7. Association Of Southeast Asian
Nations
The ASEAN was established on August 8,1967 in
Bangkok by the five original member countries,
namely: Indonesia, Malaysia, Philippines,
Singapore and Thailand. Brunei Darussalam
joined on January 8, 1984, Vietnam on July 28,
1995, Laos and Myanmar on July 23, 1997, and
Cambodia on April 30, 1999.
The ASEAN Declaration states that the aims and
purposes of the ASEAN are:
8. CONT’D
To accelerate the economic growth, social progress,
and cultural development in the region through joint
endeavours in the spirit of equality and partnership in
order to strengthen the foundation for a prosperous
and peaceful community of Southeast Asian nations
To promote regional peace and stability through
abiding respect for justice and the rule of law in the
relationship among countries in the region and
adherence to the principle of the United Nations
Charter.
9. ENTREPRENEURIAL ACTIVITY IN SOME
COUNTRIES IN SOUTHEAST ASIA
• Entrepreneurial activities in Southeast Asia have lifted
millions of people out of subsistence agriculture into
manufacturing and service industries, increasing
wealth and alleviating poverty in most areas
• Cambodia is growing very fast and within ten years will
be a very different country
• Laos- one of the few one party communist state, began
decentralizing control and encouraging private
enterprise and was striking growth of 7% in 2008-2012.
10. CON’D
Thailand entrepreneurship has long been the
main vehicle of Thai economic progress.
Vietnam joined the World Trade Organization in
January 2007, which has promoted more
competitive, export-driven industries.
Indonesia has realized that entrepreneurial
activities increase economy efficiency and SME
play a dynamic role in Indonesian economy
contributing 56.7% of GDP, account for 19.4% of
total export and employ 79 millions of work force
11. 11
Overview of Philippine MSMEsOverview of Philippine MSMEs
Definition
Philippine MSMEs are categorized based on asset size (excluding land)
and number of employees.
CategoryCategory Total asset value*Total asset value* No. ofNo. of
employeesemployees
Micro EnterpriseMicro Enterprise P 3,000,000 or lessP 3,000,000 or less 11--99
Small EnterpriseSmall Enterprise P 3,000,001P 3,000,001--15,000,00015,000,000 1010--9999
MediumMedium
EnterpriseEnterprise
P 15,000,001P 15,000,001--
100,000,000100,000,000
100100--199199
* RA 6977, as amended by RA 8289 and further amended by RA 9501 or the Magna Carta for Micro, Small and Medium
Enterprises defines MSMEs according to assets. However, available statistics from NSO are still categorized according
to the number of employees.
12. 12
Role and Importance of Philippine MSMEsRole and Importance of Philippine MSMEs
SMEs play a major role in the country’s economic
development through their contribution in the following:
Rural development and decentralization of industries;
Creation of employment opportunities and more equitable
income distribution;
Use of indigenous resources;
Earning of foreign exchange;
Creation of backward and forward linkages with existing
industries; and
Entrepreneurial development.
13. 13
Source: 2010 List of Establishments, NSO
Contribution of MSMEsContribution of MSMEs
Micro - 91.3%
(709,899)
RP EnterprisesRP Enterprises
(777,687)(777,687)
MSMEs - 99.6%
(774,664)
Large - 0.4%
(3,023)
Small - 7.9%
(61,979)
Medium - 0.4%
(2,786)
99.6% of total firms
63% of employment
35.7% of value-added
14. 14
Source: 2010 List of Establishments, NSO
Wholesale and Retail TradeWholesale and Retail Trade
49.6%
ManufacturingManufacturing
14.4%
Hotels and RestaurantsHotels and Restaurants
12.5%
Others*Others*
11.6%
Real Estate, RentingReal Estate, Renting
and Business Activitiesand Business Activities
6.1%
Other Community, SocialOther Community, Social
and Personal Serviceand Personal Service
ActivitiesActivities
5.7%
* Includes the following industries:
• Agriculture, Hunting & Forestry – 3,892 MSMEs
• Fishery – 1,169 MSMEs
• Health & Social Work – 31,573 MSMEs
• Financial Intermediation – 26,443 MSMEs
• Mining & Quarrying; Electricity, Gas and Water,
Construction; Transport, Storage & Communications;
and Education
15. 47%
16%
12%
10%
3%
12%
Manufacture of food products and beverages
Manufacture of wearing apparel
Manufacture of fabricated metals
Manufacture of electronics & machineries
furniture
(12%)
(3%)
(10%)
Manufacturing Sector
Source: NSO List of Establishment, 2010
(47%)
(16%)
17. ASEAN STRATEGIC ACTION PLAN FOR
2010-2015
• ASEAN Internship Project- it aims to contribute towards
realizing the vision of “equitable economic
development” while accelerating the establishment of
an ASEAN Economic Community by 2015
• Staff Exchanges and Internship are effective means to
upgrade skills and competencies, which are not
immediately learned in the classroom, laboratory or
training facility. Industry-related skills and
competencies required by the job may be more
effectively obtained through proper training in a
workplace setting.
