BIBLIOGRAPHY FABROS, MARVEIN S., APRIL...
BIBLIOGRAPHY
FABROS, MARVEIN S., APRIL 2013. An Assessment of DOST Small Enterprise
Technology Upgrading Program (SETUP) Assisted Furniture Enterprises in Baguio City
and Mountain Province. Benguet State University, La Trinidad, Benguet.
Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)
ABSTRACT
This study was conducted to:determine the profile of furniture enterprises assisted
by DOST SETUP in Baguio City and Mountain Province; determine the status of the
furniture enterprise in terms of production, marketing, financial, and organization and
management before SETUP intervention; determine the type of intervention adapted by the
furniture enterprises from the SETUP program; and, identify the expected results/ impact
of the furniture enterprises in terms of production, marketing, financial, and organization
and management as result of the SETUP intervention.
The results showed that the type of the furniture enterprises assisted by DOST
SETUP in Baguio City and Mountain Province is single proprietorship, and most of the
respondents never finished their studies. All furniture enterprises have increased
productivity, product quality; improved financial condition; and the entrepreneurs have
improved management capability. The respondents of Baguio City and Mountain Province
have good impact to their furniture enterprises because they reach their aims.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
The furniture enterprises need to further improve their products for them to meet
the standards in the export market. Moreover the government should provide support for
the furniture enterprises to export or participate in the international marketing.
Furthermore, DOST must conduct trainings (marketing assistance and provision of
production technology) and seminars to their locality.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
INTRODUCTION
Rationale
The National Science and Technology Authority (NSTA) was re-organized into the
Department of Science and Technology (DOST), paving the way for the creation of DOST
Regional Offices through the country on January 30, 1987. The Cordillera Administrative
Region was created by virtue of Executive Order 220, 1987, consisting of the provinces of
Abra, Benguet, Mt. Province (formerly from Region I), Ifugao, Kalinga-Apayao (formerly
from Region II). This was followed by the establishment of the DOST-CAR regional office
through Administrative Order No. 36 and 180, series of 1987. On July 31, 1990, the
Provincial Science and Technology Centers (PSTCs) were created through RA 6959.
DOST-CAR has established its PSTCs in Abra, Benguet, Ifugao, Kalinga-Apayao, and
Mountain Province in December 1991. The last PSTC to be added is the Apayao S&T
Center when the former province of Kalinga-Apayao was splited into two in February
1995, through RA7887 (DOST, 2011).
The Department of Science and Technology (DOST) launched the Small Enterprise
Technology Upgrading Program (SETUP) in response to the call for more focused
programs of assistance for small and medium enterprises (SMEs). SETUP is a nationwide
strategy to encourage and assist SMEs to adopt technological innovations to improve their
operations and thus boost their productivity and competitiveness. The program enable
firms to address their technical problems through technology transfer and technological
interventions to improve productivity through better product quality, human resources
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
development, cost minimization and waste management, and other operation related
activities(DOST, 2011).
Micro, Small, and Medium Enterprises (MSMEs) play a major role in the country’s
economic development through their contribution in the following: rural development and
decentralization of industries; creation of employment opportunities and more equitable
income distribution; use of indigenous resources; earning of foreign exchange (forex)
resources; creation of backward and forward linkages with existing industries; and
entrepreneurial development (DOST, 2011)..
As of June 2012, there were about 139 small and medium enterprises assisted by
the DOST SETUP in whole the CAR. To break it down, there are nine (9) projects in Abra,
11 in Apayao, 21 in Kalinga, 22 in Benguet, 22 in Mt. Province, 26 in Ifugao and 28 in
Baguio City. Specifically for furniture enterprises, there are2 in Abra, 4 in Apayao, 2 in
Baguio, 1 in Benguet, 7 in Ifugao, 2 in Kalinga, and 10 in Mt. Province the total number
of furniture enterprises availed on SETUP project have twenty eight (28) in the whole CAR
(DOST, 2011).
Therefore, it is necessary to assess the SETUP projects of DOST CAR, the present
status of the furniture sector prior to the support of the SETUP, the type of interventions
adapted through the SETUP program, and the expected results or impact of the
interventions for the improvement of the functional areas of their business (DOST, 2011).
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Statement of the Problem
This study focused on the assessment on the furniture enterprises assisted by DOST
SETUP in Baguio City and Mountain Province. Specifically, this study wants sought the
answers to the following:
1. What is the profile of furniture enterprises assisted by DOST SETUP in Baguio
City and Mountain Province?;
2. What is the status of the furniture enterprises in terms of production, marketing,
financial, and organization and management before SETUP intervention?;
3.What is the type of intervention adopted by the furniture enterprises from the
SETUP program?; and
4. What are the expected results/impacts of the furniture enterprises in terms of
production, marketing, financial, organization, and management as result of the SETUP
intervention?
Objectives of the Study
Specifically, this study aims to:
1. Determine the profile of furniture enterprises assisted by DOST SETUP in
Baguio City and Mountain Province;
2.Determine the status of the furniture enterprise in terms of production, marketing,
financial, and organization and management before SETUP intervention;
3. Determine the type of interventions adapted by the furniture enterprises from the
SETUP program; and
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
4.Identify the expected results/impacts of the furniture enterprises in terms of
production, marketing, financial, and organization and management as result of the SETUP
interventions.
Importance of the Study
The result of the study provided basic information to the furniture enterprises
owners in making decisions regarding their business operations and determining the
interventions they needed. Furniture projects include identification of abundant commodity
in a given community that has great potential for production or manufacture intended to
create livelihood and improve the standard of living of a furniture enterprises. These
projects involve commodity-specific S&T interventions or activities and multi-
stakeholders participation in project development and implementation at the furniture
sector. Other concern agency like DOST SETUP may also be guided in formulating
policies to improve their services in providing the interventions needed by their customers.
Scope and Delimitation of the Study
The study was conducted on February 2013. Respondents of this study are the
furniture enterprises owners assisted by DOST SETUP in Baguio City and Mountain
Province.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
REVIEW OF LITERATURE
Micro, Small, and Medium Enterprises (MSMEs) Defined
As defined under Small and Medium Enterprises Development (SMED) Council
Resolution No. 01 Series of 2003 dated 16 January 2003, micro, small and medium
enterprises (MSMEs) are any business activity or enterprise engaged in industry, agri-
business/ services, whether single proprietorship, cooperative, partnership, or corporation
whose total asset, inclusive of those arising from loans but exclusive of the land on which
the particular business entity’s office, plant and equipment are situated, must have value
falling under the following categories: By Asset Size: Micro- up to P3,000,000; Small –
P3,000,000-P15,000,000;
Medium-P15,000,000-P100,000,000;
Large-
above
P100,000,000. Alternatively, MSMEs may also be categorized based on the number of
employees: Micro 1-9 employees; Small 10-99 employees; Medium 100-199 employees;
and Large- 200 and above employees (DTI, 2008).
MSMEs Contribution to the Economy
MSMEs contribute to the creation of wealth, employment, and income generation,
both in rural and urban areas, thus, ensuring a more equitable income distribution. They
also provide the economy with a continuous supply of ideas, skills, and innovations
necessary to promote competition and the efficient allocation of scarce resources. In the
last five years, the MSMEs sector accounted for about 99.6% of the registered business in
the country by which 63% of the labor force earn a living. Around 35.7% of the total sales
and value added in the manufacturing come from MSMEs as well. As of 2009 count, there
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
are 780,437 business enterprises operating in the Philippines. Of these, 99.6% (777,357)
are micro, small and medium enterprises (MSMEs) and the remaining 0.4% (3,080) is large
enterprises. Of the total number of MSMEs, 91.4% (710,822) are micro enterprises, 8.2%
(63,529) are small enterprises, and 0.4% (3,006) is medium enterprises. Majority of the
777,357 MSMEs operating in 2009 are in the wholesale and retail trade industries with
3,385,610 business establishments; followed by manufacturing with 11,987; hotels and
restaurants with 97, 289; real estate, renting and business activities with 47,654; and other
community, social, and personal services with 44,313. These industries accounted for about
88.4% of the total number of SME establishments. MSMEs generated a total of 3,595,641
jobs in 2009 versus 2,094,298 for the large enterprises.
Thus, further indicates that MSMEs contributed almost 63.2% of the total jobs
generated by all types of business establishments that year. Of these, 30.4% or 1,731,082
jobs were generated by micro enterprises; 25.5% of 1,449,033 by small enterprises; and
7.3% or 415,526 by medium enterprises. By industry sector, MSMEs in the wholesale and
retail trade generated the most number of jobs(with 1,250,453) in 2009 followed by
MSMEs in manufacturing, 637,524; hotels and restaurants, 482,357; real estate, renting ,
and business activities , 284,406; and education, 225,016.Majority of the jobs are generated
by MSMEs in the National Capital Region (NCR) with 1,360,440 jobs; followed by
MSMEs in Region 4-A (CALABARZON), 466,648; Region 3 (Central Luzon), 319,340;
Region 7 (Central Visayas), 235,091; and Region 6 (Western Visayas), 193,543.MSMEs
contribute around 35.7% of the total sales and census value-added in the manufacturing
industry, according to the National Statistics Office (NSO).MSMEs account for 25% of the
country’s total exports revenue. It is also estimated that 60% of all exporters in the country
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
belong to the MSME category. MSMEs are able to contribute in exports through
subcontracting arrangement with large firms, or as suppliers to exporting companies,
(DOST, 2008).
Furniture Industry
The furniture industry faces many challenges which require it to change and be
innovative in order to remain competitive. Companies are looking for designers to deliver
innovation, to establish and build brands, and to improve production systems and sales. In
this day and age, a company’s greatest natural resource is the ingenuity of its employees.
Designers are being used more strategically across businesses to help companies grow and
compete more successfully in global markets. The traditional laws of markets and
competition for the industry are now being challenged by global trends-environmental
issues, growing economies and social sustainability, to name a few. Greater economic,
educational and cultural objectives must be met if a company plans to improve its
competitiveness. Examples of these objectives include the quality of designs, the national
image of the company and the social value of the products. With today’s rapidly evolving
market, staying ahead of the game can bring a whole new serving of trends (Bill Martin,
2005).
The Philippine furniture industry for instance has metamorphosed to a highly
diversified manufacturing sector, which is composed of roughly 15,000 furniture firms
directly or indirectly employing about 800,000 people. This is thrice the employment
estimate of 250,000 in the 1980’s and does not include the estimated 1,000,000 people in
the sub-contracting network. Ninety-eight percent of these companies are micro, small and
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
medium enterprises with only 2% being large enterprises. The bulk of all these companies
are concentrated in three provinces, namely: Metro Manila, Cebu and Pampanga. The
furniture manufacturing in the Philippines is still labor-intensive, with products ranging
from leg items (chairs, tables, beds, settees); case goods (cabinets, desks, chest of drawers,
kitchen storage units and related products); and a combination of these two (building or
home fittings, shelves, ornaments and similar products). The industry, as a whole,
contributes about U$600M in the sales to the economy. This does not include the taxes and
sundry fees which the furniture companies, as well as the 1.8M workers in these
establishments, bring into the coffers of the government through taxes. Growth was
admittedly sluggish starting the late 1990’s, reaching a high of U$381.39M in 2000 and
dropping to a low of U$297M in 2001 due to 9/11. Recovery has been slow but steady,
despite hiccups such as the Asian health crisis in 2003 (Anonymous, 2006).
Importance of Furniture Industry Design
Mat Hunter quoted the statement of former Chairman George Cox that design is
what links creativity and innovation. It shapes ideas to become practical and attractive
propositions for users or customers. Design may be described as creativity deployed to a
specific end.
According to Chief Design Officer, Mat Hunter (n.d), every designer has a slightly
different approach and different design specialism also have their own ways of working,
but there are some general activities common to all designers. At the Design Council we
like to illustrate this with a ‘Double Diamond’ model. Divided into four distinct
phases, discover, define, develop and deliver, it maps how the design process passes from
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
points where thinking and possibilities are as broad as possible to situations where they are
deliberately narrowed down and focused precisely on distinct objectives:
1.Discover. The first quarter of the double diamond model covers the start of the project.
Designers try to look at the world in a fresh way, noticing new things and seeking
inspiration. They gather insights, developing an opinion about what they see, deciding
what is new and interesting, and what will inspire new ideas. Specific methods
include: Market research, User research, Managing and planning and Design research
groups.
2.Define. The second quarter represents the definition stage, in which designers try to make
sense of all the possibilities identified in the ‘Discover’ phase. Which matters most?
Which should we act on first? The goal here is to develop a clear creative brief that frames
the fundamental design challenge to the organization. Key methods during the Define
stage are: Project development, Project management and Project sign-off.
3.Develop. The third quarter marks a period of development where solutions are created,
prototyped, tested and iterated. This process of trial and error helps designers to improve
and refine their ideas. Key activities and objectives during the Develop stage are:
brainstorming, prototyping, multi-disciplinary working, visual management,
development methods and testing.
4.Deliver. The final quarter of the double diamond model is the delivery stage, where the
resulting product or service is finalized and launched. The key activities and objectives
during this stage are: Final testing, approval and launch and Targets, evaluation and
feedback loops.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Furniture designers sometimes work on their own, some also make the furniture
they design, and others work in teams as part of a large-scale manufacturing process. Pieces
of furniture often start off as sketches of designer’s ideas. 3D models are sometimes made,
often by hand from cardboard, foam, wood or whatever the designers can lay their hands
on, to show the piece’s look and shape. Computer aided design (CAD), which is used
increasingly in contemporary furniture design to translate ideas into technical drawings,
forms a big part of a furniture designer's training and it is now widely used to quickly create
new pieces of furniture. Rapid prototyping machines use CAD information to print
complex 3D shapes and furniture designers may use them to model detailed parts of their
concept. Full scale prototypes are commissioned to enable the functionality of a piece and
its materials to be tested before a concept can be taken and manufactured at scale. Larger
furniture design and manufacturing companies will employ staff to focus on marketing and
selling new pieces or collections of furniture. Furniture designers who work on their own
may need to engage in a degree of self-promotion in order to get themselves and their
designs noticed, and therefore generate sales and profit. Whatever the size of the design
practice, furniture creators will have to work with retailers, to sell their furniture. Domestic
furniture is most often sold through retailers such as up-market specialist shops like Heal's
or more democratic outlets like Ikea. Furniture bought for public or commercial use – for
a shop, restaurant, office or school, for example – may be sold through a furniture dealer
who specialises in supplying furniture in volume, (Hunter, n.d.).
