USAID-DTI help SMEs go digital
The United States Agency for International Development and the Department of Trade and Industry recently announced a partnership on a five-year program that aims to empower small and medium enterprises through digital transformation.
The primary goal of the SPEED (Strengthening Private Enterprise for the Digital Economy) program is to enable Philippine SMEs to participate in the digital economy safely, reliably, and competitively.
To expand the participation of the SME sector in the digital economy, SPEED is expected to improve the capacity of SMEs to innovate and adopt safe, reliable, and affordable technology solutions; expand the use of e-payment systems and other fintech innovations; and improve the integration of e-commerce platforms with logistical supply chains.
At the USAID-DTI partnership launch, Trade Secretary Alfredo Pascual thanked the US Government for its support of the department’s initiatives, such as assisting the DTI in the design of the national logistics strategy, supporting infrastructure that enhances economic activities, and securing Internet servers and satellite services.
“Now, with SPEED, USAID can be DTI’s partner in empowering SMEs through digital transformation. One of DTI’s strategic actions is to upgrade, upskill, and upsize SMEs. The key in DTI’s support to scale SMEs is to help them overcome constraints to their access to technology. We aim to enable SMEs to embrace digital transformation. This way, I believe DTI and SPEED’s directions to enhance SME capacities align,” Pascual said.
Making SMEs digitalized would make them operate more efficiently, reduce costs, reach bigger markets, and earn more profits, according to Pascual.
To further support MSMEs’ digitalization, the DTI is working with the Department of Information and Communications Technology to build a free e-commerce platform that can help MSMEs pivot from offline to online and serve business-to-business and business-to-consumer functions.
The DTI has also partnered with the Bangko Sentral ng Pilipinas in the Digital Payments Transformation Roadmap to digitize retail payments and promote financial inclusion among Filipinos.
The primary goal of the SPEED program is to enable Philippine SMEs to participate in the digital economy safely, reliably, and competitively.
On the policy front, Pascual said the DTI is looking forward to the enactment of the Internet Transactions Act that will strengthen consumer protection, as it sets the rights and responsibilities of merchants, provides more defined liabilities for parties, and establishes an E-Commerce Bureau, among others. “With DTI and USAID’s joint successes in enhancing logistics and improving connectivity, we have built a dependable and productive partnership that can now serve as a foundation to fulfill our shared goal to digitize SMEs. Together, we can enhance SME capacities, expand SMEs’ use of e-payment platforms, reinforce SMEs’ integration in logistics supply chains, and contribute to protecting consumers,” Pascual said.