GOVPH

Small Enterprise Technology Upgrading Program (SETUP) was launched by Department of Science and Technology (DOST) in response to the call for more focused programs of assistance for Micro, Small, and Medium Enterprises (MSMEs). 

It is a nationwide strategy to encourage and assist MSMEs to adopt technological innovations to improve their operations and thus boost their productivity and competitiveness. The program 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.

SETUP 4.0 is the agency’s response to the rapid emergence of Industry 4.0, the debilitating effects of the COVID-19 pandemic, and other forces that are creating deep transformations in the local and global markets. The attainment of the SDGs is one of the urgent concerns that need critical attention by the development stakeholders of the MSME sector. Through the provision of Enterprise- and Industry- Level Science Technology Innovation (STI) Assistance, SETUP 4.0 can help MSMEs in upgrading their business operations, increase their productivity, generate more employment, enhance human capital, and improve their resiliency, and competitiveness.

SETUP strategies for industry 4.0

• Provide technical and consultancy services to SMEs.
• Provide enterprise resiliency and continuity assistance
• Improve SME access to and use of digital infrastructure.
• Transfer and commercialize new technologies and innovations.
• Provide funding support to foster innovation adoption by qualified SMEs.

SETUP supports MSMEs by providing: 

• Seed fund for technology acquisition
• Needed equipment and equipment upgrading
• Technical trainings and consultancy services
• Packaging and label design
• Database information systems
• Support for establishment of product standards, including testing, and calibration of equipment.

PRIORITY SECTORS

The Program focuses assistance on the following priority sectors:

• Tool and Die
• Food Processing
• Marine Transport
• Marine an Aquaculture
• Agriculture, Forestry, Livestock
• Electronics, ICT, and ICT Services
• Furniture, Jewelry, GHD and Creatives
• Agri machinery/Farm Implements/Food Processing Equipment
• Health and Wellness (Biomedical Devices, Pharmaceuticals, and Food Supplements)

COMPONENTS OF SETUP

1. Technology Needs Assessment (TNA)
2. Access to and Acquisition of Appropriate Technology
3. Information System
4. Innovation System Support (ISS) Funding Assistance
5. Acquiring Appropriate Equipment

• Capacity Building and Technical Trainings
• Consultancy and Technical Advisory Services
• Product Development and Product Standards and Testing
• Packaging and Labeling

BENEFITS OF SETUP

1. Address current problems
2. Get free technical advice from the consultants
3. Avail of technical training courses for workers/employees
4. Acquire new equipment to mechanize and/or improve production line through venture funds
5. Standards and improve the quality of products
6. Be competitive

TECHNOLOGICAL ASPECTS:

1. Production Process (including schematic diagram/flowchart)
2. Existing Equipment
3. Production capability
4. Technical constraints on production time
5. Personnel skill that are handicapped without technologies
6. Proposed technology and skill upgrading intervention
7. Equipment specification (rated capacity, power supply, dimensions, drawing)
8. Cost of equipment
9. List of equipment fabricators (if any)
10. Importance of additional equipment and personnel training
11. DOST Intervention/schedule of activities
12. Expected output/impact result (measures result)

• Contribution to the production line/process
• Additional volume of products
• Percentage of decrease in rejects
• Percentage of increase in productivity
• Percentage of increase in sales
• Number of client added
• Improved quality/appearance of the products
• Others (please specify)

FINANCIAL ASPECTS:

• Financial capacity
• Financial constraints
• Cash flow/Financial Statement
• Proposed project budget/capital outlay (line-item)
• Proposed repayment scheme/mode of payment

Technology Interventions S&T intervention is one of the services provided by DOST 02 to the SETUP beneficiaries in the form of technology and productivity trainings, consultancy, technical assistance, S&T information, S&T caravan and clusters fairs. These interventions enable them to harness their inherent potential, enabling them to surmount the challenges of business complexity in the highly competitive global market

Who may apply?

The program is open to:

• Any company or individual firm based in the Philippines and wholly owned by Filipino citizens;
• Any micro, small and medium-scale business firm that can be classified under the identified priority sectors; and
• An individual firm willing to apply technological improvements to existing operations.

What are the requirements?

The following are the requirements that an applicant has to submit to avail of SETUP funding support on technology acquisition and equipment upgrading:

1. Comprehensive project proposal. (Technical Aspects, Marketing Aspect, Management /Administrative Aspect, Financial Aspect, Waste Disposal);
2. Proponent's letter of interest to avail of financial assistance, stating commitment to repay;
3. Copy of business permits and licenses from relevant LGUs and other government offices;
4. Financial statements of the past three (3) years for the company/ beneficiary duly signed by a Registered Accountant/Auditor;
5. Projected financial statements for the next five (5) years;
6. Certificate of Registration of Business Name with DTI, SEC or CDA.
7. Board resolution authorizing the borrowing and designating the authorized signatories for the financial assistance (if applicable);
8. Three (3) quotations from suppliers/ fabricators of the equipment to be purchased /fabricated;
9. Complete technical design/drawing of the equipment to be purchased/fabricated.

How to apply?

Interested customer/s may send a letter of intent to avail of the SETUP assistance to:

VIRGINIA G. BILGERA
Regional Director
Department of Science and Technology
Regional Office 02, Regional Government Center
Carig Sur, Tuguegarao City, Cagayan

Email: region2.dost.gov.ph / This email address is being protected from spambots. You need JavaScript enabled to view it.
Tel. No. (078) 396-0763 / (078) 396-0720

Or please see the nearest Provincial Science and Technology Offices for other details.

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