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Functional Furniture
All furniture should be functional to some degree or it is, to all intents and purposes,
useless, but there are instances where the need for practicality takes precedence over the
aesthetics. School furniture, for example, is designed above all else to be comfortable and
durable, due to its sustained use. It must also be cost-efficient, as it's likely to be purchased
using public money. The same criteria applies to hospital furniture which must be high-
functioning, comfortable and, most importantly, hygienic. Furniture is essential to our
every-day lives. We use it at home, while we’re working and when we’re out shopping, at
the cinema or travelling. Well-designed and researched furniture can improve our quality
of life - when we like how it looks it gives us pleasure and when it makes us comfortable
it can increase our efficiency and productivity. How furniture looks is important, and some
of the most successful furniture designs of all time are often the most aesthetically pleasing,
but the most successful furniture designs of all time look good and work well. By
combining form and function in the design, and by ensuring products are made using
responsible materials and ethical production techniques, furniture designers help create the
pieces that collectively sell for £8.3billion each year according to the Furniture Industry
Research Association (FIRA), (Hunter, n.d.).
Furniture Materials in Operations
There are literally thousands of natural and man-made materials used for making
furniture ranging from soft woods, hard woods and various grasses all the way to steel,
glass, plastic and a host of man-made materials. One of the earliest and the most popular
materials used for making furniture is wood. That is because wood has historically been
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
plentiful and is very easy to work with. Other materials, even stone have been used since
early times however due to the impracticality of materials like stone, mostly benches and
other outdoor items are made exclusively of stone. Stone is however used frequently as a
component of furniture making, for example marble and granite are sometimes used to
create a beautiful and nearly indestructible top for tables and similar furniture items. The
most popular furniture making woods are Oak, Pine, Cedar, Cherry, Maple, Mahogany,
Teak, Bamboo, Wicker and Veneers. Combined with leathers, fabrics and stone it is
possible for skilled furniture craftsmen to make the most beautiful furniture using only
natural materials. Laminates are another all too popular material for making furniture.
Unlike the other materials mentioned, laminates are not natural. A laminate, not to be
confused with a veneer, is a cheap way of making furniture that looks good, but it is a
method that is never used for making quality furniture (Irvine, CA, 2011).
Production Management
According to Porter (1980), as cited by Walang et al. (1998), to remain
economically viable, a firm must be concerned with both the unit cost of its products and
services and their contribution to profit. In addition, the enlightened firm will look at
various aspects of productivity and always seek improvement.
Marketing Strategies
According to G. Smith (1999), Furniture marketing strategies have eight
characteristics.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Strategy 1. Think big and audit your time. No matter what is the size of your
business, place a mental image in your mind as if you are the largest and most successful
person in your industry. How much time is consumed by routine office work someone else
should be doing? Spend more time with more important tasks such as marketing strategies,
improving customer relations, and implementing new strategies to expand your services.
Strategy 2. Be different and stand out from the competition. Jordan Furniture sells
more furniture per square foot than any other furniture store in the nation. They transformed
their family-owned business into a multi-million dollar corporation by following a
principle called "shoppertainment." To surprise employees and customers, Barry and Eliot
Tatleman dressed up like the Lone Ranger and Tonto and rode horses in their parking lot.
They built an IMaxtheater inside one store to entertain children while their parents
shopped. When you drive around the back to pick up your furniture they provide you free
hotdogs and wash your car windows.
Strategy 3. Build relationships with your customers. For each month that goes by,
customers lose 10% of their buying power. Create a customer database and contact them
on a regular basis. Mail them a postcard, birthday card, sales flyer, newsletter etc. to keep
your name, phone number, and service on their mind.
Strategy 4. Collect E-Mail Addresses. Get permission from your customers to use
their E-mail address. Periodically send updates and notices to your client list. As long as
you have their permission and avoid overuse, E-mail can be a powerful and inexpensive
marketing tool.
Strategy 5. Hire top sales people. Successful businesses realize the quality of their
sales staff is critical to sustaining their growth in the marketplace. A top salesperson can
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
outsell an average one 4 to 1. Sales people must understand their strengths and have a well-
defined plan to reach their potential. Many companies can provide you sales assessments
to both identify top candidates and develop currently employed sales people.
Strategy 6. Put a shopping cart on your website. Online sales are still growing at a
dramatic pace. This is coming from people who want to save time, avoid crowded stores,
convenience, and the ability to shop outside of store hours. Just consider E-Bay for
example, which generates millions of dollars of sales each year. It does not cost anything
to set up an account on E-Bay, and you pay a proportion based on the cost of the item you
are trying to sell. If you don't want to use E-bay, consider using your own shopping cart
system on your website.
Strategy 7.Pay-per-click advertising. Many business owners are finding classified
advertising is not an effective use of their marketing dollars. Others are finding pay-per-
click advertising is an easier and cheaper way to reach a larger market. Pay-per-click will
insure you receive top visibility on websites driving more customers to your door.
Advertisers bid on keywords and the more popular the keyword, the more expensive each
click is. Prices vary between ten cents to many dollars depending on the popularity of the
word. The most popular pay-per-click advertisers are Google, Business.com, and Yahoo.
Strategy 8. Use customer service commandments to create good habits. Bates Ace
Hardware store located in Atlanta created "Twenty Customer Service Commandments"
modelled after the Ritz-Carlton hotels outlining specific behaviors employees are to
demonstrate when dealing with customers and fellow employees. For example,
"Accompany a customer to the correct aisle instead of pointing to another area of the store."
They print the commandments on a small card and employees carry it with them at work.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Human Resource
Human resources are the most important resources because they are the one who
plan and implement business activities.
Moreover, human resource is required to operate not only the machinery but all
production activities. In any factor, there are many specialized functions to manage. This
leads to the principle of specialized labor to the selling up of an organizational structure
designed to accomplish the various jobs (Drucker, 1965) as cited by Walang, 1998.
Financial Resources
According to Fajardo (1982), as cited by Walang et al. (1998), states that financial
capital are essential resources to the entrepreneur. These are the life blood of the enterprise,
the entrepreneur needs money in starting his business as well as for the development and
growth, in many cases, small entrepreneurs have inadequate capital. Thus, it is important
for them to be able to identify sources of funds.
In addition, financial manager must determine the best way to raise money.
However, it is also important that the money should be used effectively in realizing the
goals of enterprise and should adopt ways of monitoring and evaluating financial
performance (Walang et al., 1998).
DOST SETUP
Initially, the program covers the following sectors; (1) food processing, (2)
furniture, (3) gifts, toys, house wares, handicrafts, natural fibbers and dyes, (4) marine and
aquatic resources, (5) horticulture (cut flowers, fruits and high value crops), (6) metals and
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
engineering, (7) information and communication technology/ electronics, and (8) health
products and services/pharmaceuticals (DOST, 2011).
SETUP aims to assist MSMEs improve their productivity and competitiveness
through the : (1) infusion of new/ advanced technologies to improve operations of MSMEs,
(2) provision of limited funds for technology acquisition, (3) manpower training, technical
assistance and consultancy services, (4) design of functional packages and labels, testing,
(6) database information system (DOST, 2011).
DOST Strategies to assist MSMEs
Provision of technology. For technology needs assessment and sourcing of
technology, participating firms will be assisted in assessing their technology needs and
appropriate technologies recommended for adoption. Once identified, the source of the
technology will be determined and negotiations for the acquisition and installation of the
technology will be done (DOST, 2011).
Although limited, DOST will provide one time seed fund to participating MSMEs
to facilitate technology acquisition. This could hopefully enable them to access formal
credit sources for future technology needs and expand their production activities (DOST,
2011).
Technical training for manpower on key production issues such as Hazard Analysis
and Critical Control Points (HACCP) particularly for food processing, Good
Manufacturing Practices (GMP), quality and environment management systems
(QMS/EMS) as well as training on specific technical skills (DOST, 2011).
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
To ensure successful adoption of technologies, DOST through its pool of science
and technology experts from its various agencies and members provide continuing
technical and productivity consultancy services to participating firms (DOST, 2011).
Products Standards and Testing. Product Standards, to be able to compete globally
and locally, Philippine made products must meet certain standards. Unfortunately, there
are still no local standards for a large number of Philippine products. DOST is currently
working with the Bureau of Product Standards (BPS) of the DTI in cooperation with the
private sector, the academe, other government agencies and non-government organizations
in establishing standards for some products(DOST, 2011).
Product Testing and Enhancement of Testing Laboratories, to determine if products
conform to standards, there must be tested in accredited laboratories. DOST, established a
network of regional testing laboratories in cooperation with State Colleges and Universities
and private testing centers (DOST, 2011).
Packaging and Labelling. Products must be packaged well to increase its shelf life
especially for food products, improve handling and protection and ultimately improve their
marketability. In addition, the export market requires appropriate labelling of food products
in response to the demand of the highly environment and health conscious consumers.
DOST established the Packaging R & D Center in its Bicutan Compound to assist MSMEs
in developing functional designs for packages, identifying and developing suitable or
alternative packaging materials especially from indigenous sources (DOST, 2011).
Database Management Information System. Several databases vital to MSMEs are
now being prepared. These include a listing of available technologies at the national and
regional level, listing of S & T experts, and a listing of testing laboratories including testing
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
services provided as well as costs. These databases will be accessible through the SET-UP
web page that is currently being developed (DOST, 2011).
Linkages and Networking. We have five of linkages and networking according by
the following; 1) Raw Material sourcing; 2) Marketing; 3) Technical/Entrepreneurial
Training; 4) Financing; 5) Equipment design and fabrication.
Conceptual Framework
Analyzing the different factors that will affect the business is very significant for
the attainment of the enterprise goal. The profile of the entrepreneur and its current business
operations will be determined. In addition, the current business operation of the enterprise
in terms of production, marketing, human resource and financial operations will be
assessed.
After assessing the present status of the business, the intervention adopted will be
asked to identify the technology related strengths and weaknesses of an enterprise and gaps
incurred in the business operations.
Improvement on the enterprise, production, marketing, human resource and
financial operations will be analyzed. Then the study will give its recommendations after
the evaluation of the projects (Figure 1).
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Figure1. Paradigm showing the relationships of variables.
Profile of
Improvement
Entrepreneur
in:
and MSME
-Production
Current
Interventions
Business
adapted
-Marketing
Recommendation
Operation
(Identify the
SETUP)
- Finance
- Production
- Human
- Marketing
Resource
- F
inance
- Human
Resource
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study area covers Baguio City and Mountain Province. All micro, small and
medium enterprises that were registered and assisted by the Department of Science and
Technology (DOST) are included in the study. The study was conducted on February 2013.
Respondents of the Study
This study of furniture enterprises included eight (8) entrepreneur managers and
owners of furniture enterprises over Baguio City and Mountain Province. These eight (8)
managers graduated and completed, covers all micro, small and medium enterprises that
were assisted by the Department of Science and Technology (DOST).
The respondents were found dominant in Bontoc, Mountain Province with a
percentage of 37.5, followed by Tadian, Mountain Province and Baguio City (25%), lastly,
Sadanga, Mountain Province (12.5%). The data implies that most of the respondents live
in Bontoc, Mountain Province.
Research Instrument
A survey questionnaire was prepared to gather empirical data. The questionnaire
was used as a guide in gathering data and information from the respondents.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Data to be Gathered
The data gathered was focused on the profile of the respondents, enterprise profile,
status of the enterprise before and after SETUP intervention, and the results/ impact of the
intervention adapted from the SETUP project.
Data Analysis
Data was collected with the used of survey questionnaire and given to the selected
respondents assisted by DOST SETUP. An interview was done for needed clarifications
and validations of data sought.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
RESULTS AND DISCUSSION
Profile of the Entrepreneur
In this study, a total of six DOST SETUP assisted furniture in Mountain Province
and two from Baguio City were taken as respondents. Table 1 presents the characteristics
of the respondents according to their age, gender, civil status, and educational attainment.
Age. The respondents’ ages ranged from 40 to 60 years old. 37.5 % were 40-45
years old. 12.5 % respondent was in 46-50 years old, 37.5% were in 51 to 55 years old, and
12.5 % were in 55 – 60 years old.
Gender. There were more male respondents (62.5 %) than female (37.5 %). This
implies that males are more active in engaging into furniture enterprises as compared to
the females.
Civil Status. Most of them are married (87.5%), and only one (12.5%) is widow.
Most of the respondents also revealed that they were assisted by the family in managing
the enterprise.
Educational Attainment. The respondents vary in their educational attainment.
There were 12.5% who reached elementary, 62.5% high school, and 25% college. Most of
the respondents however at least reached high school level.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Table 1. Distribution of entrepreneurs according to profile
Respondents
Profile of the Entrepreneur
F %
Age
40-45
3
37.5
46-50
1
12.5
51-55
3
37.5
56-60
1
12.5
TOTAL
8
100
Gender
Male
5
62.5
Female
3
37.5
TOTAL
8
100
Civil Status
Married
7
87.5
Widow
1
12.5
TOTAL
8
100
Educational attainment
Elementary Level
1
12.5
High School level
5
62.5
College
2
25.0
TOTAL
8
100
Enterprise Profile
This section presents the distribution of respondents according to the profile of
furniture enterprises to include (a) type of organization, (b) number of years in operation,
(c) production site/ location, (d) year enterprise was established,(e)year started adopting
the SETUP intervention, (f)amount of SETUP assistance availed, and (g)enterprise
registration. ( Table 2)
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Type of Organization. Table 2 shows the type of organization the respondents were
into. All of them are in single proprietorship.
Number of years in operation. Table 2 shows the number of years the respondents
operated their business. Fifty percent (50.0%) of the respondents are in 13 years and above
on its business operation, 3 (37.5%) in 5-9 years operation, and 1 (12.5%) in 10-12 years
operation.
Year enterprise was established. Table 2 shows that the range of the establishment
of the different enterprise was 1991-2010. On the year of 1996- 2000 3 (37.5%) has
established their enterprise, 2 (25.0%) respectively in the year of 2001- 2005 and the year
of 2006- 2010, and 1 (12.5%) in the year of 1991- 1995.
Year started adopting the SETUP intervention. Table 2 shows that in year of 2005-
2008 have 3 (37.5%) adopted the SET UP intervention, also 3 from 2009- 2011 (37.5%)
and 2 (25.0%) in year of 2012- 2015.
Amount of SETUP assistance availed. Table 2 shows the amount of SETUP
assistance availed by the enterprise. Three (37.5%) availed the SETUP project with a worth
of 251,000- 300,000, 25.0% in a worth of 50,000- 100,000, the rest of the respondents
availed 12.5% 101,000- 150,000, 151,000- 200,000 and 201,000- 300,000.
