The Marcos administration is proposing PHP2.412 billion under the 2027 national budget to support 501,253 micro, small, and medium enterprises (MSMEs) nationwide, as part of efforts to improve productivity, strengthen businesses, and expand their access to domestic and global markets.
The Department of Budget and Management said in a statement Thursday that the proposed funding is for the Department of Trade and Industry’s (DTI) MSME Development Program.
The program aims to give entrepreneurs access to business support services, equipment, financing, and market opportunities.
Under the proposed 2027 national budget, PHP937.397 million will support locally funded projects that directly assist entrepreneurs.
Of the amount, PHP472.468 million is proposed to open Negosyo Centers, which provide business registration assistance, advisory services, business information and advocacy, product development, trade promotion, and financing facilitation.
The DTI aims to serve 1.065 million clients through Negosyo Centers nationwide, according to the DBM.
Meanwhile, PHP464.929 million is proposed for the Shared Service Facilities Project, which gives MSMEs shared access to technology, machinery, equipment, tools, and other production facilities that small enterprises may otherwise be unable to afford.
The proposed budget also includes PHP288.520 million for the Rural Agro-Enterprise Partnership for Inclusive Development and Growth Project, a foreign-assisted initiative that supports rural enterprises and connects small producers to stronger and more inclusive value chains.
Recognizing access to capital as one of the major challenges facing entrepreneurs, the proposed 2027 budget provides PHP840.170 million for the Pondo sa Pagbabago at Pag-Asenso Program of the Small Business Corporation.
The DBM said the program is expected to provide affordable financing support to at least 40,000 MSME borrowers, helping small businesses sustain or expand their operations.
Overall, the DTI targets to assist 501,253 MSMEs in 2027, equivalent to 41 percent of MSMEs in the manufacturing, retail trade, construction, and services sectors.
The DBM said the proposed investments aim to address key challenges faced by MSMEs, including limited capital, market access, and the need to keep pace with changes in technology and the economy. (PNA)
