BIBLIOGRAPHY LIMPAYOS, KHAROL D. MAY...
BIBLIOGRAPHY
LIMPAYOS, KHAROL D. MAY 2013. An Assessment of Horticulture Enterprises
assisted by DOST SETUP in Benguet. Benguet State University, La Trinidad, Benguet.
Adviser: Leopoldo N. Tagarino, MRSM Agribusiness
ABSTRACT
The study was conducted to assess the horticulture enterprises assisted by DOST
SETUP in Benguet. Data were gathered from the horticulture entrepreneurs assisted by
DOST SETUP in Benguet and at DOST-Benguet Office.
The findings showed that most of the respondents were male and married. All the
respondents belong to sole proprietorship, a firm business managed and owned by one
person with the intent of gaining profit. After the intervention the horticulture process
followed by the respondents was upgraded. All the respondents’ equipment including
greenhouse were upgraded after the intervention. All the respondents were assisted on
project proposal preparation and technology needs assessment. All the respondents
promoted their product through word of mouth or personal communication and direct
discussion with their customers. All the respondents belong to micro enterprises (below
1.5 million pesos capital) with capital ranging from 50,000 pesos- 500,000 pesos, and 1-9
regular employees.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
The respondents’ objectives in availing the project were to increase production,
improve product quality and upgrade processing facilities or process. The level of
attainment of these objectives was 50% and above.
The volume of production, employees and financial status had increased after the
intervention. On the other hand, most of them encountered problems regarding their
repayment schedule require by DOST SETUP. Their market outlet had decreased, as the
respondents stated that due to the long travel the perishability of their product was affected
that caused their customer to shift to other suppliers of the same product.
It is therefore recommended that the respondents should continue attending
trainings and seminars on financial management and product marketability and
competitiveness. Attendance to trainings and seminars would help them develop their skills
and entrepreneurial characters and for them to be updated on the present strategies of the
entrepreneurs and to meet the customers product requirement.
The different organizations that were assisting entrepreneurs they must focus more
on the technology upgrading, financial assistance and providing more on marketing
assistance. This is so because base from the result of the study the common problems of
the entrepreneurs were on the financial resources to improve their technologies and market
competitiveness of their products.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
INTRODUCTION
Rationale
Horticulture is derived from the latin wore
hortus, meaning garden or enclosure,
and
colore or
cultura, meaning to cultivate. Horticulture is the art, science, technology, and
business of growing and utilizing garden and plantation crops. It si an art, as creativity is
applied in using plants to enhance the beauty economic value, and utility of homes, shops,
public buildings and parks. It is a science in that there is an orderly array of basic facts that
explain and direct crop performance. It is a technology, because systematic practices and
operations are essential to successful crop production. And it is a business in that it is
concerned with profit; this aspect of horticulture is sometimes known as commercial
horticulture (Bautista, 1994).
Ornamental plants have been with us since time immemorial. Even in Biblical
times, the existence of gardens has been cited, like the famous hanging gardens of Babylon
(Rimando, 2001).
The inherent advantages of the country that will permit the production of
ornamentals that will be globally competitive include the following: (1) favourable agro-
climatic conditions for the production of a wide variety of ornamental plants throughout
the year; (2) competitive wages and location costs; (3) strategic geographical location near
the major rapidly growing importing countries; (4) availability of a large number of work
force; (5) current total export volume only constitute a small slice of the aggregate world
market, so the potential for market expansion is still very high; and (6) availability of
production technology for many of the ornamentals currently traded here and abroad and
in the long term. Philippines forests contain a large number of ornamental plant species
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
whose export potential can be enhance through selection and breeding. Moreover, the
species found here are not currently being produced by other countries (Rimando, 2001).
The Philippine ornamental horticulture industry since its incipient stage has been
unable to fully meet an increasing domestic demand. Thus, a substantial portion of that
demand has been met through importation. But the industry has remarkably improved over
the past decades and has been steadily growing through the years. The marketing of flowers
in the country does not follow any set pattern. In general, especially within Luzon, traders
pick up the flowers from the growing areas and sell them to flower shops and stall in Metro
Manila. Exceptionally, some of the big growers enter into a contract with the larger flower
shops in Manila; this assures the grower of a ready market for his products, and the shops,
a steady supply. Other growers have continuing arrangements with institutional buyers,
such as hotels and restaurants. The bulk of flowers traded in the domestic market, however,
come from small producers who grow flowers either solely of as intercrops with vegetables
and other cash crops. A growing number of hobbyists have also taken to selling some of
their extra flowers for cash. Under such situation, the supply of flowers in the domestic
market is limited in volume and irregular, and prices are erratic. This situation has also
compelled some of the larger flower shops to import from other countries to meet their
domestic commitments (Anonymous, 2012).
Ornamental horticulture, a big commodity group, encompasses a wide array of
plants. For classification purposes, plant products under this group fall into cut flowers,
foliage and other plant parts (fresh or dried), live plants and other dried ornamentals.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Cut flowers are fresh flowers and flower buds that have been cut from their stems; these
are suitable for bouquets, wreaths, corsages and special flower arrangements. Processed
cut flowers also serve as additives in perfume processing and other industrial purposes.