Enterprise registration. Table 2 shows the respondents enterprise registration. Fifty
percent (50.0%) registered in the year of 2006- 2010, 2 (25.0%) in the year of 1996- 2000,
1 (12.5%) in the year of 1991- 1995, and also 1 (12.5%) enterprise in the year of 2001-
2005. The table shows that majority of the respondents registered in the year of 2006-2010
while the rest registered below the year of 2006.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Table 2. Distribution of respondents according to enterprise profile
Respondents
Enterprise Profile
F %
a. Enterprise Registration
1991- 1995
1
12.5
1996- 2000
2
25.5
2001- 2005
1
12.5
2006- 2010
4
50.0
b. Type of Organization
Single Proprietorship
8
100
c. Year enterprise was established
1991- 1995
1
12.5
1996- 2000
3
37.5
2001- 2005
2
25.0
2006- 2010
2
25.0
d. Year started adopting the SETUP Intervention
2005- 2008
3
37.5
2009- 2011
3
37.5
2012- 2015
2
25.0
e. Amount of SETUP assistance availed
50,000- 100,000
2
25.0
101,000- 150,000
1
12.5
151,000- 200,000
1
12.5
201,000- 250,000
1
12.5
251,000- 300,000
3
37.5
SETUP Intervention.
This section presents the distribution of respondents according to SETUP
intervention. The table shows the sources of information about SETUP, S&T intervention
availed SETUP, objective in availing SETUP, knowing if the respondents met their
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
objectives in availing SETUP, and knowing if they had encountered problems/ constraints
in adopting SETUP intervention.
Sources of information about SETUP. Table 3 shows the sources of information
about SETUP project. The agency personnel is the dominant source of information as
claimed by 62.5%, 25% they have learned about SETUP from their co-entrepreneur and
12.5% for friend. According to most respondents, there was a program launched by the
DOST that they could provide assistance to their enterprise which made them aware of the
SETUP.
S&T intervention availed SETUP. Table 3 shows the S&T intervention availed
SETUP for the furniture enterprises. All of the respondents answered equipment upgrading
and technology upgrading. The result shows that the intervention availed by the
respondents vary depending on the needs to their enterprise. The result implies that the
upgrading production facilities were highly needed by the respondents.
Objectives in availing SETUP. Table 3 shows the objectives of the respondents in
availing SET UP project. All of the respondents said that their objective in availing the
program was to improve product quality, to expand the product line, and to increase
production volume meeting the market demand.
Attainment of objectives. Table 3 shows the respondents answers if they had
attained their objectives in availing SETUP. All of the respondents said that they had met
their objectives through availing the SETUP project with DOST and were glad that they
have not encountered any problems/constraints in adopting the SETUP interventions. Fifty
percent of the respondents said that they had attained their objectives at about 80- 90%,
37% of the respondents attained their objectives in a rate 50% and below while 12.5% of
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
the respondents rated100% in their objective attainment. This implies that the respondents
have higher chance to attain their objectives to continuous availing the SETUP
intervention.
Problems/constraints encountered. Table 3 also shows the answers of the
respondents if they had encountered problems/ constraints in adopting SETUP
intervention. All of the respondents answered that they had not encountered problem/
constraints in adopting SETUP interventions. This show that the all respondents did not
encountered any problems/constraints in adopting SETUP intervention. Some respondents
said that have problem/constraints effective their furniture enterprises but mostly due to
the total log ban in the past three years, but not included as an intervention in the problem
of this study.
Assessment of DOST SETUP Intervention
Availed as Perceived by the Beneficiaries
This section presents the distribution of respondents according to assessment of
DOST SETUP intervention availed as perceived by the beneficiaries, it follows the
technology needs assessment, project proposal preparation, and provision of production
technology.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
TABLE 3. Distribution of respondents according to SETUP Intervention
SETUP Intervention
Respondents
F %
a. Sources of information about SETUP
Co-entrepreneur
2
25.0
Agency personnel
5
62.5
Friend
1
12.5
b. S&T intervention availed SETUP
Technology Needs Assessment
8
100
Project proposal operation
8
100
Provision of production technology:
Equipment upgrading
8
100
Process / Technology upgrading
8
100
c. Objective in availing SETUP
To improve product quality
8
100
To expand the product line
8
100
To increase production volume meeting the
8
100
market demand
d. Have you met your objectives in availing
SETUP?
YES
8
100
If yes, how many percent?
1- 50%
3
37.5
80- 90%
4
50.0
100%
1
12.5
e. Did you encounter problems/ constraints in
adopting SETUP intervention?
NO
8
100
SETUP intervention availed. Table 4 shows the SETUP intervention availed by the
respondents. Sixty two point five percent (62.5%) of the respondents said they that they
were satisfied with the technology needs assessment provided by SETUP. As to other
interventions like project proposal preparation and provision of production technology
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
process and equipment upgrading, majority of them claimed to be satisfied. As shown on
the table, 75% claims that they are so satisfied with the proposal preparation as SETUP
intervention they availed. This can be further justified from the computed mean averages.
Table 4. Distribution of respondents according to assessment of DOST SETUP
Intervention availed as perceived by the beneficiaries.
SETUP INTERVENTION
1
2
3
4
5
AVE DES
AVAILED
F % F % F % F % F %
Technology needs
- -
-
- -
- 5 62.5 3 37.5 4.38 Satisfied
assessment
Project proposal preparation - -
-
- -
- 6 75 2 25 4.25 Satisfied
Provision of production
-
-
-
-
-
- 5 62.5 3 37.5 4.38 Satisfied
technology (Process)
Equipment upgrading
-
-
-
-
-
- 5 62.5 3 37.5 4.38 Satisfied
Legend:
0.1-1.5= very unsatisfied
2.1-3.5 = neither
4.1-50 = very satisfied
1.1-2.5 = Unsatisfied
3.1-4.5 = satisfied
Production Status
Table 5 presents the volume of production before and after the SETUP
interventions. All the respondents showed increase in production given the 6 months
information. Respondent 4 had the highest rate of increase by 570%, followed by
respondent 5 at 88.41% and the least was respondent 8 with 3.41%.
The result shows that the interventions provided had positive impact in production,
thus implying effective and efficient production technology.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
TABLE 5. Distribution of respondents according to production status of the enterprise
before and after the SETUP intervention.
PRODUCTION VOLUME / 6 month
%
RESPONDENTS
BEFORE
AFTER
INC/DEC. CHANGE
1
50
58
8 Inc.
16
2
526
559
33Inc.
6.27
3
84
116
32 Inc.
38.10
4
40
268
228Inc.
570
5
69
130
61 Inc.
88.41
6
364
423
59 Inc.
16.21
7
157
170
13 Inc.
8.28
8
586
606
20 Inc.
3.41
Processing methods
Table 6 presents the different processing methods of the respondents before and
after the intervention and how they are done: whether manual or automatic.
It shows that six (6) of the respondents do the raw materials selection manually
while 2 automatically do it before the intervention. For the methods of measuring, all
respondents claim that they manually do it. In cutting woods, 6 respondents automatically
do it and 2 manually cut the wood. For the air drying process, have 4 manually do it and 4
automatically do it. In sun drying, 5 respondents manually do it and2 automatically do it.
If 5 claims they do slicing methods automatically, 3 do it manually. In the shaping process
method, 5 respondents say that they automatically do it and 3 do it manually. For the
assembling method, have 5 respondents manually do it and 3 do it automatically. In
varnishing,4 automatically do it while 4 respondents said they manually do it. For the
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
finishing processing methods, 6 respondents claim that they do it manually while 2
respondents do it automatically. The table shows that the enterprises were increase in
automatic equipment and it helped increased the production and reduce hard work of the
respondents.
Table 6.Furniture processing methods.
BEFORE
AFTER
PROCESSING
Changes
METHODS
Manual Automatic
Manual Automatic automatic
equipments
Raw materials Selection
6
2
3
5
3
Measuring
8
-
8
-
-
Cutting
2
6
-
8
2
Air drying
4
4
2
6
2
Sun drying
5
3
2
6
3
Slicing
3
5
-
8
3
Shaping
3
5
-
8
3
Assembling
5
3
2
6
3
Varnishing
4
4
2
6
2
Finishing
6
2
3
5
3
Furniture Processing Equipment
Table 7 shows that equipment’s availed in SETUP intervention and their owned
equipment of the respondents. It showed the intervention of equipment before and after
availing the equipment. Before the intervention some of the respondents did not follow the
standard processing because of lacking of equipment in their enterprises but after the
intervention they followed the standard procedure of processing because most of the
respondents completed the needed equipment of their enterprises.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Functionality of Equipment. Table 8 shows the functionality of equipment adopted
before and after the intervention. Before the intervention all equipment of respondents are
functional and after the intervention all equipment are functional. This implies a positive
impact from the intervention availed and don’t need more employees to exert effort and
time to finish the product.
Table 7.Furniture Processing Equipment.
Functionality
Owned
SETUP
PROCESSING EQUIPMENT
Owned SETUP
F
%
F
% F
% F %
Hammer
8
100
-
8
100
-
-
Measuring tools (ruler, etc.)
8
100
-
8
100
-
-
Knives/ bolo
8
100
-
-
8
100
-
-
Circular saw
8
100
-
-
8
100
-
-
Curving tools
8
100
-
-
8
100
-
-
Hack saw
8
100
-
-
8
100
-
-
Bar clamp
7
87.5
1
12.5
7
87.5
1
12.5
Router
6
75
2
25
6
75
2
25
Wood lathe machine
6
75
2
25
6
75
2
25
Wood Planer
6
75
2
25
6
75
2
25
Air compressor
6
75
2
25
6
75
2
25
Table saw
6
75
2
25
6
75
2
25
Bespa Sprayer/ Spray gun
6
75
2
25
6
75
2
25
Band saw
6
75
2
25
6
75
2
25
Molding machine
6
75
1
12.5
6
75
1
12.5
Drill press/ Electric drill
4
50
2
25
4
50
2
25
Jig saw
3
37.5
2
25
3
37.5
2
25
Effect to Production. Table 8 shows the effect of intervention to production. Before
availing the SETUP intervention, all of the respondents claimed that they have minimal
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
production but after the intervention all respondents had increased production in 100%
after availing the equipment. When I interviewed, the respondents answered that equipment
availed from SETUP increased of their production because the product processing helped
to produce more products for the enterprises. The equipment availed is effective on their
production because majority of the respondents, almost thirty percent (30%) increased in
production.
Table 8a.Functionality of Equipment Availed
RESPONDENTS
a. FUNCTIONALITY OF EQUIPMENT
AVAILED
BEFORE
AFTER
F
%
F
%
Functional
117
100
140
100
b. EFFECT TO PRODUCTION
Increase production
-
-
8
100
Table 8b.Effect to production
PRODUCTION VOLUME / 6 month
Changes
RESPONDENTS
BEFORE
AFTER
Volume %Inc.
1
50
58
8/50 Inc.
2
526
559
33/526 Inc.
3
84
116
32/84 Inc.
4
40
268
228/40 Inc.
5
69
130
61/69 Inc.
6
364
423
59/364 Inc.
7
157
170
13/157 Inc.
8
586
606
20/586 Inc.
Promotional media used. Table shows that all (100%) of the respondents that their
own way to promote their product through person to person and then 37.5% were doing
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
the exhibit fairs because some respondents could not afford advertisement through
television, radio and newspaper so 25% displayed in their own house to promote their own
products. This shows that the respondents used the following strategies to promote their
products through word of mouth, exhibit fairs, and other respondents displayed on their
own house.
Label of product. Table shows the labelling content of product. According to the
respondents before the intervention they will see that the dominant is quality because they
have 62.5% compare to the other level is only have 37.5 of texture and 12.5 on size. After
the intervention they increase the quality because they have 75% base on texture they
decrease so they will have only 25%. This shows that the labels of products vary among
respondents as to size, texture, and quality.
Product quality. Table shows that before the intervention, that the product quality
that they have 87.5% in standard and 12.5% in low of product quality. After the
intervention, we can see the different of the product quality because they have 87.5 in
standard of products and there have 12.5 on high of product quality. Table shows that the
qualities of products were in improved after availed the intervention.
Financial Status
This presents the financial condition and financial operation of the enterprise
before and after the intervention.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Table 9. Marketing status of enterprise
PARTICULARS
BEFORE
AFTER
F
%
F
%
a. Promotional media strategies
Word of mouth
8
100
8
100
Exhibit fairs
3
37.5
5
62.5
Others: House
2
25
2
25
b. Label of product
Size
1
12.5
-
Texture
3
37.5
2
25
Quality
5
62.5
6
75
c. Product Quality
Low
1
12.5
-
Standard
7
87.5
7
87.5
High
-
-
1
12.5
Financial Operation
Table 10a shows the financial operation of the respondents according to the sales
revenue, total gross revenue, total expenses and net income.
Sales revenue. Table 10 presents the sales revenue of the respondents before and
after the intervention. Before the intervention, 75% of the respondents have a total sales of
Php100,000-600,000, 25% of respondents have a total sales of Php700,000- 1,200,000.
After the intervention, 62.5% of the respondents have a total sales of Php100,000-600,000
and 37.5% of respondents have a total sales of Php700,000- 1,200,000. The table shows
that the number of respondents sales revenue increase with the increase in sales revenue
after the intervention. Majority of the respondents still maintain their sales revenue as
production is not continuous and sales largely depend on order of buyers.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Cost of sales. Before interventions almost all of the respondents (75%)
werehavingPhp100,000-300,000costs of sales and the rest (25%) were in Php400,000-
600,000. After intervention 62.5% of the respondents havePhp100,000-300,000costs of
sales and 37.5% have in Php400,000-600,000. The table shows that some respondent
increased the cost of sales after the intervention because if increase the sales revenue also
increase the cost of sales of ten percent (10%) in the sales by year.
Total gross revenue. The table present the "Raw" sales income; the amount which
customers actually pay the company when they make their purchases. Before the
intervention, 75 % of the respondents were in Php100,000-300,000 have total gross
revenue and 25% of the respondents were Php300,000-600,000 total gross revenue. After
the intervention, 62.5 % of the respondents were in Php100,000-300,000 have total gross
revenue and 37.5% of the respondents were Php300,000-600,000 total gross revenue. They
will see there is an increase in the total gross revenue after the intervention. Table shows
that all respondent would increase the total gross revenue because their productions just
increase after the intervention.
