This blog is specially dedicated for the study and efforts of a young software developer to promote the use of IT for Small and Medium Enterprises (SMEs) in the Philippines.
Background of the Study:
The widespread use of computers in today’s business world shows proof that Information Technology (IT) provides significant assistance to the day to day activities of foreign and local establishments. In the Philippines, private companies, non-government organizations and educational institutions have managed to utilize computerized information systems or have at least gone to the extent of putting up their own websites in order to compete and be able to catch up with the fast-growing trend of Information Technology.
Realizing the positive paybacks of technology investments, the Philippine government, since the year 1997, also started formulating its support projects such as “IT21: The IT Action Agenda for the 21st Century” for the development of e-commerce and other IT infrastructures in the country. At the National level, recommendations to promote E-commerce include the intensifying of efforts to promote the widespread use of e-commerce in the country: in the government, business (particularly SMEs), and society.
However, IT plans such as these have not yet been fully implemented. There are still a number of small firms and organizations scattered all over the Philippines eager and possibly looking for IT solutions but have not been able to take advantage of the opportunity because of the lack of support and resources. The Small-Medium Enterprise (SME) sector is one significant example. It has not yet been able to extensively utilize IT for its own strategic advantage even though, according to the Department of Trade and Industry, “it is the backbone of the Philippine economy”.
Small and Medium Enterprises (SMEs) play an essential role in the economies of third-world countries like the Philippines. In fact, Eliichi Sasaki, an Asian development Bank (ADB) Financial Sector Specialist, states that “SMEs employ two-third of the total labor force and the sector is a primary source of economic growth.” and “A vibrant SME sector can help reduce poverty through employment generation.”
SMEs need Information Systems that are functional in their day-to-day business activities and should take into consideration possible business growth and expansion.
