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Business Advisory Program
““Our vision is to be the leader in promoting business sector Our vision is to be the leader in promoting business sector
commitment to social development.commitment to social development.””
Philippine BusinessPhilippine Business
for Social Progressfor Social Progress
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Business Advisory Program
The PBSP Beginnings
• Established in 1970 by 50 business
leaders
• Collective Response of Business toDevelopment Imperatives
• Patterned after DividendoDividendo VoluntarioVoluntarioparapara lala ComunidadComunidad in Venezuela, where
voluntary corporate contributions basedon an annual percentage of profits financesocial development projects
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Business Advisory Program
MISSIONPBSP is committed to the
empowerment of the poorempowerment of the poorby promoting businessbusiness
sector leadershipsector leadership in, and
commitmentcommitmentto poverty alleviation
programsthat lead to selfself--reliancereliance.
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Business Advisory Program
TYPES OF INVOLVEMENT
CEO Time & Leadership
Financial Grants & Program
Assistance
Employee Engagement (Volunteering & Giving)
Product Giving/ In-Kind
Donation
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Business Advisory Program
POVERTY ALLEVIATION PROGRAMS
• Area Resource Management
• Education
• Water and Health
• Small and Medium Enterprise
Development
• Information Technology
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Business Advisory Program
Enterprise Development
Through Business AdvisingThe PBSP Business Advisory Program
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Business Advisory Program
•PBSP-BAPdelivers business
advisory services,through theassistance of Filipino volunteer
advisers, to helpmicro and smallenterprisesimprove and growtheir business
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Business Advisory Program
• A program in partnership with theCanadian Executive ServiceOrganization (CESO) supportedby the Canadian International
Development Agency (CIDA)
Business AdvisoryProgram (BAP)
CESO l SACO
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Business Advisory Program
Canadian ExecutiveService Organization (CESO)
• A private non-profit Canadian organization of expert business advisers providing assistanceto small and medium sized enterprises,
communities and organizations. It has over3,500 volunteers with solid experience inmore than 150 professional, managementand technical areas who serve as advisers,trainers, and mentors to Clients in Africa,
America, Asia, Central and Eastern Europe.
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Business Advisory Program
Canadian InternationalDevelopment Agency (CIDA)
• Supports sustainable development indeveloping countries in order to reduce
poverty and to contribute to a more secure,equitable and prosperous world.
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Business Advisory Program
Why SMEs development?
• The SME sector is the backbone of the Philippine economy*:
–comprises about 99.2% of allregistered firms nationwide
–employs 69.9% of the labor force
–contributes 32% to the economy.
*SME Development Plan 2004-2010
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Business Advisory Program
Focus on Micro and SmallEnterprises*
• help ensure a more equitabledistribution of income
• disperse economic activities to thecountryside
• potent force in the war against
poverty.
*SME Development Plan 2004-2010
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Business Advisory Program
Business Advisory Services:
• Organizational Management• Marketing
• Accounting & Finance• Production/Operations Mgt.
• Information Technology
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Business Advisory Program
Focus Sectors:
SMALL MFG.
FOOD PROCESSSINGAGRIBUSINESS
TOURISM
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Business Advisory Program
Client Profile• Asset size:– P150,000-P3M 60%
– P3M–P15M 35%
• Ownership:– Single Proprietorship
– Family-owned
• Sector:– Food, 33%
– Small Manufacturing, 41%
– Tourism/Services, 17%
– Agribusiness, 9%
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Business Advisory Program
• Application
• Client visit & diagnostics
How do we deliver?