Total expenses. The table presents that the expenses of the respondents before and
after the intervention. Before the intervention, 37.5 % of the respondents range
fromPhp100,000-200,000 have total expenses, 25% of the respondents falls from
Php200,001-300,000 total expenses and 25% said to have a total expenses ofPhp300,001-
400,000. After the intervention, 37.5 % of the respondents have in Php200,001-300,000
total expenses, 25% of the respondents have Php300,001-400,000 total expenses and 25%
have a total expenses fromPhp100,000-200,000.The table shows that after the intervention
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
there is an increase in the expenses because the equipment uses more electricity and space
expansion of their enterprises.
Net income. The table presents that the accumulated net income of the respondents
before and after the intervention. Before the intervention, 37.5 % of the respondents have
a net income ofPhp10,000-110,000, 25% of the respondents have a net income of
Php110,001-210,000 and Php210,001-310,000 while 12.5% of the respondent have a net
income ofPhp310,001-410,000. After the intervention, 37.5 % of the respondents have a
net income of Php110,001-210,000, 25% of the respondents have a total expenses
ofPhp210,001-310,000, 25% have a net income ofPhp310,000-410,000 and 12.5% of
respondent have a net income of Php10,000-110,000. Table shows that all of the
respondents increased their net income after the intervention because the equipment availed
was easy to produce and easy to finish their products so there income will increase because
their products easily to distribute in their own buyers.
Financial Condition
Table 10b shows the financial condition according to the assets and liabilities of
the respondents before and after the intervention.
Assets. Table 10a shows the financial status of economic value owned/property by
the respondents, before and after the intervention. Before intervention in current asset they
have 37.5% of respondents on Php 50,000-150,000 were the Php 150,001-250,001 have
25% of respondent and the other have only 12.5 percent in Php 250,001-350,000, the same
the amount of Php 350,001-450,000 and also the Php 450,001and above have 12.5% of
respondents just have assets. After the intervention they would increase the current asset
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
in amount of Php 250,001-350,000 have 37.5, 25% in 50,000-150,000 and the others will
have only 12.5%. Table shows that the respondent before the intervention their owned
properties were in the minimal amount but after the intervention it will increase because of
the equipment availed on DOST SETUP.
Table 10. Financial operation of the enterprise
PARTICULARS
BEFORE
AFTER
F
%
F
%
a. Financial Operation
Sales Revenue
100,000-600,000
6
75
5
62.5
700,000-1,200,000
2
25
3
37.5
Less: Cost of Sales
100,000-300,000
6
75
5
62.5
400,000-600,000
2
25
3
37.5
Total Gross Revenue
100,000-300,000
6
75
5
62.5
a. Financial Operation
300,000-600,000
2
25
3
37
Total Expenses
5
100,000-200,000
3
37.5
2
25
200,001-300,000
3
37.5
3
37.5
300,001-400,000
2
25
3
37.5
Net Income
10,000-110,000
3
37.5
1
12.5
110,001-210,000
2
25
3
37.5
210,001-310,000
2
25
2
25
310,001-410,000
1
12.5
2
25
Non-current asset. The table presents that the respondents which have a long term
investments and the case that the full value will not be realized within the accounting year
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
before and after the intervention. There are 62.5% of the respondent have non-current asset
of Php100,000-500,000 before the intervention. Twenty five percent have non-current
asset of Php500-001-1,000,000 and 12.5% non-current asset of Php1,000,001-1,500,000
it’s before the intervention because their non-current asset is their own sacrifices to build
their owned enterprises. After the intervention the non-current asset will increase, three of
them or 37.5% have non-current asset with amount of Php500,001-1,000,000 and also the
37. 5% have non-current assets of Php 100,001-500,000 and have 25% of respondents just
havePhp1,000,000 non-current assets. Table shows that most of the respondents increased
their non-current asset after the intervention because there availing of the equipment in to
the SETUP helped.
Total asset. For the asset accumulated by the respondents, the table presents that
62.5% of respondents have assets of Php100,000-500,000 before the intervention. 25% of
respondents have assets of Php500,001-1,000,000 and 12.5% have an assets of
Php1,000,000-1,500,000of which we can see the respondents who save the lowest amount
of total asset. For the asset accumulated after the intervention, the table presents that 50%
of respondents have assets of 500,001-1,000,000. There were 37.5% of respondents who
have assets of Php100,000-500,000 and 12.5% have an assets of Php1,000,000-1,500,000.
Table shows that the respondents increase their total asset because the other equipment
availed from DOST SETUP.
Liabilities. For the liabilities incurred by the respondents, this table shows the
obligation that legally binds each entrepreneur. Before the intervention, the table shows
that majority 62.5% of the respondents have liabilities of Php100,001-500,000 while 25%
havePhp500,001-1,000,000 liabilities and only have 12.5% of the respondents have
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
liabilities of Php1,000,001-1,500,000. For the liabilities incurred after the intervention, it
shows that majority or 50% of the respondents have liabilities of 500,001-1,000,000 while
37.5% havePhp100,001-500-000 liabilities and only 12.5% respondent have liabilities
incurred Php1,000,001-1,500,000. Table shows that before the intervention, majority of
the respondents were in the minimum amount of liabilities but after the intervention some
of the respondents increased the liabilities because of the additional equipment their
enterprises.
Organization and Management Status of the Enterprise
Table 12 shows the organization and management status of the enterprise according
to the total employment generated by the enterprises.
Total employment generated. The table presents that the employment generated by
the respondents before the intervention was a total of 28 employees, then after the
intervention the total of employment decreased of nine employees because of the
equipment availed. According to the enterprises, they need to remove some workers
because the machine can do automatically and better than when manually operated.
Direct employment. These are the number of employees directly hired by the
enterprises including those that are hired by the subcontractors of the SME. Table shows
that before the intervention, the enterprises have regular employees but after the
intervention, the enterprises have to remove some regular employees because the
equipment requires less men employees to do the work.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Table 11. Financial condition of the enterprise
PARTICULAR
BEFORE
AFTER
F
%
F
%
Financial Condition
Assets
Current Assets
50,000-150,000
3
37.5
2
25
151,000-250,000
2
25
1
12.5
251,000-350,000
1
12.5
3
37.5
351,000-450,000
1
12.5
1
12.5
451,000 and above
1
12.5
1
12.5
Non-current assets
100,000-500,000
5
62.5
3
37.5
501,000-1,000,000
2
25
3
37.5
1,000,001-1,500,000
1
12.5
2
25
Total Assets
100,000-500,000
4
50
3
37.5
501,000-1,000,000
3
12.5
4
50
1,000,000-1,500,000
1
37.5
1
12.5
Liabilities
50,000-150,000
5
62.5
3
37.5
151,001-250,000
2
25
4
50
250,001-350,000
1
12.5
1
12.5
Equity
50,000- 150,000
5
62.5
3
37.5
151,001- 250,000
2
25
4
50
250,001-350,000
1
12.5
1
12.5
Indirect employees. These are the manufactures components/parts of the whole
product. Table shows that under indirect employment there have backward and forward
before and after the intervention. We can see that this table are how many employments
generated by the suppliers of inputs or using the products of enterprises of the production.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Backward. These are the employment generated by the suppliers of inputs and other
raw materials needed to produce the final product of the enterprise. Table shows that before
the intervention there have five (5) employments generated by the suppliers of inputs to
produce the final product and after the intervention it was increase four (4) so the total
employments generated by the suppliers of inputs have nine (9) employments.
Forward. These are the employment generated by the other enterprises using the
product of the enterprise or as consequence of the production of the enterprise such as
supplier of packaging materials, transport groups, etc. Table shows that before the
intervention the eight (8) respondents were generated ten (10) employees by the other
enterprises but before the intervention, half of this would continue for using the product
enterprise while the others would stop so we can see the effect of intervention on their
enterprises.
Comments/ suggestion and other concerns in availing the SETUP intervention
according to the respondents:
For the other concerns about the SETUP project, according to the respondents they
need more of conducting seminars so that they will know and learn the SETUP intervention
and how to manage the business. Availing the SETUP project are very satisfactory to all
entrepreneur because the equipments were given with no interest by the DOST and they
have improved the quality of their products and also helped increased the production.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Table 12. Organization and management status of the enterprise
BEFORE
AFTER
PARTICULARS
F
F
Organization and management status of the
enterprise
a. Total of employment generated
28
19
b. Direct employment
Company hire:
Regular
4
-
Part-time
6
2
Sub-contractor hire:
Regular
15
9
Part-time
3
8
Indirect employment:
Backward
5
9
Forward
10
5
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATION
Summary
This study perceived to assess the furniture enterprise project assisted by DOST
SETUP in Mountain Province and Baguio City. The respondents of the study were eight
co-operators who have graduated/completed the planned SETUP intervention. The study
sought answers to the following:
1) Profile of furniture enterprise assisted by the SETUP in Mountain Province and
Baguio City; 2.) Status of the furniture enterprises in terms of production, marketing,
financial, organization and management before the SETUP intervention; 3) Type of
intervention adopted by the furniture enterprises from the SETUP program; and 4) Effects
or changes of the furniture enterprises in terms of production, marketing, financial,
organization, and management as a result of the SETUP intervention.
Almost all of the entrepreneurs involved in furniture enterprise who availed the
intervention were assisted by SETUP were from in Baguio City and Mountain Province.
All of them were males and about 87.5% are married and 12.5% are widowed. All of them
belong to sole proprietorship. Furthermore majority of them finished high school level.
Most of the firms existed for many years but they were on and off in their operation. All of
the enterprises were registered. Half of the respondents only availed the SETUP
intervention from year 2006-2010, two availed from year 1996-2000 while the rest availed
way back 1991-1995 and 2001-2005.
All of the respondents availed the technology needs assessment done by the DOST
technical staff and all respondents availed project proposal preparation, equipment
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
upgrading and provision of product technology. Over all, the respondents were satisfied on
SETUP intervention availed. Majority of the respondents attained their objectives.
In the production of the enterprises before and after the intervention, the volume of
production increased and the product quality improved because of the improvement of the
processes through the equipment provided by the SETUP. The automatically operated
furniture processing methods and functional equipment of the enterprise after availing the
SETUP intervention increased.
For marketing status, almost all respondents are concerned on the quality assurance
for the customers safe. Some of the respondents have established market outlet for the sale
and promotion of increased production.
On financial status of the furniture enterprises, all of the respondents said that their
financial status before the intervention was in a minimum average and after the intervention
all of the respondents said that there was an increase in the volume of production and also
increased their sales because the equipment availed from SETUP. Thus the increase in their
income is based.
As to the organizational and management status, the respondents said that the total
employment generated before SETUP is28, while after the intervention, but was lessened
the equipment took place the required manual labor after the intervention.
Conclusions
Based on the findings, the following conclusions were made:
1. The furniture processing enterprises assisted by DOST SETUP in Baguio City and
Mountain Province belongs to sole proprietorship. Most of them did not finish their studies
but served as owner/manager of their enterprises.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
2. The interventions availed by the respondents from the SETUP vary depending
on the needs of their enterprise. All of the respondents were satisfied on the SETUP
intervention availed.
3. Overall, SETUP program has a positive impact to furniture enterprises for the
reason that it increases productivity, improves product quality and increase financial
operation and financial condition, and also improves management capability of the
enterprises.
4. The common problems/constraints encountered by the furniture enterprises are
the lacking of woods so they did not increase the volume of products.
Recommendations
1. Most of the respondents heard the SETUP program through agency personnel
and co- entrepreneurs. Thus DOST must also conduct trainings (technology needs
assessment, consultancy services, marketing assistance, and provision of production
technology) and seminars in order for those who haven’t any resources such as internet,
friends and relatives from the government can avail from it.
2. The furniture enterprise should need market outlet for the promotion of their
product especially in our country. DOST must support the enterprises according to
marketing assistance in order to cope up with the competition in the market.
3. DOST SETUP must motivate and encourage more furniture enterprise to avail
the program.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
LITERATURE CITED
ANONYMOUS, August 2007.Material Science for Designers and VP’s of Design.
Retrieved on November 11, 2012 from www.valuecreatedreview.com/
materialscience.htm.
ANONYMOUS, 2011.The Philippine Furniture. Retrieved on September 30, 2012 from
http://philippinesfurniture.net/philippines-furniture.
ANONYMOUS, 2011.The Philippine Furniture Industry Today. Retrieved on September
30,
2012
from
PhilippineFurniture.com
http://www.bworldonline.com/
Downloads/2006/Outsourcing1.ppt.
DEPARTMENT OF SCIENCE AND TECHNOLOGY, 2011.Small Enterprises
Technology Upgrading Program brochure. Philippines. Retrieved on September
10, 2012from http://www.manilatimes.net/index.php/news/regions/27754-dost-
car-program-benefits-161-small-enterprises.
DEPARTMENT OF SCIENCE AND TECHNOLOGY, 2012.Technology assessment
manual. Revised edition. Taquig City, Philippines. Pp 1-6.
DEPARTMENT OF SCIENCE AND TECHNOLOGY, 2011.Small Enterprises
Technology Upgrading Program (SETUP) directory.CAR Philippines.Pp1-3.
DEPARTMENT OF TRADE AND INDUSTRY, 2008.Micro small and medium
enterprises (msmes). Retrieved on November 10, 2012from http://www.dti.
gov.ph/dti/index.php? P=321.
DEPARTMENT OF TRADE AND INDUSTRY, 2008.Micro small and medium
enterprises. Trade and Industry Building, Sen. Gil J. Puyat Avenue, Makati City,
Philippines 1200.P=532
HUNTER, M. N.d. What design is and why it matters. Retrieved November 10,
2012fromhttp://www.designcouncil.org.uk/about-design/What-design-is-and-
why-it-matter.
HUNTER, M. N.d., Form and Function. Retrieved on September 30, 2012from
http://www.designcouncil.org.uk/about-design/Types-of-design/Furniture-design/
Form-and-function/.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
IRVINE, CA, 2011. RealGoodFurniture.Retrieved on November 10, 2012 from
http://www.realgoodfurniture.com.
SMITH, G.P., 1999. SET-UP Projects Online, Top Eight Marketing and Sales Strategies.
Retrieved on September 30, 2012 from http://www.business knowhow.com/
marketing/top8mark.htm.
SMITH, G.P., 1999. Business Know-How is a woman-owned business and a registered
trademark of Attard Communications. Retrieved on September 30 2012from
http://www.businessknowhow.com.
WALANG L., 1998. An assessment of DTI assisted small and medium enterprises in La
Trinidad, Benguet. Pp. 6-7.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
FABROS, MARVEIN S., APRIL 2013. An Assessment of DOST Small Enterprise
Technology Upgrading Program (SETUP) Assisted Furniture Enterprises in Baguio City
and Mountain Province. Benguet State University, La Trinidad, Benguet.
