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Roadmap for SME Resilience
Philippines
STRENGTHENING DISASTER AND CLIMATE RESILIENCE OF SMALL & MEDIUM ENTERPRISES IN ASIA
2 ROADMAP FOR STRENGTHENING THE DISASTER-RESILIENCE OF SMES
The iPrepare Business facility for engaging the private sector in Disaster Risk Management is a joint initiative by the Asian Disaster Preparedness Center (ADPC), the Asian Development Bank (ADB) through the Integrated Disaster Risk Management (IDRM) Fund and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH within the framework of the Global Initiative on Disaster Risk Management (GIDRM). It focuses on building disaster-resilient businesses in the region through partnerships to strengthen the resilience of the private sector, particularly SMEs; providing technical assistance in strengthening resilience on a demand-driven basis; supporting governments in strengthening the enabling environment that promotes risk sensitive and informed investments by private sector; and facilitating knowledge sharing at the regional and national levels.
The Asian Disaster Preparedness Center (ADPC) is an independent regional non-profit organization that works to build the resilience of people, communities and institutions to disasters and climate change impacts in Asia-Pacific. Over the past 30-years, ADPC has expanded its scope and diversified its operations for a programmatic approach that offers long-term and sustainable solutions to addressing the underlying causes of disasters and climate change risks.
The Asian Development Bank (ADB) is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. ADB assists its members, and partners, by providing loans, technical assistance, grants, guarantees, and equity investments to promote social and economic development. With support from the Government of Canada, ADB established the Integrated Disaster Risk Management (IDRM) Fund in 2013, to assist the development of proactive IDRM solutions on a regional basis within ADB’s developing member countries in Southeast Asia, including Cambodia, Indonesia, Laos, Myanmar, Philippines, Thailand and Viet Nam. The Fund provides a strong mechanism for supporting ex ante investment in IDRM and complements the existing financing modalities of ADB for supporting ex post relief and recovery activities.
In order to respond more effectively to the global challenges posed by disaster risks, the German Government, led by the Federal Ministry for Economic Cooperation and Development (BMZ), has founded the Global Initiative on Disaster Risk Management (GIDRM). The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ GmbH) has been commissioned to manage the GIDRM. The aim of the Global Initiative is to bring together German and regional experts from the public and private sectors, civil society and the academic and research community, to facilitate mutual learning across national boundaries as well as to develop and pilot innovative disaster risk management solutions. The Global Initiative focuses on three priority areas including Disaster Response Preparedness and Civil Protection; Critical Infrastructure and Risk-sensitive Economic Cycles; and Early Warning Systems.
Publication details On behalf of the iPrepare Business facility,Published by the Asian Disaster Preparedness Center (ADPC) SM Tower, 24th Floor 979/69 Paholyothin Road, Samsen Nai Phayathai, Bangkok 10400, ThailandTel: +66 2 298 0682-92 Fax: +66298 0012-13E-mail: [email protected]
Acknowledgements
The iPrepare Business facility wishes to thank all the individuals and organizations who contributed to this Roadmap document, and who continue to support the regional project on “Strengthening the Disaster Resilience of Small and Medium Enterprises in Asia”.
In formulating the Philippines country Roadmap the project team was particularly grateful for inputs and guidance from the Department of Trade and Industry (DTI), Office of Civil Defense (OCD), Philippine Chamber of Commerce and Industry (PCCI), Philippine Disaster Resilience Foundation (PDRF), Asia-Pacific Alliance for Disaster Management - Philippines (A-PAD Philippines), Philippine Exporters Confederation Inc. (PhilExport), Employers Confederation of the Philippines (ECOP) throughout the various consultations, meetings and forums over the course of the project.
PHILIPPINES 3
What is a Roadmap?
Principally, the Roadmap document serves as a means of:
• Collating and clarifying priority areas for enhancing the disaster preparedness and coping capacities of SMEs in the Philippines
• Identifying the relevant actors, stakeholders or policy owners for addressing these issues
• Outlining potential approaches or pilot initiatives for tackling the identified challenges
As such, the Roadmap serves as a guiding document which can inform the relevant concerned agencies and organizations for MSME development and disaster risk
reduction and management (DRRM), as well as policymakers, on the ways forward for strengthening the resilience of smaller enterprises in the country. Furthermore,
the Roadmap is intended to align with relevant national plans, policymaking recommendations and legislative arrangements, such as the forthcoming
MSME development plan in the Philippines.
