Seven micro, small, and medium enterprises (MSMEs) in Negros Occidental will receive P12 million worth of technology assistance from the Department of Science and Technology (DOST) next year.
This will be implemented through the agency’s Small Enterprise Technology Upgrading Program (SET UP), with Innovation System Support Fund (ISSF) as main component.
Engineer Allan Francis Daraug, director of DOST-Negros Occidental, said the assistance is intended for facility upgrading to help recipient-enterprises improve their productivity.
Daraug said they initially target to cover seven proposals, but the number may still increase depending on the availability of funds.
This year, DOST-Negros Occidental initially targeted only 12 MSMEs, but was able to provide assistance to 15 enterprises amounting to about P26.4 million.
“Aside from productivity, facility upgrading will also improve their operation resulting to increase in sales,” Daraug said, adding that by providing local enterprises the “appropriate” technologies, they are also equip to produce more competitive and quality products.
DOST-Negros Occidental has yet to identify the seven-recipient firms through screening procedures, including assessment of financial capacity.
Firms are required to submit their financial statements for the agency to know whether they could pay back the amount that will be assisted to them, Daraug said.
Under the program, recipient-enterprises should have been existing for at least three years in the manufacturing industry authorized by the Department of Trade and Industry, and with necessary permits from the local government.
Aside from the audited financial statement, the application process also includes submission of technology and project implementation sheet.
Recipients will also undergo technology needs assessment. Qualified enterprises should also submit a quarterly report or project information sheet to determine if it has generated jobs and improved the product quality and sales.
They are given a one-year grace period before the start of payment within three years.
Daraug said the DOST will start collecting interest only after three years, but may pull out the equipment if enterprises fail to pay and have no improvement in their businesses.
“We have seen significant improvements especially on the products of our recipient-enterprises thus, the program has been impacting them positively,” Daraug said, adding that aside from new applicants, existing-recipients may also apply for renewal.
DOST-Negros Occidental records showed that in 2015, 12 MSMEs in Negros Occidental have availed of the same assistance amounting to P19.1 million.