DTI to delegate delivery of projects to businesses

The Department of Trade and Industry mulls turning over some of its development programs to industry groups to empower business organizations on implementing projects and help its members achieve growth.

This proposed concept will make DTI as a facilitator instead of as the direct implementing agency, thereby allowing industry groups to deliver different business development services directly to its members.

This was one of the primary decisions made by the DTI and German Technical Cooperation (GTZ) executives 2008 planning workshop held recently, to provide sustainability to the Small and Medium Enterprise Development for Sustainable Employment Program (Smedsep).

DTI undersecretary Zenaida Cuison Maglaya said there are proven and effective models implemented by the Smedsep programs in the Visayas that helped a lot of micro and small businesses in the provinces, these processes should be sustained and be shared to other industry players.

However, instead of DTI implementing these different model programs, industry organizations are seen to be more effective in providing technical help to their members, this time, it will not be offered free of charge but for a minimal fee.

According to Maglaya, DTI will formulate templates and manuals, using the success stories of Smedsep-beneficiary industries that will be given to every industry organization.

With this, Smedsep developed models will be applied to other industry organization around the country and will not be limited in the Visayas area.

Since this is merely a new concept, Maglaya said DTI will have to be careful in pursuing this strategy, so as not to nurture the impression that DTI is withdrawing hands-on support to the industries.

“There has to be a change in mindset. DTI does not want to confuse SMEs that by spinning-off some of its services to the private sector, government is withdrawing its support to the industry,” Maglaya said.

Instead of DTI directly delivering the service, we will just be the facilitators,” said DTI-7 director Asteria Caberte.

DTI will come up with templates and manuals for services and programs of the department that could be capitalized on by the private sector.

Caberte said that during the transition, there will be a shortlist “menu” of services that the private sector can provide.

Maglaya admitted that this new concept, if properly introduced, may send negative impressions to the private sector.

Thus, she said careful implementation will be done by DTI so that the private sector will see and understand that this new strategy is aimed at strengthening their partnership with the government.

The plan will allow DTI to use its limited resources wisely and focus on its other duties while allowing the private sector to venture into income-generating activities.

GTZ program manager Anja Gomm on the other hand, is confident that this concept will be embraced by the SMEs, as technical and developmental programs provide benefits for them.

Last year, DTI, through the Smedsep program, turned over the full implementation of the Product Development Model to the Gifts, Toys, and Housewares (GTH-Cebu).

This kind of partnership will be duplicated initially in the Visayas, and eventually in the whole country, Maglaya said.