The Roadmap also takes into account pertinent issues identified at the global and regional levels relevant to MSME and Business resilience. The
Sendai Framework for Disaster Risk Reduction 2015-2030, the foremost global initiative on disaster risk reduction and resilience building, identifies
the private sector as a crucial stakeholder in efforts to build more disaster-proof communities and societies. In comparison with its predecessor, the Hyogo
Framework for Action 2005-2015, the Sendai Framework also has a more explicit focus on the need to protect people’s livelihoods. Private sector resilience is therefore
an important component of achieving Sendai’s stated expected outcome for “the substantial reduction of disaster risk and losses in lives, livelihoods and health in the
economic social, cultural and environmental assets of persons, businesses, communities and countries”1.
In the Asia Pacific region, where MSMEs account for a large proportion of all private enterprises, employment and contribution to GDP, smaller enterprises are a key component to effectively engage the business sector in disaster risk reduction efforts. Notably, all of the Sendai Framework’s four priorities highlight areas where the private sector, including MSMEs, can support resilience building efforts at both the national and local levels. These priorities are: (1) understanding risk, (2) strengthening disaster risk governance, (3) investing in DRR and resilience and (4) enhancing disaster preparedness for effective response & build back better in recovery, rehabilitation and reconstruction.
The Emergency Preparedness Working Group (EPWG) of the Asia-Pacific Economic Cooperation (APEC) seeks to build capacity in the region so that APEC member economies
1 UNISDR (2015). The Sendai Framework for Disaster Risk Reduction 2015-2030
4 ROADMAP FOR STRENGTHENING THE DISASTER-RESILIENCE OF SMES
can better mitigate, prepare for, respond to, and recover from emergencies and natural hazards. This aims to more effectively disaster-proof business, trade and economic growth and communities as well as information sharing, knowledge and technology to improve regional capacity on disaster risk reduction. A specific priority area under the EPWG Strategic Plan 2013-20162 is “Promoting public-private partnerships to develop joint disaster preparedness actions and build up disaster resilience” with the objectives of creating stronger partnerships to support business and community resilience to disasters as well as promoting the development of effective business continuity and critical incident tools for SMEs to reduce their vulnerability and promote resilience.
APEC’s Small and Medium Enterprises Working Group (SMEWG), also encourages the development of SMEs, to build their capacity to engage in international trade, and recognizes the need to build their disaster resilience to ensure competiveness and survivability. The SMEWG Strategic Plan for 2013-20163 has the objective to “improve Natural Disaster Resilience and Ensure Business Continuity of SMEs and MEs“ under the priority area of “Building Management Capability, Entrepreneurship, and Innovation.“
Alignment of the Roadmap approaches and pilot initiatives for tackling identified challenges with these global and regional frameworks is an important consideration for ensuring that disaster resilience building is undertaken in an integrated and coordinated manner.
Towards a Roadmap for SME Disaster Resilience in the Philippines
Under the aforementioned project the iPrepare Business team worked with relevant in-country partners to produce country reports. These presented results from surveys on the disaster resilience of MSMEs as well as providing a strategic policy analysis of the enabling framework for MSME disaster resilience in the respective target countries. Together with information gathered from consultations during country missions in August-September 2015 and January 2016, the country reports were able to identify a number of key issues and the ways forward for strengthening MSME resilience in each country, thereby informing the formulation of the Roadmaps.
In terms of existing government support for MSME disaster resilience, the key finding in the region was that, so far, the institutional and legislative systems for DRRM, climate change adaptation (CCA) and MSME business development have not joined hands to provide the necessary support. A Roadmap process is an opportunity to create both mutual understanding and awareness, and to establish specific mechanisms for such coordination into the future.
