Introducing 

Prezi AI.

Your new presentation assistant.

Refine, enhance, and tailor your content, source relevant images, and edit visuals quicker than ever before.

Loading…
Transcript

Small and Medium Scale Industry

Role and Importance of MSMes in the country's economic development

MSME's are defined in two major ways

-by assets and employment size

Asset Size

The total inclusive of those arising from loans but exclusive of the land of which the particular business entity's office, plant and equipment are situated, must have falling under the following categories

Micro - less than Php3,000,001

Small- Php3,000,001 up to Php 15,000,000

Medium- Php15,000,001 up to Php100,000,000

Large- Above Php 100M

Micro, Small and Medium Industry

  • In the Philippines, 99.1% of the businesses are small and medium enterprise and only 0.99% are large enterprises.
  • Republic Act No. 9501, The Magna Carta for Mirco, Small and Medium Entereprises, signed by President Arroyo on May 23 2008 defines micro enterprises as entities with total assets of not more than Php 3,000 small enterprises as the new law, RA. 9501 amends the 17 year old R.A 6977 or the Magna Carta for Small Medium Enterprises.
  • notably skillful in maximizing the use of scarce capital resources and are able to partner with large firms by supplying locally available raw materials in unprocessed or semi-processed forms
  • rural industrialization
  • rural development and a decentralization of industries
  • creation of employment opportunities and more equitable income distribution
  • use of indigenous resources
  • earning of foreign exchange resources
  • creation of backward and forward linkages with existing industries
  • and entrepreneurial development
  • they are vital in dispersing new industries & stimulate gainful employment
  • quick in assimilating new design trends
  • can act as the seedbed for the development of entrepreneurial skills and innovation

MSMEs contribution to the Economy

Employment Size

MSMEs my also be defined by number of employees

Micro - regular employs less than 10 workers

Small - 10-99 workers

Medium - 100- 199 workers

  • contribute to the creation of wealth, employment and income generation, both in rural and urban areas, thus ensuring a more equitable income distribution
  • provides the economy with a continuous supply of ideas, skills and innovations necessary to promote competition and the efficient allocation of scarce resources
  • employs 70% of the workforce

Exports contribution of MSMEs

  • MSMEs account for 25% of the country's total exports revenue
  • It is estimated that 60% of all exporters in the country belong to the MSME category
  • MSMEs was able to contribute in exports through subcontracting arrangement with large firms, or as suppliers to exporting companies

Top 10 Philippine Exports for Small and Medium Scale Bus

1. Woodcrafts and Furniture

2.Agri-Food Products (sugar, banana and rice)

3.Marine Food Products (natural sea salt, seaweed)

4. Coconut Water and By-Products

5. Fish and Shellfish Products

6. Household Items (broom walls, home clock)

7. Clothing and fashion accessories

8. Natural health products (malunggay extracts, virgin coconut oil, organic soal and natural fruit extracts)

9. Processed food and Drinks (Banana Chips)

10. Electronics and Gadgets (microchips)

Learn more about creating dynamic, engaging presentations with Prezi