1 Albert A. Basa Technical Education and Skills Development Authority Republic of the Philippines Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines The 6 th Expert meeting of the Employment and Skills Strategies in Southeast Asia Initiative (ESSSA) 17-18 September 2014 Century Park Hotel, Bangkok, Thailand
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Skills Development for SMEs and Tackling Informality
This expert meeting of the ESSSA initiative will provide a unique opportunity to share international experience in addressing the issue of skills mismatch as a way to contribute to more inclusive growth and good quality job creation across Southeast Asian countries.
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Albert A. BasaTechnical Education and Skills Development Authority
Republic of the Philippines
Skills Development for SMEs and Tackling Informality:
Opportunities for the Philippines
The 6th Expert meeting of the Employment and Skills Strategies in Southeast Asia Initiative (ESSSA)
17-18 September 2014 Century Park Hotel, Bangkok, Thailand
TRANSFORMATIVE TVET
Mark EscorraJeepney barker turned call center agent
Emerson PaguiaBalut Vendor turned Web Developer
Policy Environment
• TESDA Law Republic Act 7796: “An Act Creating TESDA, Providing for its Powers,
Structure and for other Purposes”
• TESDA Roadmap 2011-2016
• Magna Carta for Small Enterprises Republic Act 6977, amended by Republic Act 8289 in 1997, and further
amended by RA 9501 in 2008
• Go Negosyo Act Republic Act 10644: “An Act Promoting Job Generation and Inclusive Growth
through the Development of Micro, Small and Medium Enterprises”
• MSME Development Plan 2011-2016Small Business Guarantee and Finance CorporationMicro, Small, & Medium Enterprise Development Council
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok Thailand
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Year Enrolment
Graduates
Assessed
Certified
Jan-June 2014
716,381 659,771 495,351 447,819
2013 1,943,589
1,765,757
1,055,576
936,007
2012 1,804,742
1,600,658
1,033,681
890,547
2011 1,572,131
1,332,751
835,572 703,632
July-Dec.2010
1,166,667
922,391 361,557 311,174
TOTAL 7,203,510
6,281,328
3,781,737
3,289,179
2015 Projection
2,194,730
1,975,257
1,239,954
1,041,561
TVET Sector OutputJuly 2010-June 2014
Source: Technical Education and Skills Development Authority (TESDA)
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok Thailand
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PRIORITY SECTORS
2014 2015 2016
Agri-Fishery 5,326 6,658 7,323
Manufacturing 34,371
42,964 47,260
Tourism 51,131 63,914 70,305
IT-BPM 53,262 66,578 73,235
Infrastructure / Housing
15,978 19,973 21,970
Logistics 3,232 4,040 4,444
TOTAL 163,300
204,125 224,538
Sectoral Targets:Training for Work Scholarship
Program
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok Thailand
Source: Technical Education and Skills Development Authority (TESDA)
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Employment Rates of TVET Graduates
IT-BPOSEMICON/ELECTRONICS
65.3% 2013
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok Thailand
Employer Satisfaction Survey: 86.1% of the 5,451 employers said that they are highly satisfied with the performance of TVET graduates while 86.9% indicated their willingness to continue hiring applicants with certification from TESDA.
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok Thailand
944,897 Business Enterprises940,886 (99.57%) are MSMEs
4,011 (0.42%) are Large Enterprises
844,764 (89.78%) are Micro Enterprises
92,027 (9.78%) are Small Enterprises
4,095 (0.44%) are Medium Enterprises
Size:Micro enterprises: 1-9 employees Small: 10-99 employees Medium: 100-199 employees Large: 200 or more employees
Assets: Micro enterprises: P3M or less Small enterprises: P3-15M Medium: P15-100MLarge: P100M or more
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SME Sector
Source: Department of Trade and IndustrySkills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok Thailand
Employment Contribution (2012)
Value Added (2012)
MSME
Large
MSMEs generated a total of 4,930,851 jobs in 2012 versus 2,658,740 for the large enterprises. Large
MSMEMSME sector contributed 35.7% of the total with manufacturing contributing the largest share of 6.87%.
Micro
SmallMedium
SME Development Strategyand Approach
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok Thailand
Source: MSME Development Plan 2011-2016
Implementation ApproachCompetitivenessMarket System Development
Global ThemesGenderMigrationClimate ChangeCSR
Key Strategies:Conducive Business EnvironmentAccess to CapitalAccess to MarketProductivity and Efficiency
Source: Philippine MSME Development Plan, 2011-2016
Challenges to PH SME Sector
Skills Development for SMEs and Tackling Informality: Opportunities for the Philippines 6th ESSSA Meeting, Bangkok Thailand
Business Environment
Access to Capital
Access to Market
Productivity & Efficiency
Skills Development for SMEs
• Major constraints and opportunities• Public-Private Partnerships in TVET and
SME• Alternative and Innovative Pathways to
TVETOnline and Mobile Training, TESDA Specialista
Technopreneurship Project, Jobs Bridging Program
• Solutions for Job-Skills MismatchDual Training System, Embedment of TVET in the K-12