PinoyBusiness.ORG – Home

Stakeholders who are free to make decisions and interaction that provides best products and services are what a healthy and competitive market environment is all about.

However, these are affected by certain factors that may pose as either constraints or sources of opportunities for them to grow and develop. The stakeholders in a market environment are the players in the market. In which maybe composed of the key people whose interests are affected by the organization’s activities. Either in the government or private sector, these stakeholders plan, implement and evaluate the different programs with the end view of successfully achieving their own goals of providing value-added products and service.

The government supports small and medium enterprises (SMEs) because they are considered as the backbone of the Philippine economy. Small enterprise is defined as a business with a capital and total assets of above P3 -- 15 million, while medium enterprise has a capital of a total value of assets of more than P15 million to P100 million.

These SMEs play a vital role in economic development. They offer the most economical use of capital in relation to job creation and provide the strongest growth channel for regional development. Also recognized as the vehicle for growth in today’s regionally and globally interdependent and competitive economy. University of Asia and the Pacific, one of the well-known universities in the Philippines did a study and concluded that there are major trends that SMEs will have to contend with:

First is the globalization of enterprises, with tariff and non-tariff barriers being reduced by trading nations worldwide. Second, the considerable ease of movement across borders of capital goods, services and information technology. Lastly, the reduction of the cost of goods brought about by the rapid technological change giving consumers a wider choice for their hard earned income.

With these, SMEs must be prepared to register in a manner where competition will be considered as a challenge and not as a threat. These are examples of changes which SMEs must be updated with, through a thorough analysis of the market environment. Some organizations can offer their support and give you tips and techniques on how to be able to compete with your competitors. These are some of the organizations: Philippine Small and Medium Business Development Foundation, Center for International Trade and Exportations and Missions, Department of Science and Technology, Development Academy of the Philippines for Training and Consultation, Development Bank of the Philippine for financing assistance and many other organizations that provide training, financial and marketing assistance.

Related Video: