Small- and medium-sized enterprises (SMEs) make up an overwhelming 99.6 per cent of all firms in the Philippines. They provide 70 per cent of all jobs and in foreign trade they are critical, accounting for about 60 per cent of all exporters. "They are a very potent force in the war against poverty," says President Gloria Macapagal-Arroyo. Nurturing them can generate more jobs and can share economic growth more evenly.
91 per cent of all SMEs are actually micro or family-run enterprises, 53 per cent of these clustered around Metro Manila, Southern Tagalog, and Central Luzon and account for 60 per cent of jobs.
For years SMEs have been handicapped with little access to financing and technology, and with the high cost of doing business. These factors block them from being more globally competitive.