On the other hand, foliage and other plant parts are fresh leaves and other parts of
the plants. These do not, however, include blooms, cut from their roots as well as branches
of trees, shrubs, bushes, and other plants, such as mosses, lichens, and grasses suitable for
ornamental purposes. They are attractive in form, color and texture and used in flower
arrangements.
Live plants include trees, shrubs, bushes, cuttings, and slips used for indoor
decoration or for outdoor landscaping purposes. Ornamentals are dyed, bleached plant
materials such as whole or parts of fruits, grasses (talahib, panicum), limonium, eucalyptus
and ferns (PCARRD, 2003).
This is the reason why the Department of Science and Technology (DOST) is one
of the government agencies who is actively recognizing Medium, Small and Medium
Enterprises (MSMEs) and is providing technical assistance to those entrepreneurs. In order
to pursue this, they had launched the Small Enterprises Technology Upgrading Program
(SETUP) as a nationwide strategy to encourage and assist MSMEs to adopt technological
innovations to improve their operations and thus boost their productivity and
competitiveness. It enables firms to address their technical problems through technology
transfer and technological interventions to improve productivity through better product
quality, human resources development, cost minimization and waste management and
other operation related activities.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
As of June 2012, there are about 8 small and medium horticulture enterprises that were
assisted by the DOST SETUP in whole Benguet. To break it down, there are four (4)
projects in the municipality of La Trinidad, 1 in Buguias, 1 in Tuba, 1 in Tublay, and 1 in
Sablan.
Therefore, it is necessary to assess the SETUP projects of DOST in whole Benguet, the
present status of the horticulture sector prior to the support of the SETUP, the type of
intervention adapted from the SETUP program, and the expected results or impact of the
intervention for the improvement of the functional areas of their business.
Statement of the Problem
This study focused its assessment on the horticultural enterprises assisted by DOST SETUP
in Benguet. Specifically, this study wanted to know the following:
1. What is the profile of horticulture enterprises assisted by DOST SETUP in
Benguet?
2.What is the status of the horticulture enterprises before the SETUP intervention?
3.What is the type of intervention adopted from the SETUP program? and,
4.What are the expected results of the intervention adopted from the SETUP
project?
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Objectives of the Study
Specifically, this study aimed to know:
1. the profile of horticulture enterprises assisted by DOST SETUP in Benguet;
2. the status of horticulture enterprise before the SETUP intervention;
3. the type of intervention adopted from the SETUP program; and,
4. the expected results of the intervention adopted from SETUP.
Importance of the Study
The result of the study would provide basic information to the horticultural
enterprises owners to make decisions regarding their business operations and determine the
interventions they needed. 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 Limitation of the Study
The study was conducted from January to February 2013. Respondents of this
study were the horticultural enterprise owners assisted by DOST SETUP in Benguet.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
REVIEW OF LITERATURE
In the current arena globalization, science and technology has become the most
important factor for national economic growth and source of competitive advantage. The
Department of Science and Technology (DOST), is mandated to provide central direction,
leadership and coordination of all science and technology activities in the country, and
tasked to formulate science and technology policies, program and projects in support of
national development priorities, pursues program and activities guided by the principles of
competence, competitiveness and social conscience. Among its various programs, DOST
lead the way in developing the competence and competitiveness of the various sectors that
make up the Philippines economy. It, therefore, gives emphasis in strengthening and giving
sharper focus to Science and Technology (S&T) programs that upgrades the capabilities of
the Micro, Small and Medium Enterprises (MSMEs). Among the various program thrusts
of DOST, is the Small Enterprise Technology Upgrading Program (SETUP), the flagship
program on technology transfer and commercialisation that is geared towards providing
innovation system support to MSMEs. SETUP enables firms to address their technical
problems through technology transfer and technology interventions to improve
productivity through better product quality, human resource development, cost
minimization and waste management and other operation related activities (DOST, 2011).
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
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 activities or enterprises engaged in industry, agri-
business/services, whether single proprietorship, cooperative, partnership, or corporation
whose total assets, 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, 2012).
Production Management
Product is a set of tangible physical attributes assembled in an identifiable form. It includes
packaging, color, price, quality, and brand, plus the services and reputation of the seller
(Etzel,
et al., 1991).
Manufacturing operations can be efficiently managed through a well- prepared production
plan. Planning involves looking ahead to anticipate possible stumbling blocks and
eliminate before they occur (DOST, 2011).
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Marketing
Dolan,
et al. (1993) states that marketing is the function of the company, or non-
profit organization, with the responsibility for serving customers and for dealing with
intermediaries and external support organizations such as distributors and advertising
agencies. Many people came to study marketing with little or no business experience
picture it as the study of selling and advertising while marketing certainly includes selling
and advertising, it encompasses much more.
Human Resource Management
Human resource management is the design of formal systems in an organization to
ensure the effective and efficient use of human talent to accomplish organizational goals
(Jackson,
et al., 1997).
Human resource management includes variety of activities; one key activity is
deciding what staffing the organization needs and whether to use independent contractors
or hire employees to fill these needs; other activities include recruiting and training the best
employees; ensuring they are high performers; dealing with performance issues and
ensuring that personnel and management practices conform to various regulations.
