The government should develop the technology infrastructure to support the growth of small and medium enterprises and start-ups in the country, according to Senator Grace Poe.
“Technology infrastructure is the critical element in unlocking the potential of SMEs and start-ups for economic growth. This is where the government should focus its efforts,” Poe said in a statement.
“At the Apec [Asia Pacific Economic Cooperation] SME Summit which the country is hosting, Manila was identified as one of three cities in the world projected to be a center of global innovation along with Jakarta and Kuala Lumpur. But the sad reality is that our growth will continue to be limited by the slow pace of expansion of technology infrastructure,” Poe said.
She said technology infrastructure is a combination of many elements such as software, hardware and networks. “We need these elements in one platform. Without one or two of these, the infrastructure will be deficient,” the senator said.
Poe said the country was considered a hotbed of innovation, with the success of a number of start-ups like Salt (Sustainable Alternative Lighting), founded by Aisa Mijeno who was thrust in the limelight at the Apec CEO Summit when she shared the stage with US President Barack Obama and Chinese billionaire Jack Ma, founder of e-commerce giant Alibaba.
“Ms. Mijeno is living proof that the Philippines is a goldmine of innovation. She and many other Filipinos have proven that there is no shortage of talent in the country. But we need to give Ms. Mijeno and other Filipino innovators the much-needed support,” Poe said.
Poe said foreign investors were blocked in doing business in the country by the weak infrastructure.
“It is the same in the technology sector which impacts the growth of SMEs and start-ups. Until we can put in place the infrastructure and guarantee consistent, and cheap communications network that can interconnect businesses, industries, investors and even universities and research organizations, we will never be able to achieve our full potential as a competitive SME and technology player not only in the region but in the world,” Poe said.
Apec data showed that SMEs accounted for over 97 percent of all enterprises in Asia-Pacific economies and over half of the employment in these countries.
SMEs also account for a sizable share of the gross domestic product of Apec economies, from 20 to 50 percent in majority of these countries.
SMEs comprise 99.6 percent of all registered business and employ 70 percent of the workforce in the Philippines.
Poe said issues hampering the growth and sustainability of SMEs and start-ups should be addressed according to a realistic and doable roadmap. She said constraints such as access to funds, reliability and affordability of communications and data networks, and provision of funds and technical information for SME research and development were among the issues that should be addressed immediately.
Meanwhile, President Benigno Aquino III said in his speech at the Apec CEO Summit in Makati that micro, small and medium enterprises were drivers of inclusive growth in the country.
“We want Filipino MSMEs to be able to participate more in that trade: we want to help them make the most of the vast market that regional economic integration provides,” Aquino said.
“In fact, we want to achieve the same for all SMEs across Apec member-economies,” he said.