Skills Development for SMEs and Tackling Informality

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Albert A. BasaTechnical Education and Skills Development Authority

Republic of the Philippines

Skills Development for SMEs and Tackling Informality:

Opportunities for the Philippines

The 6th Expert meeting of the Employment and Skills Strategies in Southeast Asia Initiative (ESSSA)

17-18 September 2014 Century Park Hotel, Bangkok, Thailand

TRANSFORMATIVE TVET

Mark EscorraJeepney barker turned call center agent

Emerson PaguiaBalut Vendor turned Web Developer

Policy Environment

• TESDA Law Republic Act 7796: “An Act Creating TESDA, Providing for its Powers,

Structure and for other Purposes”

• TESDA Roadmap 2011-2016

• Magna Carta for Small Enterprises Republic Act 6977, amended by Republic Act 8289 in 1997, and further

amended by RA 9501 in 2008

• Go Negosyo Act Republic Act 10644: “An Act Promoting Job Generation and Inclusive Growth

through the Development of Micro, Small and Medium Enterprises”

• MSME Development Plan 2011-2016Small Business Guarantee and Finance CorporationMicro, Small, & Medium Enterprise Development Council

Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok Thailand

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Year Enrolment

Graduates

Assessed

Certified

Jan-June 2014

716,381 659,771 495,351 447,819

2013 1,943,589

1,765,757

1,055,576

936,007

2012 1,804,742

1,600,658

1,033,681

890,547

2011 1,572,131

1,332,751

835,572 703,632

July-Dec.2010

1,166,667

922,391 361,557 311,174

TOTAL 7,203,510

6,281,328

3,781,737

3,289,179

2015 Projection

2,194,730

1,975,257

1,239,954

1,041,561

TVET Sector OutputJuly 2010-June 2014

Source: Technical Education and Skills Development Authority (TESDA)


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PRIORITY SECTORS

2014 2015 2016

Agri-Fishery 5,326 6,658 7,323

Manufacturing 34,371

42,964 47,260

Tourism 51,131 63,914 70,305

IT-BPM 53,262 66,578 73,235

Infrastructure / Housing

15,978 19,973 21,970

Logistics 3,232 4,040 4,444

TOTAL 163,300

204,125 224,538

Sectoral Targets:Training for Work Scholarship

Program


Source: Technical Education and Skills Development Authority (TESDA)

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Employment Rates of TVET Graduates

IT-BPOSEMICON/ELECTRONICS

65.3% 2013


Employer Satisfaction Survey: 86.1% of the 5,451 employers said that they are highly satisfied with the performance of TVET graduates while 86.9% indicated their willingness to continue hiring applicants with certification from TESDA.

Source: 2013 Impact Evaluation Survey /2011 Employers Satisfaction Survey

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SME Sector (2012)

Source: Department of Trade and Industry


944,897 Business Enterprises940,886 (99.57%) are MSMEs

4,011 (0.42%) are Large Enterprises

844,764 (89.78%) are Micro Enterprises

92,027 (9.78%) are Small Enterprises

4,095 (0.44%) are Medium Enterprises

Size:Micro enterprises: 1-9 employees Small: 10-99 employees Medium: 100-199 employees Large: 200 or more employees

Assets: Micro enterprises: P3M or less Small enterprises: P3-15M Medium: P15-100MLarge: P100M or more

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SME Sector

Source: Department of Trade and IndustrySkills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok Thailand

Employment Contribution (2012)

Value Added (2012)

MSME

Large

MSMEs generated a total of 4,930,851 jobs in 2012 versus 2,658,740 for the large enterprises. Large

MSMEMSME sector contributed 35.7% of the total with manufacturing contributing the largest share of 6.87%.

Micro

SmallMedium

SME Development Strategyand Approach


Source: MSME Development Plan 2011-2016

Implementation ApproachCompetitivenessMarket System Development

Global ThemesGenderMigrationClimate ChangeCSR

Key Strategies:Conducive Business EnvironmentAccess to CapitalAccess to MarketProductivity and Efficiency

Source: Philippine MSME Development Plan, 2011-2016

Challenges to PH SME Sector


Business Environment

Access to Capital

Access to Market

Productivity & Efficiency

Skills Development for SMEs

• Major constraints and opportunities• Public-Private Partnerships in TVET and

SME• Alternative and Innovative Pathways to

TVETOnline and Mobile Training, TESDA Specialista

Technopreneurship Project, Jobs Bridging Program

• Solutions for Job-Skills MismatchDual Training System, Embedment of TVET in the K-12

Curriculum, 8-Level Philippine Qualifications Framework (PQF)


EFCs in the Philippines and

the Asia-Pacific and South Asia

EFCs in the Philippines and

the ASEAN

Entrepreneurial Factor Conditions in PH

Source: Entrepreneurship in the Philippines, 2013 Global Entrepreneur Monitor


PUBLIC PRIVATE PARTNERSHIPSSari-Sari Store Training and Access to Resources

(STAR) Program

TESDA MOBILE TRAINING

TESDA MOBILE TRAINING

TESDA ONLINE TRAINING PROGRAM

QUALITY ASSURED SYSTEM

ISO 9001:2008 CERTIFICATION

Other Reform Initiatives• Senate Bill 2274

Open Learning and Distance Education Act

• Senate Bill 2272Ladderized Education Act

• Senate Bill 136An Act Reforming the National

Apprenticeship Program


2M Jobs 201

640

% Gross Value Adde

dVision for PH SME SectorMSME Development Plan 2011-

2016

Synthesis

1. Skills development for SMEs should be undertaken in all the training modalities of TESDA.

2. The SME sector should be deliberately considered in the allocation of TWSP and other scholarship programs.

3. PPP projects with the SME sector are desirable for the pre-employment training and re-tooling and upgrading of skills of existing workers.

4. Innovative training programs of TESDA should be extended to the SME sector.

5. The TESDA quality-assured system is SME-driven but the need to develop more SME-relevant Training Regulations is called for.


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Maraming Salamat Po!

The 6th Expert meeting of the Employment and Skills Strategies in Southeast Asia Initiative (ESSSA)

17-18 September 2014 Century Park Hotel, Bangkok, Thailand

albertbasa

[email protected]

Economy & Finance

Skills Development for SMEs and Tackling Informality