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DTI Development Framework in Application to Business Operations among Selected Micro Small Medium Enterprises Towards an Enhanced Business Model

Dr. Fraulein M. Herrera
University of Perpetual Help Molino Campus,
Bacoor City, Philippines



Ninety-nine percent of the establishments in the Philippines are constituted by Micro, Small, and Medium Enterprises (MSMEs), which hold a vital role in delivering consumer needs and wants. The Philippine Statistics Authority reported a decrease in export trade and business registration percentage for the last five years. The Department of Trade and Industry (DTI) introduced the 7Ms Development Framework to address this issue. In this study, 240 MSMEs participated in a survey to assess the following: 1) How do the assessed Micro, Small and Medium Enterprises depict the DTI’s business in relation to business climate, market access, technology accessibility, innovation, finance accessibility, as well as management and labor capacity; 2) The effectiveness of the DTI development framework, in relation to Mastery, Mind, Money, Mentoring, Market, Machine, and Model; 3) The prevalent issues and challenges encountered by selected MSMEs in coping with the development of the Department of Trade and Industry’s 7Ms development framework; 4) Identifying gaps based on the common issues and concerns raised by MSMEs; and 5) Proposing a business model to enhance the strategic and global competitiveness of MSMEs. The study’s findings indicated that the majority of the selected micro, small, and medium enterprises described the Department of Trade and Industry (DTI) business focus area “access to the market” as the “most” moderately visible or adequately observed. Access to technology and innovation, on the other hand, was viewed as the “least” moderately visible. In terms of the DTI development framework’s effectiveness, participants perceived that money was the “most” moderately effective or adequately applicable to their business operations, while mastery was regarded as the “least” moderately effective. Results also show that the most challenges and issues that selected MSMEs encounter include difficulties in business licensing and permits, high cost of inputs, and access or finance. LGU’s non-uniformity of rules, high cost of inputs, and high standards/qualifications set for MSMEs to access finance are the gaps identified. The researcher used different statistical methods, such as weighted mean and standard deviation. The data analysis involved the use of a Windows-based program called the Statistical Package for Social Science (SPSS). The study recommended a business model for how MSMEs become sustainable and globally competitive.

Keywords: Effectiveness, Development Framework, business focus area, business model, issues and concerns, gaps

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