A PIDS study found that small and medium enterprises (SMEs) in the country are weakly linked to global value chains. This can be attributed to a number of factors, such as the competition in the Association of Southeast Asian Nations region, particularly against Viet Nam and Thailand, and China, which can offer products and services at lower prices; the difficulty of SMEs in complying with regulatory requirements and quality standards and in adapting to changing market conditions and consumer preferences in export markets; and the low entrepreneurial skills among SME owners. The study urges the government to enhance the efficiency of ports and customs operations, improve the credit terms of SME loans, incentivize exporting of higher-value products instead of raw materials through tax breaks for equipment purchase or financing, link SMEs with firms that are already connected to value chains, expand entrepreneurial skills training, and reduce the cost of participation in trade fairs.
Know more about the study titled “Obstacles and Enablers of Internationalization of Philippine SMEs Through Participation in Global Value Chains” here:https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1807.pdf
Know more about the study titled “Obstacles and Enablers of Internationalization of Philippine SMEs Through Participation in Global Value Chains” here:https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps1807.pdf
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