• Client-VA matching
• Entry conference / VA deployment
• Assignment progress monitoring
• Closing / debriefing
• Evaluation of outcome & impact
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Business Advisory Program
Advisory ServiceDelivery
163 Applications for assistance (33 Clusters)128 Advisory assignments (17 Clusters)
68 Completed assignments (3 Clusters)
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Business Advisory Program
Increase inProductivity
Operating
Efficiency
Addtl
Investment
NewProducts/Markets
Increase in
Sales
More
Enterprises
Advancing in
BusinessPerformance
Levels
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Business Advisory Program
MORE ENTERPRISES ADVANCING
IN BUSINESS PERFORMANCE LEVELS
Increase in
Sales
SLERS Industries, Inc.Market Devt ( May 2006) Orgl Structure Enhancement (On-going)
• Expanded business from meat processing to SLERS Express Restaurant.• Developed new product - chicharon
• Business expansion to franchising of chicharon called “pica’pica”: 2 in Limketkai, 2 in OroRama, 1 in Gaisano Mall in Cagayan de Oro; 1 Gaisano mall in Davao City
• Increased in sales from Php3,337,000/day in 2006 to Php4,583,000/day in 2007 or 37%
increase
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Business Advisory Program
New
Products/Markets
Bulacan GTH Cluster (4 enterprises)Product Design & New Product Devt ( Sept 2007)
• At least 3 new products/designs developed by each of the enterprises• New products/designs being sold in all National Bookstore outlets nationwide
MORE ENTERPRISES ADVANCING
IN BUSINESS PERFORMANCE LEVELS
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Business Advisory Program
Additional
Investment
Mindanao Agri-Network Corp.Market Plan Devt ( Mar 2006) Business Plan Devt (Aug 2007)
• Acquired P2 Million loan from FPSDC using the business plan developed with VA
MORE ENTERPRISES ADVANCING
IN BUSINESS PERFORMANCE LEVELS
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Business Advisory Program
Operating
Efficiency
Lailen’s PastriesProductivity Improvement ( Mar 2005) Product Quality & Production Process Improvement (May 2007)
• Improved production process flow observing safety & sanitation standards
• Standardized product specs using scientific measurements
• Product shelf-life increased
MORE ENTERPRISES ADVANCING
IN BUSINESS PERFORMANCE LEVELS
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Business Advisory Program
Increase in
Productivity
Katakus, Inc.Computerization of Inventory System ( July 2006) Marketing Plan Devt (Feb 2008)
• Proper monitoring of stock inventory
• Timeliness in designing and producing products
• 75% increase in production volume due to computerized inventory system
MORE ENTERPRISES ADVANCING
IN BUSINESS PERFORMANCE LEVELS
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Business Advisory Program
JOBS GENERATED: 414
Male – 228 (55%)
Female – 186 (45%)
DOCHSEI:
115 coconut farmers in 4municipalities in Davao Or.provided jobs
MANCOR:
290 organic rice farmersassisted in marketing their
produce
JOB GENERATION
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Business Advisory Program
• 3 Clients provided P1.9M from LGUs and Govt. Line Agency
MORE ENTERPRISES ACCESSING
BUSINESS RESOURCES EFFECTIVELY
• Bohol Poverty Reduction Mgt Office – provided P1M budget byBohol Provl Govt for centralized acctg system, purchase of computer, staff training & other logistical requirements per VA
recommendation• Sultan Kudarat Muscovado Farmers & Millers Corp – provided
P600K loan by Pres. Quirino Municipal Govt for re-lending tomuscovado sugar producers to improve production equipment
• Charis Nutri-Fruit Bars – provided P300K equipment loan by
DOST for ice cream mixer designed by VA
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Business Advisory Program
MORE ENTERPRISES ACCESSING
BUSINESS RESOURCES EFFECTIVELY
• 2 Clients provided P2.3M by foreign funding agency andprivate financial credit institution
• Mindanao Agri-Network Corp – provided P2M loan by FPSDCfor additional working capital using business plan developedwith VA
• Katakus, Inc. – provided P300K grant from a US donor (GenevaGlobal) for fabrication of new production equipment
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Business Advisory Program
Volunteer AdvisersTotal of 572 VAs nationwide
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Business Advisory Program
CHALLENGE
INCREASED CLIENT REACH VIS-À-VIS AN EFFICIENT AND EFFECTIVE
SERVICE DELIVERY
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Business Advisory Program
CREATING PARTNERS
1. DEVELOPING CLUSTER
2. DEVELOPING LGU-LED (LOCAL ECONOMICDEVELOPMENT) PROJECTS
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Business Advisory Program
DEVELOPING PARTNERSHIP
THROUGH CLUSTERING
Grouping of enterprises to collaborate towards
commonly articulated and agreed results and directions
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Business Advisory Program
How We do Clustering?
The value-chain-clustering model in three variations, namely, lead enterprisecluster, the lead product cluster and lead operating results is adopted.
Example. Cebu GTH Subcontractors’ Development Program
The Lead Enterprise Cluster builds critical backward linkages around a
lead enterprise. It assumes that business gains of the latter directly benefitsbackward links.
