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Technology boosts competitiveness of Philippine SMEs

A recent survey commissioned by FedEx Express in 9 Asia Pacific (APAC) countries showed that 85 of around 500 domestic SME players used emerging technologies to improve supply chains and distribution channels.

Entitled, “Global is the New Local: The Changing International Trade Patters of Small Businesses in Asia Pacific”, the survey indicated that software automation and mobile payments are the widely used technologies in the Philippines.

According to a recent report, adaptation by Philippine-based small and medium enterprises (SMEs) is high and this gives them a big advantage to be at par with the best in the world.

Use of these innovations allows small businesses that are part of the study to increase their revenues as they improve their products, among others.

On average, exports account for 89% of the surveyed small enterprises’ total annual revenue. 56% of these exports are within the APAC region, while the remaining 44% is accounted for by those outside the region.

The level of adaptation to technology among Philippine-based SMEs is not surprising for Filipinos are known to be tech-savvy.

Sadly, there are more Filipinos who have access to these technologies than those who have bank accounts.

Moreover, survey results showed that 95% of the respondents use social commerce, 76% of which are using this in order to find customers abroad.

The desire of the Philippine-based SMEs to expand their markets, here and around the globe, is the main reason why they are adapting to these technological innovations.

Compared to SMEs from other APAC countries, local businesses have placed very high among SMEs that are using technologies.

This just shows that the country’s SMEs are embracing technology and making sure that they are competitive on the global marketplace, giving them a level playing field with their international counterparts.

With local SMEs giving stiff competition globally, digital start-up and ‘technopreneurs’ are not far behind as they are also being supported by the Philippine government.

As stated in a recent report, two new hubs were opened recently to kick start the development of the innovation ecosystem in the southern region of the Philippines.

The University of Science and Technology of Southern Philippines (USTP), Cagayan de Oro (CDO) campus, has opened a ‘technopreneurship’ hub and a digital technology hub.

The Commission on Higher Education has granted the University with funding worth US$ 222,508.56 (PHP 12 million) to put up a ‘technopreneurship’ centre that will provide capacity building to faculty, among others.

An additional funding of the same amount, US$ 222,508.56 (PHP 12 million), was granted to the University by the Department of Science and Technology (DOST) in order for them to establish a digital technology hub.

20 potential start-ups are housed in this hub until their ideas become full-fledged businesses.

The University aims to become a nationally recognised science and technology university providing the vital link to education and economy.

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