Adviser: Leopoldo N. Tagarino, MRSM (Agribusiness)
ABSTRACT
This study was conducted to:determine the profile of furniture enterprises assisted
by DOST SETUP in Baguio City and Mountain Province; determine the status of the
furniture enterprise in terms of production, marketing, financial, and organization and
management before SETUP intervention; determine the type of intervention adapted by the
furniture enterprises from the SETUP program; and, identify the expected results/ impact
of the furniture enterprises in terms of production, marketing, financial, and organization
and management as result of the SETUP intervention.
The results showed that the type of the furniture enterprises assisted by DOST
SETUP in Baguio City and Mountain Province is single proprietorship, and most of the
respondents never finished their studies. All furniture enterprises have increased
productivity, product quality; improved financial condition; and the entrepreneurs have
improved management capability. The respondents of Baguio City and Mountain Province
have good impact to their furniture enterprises because they reach their aims.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
The furniture enterprises need to further improve their products for them to meet
the standards in the export market. Moreover the government should provide support for
the furniture enterprises to export or participate in the international marketing.
Furthermore, DOST must conduct trainings (marketing assistance and provision of
production technology) and seminars to their locality.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
INTRODUCTION
Rationale
The National Science and Technology Authority (NSTA) was re-organized into the
Department of Science and Technology (DOST), paving the way for the creation of DOST
Regional Offices through the country on January 30, 1987. The Cordillera Administrative
Region was created by virtue of Executive Order 220, 1987, consisting of the provinces of
Abra, Benguet, Mt. Province (formerly from Region I), Ifugao, Kalinga-Apayao (formerly
from Region II). This was followed by the establishment of the DOST-CAR regional office
through Administrative Order No. 36 and 180, series of 1987. On July 31, 1990, the
Provincial Science and Technology Centers (PSTCs) were created through RA 6959.
DOST-CAR has established its PSTCs in Abra, Benguet, Ifugao, Kalinga-Apayao, and
Mountain Province in December 1991. The last PSTC to be added is the Apayao S&T
Center when the former province of Kalinga-Apayao was splited into two in February
1995, through RA7887 (DOST, 2011).
The Department of Science and Technology (DOST) launched the Small Enterprise
Technology Upgrading Program (SETUP) in response to the call for more focused
programs of assistance for small and medium enterprises (SMEs). SETUP is a nationwide
strategy to encourage and assist SMEs to adopt technological innovations to improve their
operations and thus boost their productivity and competitiveness. The program enable
firms to address their technical problems through technology transfer and technological
interventions to improve productivity through better product quality, human resources
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
development, cost minimization and waste management, and other operation related
activities(DOST, 2011).
Micro, Small, and Medium Enterprises (MSMEs) play a major role in the country’s
economic development through their contribution in the following: rural development and
decentralization of industries; creation of employment opportunities and more equitable
income distribution; use of indigenous resources; earning of foreign exchange (forex)
resources; creation of backward and forward linkages with existing industries; and
entrepreneurial development (DOST, 2011)..
As of June 2012, there were about 139 small and medium enterprises assisted by
the DOST SETUP in whole the CAR. To break it down, there are nine (9) projects in Abra,
11 in Apayao, 21 in Kalinga, 22 in Benguet, 22 in Mt. Province, 26 in Ifugao and 28 in
Baguio City. Specifically for furniture enterprises, there are2 in Abra, 4 in Apayao, 2 in
Baguio, 1 in Benguet, 7 in Ifugao, 2 in Kalinga, and 10 in Mt. Province the total number
of furniture enterprises availed on SETUP project have twenty eight (28) in the whole CAR
(DOST, 2011).
Therefore, it is necessary to assess the SETUP projects of DOST CAR, the present
status of the furniture sector prior to the support of the SETUP, the type of interventions
adapted through the SETUP program, and the expected results or impact of the
interventions for the improvement of the functional areas of their business (DOST, 2011).
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Statement of the Problem
This study focused on the assessment on the furniture enterprises assisted by DOST
SETUP in Baguio City and Mountain Province. Specifically, this study wants sought the
answers to the following:
1. What is the profile of furniture enterprises assisted by DOST SETUP in Baguio
City and Mountain Province?;
2. What is the status of the furniture enterprises in terms of production, marketing,
financial, and organization and management before SETUP intervention?;
3.What is the type of intervention adopted by the furniture enterprises from the
SETUP program?; and
4. What are the expected results/impacts of the furniture enterprises in terms of
production, marketing, financial, organization, and management as result of the SETUP
intervention?
Objectives of the Study
Specifically, this study aims to:
1. Determine the profile of furniture enterprises assisted by DOST SETUP in
Baguio City and Mountain Province;
2.Determine the status of the furniture enterprise in terms of production, marketing,
financial, and organization and management before SETUP intervention;
3. Determine the type of interventions adapted by the furniture enterprises from the
SETUP program; and
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
4.Identify the expected results/impacts of the furniture enterprises in terms of
production, marketing, financial, and organization and management as result of the SETUP
interventions.
Importance of the Study
The result of the study provided basic information to the furniture enterprises
owners in making decisions regarding their business operations and determining the
interventions they needed. Furniture projects include identification of abundant commodity
in a given community that has great potential for production or manufacture intended to
create livelihood and improve the standard of living of a furniture enterprises. These
projects involve commodity-specific S&T interventions or activities and multi-
stakeholders participation in project development and implementation at the furniture
sector. Other concern agency like DOST SETUP may also be guided in formulating
policies to improve their services in providing the interventions needed by their customers.
Scope and Delimitation of the Study
The study was conducted on February 2013. Respondents of this study are the
furniture enterprises owners assisted by DOST SETUP in Baguio City and Mountain
Province.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
REVIEW OF LITERATURE
Micro, Small, and Medium Enterprises (MSMEs) Defined
As defined under Small and Medium Enterprises Development (SMED) Council
Resolution No. 01 Series of 2003 dated 16 January 2003, micro, small and medium
enterprises (MSMEs) are any business activity or enterprise engaged in industry, agri-
business/ services, whether single proprietorship, cooperative, partnership, or corporation
whose total asset, inclusive of those arising from loans but exclusive of the land on which
the particular business entity’s office, plant and equipment are situated, must have value
falling under the following categories: By Asset Size: Micro- up to P3,000,000; Small –
P3,000,000-P15,000,000;
Medium-P15,000,000-P100,000,000;
Large-
above
P100,000,000. Alternatively, MSMEs may also be categorized based on the number of
employees: Micro 1-9 employees; Small 10-99 employees; Medium 100-199 employees;
and Large- 200 and above employees (DTI, 2008).
MSMEs Contribution to the Economy
MSMEs contribute to the creation of wealth, employment, and income generation,
both in rural and urban areas, thus, ensuring a more equitable income distribution. They
also provide the economy with a continuous supply of ideas, skills, and innovations
necessary to promote competition and the efficient allocation of scarce resources. In the
last five years, the MSMEs sector accounted for about 99.6% of the registered business in
the country by which 63% of the labor force earn a living. Around 35.7% of the total sales
and value added in the manufacturing come from MSMEs as well. As of 2009 count, there
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
are 780,437 business enterprises operating in the Philippines. Of these, 99.6% (777,357)
are micro, small and medium enterprises (MSMEs) and the remaining 0.4% (3,080) is large
enterprises. Of the total number of MSMEs, 91.4% (710,822) are micro enterprises, 8.2%
(63,529) are small enterprises, and 0.4% (3,006) is medium enterprises. Majority of the
777,357 MSMEs operating in 2009 are in the wholesale and retail trade industries with
3,385,610 business establishments; followed by manufacturing with 11,987; hotels and
restaurants with 97, 289; real estate, renting and business activities with 47,654; and other
community, social, and personal services with 44,313. These industries accounted for about
88.4% of the total number of SME establishments. MSMEs generated a total of 3,595,641
jobs in 2009 versus 2,094,298 for the large enterprises.
Thus, further indicates that MSMEs contributed almost 63.2% of the total jobs
generated by all types of business establishments that year. Of these, 30.4% or 1,731,082
jobs were generated by micro enterprises; 25.5% of 1,449,033 by small enterprises; and
7.3% or 415,526 by medium enterprises. By industry sector, MSMEs in the wholesale and
retail trade generated the most number of jobs(with 1,250,453) in 2009 followed by
MSMEs in manufacturing, 637,524; hotels and restaurants, 482,357; real estate, renting ,
and business activities , 284,406; and education, 225,016.Majority of the jobs are generated
by MSMEs in the National Capital Region (NCR) with 1,360,440 jobs; followed by
MSMEs in Region 4-A (CALABARZON), 466,648; Region 3 (Central Luzon), 319,340;
Region 7 (Central Visayas), 235,091; and Region 6 (Western Visayas), 193,543.MSMEs
contribute around 35.7% of the total sales and census value-added in the manufacturing
industry, according to the National Statistics Office (NSO).MSMEs account for 25% of the
country’s total exports revenue. It is also estimated that 60% of all exporters in the country
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
belong to the MSME category. MSMEs are able to contribute in exports through
subcontracting arrangement with large firms, or as suppliers to exporting companies,
(DOST, 2008).
Furniture Industry
The furniture industry faces many challenges which require it to change and be
innovative in order to remain competitive. Companies are looking for designers to deliver
innovation, to establish and build brands, and to improve production systems and sales. In
this day and age, a company’s greatest natural resource is the ingenuity of its employees.
Designers are being used more strategically across businesses to help companies grow and
compete more successfully in global markets. The traditional laws of markets and
competition for the industry are now being challenged by global trends-environmental
issues, growing economies and social sustainability, to name a few. Greater economic,
educational and cultural objectives must be met if a company plans to improve its
competitiveness. Examples of these objectives include the quality of designs, the national
image of the company and the social value of the products. With today’s rapidly evolving
market, staying ahead of the game can bring a whole new serving of trends (Bill Martin,
2005).
The Philippine furniture industry for instance has metamorphosed to a highly
diversified manufacturing sector, which is composed of roughly 15,000 furniture firms
directly or indirectly employing about 800,000 people. This is thrice the employment
estimate of 250,000 in the 1980’s and does not include the estimated 1,000,000 people in
the sub-contracting network. Ninety-eight percent of these companies are micro, small and
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
medium enterprises with only 2% being large enterprises. The bulk of all these companies
are concentrated in three provinces, namely: Metro Manila, Cebu and Pampanga. The
furniture manufacturing in the Philippines is still labor-intensive, with products ranging
from leg items (chairs, tables, beds, settees); case goods (cabinets, desks, chest of drawers,
kitchen storage units and related products); and a combination of these two (building or
home fittings, shelves, ornaments and similar products). The industry, as a whole,
contributes about U$600M in the sales to the economy. This does not include the taxes and
sundry fees which the furniture companies, as well as the 1.8M workers in these
establishments, bring into the coffers of the government through taxes. Growth was
admittedly sluggish starting the late 1990’s, reaching a high of U$381.39M in 2000 and
dropping to a low of U$297M in 2001 due to 9/11. Recovery has been slow but steady,
despite hiccups such as the Asian health crisis in 2003 (Anonymous, 2006).
Importance of Furniture Industry Design
Mat Hunter quoted the statement of former Chairman George Cox that design is
what links creativity and innovation. It shapes ideas to become practical and attractive
propositions for users or customers. Design may be described as creativity deployed to a
specific end.
According to Chief Design Officer, Mat Hunter (n.d), every designer has a slightly
different approach and different design specialism also have their own ways of working,
but there are some general activities common to all designers. At the Design Council we
like to illustrate this with a ‘Double Diamond’ model. Divided into four distinct
phases, discover, define, develop and deliver, it maps how the design process passes from
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
points where thinking and possibilities are as broad as possible to situations where they are
deliberately narrowed down and focused precisely on distinct objectives:
1.Discover. The first quarter of the double diamond model covers the start of the project.
Designers try to look at the world in a fresh way, noticing new things and seeking
inspiration. They gather insights, developing an opinion about what they see, deciding
what is new and interesting, and what will inspire new ideas. Specific methods
include: Market research, User research, Managing and planning and Design research
groups.
2.Define. The second quarter represents the definition stage, in which designers try to make
sense of all the possibilities identified in the ‘Discover’ phase. Which matters most?
Which should we act on first? The goal here is to develop a clear creative brief that frames
the fundamental design challenge to the organization. Key methods during the Define
stage are: Project development, Project management and Project sign-off.
3.Develop. The third quarter marks a period of development where solutions are created,
prototyped, tested and iterated. This process of trial and error helps designers to improve
and refine their ideas. Key activities and objectives during the Develop stage are:
brainstorming, prototyping, multi-disciplinary working, visual management,
development methods and testing.
4.Deliver. The final quarter of the double diamond model is the delivery stage, where the
resulting product or service is finalized and launched. The key activities and objectives
during this stage are: Final testing, approval and launch and Targets, evaluation and
feedback loops.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Furniture designers sometimes work on their own, some also make the furniture
they design, and others work in teams as part of a large-scale manufacturing process. Pieces
of furniture often start off as sketches of designer’s ideas. 3D models are sometimes made,
often by hand from cardboard, foam, wood or whatever the designers can lay their hands
on, to show the piece’s look and shape. Computer aided design (CAD), which is used
increasingly in contemporary furniture design to translate ideas into technical drawings,
forms a big part of a furniture designer's training and it is now widely used to quickly create
new pieces of furniture. Rapid prototyping machines use CAD information to print
complex 3D shapes and furniture designers may use them to model detailed parts of their
concept. Full scale prototypes are commissioned to enable the functionality of a piece and
its materials to be tested before a concept can be taken and manufactured at scale. Larger
furniture design and manufacturing companies will employ staff to focus on marketing and
selling new pieces or collections of furniture. Furniture designers who work on their own
may need to engage in a degree of self-promotion in order to get themselves and their
designs noticed, and therefore generate sales and profit. Whatever the size of the design
practice, furniture creators will have to work with retailers, to sell their furniture. Domestic
furniture is most often sold through retailers such as up-market specialist shops like Heal's
or more democratic outlets like Ikea. Furniture bought for public or commercial use – for
a shop, restaurant, office or school, for example – may be sold through a furniture dealer
who specialises in supplying furniture in volume, (Hunter, n.d.).
