region through technological initiatives.
The RM Wood Product Industry, owned and operated by Mr. Rodolfo B. Pertacorta, applied for SETUP assistance in 2022 to address rising production demands and market growth.
After the DOST intervention, the firm’s workforce has grown to 118 from its previous 70 workers. It now produces eight to 10 crates of plywood per 24-hour shift and 2,220 sheets of veneer per day. It has likewise acquired assets estimated at PHP15,000,000.
Also, through the DOST Regional Office in Caraga, the firm plans to establish a laboratory that will specialize in wood, which is seen to generate additional jobs and improve the economic development of the region.
On the other hand, Mr. Archie Moreno, president of Villa Tuna Foods Corp., applied for SETUP assistance to expand his business and create job opportunities for those affected by the COVID-19 pandemic. The business is based in Montalban St., Bayanihan Pob. in Butuan City.
Through the SETUP program, the company acquired a 3,000-kilogram-capacity reefer van (cold storage), effectively cutting its storage expenses and improving its storage capabilities. Prior to the acquisition of the reefer van, the firm outsourced its storage requirements to Gentech.
Today, the company operates eight branches across Mindanao, including two (2) in Butuan City. The Montalban Branch alone has an estimated capitalization of PHP2,000,000.00, reflecting the company’s steady growth and success.
The project visit to the two MSMEs was led by DOST Undersecretary for Regional Operations, Engr. Sancho A. Mabborang, and DOST-Caraga Regional Director Noel Ajoc.
DOST vows to continue to improve its efforts to support and encourage MSMEs to embrace new technology and develop their entrepreneurial abilities to improve their operational effectiveness, increase productivity, and strengthen the competitiveness of their products and services.
Since 2022, DOST has assisted 9,612 firms and projects nationwide in the sectors of food processing, furniture, marine and aquatic resources, agriculture, pharmaceuticals, ICT and electronics, gifts, housewares and decor, metals, and engineering.
For 2024, DOST programs such as SETUP and Community Empowerment thru Science and Technology (CEST) target to generate 6,000 jobs in various priority sectors in the entire country.
Additionally, DOST continuously invests in high-impact and sustainable programs that are significant in addressing national concerns, such as CEST and Smart and Sustainable Communities Program (SSCP). This is aligned with research priorities in four major areas, namely, human well-being promotion, wealth creation, wealth protection, and sustainability. (Dave Masirag)