2 APEC (2013). EPWG Strategic Plan 2013-2016. 3 APEC (2012). SMEWG. Strategic Plan 2013-2016.
PHILIPPINES 5
Specific Roadmap thematic areas as identified in the country report were summarized in tabular format along with suggested key actions, potential pilot initiatives which might be carried out by relevant in-country agencies in partnership with ADPC or other development partners, as well as suggestions on the relevant actors, stakeholders or policy owners responsible for each of the identified Roadmap issues. These drafts were then subject to consultation with relevant stakeholders in each country.
The following Philippine Roadmap is the result of the various initiatives conducted under the “Strengthening the Disaster Resilience of SMEs” Project. It refers to the findings of the survey on understanding MSME disaster vulnerability and the policy review on MSME development and disaster risk management. These findings pointed to the need for improved access to information on MSMEs, increased awareness by MSMEs, capability building, risk financing and participation in policy formulation by the private sector. The activities for the Roadmap that would meet these needs were identified during the National Business Forum on MSME Development and Disaster Resilience in the Philippines held on July 26-27, 2016. The forum was attended by 215 officials and representatives from a range of government agencies, business associations, academe, financial institutions, development partner organizations, NGOs and CSOs. During the forum workshops, participants were asked to identify key actions, stakeholders and potential pilot initiatives. The outputs of the workshops were validated and refined by a core group of stakeholders, which included the Department of Trade and Industry, the Philippine Chamber of Commerce, Inc., the Philippines Disaster Resilience Foundation, PhilExport, the Employers Confederation of the Philippines, and the Asia-Pacific Alliance for Disaster Management.
A number of organizations have signed an MOU to carry forward the Roadmap work as part of a Micro, Small & Medium Enterprises Resiliency Core Group (MSME-RCG). The primary working group comprises: the Bureau of Small and Medium Enterprise Development Department of Trade and Industry (DTI-BSMED); Office of Civil Defense (OCD); Philippine Chamber of Commerce and Industry (PCCI); Philippine Disaster Resilience Foundation (PDRF); Philippine Exporters Confederation (PHILEXPORT); Asia-Pacific Alliance for Disaster Management Philippines (A-PAD); Employers Confederation of the Philippines (ECOP); Asian Disaster Preparedness Center (ADPC) and GIZ’s Global Initiative on Disaster Risk Management (GIDRM).
Furthermore, as of April 2017, the Department of Science and Technology (DOST) and Department of Interior and Local Government (DILG) have requested that they may join the group in order to engage in the MSME-RCG activities.
