The Department of Trade and Industry (DTI) is seeking World Bank support for an initiative to make small and medium enterprises (SMEs) become more competitive, innovative and globally integrated.
In a text message to Malaya Business Insight on Tuesday, the DTI Public Relations Division said Secretary Cristina Roque presented the SME-COMPETE Project 2026-2031 to World Bank officials on April 21 to seek the bank’s support for the initiative.
The project focuses on “targeted investment windows” to bridge the financing gaps faced by SMEs.
In a social media post also on Tuesday, Roque said SME-COMPETE will address constraints tied to limited innovation capacity, challenges with standards compliance, and access to value-added services.
“This initiative directly supports my priority of attracting investment and strengthening the backbone of our economy: our small and medium enterprises,” Roque said.
She said the project will be done in line with programs of the DTI units Board of Investments, Philippine Economic Zone Authority, Export Marketing Bureau and the Bureau of Small and Medium Enterprise Development.
The trade department will set an initial timeline to secure government approvals and begin the project preparation.
As of end-2023, there were 114,675 registered SMEs, of which 109,912 were small enterprises, DTI data showed.
The Magna Carta for Micro, Small and Medium Enterprises classifies an enterprise as small if its assets are from P3 million to P15 million. A medium-sized enterprise has an asset size of more than P15 million but not more than P100 million.
A project brief obtained by Malaya Business Insight on Tuesday shows SME COMPETE aims to enhance the competitiveness of SMEs by strengthening their presence in local
institutional markets across the country and supporting their integration into global value chains.
National in scope, the project will prioritize high-growth and export-oriented sectors such as semiconductors and electronics, automotive and aerospace, information technology and digital services, food processing, and furnishings and apparel, the brief added.
As implementing agency, the DTI will provide access to multimodal investments such as grants and loan facilities, technical assistance.
The department will also establish shared technology centers and accreditation systems, and initiate digital marketplace development.
The DTI said the World Bank is being considered as a development partner under an investment project facility arrangement.