Activities also include managing the organization’s approach to employee benefits and
compensation, employee records and personnel policies (DOST, 2011).
Financial Management and Financial Control
The financial management of a business, an agency, a household, or other economic
unit involves the acquisition, use of financial resources and the protection of equity capital
from various sources (Barry, 2000).
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Financial control is facilitated by the process of measuring and monitoring the
performance of a business over time in order to maintain desired standard of performance.
The process is dynamic one; it involves the passage of time and the use of new information
that is feedback to the decision- making unit for processing, analysis and response. The
control process provides an orderly framework for responding to an uncertain environment
in which various signals caused by event, triggers the need for control and response (Barry,
2000).
DOST SETUP
The program covers the following industry sectors; (1) food processing, (2)
furniture, (3) gifts, toys, house wares, handicrafts, natural fibers and dyes, (4) marine and
aquatic resources, (5) horticulture (cut flowers, fruits and high value crops), (6) metals and
engineering, (7) information and communication technology/ electronics, and (8) health
products and services/ pharmaceuticals.
SETUP aims to assist MSMEs improve their productivity and competitiveness
through: (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, (5)
product standard and testing, and (6) database information system.
DOST Strategies to Assist MSMEs
The DOST strategies to assist MSMEs are technology provision, product standards
and testing, packaging and labelling, database management information system, and
linkages and networking.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Provision of technology. For the technology needs assessment and sourcing of technology
the 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.
Seed fund for technology acquisition, 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.
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.
Consultancy and technical advisory services to ensure successful adoptin 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.
Products standards and testing. For the 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.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Product testing and enhancement of testing laboratories to determine in products
conform to standards; they must be tested in accredited laboratories. DOST, established a
network of regional testing laboratories in cooperation with State Colleges and Universities
and private testing centre’s
Packaging and labelling. Products must be packaged well to increase 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 economy and health conscious consumers. DOST
established the Packaging R & D Center in its Bicutan Compound to assist MSMEs in
developing functional designs for packaging, identifying and developing suitable of
alternative packaging materials especially from indigenous sources.
Database management information system. Several database vital to MSMEs are
now being prepared. This includes a listing of available technologies at the national and
regional level, listing of S & T experts, and a listing of testing laboratories including testing
services provided as well as costs. These database will be accessible through the a SETUP
web page that is currently being provided.
Linkages and networking. Include raw material sourcing, marketing, technical or
entrepreneurial training, financing, and equipment design and fabrication.
Problems Encountered
Laoyan (1996), states that government support was hardly provided. Farmers do
not actively participate because of the notion that their experience for the last 20 years is
enough to guide them in their farming.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Benefits Derived
Biñegas (2002), states that any production function involves a system consisting of
and input process- output relationship model. Inputs may be categorized generally into
human and non- human resources.
Increase in production may require additional manpower. Whether to use more of
labour and less of machines of vice-versa would depend on the objectives of a production
manager. Income would be another direct result of production occurring to workers, it may
enhance human welfare which is in return would improve competences levels. However,
the adverse effects of production activities on the environment may also affect human
welfare, particularly health (Biñegas, 2002).
Lastly, Biñegas (2002), states that based on the foregoing concepts, it is important
to view technology use from a holistic perspective to ensure that the various effects and
results of technology are all mutually beneficial and reinforcing.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Conceptual Framework
Analysing the different factors that would affect the business is very significant for
the attainment of the enterprise goal. The profile of the entrepreneur and its current business
operations was determined. In addition, the business operation of the enterprise in terms of
production, marketing, human resource and financial operations was assessed.
After assessing the present status of the business, the intervention adopted was
asked to the entrepreneurs. The study identified the technology related strengths and
weaknesses of an enterprise and technology gaps with its current operations.
Improvement of the enterprise, production, marketing, human resource and
financial operations was analysed. Then the study gave its recommendations after the
evaluation of the projects (Figure 1).
● Profile of
Interventions
Improvement
Entrepreneur and
in:
MSME
adopted
-Production
_Marketing
● Current Business
(Identify the
Recommendations
SETUP)
_Finance
Operation
_Organization
_ Production
and
_Marketing
Management
_Finance
Figure1. The conceptual framework of the study.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
METHODOLOGY
Locale and Time of the Study
The study area covers the whole Benguet. All micro, small and medium enterprises
that were registered and assisted by the Department of Science and Technology (DOST)
were included in the study.
Respondents of the Study
This study covers the micro, small and medium enterprises that were assisted by
the Department of Science and Technology (DOST). The respondents of the study are
entrepreneurs who own and manage horticulture enterprises.
Method of Data Collection
Data were collected with the use of survey questionnaire and given to the
horticulture enterprises owners who were assisted by DOST SETUP. An interview was
done when there are clarifications needed.
Data Gathered
The data gathered was focused on the profile of the respondents, enterprise profile,
and status of the enterprise before and after SETUP intervention, and results / impact of
the intervention adapted from the SETUP project.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Data Analysis
All responses gathered were consolidated, categorized and tabulated. The statistical
tools used in interpreting the data were in percentage ranking and mean.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
RESULTS AND DISCUSSION
Profile of the Respondents
The profiles of the respondents were presented in Table 1 as to their age, gender,
civil status and educational attainment.
