Purisima urges Filipino-Chinese business community to help SMEs

Trade and Industry Secretary Cesar V. Purisima urged yesterday Filipino-Chinese business community to help the government promote the small and medium enterprises (SMEs).

Speaking to participants of the 3rd National Convention of the Chinese-Filipino Business Club Inc., Purisima said that the government "needs all sectors to help us engineer the growth of micro and small enterprises."

The DTI Chief pointed out that in helping SMEs, the Chinese-Filipino business community would "empower the low-purchasing groups in our midst towards improving their earnings and raising their purchases of goods and services."

Purisima stressed that SMEs are catalysts for growth, especially in the countryside where they can easily disperse industrial activities.

He pointed out that most suppliers of products and allied services to bigger firms are SMEs.

SMEs, Purisima said, have proven to be survivors and have shown remarkable ability to rise to economic challenges.

SMEs, Purisima argued, can help keep the economy standing in the event of financial crises and also serve as a potent force to fight poverty through the activities they initiate.

However, Purisima said, the challenge facing SMEs today is boosting their productivity to levels at par with Asian neighbors.

He cited the fact that even if SMEs account for 99.6 percent of registered firms and generate 70 percent of employment, the collective value they produce is only 30 percent.

In comparison, South Korea’s SMEs generate almost 70 percent of total employment and 46 percent of total value added.

Japan’s SMEs generate 56 percent of value added, while China produces 60 percent and generate employment of 89 percent and 74 percent, respectively.

The Chinese-Filipino business community, Purisima said, could help SMEs through the "Big Brother-Small Brother" program by adopting SMEs and integrate them into the big firms’ operations.