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Functional Furniture
All furniture should be functional to some degree or it is, to all intents and purposes,
useless, but there are instances where the need for practicality takes precedence over the
aesthetics. School furniture, for example, is designed above all else to be comfortable and
durable, due to its sustained use. It must also be cost-efficient, as it's likely to be purchased
using public money. The same criteria applies to hospital furniture which must be high-
functioning, comfortable and, most importantly, hygienic. Furniture is essential to our
every-day lives. We use it at home, while we’re working and when we’re out shopping, at
the cinema or travelling. Well-designed and researched furniture can improve our quality
of life - when we like how it looks it gives us pleasure and when it makes us comfortable
it can increase our efficiency and productivity. How furniture looks is important, and some
of the most successful furniture designs of all time are often the most aesthetically pleasing,
but the most successful furniture designs of all time look good and work well. By
combining form and function in the design, and by ensuring products are made using
responsible materials and ethical production techniques, furniture designers help create the
pieces that collectively sell for £8.3billion each year according to the Furniture Industry
Research Association (FIRA), (Hunter, n.d.).
Furniture Materials in Operations
There are literally thousands of natural and man-made materials used for making
furniture ranging from soft woods, hard woods and various grasses all the way to steel,
glass, plastic and a host of man-made materials. One of the earliest and the most popular
materials used for making furniture is wood. That is because wood has historically been
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
plentiful and is very easy to work with. Other materials, even stone have been used since
early times however due to the impracticality of materials like stone, mostly benches and
other outdoor items are made exclusively of stone. Stone is however used frequently as a
component of furniture making, for example marble and granite are sometimes used to
create a beautiful and nearly indestructible top for tables and similar furniture items. The
most popular furniture making woods are Oak, Pine, Cedar, Cherry, Maple, Mahogany,
Teak, Bamboo, Wicker and Veneers. Combined with leathers, fabrics and stone it is
possible for skilled furniture craftsmen to make the most beautiful furniture using only
natural materials. Laminates are another all too popular material for making furniture.
Unlike the other materials mentioned, laminates are not natural. A laminate, not to be
confused with a veneer, is a cheap way of making furniture that looks good, but it is a
method that is never used for making quality furniture (Irvine, CA, 2011).
Production Management
According to Porter (1980), as cited by Walang et al. (1998), to remain
economically viable, a firm must be concerned with both the unit cost of its products and
services and their contribution to profit. In addition, the enlightened firm will look at
various aspects of productivity and always seek improvement.
Marketing Strategies
According to G. Smith (1999), Furniture marketing strategies have eight
characteristics.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Strategy 1. Think big and audit your time. No matter what is the size of your
business, place a mental image in your mind as if you are the largest and most successful
person in your industry. How much time is consumed by routine office work someone else
should be doing? Spend more time with more important tasks such as marketing strategies,
improving customer relations, and implementing new strategies to expand your services.
Strategy 2. Be different and stand out from the competition. Jordan Furniture sells
more furniture per square foot than any other furniture store in the nation. They transformed
their family-owned business into a multi-million dollar corporation by following a
principle called "shoppertainment." To surprise employees and customers, Barry and Eliot
Tatleman dressed up like the Lone Ranger and Tonto and rode horses in their parking lot.
They built an IMaxtheater inside one store to entertain children while their parents
shopped. When you drive around the back to pick up your furniture they provide you free
hotdogs and wash your car windows.
Strategy 3. Build relationships with your customers. For each month that goes by,
customers lose 10% of their buying power. Create a customer database and contact them
on a regular basis. Mail them a postcard, birthday card, sales flyer, newsletter etc. to keep
your name, phone number, and service on their mind.
Strategy 4. Collect E-Mail Addresses. Get permission from your customers to use
their E-mail address. Periodically send updates and notices to your client list. As long as
you have their permission and avoid overuse, E-mail can be a powerful and inexpensive
marketing tool.
Strategy 5. Hire top sales people. Successful businesses realize the quality of their
sales staff is critical to sustaining their growth in the marketplace. A top salesperson can
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
outsell an average one 4 to 1. Sales people must understand their strengths and have a well-
defined plan to reach their potential. Many companies can provide you sales assessments
to both identify top candidates and develop currently employed sales people.
Strategy 6. Put a shopping cart on your website. Online sales are still growing at a
dramatic pace. This is coming from people who want to save time, avoid crowded stores,
convenience, and the ability to shop outside of store hours. Just consider E-Bay for
example, which generates millions of dollars of sales each year. It does not cost anything
to set up an account on E-Bay, and you pay a proportion based on the cost of the item you
are trying to sell. If you don't want to use E-bay, consider using your own shopping cart
system on your website.
Strategy 7.Pay-per-click advertising. Many business owners are finding classified
advertising is not an effective use of their marketing dollars. Others are finding pay-per-
click advertising is an easier and cheaper way to reach a larger market. Pay-per-click will
insure you receive top visibility on websites driving more customers to your door.
Advertisers bid on keywords and the more popular the keyword, the more expensive each
click is. Prices vary between ten cents to many dollars depending on the popularity of the
word. The most popular pay-per-click advertisers are Google, Business.com, and Yahoo.
Strategy 8. Use customer service commandments to create good habits. Bates Ace
Hardware store located in Atlanta created "Twenty Customer Service Commandments"
modelled after the Ritz-Carlton hotels outlining specific behaviors employees are to
demonstrate when dealing with customers and fellow employees. For example,
"Accompany a customer to the correct aisle instead of pointing to another area of the store."
They print the commandments on a small card and employees carry it with them at work.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Human Resource
Human resources are the most important resources because they are the one who
plan and implement business activities.
Moreover, human resource is required to operate not only the machinery but all
production activities. In any factor, there are many specialized functions to manage. This
leads to the principle of specialized labor to the selling up of an organizational structure
designed to accomplish the various jobs (Drucker, 1965) as cited by Walang, 1998.
Financial Resources
According to Fajardo (1982), as cited by Walang et al. (1998), states that financial
capital are essential resources to the entrepreneur. These are the life blood of the enterprise,
the entrepreneur needs money in starting his business as well as for the development and
growth, in many cases, small entrepreneurs have inadequate capital. Thus, it is important
for them to be able to identify sources of funds.
In addition, financial manager must determine the best way to raise money.
However, it is also important that the money should be used effectively in realizing the
goals of enterprise and should adopt ways of monitoring and evaluating financial
performance (Walang et al., 1998).
DOST SETUP
Initially, the program covers the following sectors; (1) food processing, (2)
furniture, (3) gifts, toys, house wares, handicrafts, natural fibbers and dyes, (4) marine and
aquatic resources, (5) horticulture (cut flowers, fruits and high value crops), (6) metals and
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
engineering, (7) information and communication technology/ electronics, and (8) health
products and services/pharmaceuticals (DOST, 2011).
SETUP aims to assist MSMEs improve their productivity and competitiveness
through the : (1) infusion of new/ advanced technologies to improve operations of MSMEs,
(2) provision of limited funds for technology acquisition, (3) manpower training, technical
assistance and consultancy services, (4) design of functional packages and labels, testing,
(6) database information system (DOST, 2011).
DOST Strategies to assist MSMEs
Provision of technology. For technology needs assessment and sourcing of
technology, participating firms will be assisted in assessing their technology needs and
appropriate technologies recommended for adoption. Once identified, the source of the
technology will be determined and negotiations for the acquisition and installation of the
technology will be done (DOST, 2011).
Although limited, DOST will provide one time seed fund to participating MSMEs
to facilitate technology acquisition. This could hopefully enable them to access formal
credit sources for future technology needs and expand their production activities (DOST,
2011).
Technical training for manpower on key production issues such as Hazard Analysis
and Critical Control Points (HACCP) particularly for food processing, Good
Manufacturing Practices (GMP), quality and environment management systems
(QMS/EMS) as well as training on specific technical skills (DOST, 2011).
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
To ensure successful adoption of technologies, DOST through its pool of science
and technology experts from its various agencies and members provide continuing
technical and productivity consultancy services to participating firms (DOST, 2011).
Products Standards and Testing. Product Standards, to be able to compete globally
and locally, Philippine made products must meet certain standards. Unfortunately, there
are still no local standards for a large number of Philippine products. DOST is currently
working with the Bureau of Product Standards (BPS) of the DTI in cooperation with the
private sector, the academe, other government agencies and non-government organizations
in establishing standards for some products(DOST, 2011).
Product Testing and Enhancement of Testing Laboratories, to determine if products
conform to standards, there must be tested in accredited laboratories. DOST, established a
network of regional testing laboratories in cooperation with State Colleges and Universities
and private testing centers (DOST, 2011).
Packaging and Labelling. Products must be packaged well to increase its shelf life
especially for food products, improve handling and protection and ultimately improve their
marketability. In addition, the export market requires appropriate labelling of food products
in response to the demand of the highly environment and health conscious consumers.
DOST established the Packaging R & D Center in its Bicutan Compound to assist MSMEs
in developing functional designs for packages, identifying and developing suitable or
alternative packaging materials especially from indigenous sources (DOST, 2011).
Database Management Information System. Several databases vital to MSMEs are
now being prepared. These include a listing of available technologies at the national and
regional level, listing of S & T experts, and a listing of testing laboratories including testing
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
services provided as well as costs. These databases will be accessible through the SET-UP
web page that is currently being developed (DOST, 2011).
Linkages and Networking. We have five of linkages and networking according by
the following; 1) Raw Material sourcing; 2) Marketing; 3) Technical/Entrepreneurial
Training; 4) Financing; 5) Equipment design and fabrication.
Conceptual Framework
Analyzing the different factors that will affect the business is very significant for
the attainment of the enterprise goal. The profile of the entrepreneur and its current business
operations will be determined. In addition, the current business operation of the enterprise
in terms of production, marketing, human resource and financial operations will be
assessed.
After assessing the present status of the business, the intervention adopted will be
asked to identify the technology related strengths and weaknesses of an enterprise and gaps
incurred in the business operations.
Improvement on the enterprise, production, marketing, human resource and
financial operations will be analyzed. Then the study will give its recommendations after
the evaluation of the projects (Figure 1).
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Figure1. Paradigm showing the relationships of variables.
Profile of
Improvement
Entrepreneur
in:
and MSME
-Production
Current
Interventions
Business
adapted
-Marketing
Recommendation
Operation
(Identify the
SETUP)
- Finance
- Production
- Human
- Marketing
Resource
- F
inance
- Human
Resource
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
METHODOLOGY
Locale and Time of the Study
The study area covers Baguio City and Mountain Province. All micro, small and
medium enterprises that were registered and assisted by the Department of Science and
Technology (DOST) are included in the study. The study was conducted on February 2013.
Respondents of the Study
This study of furniture enterprises included eight (8) entrepreneur managers and
owners of furniture enterprises over Baguio City and Mountain Province. These eight (8)
managers graduated and completed, covers all micro, small and medium enterprises that
were assisted by the Department of Science and Technology (DOST).
The respondents were found dominant in Bontoc, Mountain Province with a
percentage of 37.5, followed by Tadian, Mountain Province and Baguio City (25%), lastly,
Sadanga, Mountain Province (12.5%). The data implies that most of the respondents live
in Bontoc, Mountain Province.
Research Instrument
A survey questionnaire was prepared to gather empirical data. The questionnaire
was used as a guide in gathering data and information from the respondents.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Data to be Gathered
The data gathered was focused on the profile of the respondents, enterprise profile,
status of the enterprise before and after SETUP intervention, and the results/ impact of the
intervention adapted from the SETUP project.
Data Analysis
Data was collected with the used of survey questionnaire and given to the selected
respondents assisted by DOST SETUP. An interview was done for needed clarifications
and validations of data sought.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
RESULTS AND DISCUSSION
Profile of the Entrepreneur
In this study, a total of six DOST SETUP assisted furniture in Mountain Province
and two from Baguio City were taken as respondents. Table 1 presents the characteristics
of the respondents according to their age, gender, civil status, and educational attainment.
Age. The respondents’ ages ranged from 40 to 60 years old. 37.5 % were 40-45
years old. 12.5 % respondent was in 46-50 years old, 37.5% were in 51 to 55 years old, and
12.5 % were in 55 – 60 years old.
Gender. There were more male respondents (62.5 %) than female (37.5 %). This
implies that males are more active in engaging into furniture enterprises as compared to
the females.
Civil Status. Most of them are married (87.5%), and only one (12.5%) is widow.
Most of the respondents also revealed that they were assisted by the family in managing
the enterprise.
Educational Attainment. The respondents vary in their educational attainment.
There were 12.5% who reached elementary, 62.5% high school, and 25% college. Most of
the respondents however at least reached high school level.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Table 1. Distribution of entrepreneurs according to profile
Respondents
Profile of the Entrepreneur
F %
Age
40-45
3
37.5
46-50
1
12.5
51-55
3
37.5
56-60
1
12.5
TOTAL
8
100
Gender
Male
5
62.5
Female
3
37.5
TOTAL
8
100
Civil Status
Married
7
87.5
Widow
1
12.5
TOTAL
8
100
Educational attainment
Elementary Level
1
12.5
High School level
5
62.5
College
2
25.0
TOTAL
8
100
Enterprise Profile
This section presents the distribution of respondents according to the profile of
furniture enterprises to include (a) type of organization, (b) number of years in operation,
(c) production site/ location, (d) year enterprise was established,(e)year started adopting
the SETUP intervention, (f)amount of SETUP assistance availed, and (g)enterprise
registration. ( Table 2)
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Type of Organization. Table 2 shows the type of organization the respondents were
into. All of them are in single proprietorship.
Number of years in operation. Table 2 shows the number of years the respondents
operated their business. Fifty percent (50.0%) of the respondents are in 13 years and above
on its business operation, 3 (37.5%) in 5-9 years operation, and 1 (12.5%) in 10-12 years
operation.
Year enterprise was established. Table 2 shows that the range of the establishment
of the different enterprise was 1991-2010. On the year of 1996- 2000 3 (37.5%) has
established their enterprise, 2 (25.0%) respectively in the year of 2001- 2005 and the year
of 2006- 2010, and 1 (12.5%) in the year of 1991- 1995.
Year started adopting the SETUP intervention. Table 2 shows that in year of 2005-
2008 have 3 (37.5%) adopted the SET UP intervention, also 3 from 2009- 2011 (37.5%)
and 2 (25.0%) in year of 2012- 2015.
Amount of SETUP assistance availed. Table 2 shows the amount of SETUP
assistance availed by the enterprise. Three (37.5%) availed the SETUP project with a worth
of 251,000- 300,000, 25.0% in a worth of 50,000- 100,000, the rest of the respondents
availed 12.5% 101,000- 150,000, 151,000- 200,000 and 201,000- 300,000.