The RCG-MSME has further refined the original Roadmap as presented in this document and are working to adapt this model and format so that further Roadmaps might be developed for specific regions across the country.
6 ROADMAP FOR STRENGTHENING THE DISASTER-RESILIENCE OF SMES
Road
map
for S
tren
gthe
ning
the
Disa
ster
-Res
ilien
ce
of M
icro
, Sm
all,
and
Med
ium
Ent
erpr
ises
(MSM
Es) i
n th
e Ph
ilipp
ines
Iden
tified
Roa
dmap
Th
eme
Sugg
este
d ke
y ac
tions
Re
leva
nt a
ctor
s, st
akeh
olde
rs o
r po
licy
owne
rs
Pote
ntia
l pilo
t ini
tiativ
es
Tim
elin
e
1. En
hanc
ing
MSM
E ac
cess
to
gen
eral
and
di
sast
er ri
sk
data
Ac
cess
to h
azar
d m
aps a
nd w
ith co
rres
pond
ing
reco
mm
enda
tions
and
cont
inge
ncie
s
Id
entifi
catio
n an
d pr
ofilin
g of
MSM
Es lo
cate
d in
hig
h-ris
k ar
eas u
sing
natio
nal M
SME
stat
istics
, loca
l risk
m
appi
ng, a
nd sc
aled
dow
n cli
mat
e ch
ange
pro
ject
ions
Iss
uanc
e of
form
al d
isast
er-r
elat
ed a
dviso
ries f
or
busin
ess (
eg lo
caliz
ed a
rea
or ty
pe o
f bus
ines
s) fr
om
resp
onsib
le g
over
nmen
t age
ncie
s
In
clude
DRR
M a
nd C
CA in
man
date
s of n
atio
nal,
regi
onal
and
pro
vincia
l SM
ED C
ounc
ils
LG
U on
-the
-spo
t ins
pect
ions
of b
usin
esse
s to
dete
rmin
e an
d ad
vise
on p
oten
tial h
azar
ds
Co
nduc
t com
mun
ity d
isast
er ri
sk a
sses
smen
t tha
t en
gage
s loc
al M
SMEs
M
ake
haza
rd a
nd d
isast
er ri
sk re
late
d da
ta a
vaila
ble
at
Nego
syo
Cent
ers
De
velo
p sp
ecifi
c haz
ards
and
vuln
erab
ility m
aps b
y ba
rang
ay a
nd b
y val
ue ch
ain
Bu
ild d
ata
on va
lue
chain
act
ors
LEAD
: OCD
and
DTI
Offic
e of
Civi
l Def
ense
(OCD
) ND
RRM
CDe
partm
ent o
f the
Inte
rior a
nd
Loca
lGo
vern
men
t (DI
LG)
Depa
rtmen
t of S
cienc
e an
d Te
chno
logy
(DOS
T)De
partm
ent o
f Env
ironm
ent a
nd
Natu
ral
Reso
urce
s (DE
NR)
Depa
rtmen
t of A
gricu
lture
(DA)
DTI
SMED
Cou
ncils
LGUs
Acad
emic
inst
itutio
ns (s
choo
ls &
unive
rsiti
es)
MSM
E/Bu
sines
s ass
ociat
ions
NGOs
/CSO
s
Deve
lopm
ent o
f int
egra
ted
web
site
for
disa
ster
dat
a re
leva
nt to
MSM
Es
Cond
uct C
omm
unity
Risk
Ass
essm
ent
Build
ing
of M
SME
data
base
Iden
tifica
tion
and
profi
ling
of M
SMEs
loca
ted
in
high
-risk
are
as
6 m
onth
s to
1 ye
ar
PHILIPPINES 7
Iden
tified
Roa
dmap
Th
eme
Sugg
este
d ke
y ac
tions
Re
leva
nt a
ctor
s, st
akeh
olde
rs o
r po
licy
owne
rs
Pote
ntia
l pilo
t ini
tiativ
es
Tim
elin
e
2.
DRRM
and
BCM
aw
aren
ess a
nd
trai
ning
a. Tr
ainin
g Co
nten
t Dev
elop
men
t
Deve
lop
spec
ific l
earn
ing
mat
erial
s for
MSM
Es o
n DR
RM, in
cludi
ng
how
to a
sses
s and
redu
ce th
eir r
isk, a
nd h
ow to
dev
elop
and
pra
ctice
ef
fect
ive p
roce
dure
s for
pre
pare
dnes
s, re
spon
se a
nd re
cove
ry
Deve
lop
DRRM
mod
ules
for i
nclu
sion
in a
ll BCM
train
ing
Sh
are
succ
ess s
torie
s of M
SMEs
that
hav
e su
rvive
d di
sast
ers d
ue to
pr
epar
edne
ss a
nd D
RR m
easu
res,
in o
rder
to in
spire
oth
ers
De
velo
p sp
ecifi
c tra
inin
g/ se
min
ar m
odul
es o
n th
e pr
ojec
ted
impa
cts
of cl
imat
e ch
ange
in th
e Ph
ilippi
nes,
and
its lik
ely e
ffect
s in
certa
in
regi
ons a
nd in