Age. Two (40%) of the respondents were on the age bracket of 51-55 years old.
Then one each of the respondent was on the age bracket of 41-45, 46-50 and 56-60 years
old. It shows that the age bracket of the respondents is in the age range of 41-60 years old.
Gender. All (100%) of the respondents were males. As to general assumption, farming is
in line with men work, it is expected that majority were males.
Civil status. Out of the five respondents, most (80%) are married. Only one
respondent was widowed. This implies that most of the business was run by the couple and
their family member.
Educational background. Sixty percent of the respondents were college graduate.
This implies that most of them underwent formal education and are degree holders. Then
one each of the respondent took up vocational course and high school level.
Enterprise Profile
Table 2 presents the enterprise profile. These includes the type of organization,
number of years in operation, year started adopting the SETUP interventions and amount
of SETUP assistance.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 1. Profile of respondents
PARTICULAR
FREQUENCY
PERCENTAGE
Age
41-45
1
20
46-50
1
20
51-55
2
40
56-60
1
20
TOTAL
5
100
Civil status
Married
4
80
Widowed
1
20
TOTAL
5
100
Educational Background
High school
1
20
College graduate
3
60
Vocational
1
20
TOTAL
5
100
Type of organization. All (100%) of the respondents’ organization was under sole
proprietorship. This shows that the business was managed and owned by one person with
the intent of earning profit.
Number of years in operation. Forty percent of the respondents were engaged in production
from the range of 1-5 years. There were 20% who engaged for 6-10 years, 20% for 11-15
years and 20% for 16-20 years. This shows that most respondents operated for 9 years as
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
their mean. This implied that majority of their business were well established and the
respondents were already knowledgeable to run their business.
Year started adopting the SETUP intervention. Sixty percent of the respondents adopted
SETUP interventions in the year 2008 to 2012 and 40% of them in the year 2003 to 2007.
This indicates that majority of the entrepreneur have just adopted the SETUP interventions
and that the intervention adopted were still new and fresh.
SETUP Interventions
Presented in Table 3 were the SETUP interventions availed by the entrepreneurs. It
includes their degree of attainment on their objectives in availing the SETUP intervention
and the problems encountered in availing it.
Sources of information about SETUP interventions. Sixty percent of the respondents were
informed through the agency personnel. Then twenty percent each were informed through
their local government unit and through radio. This implies that most of the respondents
were visited and informed by the employee of DOST SETUP Program.
S & T interventions availed from SETUP. All the respondents have availed provision of
production technology particularly in the technology acquisition. One hundred percent of
the respondents were assisted and helped by the SETUP personnel in their project proposal
preparation. All the respondent also availed technology needs assessment, a program of
DOST where in participating firms would be assisted in assessing their technology needs
and appropriate technologies were recommended for adoption. Once identified, the
source(s) of the technology would be determined and negotiations for the acquisition and
installation of the technology would be done.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 2. Enterprise Profile
PARTICULAR
FREQUENCY
PERCENTAGE
Number of years in operation
1-5
2
40
6-10
1
20
11-15
1
20
16-20
1
20
TOTAL
5
100
Mean=9
Year started adopting the
SETUP intervention
2
40
2003-2007
3
60
2008-2012
TOTAL
5
100
Packaging and labelling to improve their product handling and protection, ultimately
improved their marketability and assist entrepreneurs to develop functional designs for
packaging, identify and develop suitable or alternative packaging materials especially from
indigenous sources. Majority of the respondents (80%) availed packaging and labelling.
The respondents claimed attendance to seminar, but some never applied learning’s due to
lack of financial resources to buy the required materials.
Majority of the respondents (60%) availed consultancy services, a program of DOST to
ensure successful adoption of technologies.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
DOST through its pool of science and technology experts from various agencies and
members of the R & D network including academic institutions would continue to provide
technical and productivity consultancy services to participating firms.
Forty percent of the respondents were assisted in their product standard and testing,
particularly on their herbal tea. A service provided by the DOST to determine conformity
of products to prescribe standards.
Only twenty percent of the respondent availed linkages and networking. A program of
DOST to take initiative to study policies affecting raw material supply as well as measures
to establish linkages with appropriate government and non- government agencies.
As shown from the result all the respondents availed various interventions like: technology
needs assessment, project proposal preparation and technology acquisition. The type pf
technology acquired was in the form of green houses.
Degree of attainment and objectives of the entrepreneurs in availing SETUP. All the
respondents attained their objectives in availing the SETUP interventions.