Sub-Contractor
2
Sub-Contractor
1
Sub-Contractor
3
Sub-Contractor
4
Lead EnterpriseIncreased
Export
Sales
Increased
Production
Capacity
More Orders
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Business Advisory Program
This model focuses on the product with the best competitive advantage.
Clustering around the lead product assumes that participants will be
catalyzed to collaborate in promoting and developing the lead product.
Lead Product Cluster
Increased business
for raw material-producers
Increased
business for service providers
Increased
business for processors
Increased
business for consolidators
Example. Furniture is lead product of Guagua.
Lead ProductImproved
Technology
Increased
Production
of RM
Improved Business
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Business Advisory Program
Lead Operating Result Cluster
This clustering model focuses on key performance areas leading to a central
value. It assumes that improvement in particular key performance areas will
trigger creation of desired conditions sought by cluster participants.
Increased Access to
Exports
Improved
Production
Improved Product
Designs
Improved
Marketing
Improved
Technology
Example. SKMFMC sought to develop and link members to export markets
Better Qualified
Exporters
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Business Advisory Program
LGU-LED IS A PARTNERSHIP STRATEGY CENTERED ON ENABLING
LGUs TO LEAD LOCAL BUSINESS TO HARNESS LOCAL ECONOMIC
POTENTIALS
WHAT IS LGU-LED?
THE PROCESS BEGINS BY IDENTIFYING AN ENTRY POINT THAT WILL
PERSUADE LGUs TO WELCOME PARTNERSHIP
LIKE CLUSTERING, STRATEGIC PLANNING IS USED AS PRIMARY TOOL IN
DEFINING THE GOAL FOR THE PARTNERSHIP, PROBLEMS TO ADDRESS WITHRESPECT TO THE GOAL, OBJECTIVES, ACTION PLAN AND DEFINITION OF
ROLES.
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Business Advisory Program
31 MARCH 2008
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Business Advisory Program
CHALLENGEBRINGING BAP TO PBSP
BENEFICIARIES
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Business Advisory Program
PBSP Enterprise Development FrameworkPBSP Enterprise Development Framework
-Grant-In kind assistance(group/individual)
-Agri/non-agri
-Advocacy
-Organizing
-Establishment of infra
-Value formation
-Technology Transfer -Advocacy
Business Development Service
BAP, CRTD, SAMAR, TC
Capital (SMEC,OPN,others)
Group/individual
Agri/non-agri
Subsistence Livelihood Micro Small Medium
Micro (non-business) Growth oriented (business)
FINANCING
NON-FINANCING
Competitive MSMEs
that create job
opportunities
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Business Advisory Program
CHALLENGE
SUSTAINING DEVELOPMENT
SME ENVIRONMENT: THE HORIZONTAL DEVELOPMENT CONTINUUM
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Business Advisory Program
Inter- Industry
Level Dev’tIndustry LevelDev’tSector Level
Dev’t
Enterprise
Level Dev’t.
-Sustaining
business-Coping with
growing business
intricacies
- Creating partners
with other
members in the
sector
- Creating synergy
to be competitive
- Developing edge &sustain mkt.
foothold
Distinct
Need
- Creating partners with
other sectors in theindustry
- Creating support
mechanisms
- Sustaining edge and
expand markets
-Creating partners with
other industries
- Consolidating supportmechanism
-Sustaining “brand
image”, confidence of
market and penetrate
markets
Mode of
Assistance
-One-on-one
provision of basic
mgt. skills
-Sector cluster
collaboration w/ other sector members
- Enhancement of optn.
and mgt. skills
-Multi sector cluster
-Convergence w/ other
sectors & partners-Enhance industry
support systems
-Multi industry cluster
programmatic
convergence w/ other industries & partners
-Multi industry support for
program dev’t.
SME ENVIRONMENT: THE HORIZONTAL DEVELOPMENT CONTINUUM
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Business Advisory Program
LESSONS LEARNED1. Individual SMEs have limited resources thus the
need to source outside resources to completerequirement for growth
2. Working with partners harmonizes actionstoward the same direction & creates synergytowards more & better development results
3. Mainstreaming the informal sector to the formalsector requires structured interventions basedon their category level and identified role in thevalue chain
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Business Advisory Program
PBSPPBSP--BAPBAP
Helping micro and small enterprises grow throughbusiness advising.