dust
ries
De
velo
p au
dio-
visua
l info
rmat
ion
mat
erial
s tha
t com
mun
ities
and
m
icro
ente
rpris
e op
erat
ors c
an u
nder
stan
d co
ncer
ning
BCM
and
in
tegr
atio
n of
nat
ural
haz
ard
risks
b. Im
plem
enta
tion
Mec
hani
sms
In
clude
BCM
and
DRR
M in
DTI
bus
ines
s tra
inin
g pr
ogra
ms
M
ake
DRRM
and
BCP
train
ing
acce
ssib
le a
nd a
fford
able
to M
SMEs
, fo
r exa
mpl
e, by
inclu
ding
it in
the
regu
lar t
rain
ing
prog
ram
s of
gove
rnm
ent b
usin
ess t
rain
ing
inst
itutio
ns su
ch a
s the
Phi
lippi
ne Tr
ade
Train
ing
Cent
er
Enco
urag
e bu
sines
ses t
o al
low
em
ploy
ees t
o at
tend
DRR
M tr
ainin
g (e
.g., fi
rst a
id, D
RR e
tc)
En
cour
age
busin
ess p
ropr
ieto
rs to
pas
s on
thei
r lea
rnin
g fro
m
DRRM
train
ing
to th
eir e
mpl
oyee
s, an
d im
part
a m
ind-
set o
f disa
ster
pr
epar
edne
ss
Enco
urag
e bi
g co
rpor
atio
ns to
train
MSM
Es o
n BC
P/DR
RM a
s a co
re
com
pone
nt o
f bus
ines
s res
ilienc
e
Use
com
mun
ity-le
vel a
war
enes
s rais
ing
to im
prov
e DR
RM a
war
enes
s of
micr
o en
terp
rises
Prom
ote
area
BCM
(tha
t inc
lude
s DRR
M) b
y loc
al b
usin
esse
s wor
king
to
geth
er, t
o at
tract
mor
e in
vest
men
ts a
nd g
ener
ate
mor
e jo
bs
Utiliz
e so
cial m
edia
to d
issem
inat
e in
form
atio
n to
MSM
Es a
nd fo
r kn
owle
dge
shar
ing
Pr
omot
e DR
RM a
war
enes
s thr
ough
the
Nego
syo
Cent
ers
LEAD
: PCC
I and
PDR
FOC
DND
RRM
CDT
IDI
LGDe
partm
ent o
f Soc
ial W
elfa
re a
nd
Deve
lopm
ent (
DSW
D)PC
CIPD
RFLG
UsAc
adem
ic in
stitu
tions
(sch
ools
& un
ivers
ities
)*U
P-IS
SITr
ainin
g in
stitu
tions
M
SME/
Busin
ess a
ssoc
iatio
nsNG
Os/C
SOs
*A-P
AD P
hilip
pine
s
Cond
uct o
f Reg
iona
l Bus
ines
s Fo
rum
Stan
dard
izatio
n of
BCP
train
ing
mod
ules
Loca
lize
BCP
mod
ules
(tr
ansla
tion
to lo
cal la
ngua
ge)
Train
ing
need
s ana
lysis
tow
ards
M
SME
resil
ienc
e
Train
ing
of tr
ainer
s on
BCP
Cond
uct B
CP tr
ainin
g fo
r M
SMEs
that
inclu
de D
RRM
as
a co
re e
lem
ent o
f bus
ines
s re
silie
nce
Deve
lop
Info
rmat
ion,
Edu
catio
n an
d Co
mm
unica
tion
(IEC)
m
ater
ials t
o co
mm
unica
te th
e im
porta
nce
of B
CP/D
RRM
to
MSM
Es s
6 m
onth
s to
1 ye
ar
8 ROADMAP FOR STRENGTHENING THE DISASTER-RESILIENCE OF SMES
Iden
tified
Roa
dmap
Th
eme
Sugg
este
d ke
y ac
tions
Re
leva
nt a
ctor
s, st
akeh
olde
rs o
r po
licy
owne
rs
Pote
ntia
l pilo
t ini
tiativ
es
Tim
elin
e
3.
Tailo
red
Risk
Fi
nanc
ing
for
SME/
MSM
E
a. In
sura
nce
En
cour
age
or re
quire
bus
ines
ses t
o in
sure
thei
r em
ploy
ees f
or n
atur
al h
azar
d ris
ks a
nd in
com
e lo
ss d
ue
to d
isast
ers,
in a
dditi
on to
fire
, acc
iden
t etc
.
Pr
omot
e m
icro
insu
ranc
e fo
r Micr
o an
d Sm
all
Ente
rpris
es a
t the
bar
anga
y lev
el
De
velo
p m
icro
insu
ranc
e pr
oduc
ts fo
r the
agr
icultu
ral
sect
or, e
spec
ially
smal
l –sc
ale
crop
s
Pr
ovid
e go
vern
men
t sub
sidy f
or in
sura
nce
prem
ium
s of
MSM
Es
b. F
inan
cing
In
stitu
tiona
lize
disa
ster
risk
fina
ncin
g in
the
curr
ent
revie
w o
f the
Nat
iona
l DRR
M L
aw
Pr
ovid
e fin
ancia
l sup
port
(e.g.