18. MSMEDC
It is specifically tasked to stimulate the growth
and development of MSMEDCs through
assistance and facilitation of national efforts in
promoting the viability and growth of the sector
by implementing relevant programs and seek
ways to maximize the use of Filipino labour and
economic resources.
The SME Medium Term Development Plan
defined the A2F, A2M, PE and BE in strengthening
the support to these strategies.
19. GO NEGOSYO CENTER
Business Registration
Business Advisory Services
Business Information and Advocacy
Monitoring and Evaluation
20. COMMON PROBLEMS ENCOUNTERED
BY MSMEs
Marketing
no define target market
absence of demand projection
lack market information
poor promotional tool
Technical & Production
absence of production schedule
no inventory control
poor product costing
inadequate production facilities
inefficient manpower
Organization & Management
absence of vision/mission
unclear goals
poor recruitment policies
no define organizational structure
lack of incentives provision
21. CON’D
Financial-lack of capital
no segregation between personal
business funds
absence of record keeping
poor collection of account
receivables
limited cash flow
poor access to credit
Business Plan Preparation
Managerial Competencies
Business Laws and e-Commerce
22. FUNCTIONAL CHART
IDENTIFICATION
DOCUMENTATION/
FORMULATION
ENDORSEMENT/
EVALUATION
INITIATION/
IMPLEMENTATION
SUSTENANCE
Motivation
Skills
Resources
Risk-taking capacity
Entrepreneurial traits
Environment
Knowledge
Skills
Personality traits
Motivation
Role interceptive
Environment
Policies, Plans, Programs
Budget
Organization
Communication
Coordination
Environment
PROJECT FORMATION
STAGES
FUNCTIONAL
ROLES/PLAYERS LIMITING FACTORS
Support Role
- educator
- persuader
- communicator
- service provider
- change agent
an
oney
aterials
anagement
ind
ethodsM
ENTREPRENEURENTREPRENEUR
EXTENSION WORKEREXTENSION WORKER
INSTITUTIONAL AGENCIESINSTITUTIONAL AGENCIES
Direct &
Indirect support
Policies, programs
Information
Training
Finance
PROJECT
Complexity
Risk
Requirements
- market
- technology
- organization
- skill
- finance
F
E
E
D
B
A
C
K
23. ENTREPRENEUR AND EXTENSION INSTITUTION
INTERACTION IN RURAL PROJECT FORMATION
Project Profile
Nature, Complexity
Requirements of Project
Rural Enterprise Formation Entrepreneur Extension
Worker
Back-Up Support
Extension
Organization
Other
Agencies
Project Stages and Input
Requirements
1. Identification Stage
a. perception of opportunity
b. crystallization
c. risk-taking
2. Documentation and
Formulation Stage
a. market study
b. feasibility study preparation
3. Evaluation/endorsement
4. Initiation/implementation
COORDINATIONCOORDINATION
COOPERATIONCOOPERATION
COMMUNICATIONCOMMUNICATION
Strong and
Weak Points
Limiting
Factors
Gaps
an
oney
aterials
anagement
ind
ethodsM
Perceived
Role
Limiting
Factors
Gaps
Support Role
Education
Persuasive
Communication
Service
Information
Training
Perceived
Role
Limiting
Factors
Gaps
Policies
Programs
Information
Training
Finance
24. COUNSELING
What is counseling
any form of providing help
on the content, process or structure
of a task or a series of tasks where
the consultant is not actually
responsible for doing the task itself
but is helping those who are.
Who are counselors
they are helpers or enablers and
assume that such help can be
provided by persons doing a wide
range of different jobs.
25. Contd.
Counseling in another view
counseling is a professional service and
emphasizes a number of characteristics
that such a service must possess eg.
identify, analyze and recommend solutions
and helped wherein requested in the
implementation of solutions.
What counseling is not- it do not provide
miracle solutions to burning issues.
26. SCOPE OF WORK OF A COUNSELOR
Development Worker
usually works for an agency engaged in
the promotion of entrepreneurship and
business creation.
They are usually employed in government
institutions and non-government agencies or
organizations supported by Overseas
Development Assistance(ODA).
