Micro, small, and medium enterprises are prompted to embrace and adapt to digital technology, which is a herculean task that Trade Secretary Alfredo Pascual is given priority during his watch.

The pivot to digitization has become imperative as most businesses seek to reach more markets amid the restricting conditions brought about by the pandemic.

Coming from the academe, Pascual has a scholarly approach being on top of the Department of Trade and Industry which has a pirotal role in the recovery phase.

Pascual said among his priorities as DTI chief is promoting the advancement of MSMEs, aside from backing the manufacturing sector, facilitating the ease of doing business, attracting investments, expanding export markets; and restructuring the organization.

"We want to expand MSMEs, from micro to small, small to medium, and medium to large enterprises. But this would be possible through adopting technology and innovation, linking MSMEs into the supply chain, developing regional industries, and improving their competitiveness," Pascual said in a previous forum.

Part of the digital transformation is DTI's strategy to upgrade, upskill, and upsize MSMEs, which are considered the backbone of the economy as they comprise 99.5 percent of about a million registered business establishments in the country while employing 63 percent of the total workforce, and contributing to almost half of the gross domestic product.

Address constraints to finance

"For MSMEs to continue to grow and upscale, we need to address the constraints to access to finance, technology, and the market. To help ease MSMEs' access to services, we have established 1,344 Negosyo Centers throughout the country, covering all cities and 66 percent of municipalities," he said.

Apart from pivoting, MSMEs need access to financing, which is why he said the DTI is developing several instruments that will cater to the different capacities of MSMEs.

"We have a grant-matching facility that supports agri-businesses in selected regions. We work with agri-businesses that address gaps in the food value chain in developing their business through the grant facility. We will also expand the loan facility of our attached agency, Small Business Corporation, for other agri-businesses that are under the mentorship of DTI," Pascual said.