Enterprise registration. Table 2 shows the respondents enterprise registration. Fifty
percent (50.0%) registered in the year of 2006- 2010, 2 (25.0%) in the year of 1996- 2000,
1 (12.5%) in the year of 1991- 1995, and also 1 (12.5%) enterprise in the year of 2001-
2005. The table shows that majority of the respondents registered in the year of 2006-2010
while the rest registered below the year of 2006.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Table 2. Distribution of respondents according to enterprise profile
Respondents
Enterprise Profile
F %
a. Enterprise Registration
1991- 1995
1
12.5
1996- 2000
2
25.5
2001- 2005
1
12.5
2006- 2010
4
50.0
b. Type of Organization
Single Proprietorship
8
100
c. Year enterprise was established
1991- 1995
1
12.5
1996- 2000
3
37.5
2001- 2005
2
25.0
2006- 2010
2
25.0
d. Year started adopting the SETUP Intervention
2005- 2008
3
37.5
2009- 2011
3
37.5
2012- 2015
2
25.0
e. Amount of SETUP assistance availed
50,000- 100,000
2
25.0
101,000- 150,000
1
12.5
151,000- 200,000
1
12.5
201,000- 250,000
1
12.5
251,000- 300,000
3
37.5
SETUP Intervention.
This section presents the distribution of respondents according to SETUP
intervention. The table shows the sources of information about SETUP, S&T intervention
availed SETUP, objective in availing SETUP, knowing if the respondents met their
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
objectives in availing SETUP, and knowing if they had encountered problems/ constraints
in adopting SETUP intervention.
Sources of information about SETUP. Table 3 shows the sources of information
about SETUP project. The agency personnel is the dominant source of information as
claimed by 62.5%, 25% they have learned about SETUP from their co-entrepreneur and
12.5% for friend. According to most respondents, there was a program launched by the
DOST that they could provide assistance to their enterprise which made them aware of the
SETUP.
S&T intervention availed SETUP. Table 3 shows the S&T intervention availed
SETUP for the furniture enterprises. All of the respondents answered equipment upgrading
and technology upgrading. The result shows that the intervention availed by the
respondents vary depending on the needs to their enterprise. The result implies that the
upgrading production facilities were highly needed by the respondents.
Objectives in availing SETUP. Table 3 shows the objectives of the respondents in
availing SET UP project. All of the respondents said that their objective in availing the
program was to improve product quality, to expand the product line, and to increase
production volume meeting the market demand.
Attainment of objectives. Table 3 shows the respondents answers if they had
attained their objectives in availing SETUP. All of the respondents said that they had met
their objectives through availing the SETUP project with DOST and were glad that they
have not encountered any problems/constraints in adopting the SETUP interventions. Fifty
percent of the respondents said that they had attained their objectives at about 80- 90%,
37% of the respondents attained their objectives in a rate 50% and below while 12.5% of
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
the respondents rated100% in their objective attainment. This implies that the respondents
have higher chance to attain their objectives to continuous availing the SETUP
intervention.
Problems/constraints encountered. Table 3 also shows the answers of the
respondents if they had encountered problems/ constraints in adopting SETUP
intervention. All of the respondents answered that they had not encountered problem/
constraints in adopting SETUP interventions. This show that the all respondents did not
encountered any problems/constraints in adopting SETUP intervention. Some respondents
said that have problem/constraints effective their furniture enterprises but mostly due to
the total log ban in the past three years, but not included as an intervention in the problem
of this study.
Assessment of DOST SETUP Intervention
Availed as Perceived by the Beneficiaries
This section presents the distribution of respondents according to assessment of
DOST SETUP intervention availed as perceived by the beneficiaries, it follows the
technology needs assessment, project proposal preparation, and provision of production
technology.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
TABLE 3. Distribution of respondents according to SETUP Intervention
SETUP Intervention
Respondents
F %
a. Sources of information about SETUP
Co-entrepreneur
2
25.0
Agency personnel
5
62.5
Friend
1
12.5
b. S&T intervention availed SETUP
Technology Needs Assessment
8
100
Project proposal operation
8
100
Provision of production technology:
Equipment upgrading
8
100
Process / Technology upgrading
8
100
c. Objective in availing SETUP
To improve product quality
8
100
To expand the product line
8
100
To increase production volume meeting the
8
100
market demand
d. Have you met your objectives in availing
SETUP?
YES
8
100
If yes, how many percent?
1- 50%
3
37.5
80- 90%
4
50.0
100%
1
12.5
e. Did you encounter problems/ constraints in
adopting SETUP intervention?
NO
8
100
SETUP intervention availed. Table 4 shows the SETUP intervention availed by the
respondents. Sixty two point five percent (62.5%) of the respondents said they that they
were satisfied with the technology needs assessment provided by SETUP. As to other
interventions like project proposal preparation and provision of production technology
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
process and equipment upgrading, majority of them claimed to be satisfied. As shown on
the table, 75% claims that they are so satisfied with the proposal preparation as SETUP
intervention they availed. This can be further justified from the computed mean averages.
Table 4. Distribution of respondents according to assessment of DOST SETUP
Intervention availed as perceived by the beneficiaries.
SETUP INTERVENTION
1
2
3
4
5
AVE DES
AVAILED
F % F % F % F % F %
Technology needs
- -
-
- -
- 5 62.5 3 37.5 4.38 Satisfied
assessment
Project proposal preparation - -
-
- -
- 6 75 2 25 4.25 Satisfied
Provision of production
-
-
-
-
-
- 5 62.5 3 37.5 4.38 Satisfied
technology (Process)
Equipment upgrading
-
-
-
-
-
- 5 62.5 3 37.5 4.38 Satisfied
Legend:
0.1-1.5= very unsatisfied
2.1-3.5 = neither
4.1-50 = very satisfied
1.1-2.5 = Unsatisfied
3.1-4.5 = satisfied
Production Status
Table 5 presents the volume of production before and after the SETUP
interventions. All the respondents showed increase in production given the 6 months
information. Respondent 4 had the highest rate of increase by 570%, followed by
respondent 5 at 88.41% and the least was respondent 8 with 3.41%.
The result shows that the interventions provided had positive impact in production,
thus implying effective and efficient production technology.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
TABLE 5. Distribution of respondents according to production status of the enterprise
before and after the SETUP intervention.
PRODUCTION VOLUME / 6 month
%
RESPONDENTS
BEFORE
AFTER
INC/DEC. CHANGE
1
50
58
8 Inc.
16
2
526
559
33Inc.
6.27
3
84
116
32 Inc.
38.10
4
40
268
228Inc.
570
5
69
130
61 Inc.
88.41
6
364
423
59 Inc.
16.21
7
157
170
13 Inc.
8.28
8
586
606
20 Inc.
3.41
Processing methods
Table 6 presents the different processing methods of the respondents before and
after the intervention and how they are done: whether manual or automatic.
It shows that six (6) of the respondents do the raw materials selection manually
while 2 automatically do it before the intervention. For the methods of measuring, all
respondents claim that they manually do it. In cutting woods, 6 respondents automatically
do it and 2 manually cut the wood. For the air drying process, have 4 manually do it and 4
automatically do it. In sun drying, 5 respondents manually do it and2 automatically do it.
If 5 claims they do slicing methods automatically, 3 do it manually. In the shaping process
method, 5 respondents say that they automatically do it and 3 do it manually. For the
assembling method, have 5 respondents manually do it and 3 do it automatically. In
varnishing,4 automatically do it while 4 respondents said they manually do it. For the
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
finishing processing methods, 6 respondents claim that they do it manually while 2
respondents do it automatically. The table shows that the enterprises were increase in
automatic equipment and it helped increased the production and reduce hard work of the
respondents.
Table 6.Furniture processing methods.
BEFORE
AFTER
PROCESSING
Changes
METHODS
Manual Automatic
Manual Automatic automatic
equipments
Raw materials Selection
6
2
3
5
3
Measuring
8
-
8
-
-
Cutting
2
6
-
8
2
Air drying
4
4
2
6
2
Sun drying
5
3
2
6
3
Slicing
3
5
-
8
3
Shaping
3
5
-
8
3
Assembling
5
3
2
6
3
Varnishing
4
4
2
6
2
Finishing
6
2
3
5
3
Furniture Processing Equipment
Table 7 shows that equipment’s availed in SETUP intervention and their owned
equipment of the respondents. It showed the intervention of equipment before and after
availing the equipment. Before the intervention some of the respondents did not follow the
standard processing because of lacking of equipment in their enterprises but after the
intervention they followed the standard procedure of processing because most of the
respondents completed the needed equipment of their enterprises.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Functionality of Equipment. Table 8 shows the functionality of equipment adopted
before and after the intervention. Before the intervention all equipment of respondents are
functional and after the intervention all equipment are functional. This implies a positive
impact from the intervention availed and don’t need more employees to exert effort and
time to finish the product.
Table 7.Furniture Processing Equipment.
Functionality
Owned
SETUP
PROCESSING EQUIPMENT
Owned SETUP
F
%
F
% F
% F %
Hammer
8
100
-
8
100
-
-
Measuring tools (ruler, etc.)
8
100
-
8
100
-
-
Knives/ bolo
8
100
-
-
8
100
-
-
Circular saw
8
100
-
-
8
100
-
-
Curving tools
8
100
-
-
8
100
-
-
Hack saw
8
100
-
-
8
100
-
-
Bar clamp
7
87.5
1
12.5
7
87.5
1
12.5
Router
6
75
2
25
6
75
2
25
Wood lathe machine
6
75
2
25
6
75
2
25
Wood Planer
6
75
2
25
6
75
2
25
Air compressor
6
75
2
25
6
75
2
25
Table saw
6
75
2
25
6
75
2
25
Bespa Sprayer/ Spray gun
6
75
2
25
6
75
2
25
Band saw
6
75
2
25
6
75
2
25
Molding machine
6
75
1
12.5
6
75
1
12.5
Drill press/ Electric drill
4
50
2
25
4
50
2
25
Jig saw
3
37.5
2
25
3
37.5
2
25
Effect to Production. Table 8 shows the effect of intervention to production. Before
availing the SETUP intervention, all of the respondents claimed that they have minimal
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
production but after the intervention all respondents had increased production in 100%
after availing the equipment. When I interviewed, the respondents answered that equipment
availed from SETUP increased of their production because the product processing helped
to produce more products for the enterprises. The equipment availed is effective on their
production because majority of the respondents, almost thirty percent (30%) increased in
production.
Table 8a.Functionality of Equipment Availed
RESPONDENTS
a. FUNCTIONALITY OF EQUIPMENT
AVAILED
BEFORE
AFTER
F
%
F
%
Functional
117
100
140
100
b. EFFECT TO PRODUCTION
Increase production
-
-
8
100
Table 8b.Effect to production
PRODUCTION VOLUME / 6 month
Changes
RESPONDENTS
BEFORE
AFTER
Volume %Inc.
1
50
58
8/50 Inc.
2
526
559
33/526 Inc.
3
84
116
32/84 Inc.
4
40
268
228/40 Inc.
5
69
130
61/69 Inc.
6
364
423
59/364 Inc.
7
157
170
13/157 Inc.
8
586
606
20/586 Inc.
Promotional media used. Table shows that all (100%) of the respondents that their
own way to promote their product through person to person and then 37.5% were doing
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
the exhibit fairs because some respondents could not afford advertisement through
television, radio and newspaper so 25% displayed in their own house to promote their own
products. This shows that the respondents used the following strategies to promote their
products through word of mouth, exhibit fairs, and other respondents displayed on their
own house.
Label of product. Table shows the labelling content of product. According to the
respondents before the intervention they will see that the dominant is quality because they
have 62.5% compare to the other level is only have 37.5 of texture and 12.5 on size. After
the intervention they increase the quality because they have 75% base on texture they
decrease so they will have only 25%. This shows that the labels of products vary among
respondents as to size, texture, and quality.
Product quality. Table shows that before the intervention, that the product quality
that they have 87.5% in standard and 12.5% in low of product quality. After the
intervention, we can see the different of the product quality because they have 87.5 in
standard of products and there have 12.5 on high of product quality. Table shows that the
qualities of products were in improved after availed the intervention.
Financial Status
This presents the financial condition and financial operation of the enterprise
before and after the intervention.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Table 9. Marketing status of enterprise
PARTICULARS
BEFORE
AFTER
F
%
F
%
a. Promotional media strategies
Word of mouth
8
100
8
100
Exhibit fairs
3
37.5
5
62.5
Others: House
2
25
2
25
b. Label of product
Size
1
12.5
-
Texture
3
37.5
2
25
Quality
5
62.5
6
75
c. Product Quality
Low
1
12.5
-
Standard
7
87.5
7
87.5
High
-
-
1
12.5
Financial Operation
Table 10a shows the financial operation of the respondents according to the sales
revenue, total gross revenue, total expenses and net income.
Sales revenue. Table 10 presents the sales revenue of the respondents before and
after the intervention. Before the intervention, 75% of the respondents have a total sales of
Php100,000-600,000, 25% of respondents have a total sales of Php700,000- 1,200,000.
After the intervention, 62.5% of the respondents have a total sales of Php100,000-600,000
and 37.5% of respondents have a total sales of Php700,000- 1,200,000. The table shows
that the number of respondents sales revenue increase with the increase in sales revenue
after the intervention. Majority of the respondents still maintain their sales revenue as
production is not continuous and sales largely depend on order of buyers.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Cost of sales. Before interventions almost all of the respondents (75%)
werehavingPhp100,000-300,000costs of sales and the rest (25%) were in Php400,000-
600,000. After intervention 62.5% of the respondents havePhp100,000-300,000costs of
sales and 37.5% have in Php400,000-600,000. The table shows that some respondent
increased the cost of sales after the intervention because if increase the sales revenue also
increase the cost of sales of ten percent (10%) in the sales by year.
Total gross revenue. The table present the "Raw" sales income; the amount which
customers actually pay the company when they make their purchases. Before the
intervention, 75 % of the respondents were in Php100,000-300,000 have total gross
revenue and 25% of the respondents were Php300,000-600,000 total gross revenue. After
the intervention, 62.5 % of the respondents were in Php100,000-300,000 have total gross
revenue and 37.5% of the respondents were Php300,000-600,000 total gross revenue. They
will see there is an increase in the total gross revenue after the intervention. Table shows
that all respondent would increase the total gross revenue because their productions just
increase after the intervention.