Professional Counselors on the other hand, are
organized to do business rendering
consultancy services for a fee. There ranks
are increasing as the profession of business
counseling gets to be valued and appreciated
by the client entrepreneurs of MSME’s
27. COUNSELOR’S DIVERSE ROLES
As Change Agent
because he brings about a positive change
in the business, measured in concrete
outcomes of productivity and profitability
for the client. More importantly he brings
about behavioral change in the client.
As Coach
he influences the way the client should
carry out the operations of the business.
As Educator
he is an advocate for development by
passing on to a client data and information
on development out of which new
perspective are shaped.
28. COUNSELING AS A PROFESSION
It traces its foundation to guidance
counseling in school and social work
with juvenile delinquents
it is a history of helping other people.
it helps other through advice.
assistance or support on the way
towards achieving a goal.
providing some form of intervention to
alleviate the status or condition of a
person or persons.
provide some remedy.
correct certain practices.
29. DESIRABLE SKILLS OF A COUNSELOR
Intellectual and technical competence in at
least one business function.
Good oral and written communication skills.
Objective and impartial.
Professional in delivering your commitment.
Interpersonal skills.
Creativity.
Analytical and problem solving ability.
Ability to synthesize.
Confidentiality.
Skill of limiting engagements.
Special skills are needed at different stages of
the engagements.
30. DESIRABLE TRAITS OF A COUNSELOR
• Passion to help.
• Be honest or truthful.
• Positive criticism is a trait that distinguishes
a good counselor from one who is not.
• Good physical and mental health
• Etiquette and courtesy.
• Self-confidence.
• Integrity.
• Independence of mind is necessary but do
not be obstinate if you know that you are
not accurate or incorrect.
• Psychological maturity
31. QUALITIES OF A COUNSELOR
Intellectual ability
Ability to understand people and work w/ them
Ability to communicate, persuade and motivate
Intellectual and emotional maturity
Personal drive and initiative
Ethics and integrity
Physical and mental health
32. COUNSELING PROCESS
Making first contact or entry.
Establishing a win-win relationship.
Diagnosing your client situation.
Goal setting and decision making.
Planning the work, working the plan.
Evaluation and termination.
33. EFFECTIVE BUSINESS COUNSELING
Phase One: Making The First Contact
getting to know
establishing rapport
preparing the counselling proposal
formalizing the relationship
Phase Two: Studying The Client
development levels of the client
planning the work- accountability
limitations and potential constraints
Phase Three: Diagnosing
where is the firm now?
what seems to be the problem?
what are causing the problem?
where does the firm want to go?
34. CON’D
what is the nature of the gap between the current
situation and the desired state?
what are the forces that block the progress towards
the desired situation?
what is the client ability to solve the problem?
Phase Four: Working The Plan
what is to be done?
how will it be done?
where will it be done?
when will it be done?
who will do What, When, Where and How?
35. PARTIES INVOLVED
Counselor
who attends to the client’s needs giving
some advice and recommending
possible courses of action.
He may deliver his services in various
modes: through individual personal
counseling or through group counseling
and/or via some crises intervention. He
may conduct his advisory services with
the client through interpersonal face-
to-face communication, the telephone,
cell phone, the internet, or some
combination of interpersonal, mass,
and electronic media.
37. UNDERSTANDING THE CLIENT-
ENTREPRENEUR
Initiate Ideas
new ideas, new designs, use of products,
etc.
Take Risks
chance of success, opportunity-
uncertainty
Plan
aware of the importance of planning
Control
entrepreneurs are leaders rather than
followers
Coordinate
coordinates all the production factors,
i.e., capital, labor, and land
38. PERSONAL
Personal and entrepreneurial
traits
Of clients indicative of a business
sense
Achievement drive
Adaptability
Independence
Decisiveness
Energy
Social skills
Growth motivation
Intuition
Opportunity-seeking
Perseverance
Risk tolerance
Entrepreneurial
management
ENTREPRENEURIAL
39. CRITICAL THINKER
Open minded and mindful of alternatives
Desire to be and is well informed
Judges well the credibility of sources
Identifies the reasons, assumptions, conclusions
Asks appropriate clarifying questions
Judges well the quality of arguments including
the reasons assumptions, evidence ands their
degree of support for the conclusion
Can well develop and depend on reasonable
position regarding belief or an action.
41. THE CLIENT’S TEN COMMANDMENTS
Learn about counseling and counselor
Define your problem
Define your objectives
Choose your counselor
Develop a joint program
Participate actively
Involve the counselor in implementation
Monitor progress
Evaluate the results
Beware of dependence on counselor