This expert meeting of the ESSSA initiative will provide a unique opportunity to share international experience in addressing the issue of skills mismatch as a way to contribute to more inclusive growth and good quality job creation across Southeast Asian countries.

1. 1
Skills Development for SMEs
and Tackling Informality:
Opportunities for the Philippines
Albert A. Basa
Technical Education and Skills Development Authority
Republic of 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

2. TRANSFORMATIVE TVET
Mark
Escorra
Jeepney
barker
turned call
center
agent
Emerson
Paguia
Balut Vendor
turned Web
Developer

3. 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 2011-2016
Small Business Guarantee and Finance Corporation
Micro, Small, & Medium Enterprise Development Council
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok
Thailand

4. Year Enrolme
nt
Graduat
es
Assess
ed
Certified
Jan-June
2014
716,381 659,771 495,351 447,819
2013 1,943,589 1,765,757 1,055,57
6
936,007
2012 1,804,742 1,600,658 1,033,68
1
890,547
2011 1,572,131 1,332,751 835,572 703,632
July-
1,166,667 922,391 361,557 311,174
Dec.2010
Source: Technical Education and Skills Development Authority (TESDA)
TOTAL 7,203,510 6,281,328 3,781,73
7
3,289,179
TVET Sector Output
July 2010-June 2014
4
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok
Thailand

5. Sectoral Targets:
Training for Work Scholarship
PRIORITY
SECTORS
Program
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 /
15,978 19,973 21,970
Housing
Logistics 3,232 4,040 4,444
Source: Technical Education and Skills Development Authority (TESDA)
TOTAL 163,300 204,125 224,538
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6 5 th ESSSA Meeting, Bangkok
Thailand

6. Employment Rates of TVET
Graduates
26.1%
PGS
2007
85%
TWSP
2012
60.9%
2011
IT-BPO
SEMICON/ELECT
RONICS
Source: 2013 Impact Evaluation Survey /2011 Employers Satisfaction Survey
6
65.3%
2013
48.5 %
2005
56.7%
PGS
2007
62.0%
2012
70.9%
TWSP
2012
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
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok
Thailand

7. SME Sector (2012)
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-
100M
Large: P100M or more
7
944,897 Business Enterprises
940,886 (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
Source: Department of Trade and Industry
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok
Thailand

8. SME Sector
MSMEs
generated a
total of
4,930,851 jobs
in 2012 versus
2,658,740 for the
large
enterprises.
MSME sector
contributed
35.7% of the
total with
manufacturing
contributing the
largest share of
6.87%.
8
Employment Contribution (2012)
Value Added (2012)
Source: Department of Trade and Industry
MSME
Large
Large
MSME
Micro
Small
Mediu
m
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok
Thailand

9. SME Development Strategy
and Approach
Global
Themes
Gender
Migration
Climate
Change
CSR
Implementation
Approach
Competitiveness
Market System
Development
Key Strategies:
Conducive Business
Environment
Access to Capital
Access to Market
Productivity and Efficiency
Source: MSME Development Plan 2011-2016
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok
Thailand

10. Challenges to PH SME Sector
• High cost of doing business
• Some regions are prone to risks BE
• SMEs find difficulty in accessing
available funds
• SMEs lack the capacity for financial
management
Business
Environment
A2C
• SMEs are not proactive in responding to
market needs
• SMEs lack the capacity to use
modern technology
Access to
Capital
A2M
• Vocational and technical schools do
not offer learning programs that are
responsive to MSME needs
Access to
Market
P&E
Source: Philippine MSME Development Plan, 2011-2016
Productivity &
Efficiency
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok
Thailand

11. Skills Development for SMEs
• Major constraints and opportunities
• Public-Private Partnerships in TVET and
SME
• Alternative and Innovative Pathways to
TVET
Online and Mobile Training, TESDA Specialista
Technopreneurship Project, Jobs Bridging Program
• Solutions for Job-Skills Mismatch
Dual Training System, Embedment of TVET in the K-12
Curriculum, 8-Level Philippine Qualifications
Framework (PQF)
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok
Thailand

12. Entrepreneurial Factor Conditions in
EFCs in the Philippines
and
the Asia-Pacific and
South Asia
EFCs in the Philippines
and
the ASEAN
PH
Source: Entrepreneurship in the Philippines, 2013 Global Entrepreneur Monitor
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok
Thailand

13. PUBLIC PRIVATE PARTNERSHIPS
Sari-Sari Store Training and Access to Resources (STAR)
Program

14. TESDA MOBILE TRAINING

15. TESDA MOBILE TRAINING

16. TESDA ONLINE TRAINING
PROGRAM

17. QUALITY ASSURED SYSTEM
ISO 9001:2008 CERTIFICATION

18. Other Reform Initiatives
• Senate Bill 2274
Open Learning and Distance Education Act
• Senate Bill 2272
Ladderized Education Act
• Senate Bill 136
An Act Reforming the National
Apprenticeship Program
2
M
Jobs
2016 40
%
Gross
Value
Adde
Vision for PHd SME Sector
MSME Development Plan
2011-2016
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok
Thailand

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

20. 20
Maraming Salamat Po!
albertba
sa
albertbasa@yaho
o.com
The 6th Expert meeting of the Employment and Skills Strategies in Southeast Asia
Initiative (ESSSA)
17-18 September 2014 Century Park Hotel, Bangkok, Thailand