Total expenses. The table presents that the expenses of the respondents before and
after the intervention. Before the intervention, 37.5 % of the respondents range
fromPhp100,000-200,000 have total expenses, 25% of the respondents falls from
Php200,001-300,000 total expenses and 25% said to have a total expenses ofPhp300,001-
400,000. After the intervention, 37.5 % of the respondents have in Php200,001-300,000
total expenses, 25% of the respondents have Php300,001-400,000 total expenses and 25%
have a total expenses fromPhp100,000-200,000.The table shows that after the intervention
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
there is an increase in the expenses because the equipment uses more electricity and space
expansion of their enterprises.
Net income. The table presents that the accumulated net income of the respondents
before and after the intervention. Before the intervention, 37.5 % of the respondents have
a net income ofPhp10,000-110,000, 25% of the respondents have a net income of
Php110,001-210,000 and Php210,001-310,000 while 12.5% of the respondent have a net
income ofPhp310,001-410,000. After the intervention, 37.5 % of the respondents have a
net income of Php110,001-210,000, 25% of the respondents have a total expenses
ofPhp210,001-310,000, 25% have a net income ofPhp310,000-410,000 and 12.5% of
respondent have a net income of Php10,000-110,000. Table shows that all of the
respondents increased their net income after the intervention because the equipment availed
was easy to produce and easy to finish their products so there income will increase because
their products easily to distribute in their own buyers.
Financial Condition
Table 10b shows the financial condition according to the assets and liabilities of
the respondents before and after the intervention.
Assets. Table 10a shows the financial status of economic value owned/property by
the respondents, before and after the intervention. Before intervention in current asset they
have 37.5% of respondents on Php 50,000-150,000 were the Php 150,001-250,001 have
25% of respondent and the other have only 12.5 percent in Php 250,001-350,000, the same
the amount of Php 350,001-450,000 and also the Php 450,001and above have 12.5% of
respondents just have assets. After the intervention they would increase the current asset
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
in amount of Php 250,001-350,000 have 37.5, 25% in 50,000-150,000 and the others will
have only 12.5%. Table shows that the respondent before the intervention their owned
properties were in the minimal amount but after the intervention it will increase because of
the equipment availed on DOST SETUP.
Table 10. Financial operation of the enterprise
PARTICULARS
BEFORE
AFTER
F
%
F
%
a. Financial Operation
Sales Revenue
100,000-600,000
6
75
5
62.5
700,000-1,200,000
2
25
3
37.5
Less: Cost of Sales
100,000-300,000
6
75
5
62.5
400,000-600,000
2
25
3
37.5
Total Gross Revenue
100,000-300,000
6
75
5
62.5
a. Financial Operation
300,000-600,000
2
25
3
37
Total Expenses
5
100,000-200,000
3
37.5
2
25
200,001-300,000
3
37.5
3
37.5
300,001-400,000
2
25
3
37.5
Net Income
10,000-110,000
3
37.5
1
12.5
110,001-210,000
2
25
3
37.5
210,001-310,000
2
25
2
25
310,001-410,000
1
12.5
2
25
Non-current asset. The table presents that the respondents which have a long term
investments and the case that the full value will not be realized within the accounting year
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
before and after the intervention. There are 62.5% of the respondent have non-current asset
of Php100,000-500,000 before the intervention. Twenty five percent have non-current
asset of Php500-001-1,000,000 and 12.5% non-current asset of Php1,000,001-1,500,000
it’s before the intervention because their non-current asset is their own sacrifices to build
their owned enterprises. After the intervention the non-current asset will increase, three of
them or 37.5% have non-current asset with amount of Php500,001-1,000,000 and also the
37. 5% have non-current assets of Php 100,001-500,000 and have 25% of respondents just
havePhp1,000,000 non-current assets. Table shows that most of the respondents increased
their non-current asset after the intervention because there availing of the equipment in to
the SETUP helped.
Total asset. For the asset accumulated by the respondents, the table presents that
62.5% of respondents have assets of Php100,000-500,000 before the intervention. 25% of
respondents have assets of Php500,001-1,000,000 and 12.5% have an assets of
Php1,000,000-1,500,000of which we can see the respondents who save the lowest amount
of total asset. For the asset accumulated after the intervention, the table presents that 50%
of respondents have assets of 500,001-1,000,000. There were 37.5% of respondents who
have assets of Php100,000-500,000 and 12.5% have an assets of Php1,000,000-1,500,000.
Table shows that the respondents increase their total asset because the other equipment
availed from DOST SETUP.
Liabilities. For the liabilities incurred by the respondents, this table shows the
obligation that legally binds each entrepreneur. Before the intervention, the table shows
that majority 62.5% of the respondents have liabilities of Php100,001-500,000 while 25%
havePhp500,001-1,000,000 liabilities and only have 12.5% of the respondents have
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
liabilities of Php1,000,001-1,500,000. For the liabilities incurred after the intervention, it
shows that majority or 50% of the respondents have liabilities of 500,001-1,000,000 while
37.5% havePhp100,001-500-000 liabilities and only 12.5% respondent have liabilities
incurred Php1,000,001-1,500,000. Table shows that before the intervention, majority of
the respondents were in the minimum amount of liabilities but after the intervention some
of the respondents increased the liabilities because of the additional equipment their
enterprises.
Organization and Management Status of the Enterprise
Table 12 shows the organization and management status of the enterprise according
to the total employment generated by the enterprises.
Total employment generated. The table presents that the employment generated by
the respondents before the intervention was a total of 28 employees, then after the
intervention the total of employment decreased of nine employees because of the
equipment availed. According to the enterprises, they need to remove some workers
because the machine can do automatically and better than when manually operated.
Direct employment. These are the number of employees directly hired by the
enterprises including those that are hired by the subcontractors of the SME. Table shows
that before the intervention, the enterprises have regular employees but after the
intervention, the enterprises have to remove some regular employees because the
equipment requires less men employees to do the work.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Table 11. Financial condition of the enterprise
PARTICULAR
BEFORE
AFTER
F
%
F
%
Financial Condition
Assets
Current Assets
50,000-150,000
3
37.5
2
25
151,000-250,000
2
25
1
12.5
251,000-350,000
1
12.5
3
37.5
351,000-450,000
1
12.5
1
12.5
451,000 and above
1
12.5
1
12.5
Non-current assets
100,000-500,000
5
62.5
3
37.5
501,000-1,000,000
2
25
3
37.5
1,000,001-1,500,000
1
12.5
2
25
Total Assets
100,000-500,000
4
50
3
37.5
501,000-1,000,000
3
12.5
4
50
1,000,000-1,500,000
1
37.5
1
12.5
Liabilities
50,000-150,000
5
62.5
3
37.5
151,001-250,000
2
25
4
50
250,001-350,000
1
12.5
1
12.5
Equity
50,000- 150,000
5
62.5
3
37.5
151,001- 250,000
2
25
4
50
250,001-350,000
1
12.5
1
12.5
Indirect employees. These are the manufactures components/parts of the whole
product. Table shows that under indirect employment there have backward and forward
before and after the intervention. We can see that this table are how many employments
generated by the suppliers of inputs or using the products of enterprises of the production.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Backward. These are the employment generated by the suppliers of inputs and other
raw materials needed to produce the final product of the enterprise. Table shows that before
the intervention there have five (5) employments generated by the suppliers of inputs to
produce the final product and after the intervention it was increase four (4) so the total
employments generated by the suppliers of inputs have nine (9) employments.
Forward. These are the employment generated by the other enterprises using the
product of the enterprise or as consequence of the production of the enterprise such as
supplier of packaging materials, transport groups, etc. Table shows that before the
intervention the eight (8) respondents were generated ten (10) employees by the other
enterprises but before the intervention, half of this would continue for using the product
enterprise while the others would stop so we can see the effect of intervention on their
enterprises.
Comments/ suggestion and other concerns in availing the SETUP intervention
according to the respondents:
For the other concerns about the SETUP project, according to the respondents they
need more of conducting seminars so that they will know and learn the SETUP intervention
and how to manage the business. Availing the SETUP project are very satisfactory to all
entrepreneur because the equipments were given with no interest by the DOST and they
have improved the quality of their products and also helped increased the production.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
Table 12. Organization and management status of the enterprise
BEFORE
AFTER
PARTICULARS
F
F
Organization and management status of the
enterprise
a. Total of employment generated
28
19
b. Direct employment
Company hire:
Regular
4
-
Part-time
6
2
Sub-contractor hire:
Regular
15
9
Part-time
3
8
Indirect employment:
Backward
5
9
Forward
10
5
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATION
Summary
This study perceived to assess the furniture enterprise project assisted by DOST
SETUP in Mountain Province and Baguio City. The respondents of the study were eight
co-operators who have graduated/completed the planned SETUP intervention. The study
sought answers to the following:
1) Profile of furniture enterprise assisted by the SETUP in Mountain Province and
Baguio City; 2.) Status of the furniture enterprises in terms of production, marketing,
financial, organization and management before the SETUP intervention; 3) Type of
intervention adopted by the furniture enterprises from the SETUP program; and 4) Effects
or changes of the furniture enterprises in terms of production, marketing, financial,
organization, and management as a result of the SETUP intervention.
Almost all of the entrepreneurs involved in furniture enterprise who availed the
intervention were assisted by SETUP were from in Baguio City and Mountain Province.
All of them were males and about 87.5% are married and 12.5% are widowed. All of them
belong to sole proprietorship. Furthermore majority of them finished high school level.
Most of the firms existed for many years but they were on and off in their operation. All of
the enterprises were registered. Half of the respondents only availed the SETUP
intervention from year 2006-2010, two availed from year 1996-2000 while the rest availed
way back 1991-1995 and 2001-2005.
All of the respondents availed the technology needs assessment done by the DOST
technical staff and all respondents availed project proposal preparation, equipment
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
upgrading and provision of product technology. Over all, the respondents were satisfied on
SETUP intervention availed. Majority of the respondents attained their objectives.
In the production of the enterprises before and after the intervention, the volume of
production increased and the product quality improved because of the improvement of the
processes through the equipment provided by the SETUP. The automatically operated
furniture processing methods and functional equipment of the enterprise after availing the
SETUP intervention increased.
For marketing status, almost all respondents are concerned on the quality assurance
for the customers safe. Some of the respondents have established market outlet for the sale
and promotion of increased production.
On financial status of the furniture enterprises, all of the respondents said that their
financial status before the intervention was in a minimum average and after the intervention
all of the respondents said that there was an increase in the volume of production and also
increased their sales because the equipment availed from SETUP. Thus the increase in their
income is based.
As to the organizational and management status, the respondents said that the total
employment generated before SETUP is28, while after the intervention, but was lessened
the equipment took place the required manual labor after the intervention.
Conclusions
Based on the findings, the following conclusions were made:
1. The furniture processing enterprises assisted by DOST SETUP in Baguio City and
Mountain Province belongs to sole proprietorship. Most of them did not finish their studies
but served as owner/manager of their enterprises.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
2. The interventions availed by the respondents from the SETUP vary depending
on the needs of their enterprise. All of the respondents were satisfied on the SETUP
intervention availed.
3. Overall, SETUP program has a positive impact to furniture enterprises for the
reason that it increases productivity, improves product quality and increase financial
operation and financial condition, and also improves management capability of the
enterprises.
4. The common problems/constraints encountered by the furniture enterprises are
the lacking of woods so they did not increase the volume of products.
Recommendations
1. Most of the respondents heard the SETUP program through agency personnel
and co- entrepreneurs. Thus DOST must also conduct trainings (technology needs
assessment, consultancy services, marketing assistance, and provision of production
technology) and seminars in order for those who haven’t any resources such as internet,
friends and relatives from the government can avail from it.
2. The furniture enterprise should need market outlet for the promotion of their
product especially in our country. DOST must support the enterprises according to
marketing assistance in order to cope up with the competition in the market.
3. DOST SETUP must motivate and encourage more furniture enterprise to avail
the program.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
LITERATURE CITED
ANONYMOUS, August 2007.Material Science for Designers and VP’s of Design.
Retrieved on November 11, 2012 from www.valuecreatedreview.com/
materialscience.htm.
ANONYMOUS, 2011.The Philippine Furniture. Retrieved on September 30, 2012 from
http://philippinesfurniture.net/philippines-furniture.
ANONYMOUS, 2011.The Philippine Furniture Industry Today. Retrieved on September
30,
2012
from
PhilippineFurniture.com
http://www.bworldonline.com/
Downloads/2006/Outsourcing1.ppt.
DEPARTMENT OF SCIENCE AND TECHNOLOGY, 2011.Small Enterprises
Technology Upgrading Program brochure. Philippines. Retrieved on September
10, 2012from http://www.manilatimes.net/index.php/news/regions/27754-dost-
car-program-benefits-161-small-enterprises.
DEPARTMENT OF SCIENCE AND TECHNOLOGY, 2012.Technology assessment
manual. Revised edition. Taquig City, Philippines. Pp 1-6.
DEPARTMENT OF SCIENCE AND TECHNOLOGY, 2011.Small Enterprises
Technology Upgrading Program (SETUP) directory.CAR Philippines.Pp1-3.
DEPARTMENT OF TRADE AND INDUSTRY, 2008.Micro small and medium
enterprises (msmes). Retrieved on November 10, 2012from http://www.dti.
gov.ph/dti/index.php? P=321.
DEPARTMENT OF TRADE AND INDUSTRY, 2008.Micro small and medium
enterprises. Trade and Industry Building, Sen. Gil J. Puyat Avenue, Makati City,
Philippines 1200.P=532
HUNTER, M. N.d. What design is and why it matters. Retrieved November 10,
2012fromhttp://www.designcouncil.org.uk/about-design/What-design-is-and-
why-it-matter.
HUNTER, M. N.d., Form and Function. Retrieved on September 30, 2012from
http://www.designcouncil.org.uk/about-design/Types-of-design/Furniture-design/
Form-and-function/.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013
IRVINE, CA, 2011. RealGoodFurniture.Retrieved on November 10, 2012 from
http://www.realgoodfurniture.com.
SMITH, G.P., 1999. SET-UP Projects Online, Top Eight Marketing and Sales Strategies.
Retrieved on September 30, 2012 from http://www.business knowhow.com/
marketing/top8mark.htm.
SMITH, G.P., 1999. Business Know-How is a woman-owned business and a registered
trademark of Attard Communications. Retrieved on September 30 2012from
http://www.businessknowhow.com.
WALANG L., 1998. An assessment of DTI assisted small and medium enterprises in La
Trinidad, Benguet. Pp. 6-7.
An Assessment of DOST Small Enterprise Technology Upgrading Program (SETUP) Assisted
Furniture Enterprises in Baguio City and Mountain Province | FABROS, MARVEIN S., APRIL 2013