, sof
t loa
ns) t
o M
SMEs
that
ha
ve su
ffere
d da
mag
e fro
m d
isast
er
Cr
eate
micr
o fin
ancin
g pr
ogra
ms u
sing
the
pena
lties
co
llect
ed fr
om b
anks
that
faile
d to
mee
t the
MSM
Es
lend
ing
quot
a
Pr
ovid
e ca
pacit
y bui
ldin
g fo
r fina
ncial
serv
ice p
rovid
ers
on D
RRM
Fo
rmul
ate
a po
licy f
ram
ewor
k on
acc
ess t
o di
sast
er
reco
very
fina
ncin
g fo
r MSM
Es
St
ream
line
post
-disa
ster
claim
s fro
m th
e So
cial
Secu
rity S
yste
m to
pro
vide
mor
e ra
pid
supp
ort t
o th
ose
affe
cted
by d
isast
ers.
LEAD
: SB
Corp
, PCC
I, PHI
LEXP
ORT,
and
PDRF
Gove
rnm
ent fi
nanc
ing
inst
itutio
ns
Micr
o fin
ancin
g in
stitu
tions
DA De
partm
ent o
f Fin
ance
(DOF
)Ph
ilippi
nes I
nsur
ance
Com
miss
ion
(PIC
)SB
Cor
pPH
ILEX
PORT
PCCI
PDRF
Priva
te/C
omm
ercia
l ban
ksCe
ntra
l Ban
k
Inte
nsify
info
rmat
ion
diss
emin
atio
n on
av
ailab
le m
icro
insu
ranc
e an
d ris
k fin
ancin
g se
rvice
s
6 m
onth
s to
1 ye
ar
PHILIPPINES 9
Iden
tified
Roa
dmap
Th
eme
Sugg
este
d ke
y ac
tions
Re
leva
nt a
ctor
s, st
akeh
olde
rs o
r po
licy
owne
rs
Pote
ntia
l pilo
t ini
tiativ
es
Tim
elin
e
4.
MSM
E in
clus
ion
in D
RRM
and
CC
A po
licy,
pl
anni
ng a
nd
loca
l ins
titut
ions
Inclu
de M
SME-
rela
ted
polic
ies i
n th
e Na
tiona
l DRR
M L
aw
amen
dmen
t bill
Inclu
de M
SME-
rela
ted
polic
ies i
n na
tiona
l DRR
M p
olici
es
and
actio
n pl
ans f
or a
ll pha
ses o
f the
disa
ster
cycle
Inclu
de M
SME
asso
ciatio
ns in
Loc
al D
RRM
coun
cils
Invo
lve M
SMES
in p
rogr
amm
ing
and
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ther
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lan
and
Com
preh
ensiv
e De
velo
pmen
t Pla
ns6
mon
ths
to 1
year
10 ROADMAP FOR STRENGTHENING THE DISASTER-RESILIENCE OF SMES
This publication is an output of the regional project ‘’Strengthening the Disaster Resilience of Small and Medium Enterprises in Asia’’. The overall objective of the project is to build disaster-resilient capacities in SMEs in Indonesia, the Philippines, Thailand and Viet Nam by undertaking the following activities: 1) Identifying actions to strengthen resilience of SMEs; 2) Providing technical assistance in strengthening resilience to selected SMEs on a demand-driven basis; 3) Supporting governments in strengthening the enabling environment that promotes risk sensitive and informed investments by SMEs; 4) Facilitating knowledge sharing; 5) Up-scaling, leveraging and formalizing business resilience tools, platforms and initiatives.
National Partners
Indonesia • Ministry of Cooperatives and SMEs (MoCSME) • Indonesian National Board for Disaster Management (BNPB)
Philippines • Department of Trade and Industry (DTI) • National Disaster Risk Reduction and Management Council (NDRRMC)
Thailand • Office of Small and Medium Enterprises Promotion (OSMEP) • Department of Disaster Prevention and Mitigation (DDPM)
Viet Nam • The Ministry of Planning and Investment (MPI)• The Disaster Management Center (DMC)