In the upgrading of production facilities, forty percent of the respondents attained by 80-
90% and twenty percent attained by 50%. This shows that all the production facilities of
the entrepreneurs particularly their greenhouses were upgraded through the DOST.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 3. SETUP Interventions
PARTICULARS
FREQUENCY
PERCENTAGE
Sources of information
Radio
1
20
Agency personnel
3
60
Local Government Unit
1
20
TOTAL
5
100
S & T Intervention
Technology need assessment
5
100
Project proposal
5
100
Provision of production technology
Technology acquisition
5
100
Product standard and testing
2
40
Packaging and Labelling
4
80
Consultancy services
3
60
Linkages and Networking
1
20
Multiple response
Degree of attainment on their objectives in
availing SETUP interventions
1-50%
To upgrade production facilities
1
20
To increase production
2
40
To improve product quality
2
40
To increase income
1
20
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 3. Continued…
PARTICULARS
FREQUENCY
PERCENTAGE
Degree of attainment on their objectives in availing
SETUP interventions
60-70%
To increase production
1
20
To generate employment
1
20
To increase income
1
20
80-90%
To upgrade facilities
2
40
To increase production
2
40
To improve product quality
2
40
Multiple response
Problems encountered
Compliance with the repayment schedule
3
60
Lot of requirements and processing documents
1
20
Technology are not readily available
1
20
TOTAL
To increase production, forty percent of the respondents’ attained by 80-90% and
forty percent attained by 50%. Twenty percent of the respondents’ attained by 60-70%.
This indicates that all the entrepreneurs’ production had increased by 50% and above.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
To improve product quality, forty percent of the respondents attained by 80-90%
and forty percent attained by 50%. This shows that most (80%) of the respondents’ product
quality have improved after the intervention.
To generate employment, twenty percent of the respondents’ attained by 60-70%.
This shows that through the interventions the respondents generated employment.
To increase income, twenty percent of the respondents’ attained by 60-70% and
20% attained by 50%. This implies that after the intervention the income of the respondents
have increased by 50- percent and above.
Problems encountered. All of the respondents encountered problems in availing the SETUP
interventions.
Majority of the respondents 60% encountered problems in the compliance with the
repayment schedule, twenty percent of the respondents encountered constraints in the
documents required, twenty percent encountered problems in the availability of the
technology. This shows that most of the respondents meet problems regarding the financial
resources for their business operation and maintenance.
Assessment on DOST SETUP Intervention
Table 4 shows the level of satisfaction on the intervention availed from the DOST
SETUP. All the respondents claimed to be very satisfied in the technology needs
assessment, project proposal and technology upgrading. In the packaging and labelling it
was shown that most (80%) of the respondents were satisfied. Sixty percent of the
respondents were neither satisfied in the consultancy services and marketing assistance
provided by DOST.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 4. Level of satisfaction on the intervention availed from DOST SETUP
CRITERIA
5
4
3
2 1
Weighted
Description
%
%
%
%
% Equivalent Average
Technology need assessment
3 6
1 2
1 20 - - - - 4.4
Very satisfied
Project proposal preparation
3 0
2 0
- -
- - - - 4.6
Very satisfied
Provision of production technology
6
4
Technology/ equipment upgrading
1 0
4 0
- -
- - - - 4.2
Very satisfied
Packaging and labelling
-
4
- -
- - - - 3.2
Satisfied
Post harvest
- 2
2 8
- -
- - - - 1.6
Unsatisfied
Manpower training
- 0
2 0
- -
- - - - 1.6
Unsatisfied
Consultancy services
1 -
2 8
- -
- - - - 2.6
Neither
Marketing assistance
- -
3 0
- -
- - - - 2.4
Neither
Multiple response
Liker’s Scale:
0.1-1.0-Very Unsatisfied
2.1-3.0-Neither
4.1-5.0-Very Satisfied
1.1-2.0-Unsatisfied
3.1-4.0-Satisfied
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Forty percent of the respondents were unsatisfied regarding the post harvest and manpower
training that was provided through DOST , while the rest states that they did not avail
trainings and seminars and that their past experience served as their trainings. This
indicates that the agencies need to conduct more trainings and seminars for the
entrepreneurs.
Production Status
Production status. Presented in Table 5 was the production status of the entrepreneurs
before and after the SETUP interventions. This includes their production volume per year.
The products produced were ornamental plants (chrysanthemum), high value crops (bell
pepper, lettuce, tomato, cucumber, sugar beets and beans) and herbs (basil, mint and
dandelion). They also produced strawberry and strawberry leaves.
After the SETUP interventions, as presented in the table all o respondents production had
increased by 50% and above. This implies that most of them have met their one objective
in availing SETUP.
Horticulture processed followed
It was shown in Table 6 the horticulture processed followed by the entrepreneurs
before and after the SETUP intervention. Before the SETUP intervention 20% percent of
the respondents follow the traditional way of planting horticulture products. In other hand,
after they avail the intervention 100% of their processed followed become upgraded. This
implies that before the intervention some respondents were not still knowledgeable in the
operation. After the intervention 20% of the respondents have gain more knowledge to
follow for their business operation.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 5. Production status
PARTICULARS
Production Volume per Year
Changes
BEFORE AFTER
VOLUME
%
Entrepreneur 1
Anthurium cut flower
2,300 doz.
3, 450 doz.
1,150 doz.
50
Entrepreneur 2
Chrysanthemum
400 doz.
600 doz.
200 doz.
50
Entrepreneur 3
Chrysanthemum
1,800 doz.
2,700 doz.
900 doz.
50
Entrepreneur 4
Bell pepper
400 kgs.
600 kgs.
200 doz.
50
Entrepreneur 5
Lettuce
2,400 kgs.
4,000kgs.
1,680 kgs.
70
Tomato
960 kgs.
1,632 kgs.
627 kgs.
70
Cucumber
720 kgs.
1,224 kgs.
504 kgs.
70
Bell pepper
144 kgs.
