Can a small handicraft producer compete in the global market? Our UP ISSI experts say it's possible — if you work for it.
Q: Small enterprises are often asked to “globalize or perish.” That sounds rather threatening to a small handicraft producer like me. It also sounds vague. I have just begun exporting in limited amounts through our industry association. What else can I do to “globalize?” — in specific terms please.
— SYLVIA, Bacolod City
A: You took the right step when you joined an industry association, where members can pool their products in order to serve volume, quality, and pricing needs of the export markets, as well as take advantage of economies of scale in making raw material purchases.
Industry associations also often have common service facilities — like testing, research and development and training facilities — which individually small enterprises cannot afford to put up. Industry associations are also avenues for getting technical assistance, training, information, and marketing opportunities. It is also a venue for advocacy of policy decisions to solve common problems.
To help you “globalize,” you can also consider the following:
*
Get professional help. One of the important services provided by the Department of Trade and Industry through the Product Development and Design Center of the Philippines is making available professional designers to help entrepreneurs.
*
Know your costs and keep them as low as possible. Keeping costs down improves productivity and allows you to be competitive in terms of pricing. Once more, you may need the help of professional staff. You may tap a number of government agencies that have programs along this line, among them the Department of Science and Technology and the UP Institute for Small-Scale Industries.
*
Create, innovate, and continuously improve. If you join trade shows and fairs, you know that buyers always look for something new. Last year's bestseller may be passé this year.
*
Keep abreast with the times. Successful exporters are up-to-date with information on design and technology applications. They take advantage of e-commerce. Are you computer savvy? The computer is now a necessity for many entrepreneurs as a communication and marketing tool. It is also useful in keeping financial records, making designs and patterns, and so many other uses.
*
Cultivate other markets. A recent study of exporting SMEs shows that the Philippines is highly dependent on the U.S. market. It is time to diversify and increase the share in other markets.
Hope these suggestions are specific enough. Good luck!
Source: Philstar
Q: Small enterprises are often asked to “globalize or perish.” That sounds rather threatening to a small handicraft producer like me. It also sounds vague. I have just begun exporting in limited amounts through our industry association. What else can I do to “globalize?” — in specific terms please.
— SYLVIA, Bacolod City
A: You took the right step when you joined an industry association, where members can pool their products in order to serve volume, quality, and pricing needs of the export markets, as well as take advantage of economies of scale in making raw material purchases.
Industry associations also often have common service facilities — like testing, research and development and training facilities — which individually small enterprises cannot afford to put up. Industry associations are also avenues for getting technical assistance, training, information, and marketing opportunities. It is also a venue for advocacy of policy decisions to solve common problems.
To help you “globalize,” you can also consider the following:
*
Get professional help. One of the important services provided by the Department of Trade and Industry through the Product Development and Design Center of the Philippines is making available professional designers to help entrepreneurs.
*
Know your costs and keep them as low as possible. Keeping costs down improves productivity and allows you to be competitive in terms of pricing. Once more, you may need the help of professional staff. You may tap a number of government agencies that have programs along this line, among them the Department of Science and Technology and the UP Institute for Small-Scale Industries.
*
Create, innovate, and continuously improve. If you join trade shows and fairs, you know that buyers always look for something new. Last year's bestseller may be passé this year.
*
Keep abreast with the times. Successful exporters are up-to-date with information on design and technology applications. They take advantage of e-commerce. Are you computer savvy? The computer is now a necessity for many entrepreneurs as a communication and marketing tool. It is also useful in keeping financial records, making designs and patterns, and so many other uses.
*
Cultivate other markets. A recent study of exporting SMEs shows that the Philippines is highly dependent on the U.S. market. It is time to diversify and increase the share in other markets.
Hope these suggestions are specific enough. Good luck!
Source: Philstar
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