245 kgs.
101 kgs.
70
Sugar beets
240 kgs.
408 kgs.
168 kgs.
70
Beans
240 kgs.
408 kgs.
168 kgs.
70
Basil and mint herbal
96 kgs.
163 kgs.
67 kgs.
70
Dandelion herbal
67 kgs.
70
Additional products
96 kgs.
163 kgs.
Strawberry and
Strawberry leaves
Wheat grass
400 kgs.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 6. Horticulture processes followed
PARTICULARS
BEFORE
AFTER
N %
N %
Traditional
2 40
0 0
Upgraded
3 60
5 100
TOTAL
5 100
5 100
Horticultural Equipments
In Table 7, it shows the horticulture equipment used by the entrepreneurs before
and the equipment they have availed from the SETUP.
The table shows that before the SETUP interventions all the respondents owned a
greenhouse but it is made up of wood and bamboos. That causes a problem on the
respondents. As the year past by the wood and bamboo become weak which causes the
greenhouse to give up, the greenhouse plastic covering were also torn and the nails become
rusty. So when the respondents renovated their greenhouse they need to change the whole
of it. And it takes long time, which causes a loss of income of the respondents.
After availing the intervention from SETUP, the entire respondents’ greenhouses were
functioning. The greenhouses were made up of cement, pipes and covered with
polyethylene. The only problem on the part of the respondent when he needs to renovate
was on the greenhouse covering.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 7. Horticultural equipments
PARTICULAR
BEFORE
AFTER
REMARKS
N %
N %
1 unit of Greenhouse
Owned-Functional
5 100
0
0
Before, the greenhouses
Owned-non functional
0 0
0
0
owned by the entrepreneurs
SET UP-functional
0 0 5
100 were made up of wood and
SET UP-non-functional
0 0 0
0
bamboos.
TOTAL
5
100
5
100
Promotional strategy.
Table 8 shows the different promotional strategy done by the entrepreneurs before
and after the SETUP interventions. The promotional strategies done were as follows:
through word of mouth, trade fairs, newspapers, internet, fliers and internet.
Promotion through word of mouth. 100% of the respondents used the word of
mouth strategy. The respondents said that they go to the market outlet to personally offer
their products, same as to as they mingle with other people they try to personally offer their
products. The respondents used this strategy before and after the SETUP intervention.
Promotion through trade fairs. Most respondents 60% were joining trade fairs before the
SETUP interventions. Then after the intervention 80% of the respondents were joining the
trade fairs. Trade fairs during the “Panagbenga” a flower festival of the Cordilleras done
in Baguio City every month of February. “Adivay ” an Ibaloi word which means coming
together, a festival done every month of November in the province of Benguet to showcase
their products. “Strawberry Festival” of Benguet a festival done to showcase the different
products of Benguet particularly the fresh and processed vegetables that is held in La
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Trinidad every month of March. Some of the respondents also attend small trade fairs
during their conference along Baguio and La Trinidad.
Promotion through e-mails. Before the SETUP intervention all the respondents were not
promoting through their e-mail account. In other hand, after the SETUP intervention 40%
of the respondents used their e-mail accounts to inform their friends about their products,
but the respondents said that orders are still done personally.
Promotion through newspaper. Only one of the respondent used newspaper and this
was done after the SETUP intervention. The respondent said that he just try once to
advertise his product in the midland courier. It is a local newspaper that is circulated to the
whole Cordillera Administrative Region (CAR).
Promotion through fliers. 100% of the respondents were not using fliers to promote
their products before the SETUP interventions. When the intervention were availed one
respondent said he used fliers to promote his products. These fliers were distributed
whenever he joins some trade fairs and when he personally sales his products. Most of the
fliers were distributed to people that she knows.
Promotion through television. Before the SETUP intervention all the respondents
were not using television to promote their products due to high cost of payment. after the
intervention one respondent said he was sometimes interviewed in Abs-Cbn Northern
Luzon that give him opportunity to showcase his products through media.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 8. Promotional Strategy
PARTICULARS
BEFORE
AFTER
N %
N %
Promotional strategies
Word of mouth
5
100
5
100
Trade fairs
3
60
4
80
Internet (e-mails)
0
0
2
40
Newspaper
0
0
1
20
Fliers
0
0
1
20
Television
0
0
1
20
Multiple response
Market Outlets
Table 9 shows the market outlets supplied by the entrepreneurs, horticulture
products supplied to outlets and the overall products sold by the outlets.
Number of market outlet supplied. Before the SETUP intervention 80% of the
respondents supplied Baguio City Public Market; 60% respondents supplied La Trinidad
Public Market; 60% respondents supplied Manila and 60% supplied Dimasalang. On the
other hand, after the SETUP intervention four of the respondents still supplied Baguio City
Public Market, 40% respondents supplied La Trinidad Public Market, one respondent
supplied to Manila and one supplied at Dimasalang.
Based from the result, the market outlet supplied by the respondents had decreased.
Respondents particularly from the municipality of Buguias said that due to the long time
to travel their products and the rough road travelled, the perishability of the products were
affected, this cause for market outlet to reject the product and shift to other suppliers
producing same products.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 9. Market Outlets
PARTICULARS
BEFORE
AFTER
N %
N %
Number of market outlets supplied
Baguio City Public Market
4 80
4
80
La Trinidad Public Market
3 60
2
40
Manila
3 60
1
20
Dimasalang
3 60
2
40
Multiple response
Horticulture Products Supplied to Outlets.
The table 10 shows all the products produced were directly distributed to their market
outlet supplied. And after the intervention, production had increased for 50%, some of the
respondents also expand to other horticulture products.
Products Sold by the Outlets.
Table 11 shows the products sold by the outlet. Respondents claimed to have a lot of
competitors who supply the same products in their market outlets. This indicates that the
entrepreneurs need to establish their specific market, for the customers’ accessibility on the
products they produced. And if they established their own market and have unique name
it will help the respondents’ products to be well known by the customers. The respondents
also need to improve the quality of their product for the competitiveness of their products
in the market.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 10. Horticulture products supplied to outlets
PARTICULARS
PRODUCTION VOLUME PER YEAR
Before after
Entrepreneur 1
Chrysanthemum
Baguio
200
400
Manila
100
200
Dimasalang
100
0
Entrepreneur 2
Chrysanthemum
Baguio
500
2,000
Manila
400
0
Dimasalang
450
1,300
La Trinidad
450
0
Entrepreneur 3
Anthurium cutflower
Baguio
1,000
3,000
Manila
300
0
Dimasalang
1,000
450
Entrepreneur 4
Bell pepper
La Trinidad
4,000
5,000
Entrepreneur 5
Basil and mint herbal
96
336
Dandelion herbal
96
216
Tomato
960
1,500
Cucumber
720
732
Sugar beets
144
400
Beans
240
400
Wheat grass
0
40
Bell pepper
144
1,300
Lettuce
2400
4,000
Strawberry and
0
400
strawberry leaves
Table 11. Products sold by the outlets
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
PARTICULARS
PRODUCTION VOLUME PER YEAR
before after
Products sold by the outlets
Orchids
4,000 doz.
20,000 doz.
Asters
3,000 doz.
6,000 doz.
Lettuce
3,000 doz.
9,000 kgs.
Beans
12,000 kgs.
20,000 kgs.
Tomatoe
1,200 kgs.
2,000 kgs.
Cucumber
4,800 kgs.
7,500 kgs.
Sugar beats
3,600 kgs.
3,660 kgs.
Beans
1,200 kgs.
1,500 kgs.
Strawberry and strawberry leaves
1,100 kgs.
2,200 kgs.
Wheat grass
500 kgs.
1,000 kgs.
Roses
500 doz.
1,000 doz.
Asters
4,000 doz.
6,000 doz.
Financial Status.
The table 12 present the financial status of the entrepreneur before and after the SETUP
intervention. The initial capital of the respondents was on the range of 50, 0000 to 500,000
pesos while their present capital was on the range of 100,000-900,000 pesos. This indicates
that their capital has increased by half percent, but still they belong to micro (less than 1.5
M).
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 12. Financial Status
PARTICULARS
BEFORE
AFTER
F %
F %
Capital
50,000-100,000
1
20
100,001-200,000
1
20
200,001-300,000
1
20
2
40
300,001-400,000
1
20
400,001-500,000
1
20
1
20
500,001-600,000
600,001-700,000
1
20
700,001-800,000
800,001-900,000
1
20
TOTAL
5
100
5
100
Number of Employees. Presented in the Table 13 was the number of employees of the
entrepreneur before and after the SETUP intervention.
Table 13 shows that before the SETUP intervention all the regular workers of the
entrepreneur were from the range 1-4. On the other hand, after the SETUP intervention,
most (60%) of the respondents had regular worker were on the range of 5-9.
On the part time worker of the respondents before the SETUP intervention most (80%) of
the respondents worker were on the range of 1-4 while after the intervention most (80%)
of their worker were on the range of 5-9.The result indicates that the number of employees
increases after the intervention; they still belong to micro enterprise (1-9 numbers of
employees).
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Table 11. Number of Employees
PARTICULARS
BEFORE
AFTER
N %
N %
Total employment generated
Regular
1-4
5
100
2
40
5-9
0
0
3
60
TOTAL
5
100
5
100
Part-time
1-4
4
80
1
20
5-9
1
20
4
80
TOTAL
5
100
5
100
Management capability improvement after the SET UP intervention
The table 14 shows that 100% of the respondents’ management capabilities have improve
after the SETUP intervention particularly to improved or fixed their organizational
structure. This implies that they study and reconstruct their organizational structure for
them to eliminate some division that contribute small amount to the whole operation
through SETUP Program.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
Summary
This study was conducted to determine the profile of horticulture enterprises
assisted by DOST SETUP in Benguet, status of the horticulture enterprises before the
SETUP intervention, the type of intervention adopted from the SETUP program and the
expected results of the intervention adopted from SETUP project.
There were five horticulture enterprises who served as the respondents. The study
made use of primary and secondary data. Secondary data were taken from the office of
DOST (Department of Science and Technology) Benguet. The data collected were
tabulated and analysed.
From the gathered data, the age bracket of the respondents is in the age range of
41-60 years old. All the respondents were male, since according to connotation farming is
in line with men than women. 80% of the respondents are married and 60% of them were
college graduate that shows that most of the respondents were degree holder.
All the respondents’ firms were sole proprietorship or a business that is owned and
managed by one person with the intent to gain profit. The respondents business was well
established and they were knowledgeable to run their business with an average of 9 years
in operation. Most of the respondents avail the SETUP intervention in the year 2008-2012
that showed that the intervention they availed are still new to them.
The production volume of the entrepreneurs before the SETUP intervention were
just enough to their market outlet and expansion to other product was not yet done.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
The horticulture process followed by the entrepreneurs before the SETUP intervention was
the traditional way.
On their greenhouses most of these were made up of wood and plastic as their greenhouse
covering. In here, the respondents need to change the wood, nails and plastic covering
when they are going to renovate.
All 100% the respondents promote their products through word of mouth or personally and
directly discuss to their customer about the products. Most respondents (60%) also attend
local trade fairs.
Most of them supplied more than one market outlet and no one yet established their own
market outlet. In the market outlet they supplied the respondents have a lot of competitors
who also supplied the same products.
The capitals of the entrepreneurs belong to micro (below 1.5 million pesos) since their
capital was in the range of 50,000-500,000 pesos.
The total employees of the respondents were from the range 1-5 this also implies that they
belong to micro (1-9 employees).
There were a lot of SETUP interventions that were availed by the entrepreneurs. The
respondents said that most of them were visited and informed by the SETUP personnel
about the intervention offered by DOST.
The S & T intervention they adopt, all of them availed of production technology
particularly technology acquisition, project proposal preparation and technology needs
assessment.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
Hundred percent of the respondents’ objectives in availing SETUP were to increase their
production, improve their product quality and to upgrade their production facilities or
process. All of them have met their objectives by 50% and above.
In availing the SETUP intervention most of them encountered problems particularly in the
compliance with the repayment schedule required by DOST. Respondents said that
sometimes due to lack of budget their repayment schedule was delayed.
In the assessment of intervention provided by DOST, all the respondent were very satisfied
in the technology upgrading, project proposal preparation and technology needs
assessment.
After the SETUP intervention, 80% of the respondents’ production had increased by 50%
and one respondent increased by 70%. This implies that all of them have met their one
objective in availing SETUP. One the respondent stated that after availing the SETUP, he
ventured in the production of additional horticulture products such as vegetables like beans
and lettuce.
The horticulture process followed by the entrepreneurs after the SETUP intervention was
upgraded.
The green houses of the respondents are all functional and made up of cement and pipes,
which is stronger than before.
Respondents who joined trade fairs have increased but still word of mouth promotion is
still their main strategy. Some the respondents also used their e-mails to informed their
friends and customers.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
The market outlets supplied by the respondent had decreased, because some them said that
due to the long time to travel their products and the rough road travelled, the perishability
of the products were affected. The respondents also have a lot of competitors’ supply the
same products to their market outlet, this cause market outlet to reject the product and shift
to other suppliers of the same products.
The financial status of the respondents had increased but they still belong to micro as to
their capital that is below 1.5 million pesos.
The respondent’s also generated employment but still they belong to micro as to the range
of their employees was 1-9.
All the management capability of the respondents has improve after the SETUP
intervention. They have reconstructed and eliminate some division that contribute small
amount in the operation.
Conclusions
After the results are interpreted the following conclusions were drawn:
1.
The respondents were all males and most of them were married and
college graduate.
2.
All the respondents’ firm was sole proprietorship, a firm owned and
managed by one person with the intent of gaining profit.
3. After the respondents availed the intervention all their processed
followed in their operations was upgraded.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
4. All the respondents promote their products through word of mouth of
personally and directly discuss to their customers.
5. All the respondents belong to micro enterprise (below 1.5 million pesos)
as to their capital range of 50,000-500,000 pesos; and as to their permanent
employees they also belong to micro enterprise (1-9 employees) since their
range of 1-9 employees.
6. All the respondents availed provision of production technology
particularly technology acquisition, project proposal preparation and
technology needs assessment.
7. All the respondents availed equipment upgrading. They were provided a
whole unit of greenhouse; it is made up of cement, pipes and polyethylene
as the greenhouse covering.
8. On the other hand, most of them had encountered problems regarding the
repayment schedule required by the SETUP and their market outlet had
decreased.
Recommendations
1. The entrepreneurs should continue attending trainings and seminars on financial
management and product marketability and competitiveness since from the result most
respondents encountered problem on the freshness of their products and repayment
schedule. To help develop their skills and entrepreneurship characters and for them to be
updated on the present strategies of the entrepreneurs and to meet the customer’s
requirements.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
LIMPAYOS, KHAROL D. MAY 2013
2. The respondents need to establish their specific market outlet for the accessibility
of their customers and for them to have specific place to go when they need the products.
3. The DOST must continue to help the entrepreneurs, improve their productivity,
market competitiveness and technology upgrading.
4. The different government organization that are assisting entrepreneurs need to
focus on the technology, marketing and financial assistance This is so because based from
the result of the study the common problem of the entrepreneurs were on the financial
resources and to improve their productivity and marketability of their products.
An Assessment of Horticulture Enterprises assisted by DOST SETUP in Benguet |
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