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1 SMALL BUSINESS SMALL BUSINESS COUNSELOR COURSE COUNSELOR COURSE

Overview of sme

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SMALL BUSINESS SMALL BUSINESS

COUNSELOR COURSECOUNSELOR COURSE

• Say Hello

• Ikaw at ako

• Royal salute

Mag-kaibigan

Mayroong ugnayan

Tayo’y magtulungan

Sa Diyos at bayan

(Group name)(Group name)

HOPESHOPES (Sana)(Sana) 1.1. 2.2. 3.3.

FEARSFEARS ((BakaBaka)) 1.1. 2.2. 3.3.

Yes or No?

Yes or No?

Association Of Southeast Asian Nations

The ASEAN was established on August 8,1967 in Bangkok by the five original member countries, namely: Indonesia, Malaysia, Philippines, Singapore and Thailand. Brunei Darussalam joined on January 8, 1984, Vietnam on July 28, 1995, Laos and Myanmar on July 23, 1997, and Cambodia on April 30, 1999.

The ASEAN Declaration states that the aims and

purposes of the ASEAN are:

CONT’D

To accelerate the economic growth, social progress, and cultural development in the region through joint endeavours in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations

To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principle of the United Nations Charter.

ENTREPRENEURIAL ACTIVITY IN SOME COUNTRIES IN SOUTHEAST ASIA

• Entrepreneurial activities in Southeast Asia have lifted millions of people out of subsistence agriculture into manufacturing and service industries, increasing wealth and alleviating poverty in most areas

• Cambodia is growing very fast and within ten years will be a very different country

• Laos- one of the few one party communist state, began decentralizing control and encouraging private enterprise and was striking growth of 7% in 2008-2012.

CON’D

Thailand entrepreneurship has long been the main vehicle of Thai economic progress.

Vietnam joined the World Trade Organization in January 2007, which has promoted more competitive, export-driven industries.

Indonesia has realized that entrepreneurial activities increase economy efficiency and SME play a dynamic role in Indonesian economy contributing 56.7% of GDP, account for 19.4% of total export and employ 79 millions of work force

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Overview of Philippine MSMEsOverview of Philippine MSMEs

Definition Philippine MSMEs are categorized based on asset size (excluding land) and number of employees.

CategoryCategory Total asset value*Total asset value* No. of No. of employeesemployees

Micro EnterpriseMicro Enterprise P 3,000,000 or lessP 3,000,000 or less 11--99

Small EnterpriseSmall Enterprise P 3,000,001P 3,000,001--15,000,00015,000,000 1010--9999

Medium Medium EnterpriseEnterprise

P 15,000,001P 15,000,001--100,000,000100,000,000

100100--199199

* RA 6977, as amended by RA 8289 and further amended by RA 9501 or the Magna Carta for Micro, Small and Medium

Enterprises defines MSMEs according to assets. However, available statistics from NSO are still categorized according

to the number of employees.

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Role and Importance of Philippine MSMEs Role and Importance of Philippine MSMEs

SMEs play a major role in the country’s economic development through their contribution in the following:

Rural development and decentralization of industries;

Creation of employment opportunities and more equitable income distribution;

Use of indigenous resources;

Earning of foreign exchange;

Creation of backward and forward linkages with existing industries; and

Entrepreneurial development.

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Source: 2010 List of Establishments, NSO

Contribution of MSMEsContribution of MSMEs

Micro - 91.3% (709,899)

RP EnterprisesRP Enterprises (777,687)(777,687)

MSMEs - 99.6% (774,664)

Large - 0.4% (3,023)

Small - 7.9% (61,979)

Medium - 0.4% (2,786)

99.6% of total firms

63% of employment

35.7% of value-added

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Source: 2010 List of Establishments, NSO

Wholesale and Retail TradeWholesale and Retail Trade 49.6%

ManufacturingManufacturing 14.4%

Hotels and RestaurantsHotels and Restaurants

12.5%

Others*Others*

11.6%

Real Estate, Renting Real Estate, Renting and Business Activitiesand Business Activities

6.1% Other Community, Social Other Community, Social and Personal Service and Personal Service ActivitiesActivities

5.7%

* Includes the following industries: • Agriculture, Hunting & Forestry – 3,892 MSMEs

• Fishery – 1,169 MSMEs

• Health & Social Work – 31,573 MSMEs • Financial Intermediation – 26,443 MSMEs • Mining & Quarrying; Electricity, Gas and Water, Construction; Transport, Storage & Communications; and Education

47%

16%

12%

10%

3%

12%

Manufacture of food products and beverages Manufacture of wearing apparel Manufacture of fabricated metals Manufacture of electronics & machineries furniture

(12%)

(3%) (10%)

Manufacturing Sector

Source: NSO List of Establishment, 2010

(47%) (16%)

16

0

20,00020,000

40,00040,000

60,00060,000

80,00080,000

100,000100,000

120,000120,000

140,000140,000

160,000160,000

180,000180,000

200,000200,000

Source: 2009 List of Establishments, NSO

DistributionDistribution of MSMEs by Region, by Rankingof MSMEs by Region, by Ranking

ASEAN STRATEGIC ACTION PLAN FOR 2010-2015

• ASEAN Internship Project- it aims to contribute towards realizing the vision of “equitable economic development” while accelerating the establishment of an ASEAN Economic Community by 2015

• Staff Exchanges and Internship are effective means to upgrade skills and competencies, which are not immediately learned in the classroom, laboratory or training facility. Industry-related skills and competencies required by the job may be more effectively obtained through proper training in a workplace setting.

MSMEDC It is specifically tasked to stimulate the growth

and development of MSMEDCs through assistance and facilitation of national efforts in promoting the viability and growth of the sector by implementing relevant programs and seek ways to maximize the use of Filipino labour and economic resources.

The SME Medium Term Development Plan defined the A2F, A2M, PE and BE in strengthening the support to these strategies.

GO NEGOSYO CENTER

Business Registration

Business Advisory Services

Business Information and Advocacy

Monitoring and Evaluation

COMMON PROBLEMS ENCOUNTERED BY MSMEs

Marketing no define target market absence of demand projection lack market information poor promotional tool

Technical & Production absence of production schedule no inventory control poor product costing inadequate production facilities inefficient manpower

Organization & Management absence of vision/mission unclear goals poor recruitment policies no define organizational structure lack of incentives provision

CON’D Financial-lack of capital

no segregation between personal business funds absence of record keeping poor collection of account receivables limited cash flow poor access to credit

Business Plan Preparation Managerial Competencies Business Laws and e-Commerce

FUNCTIONAL CHART

IDENTIFICATION

DOCUMENTATION/ FORMULATION

ENDORSEMENT/ EVALUATION

INITIATION/ IMPLEMENTATION

SUSTENANCE

Motivation

Skills

Resources

Risk-taking capacity

Entrepreneurial traits

Environment

Knowledge

Skills

Personality traits

Motivation

Role interceptive

Environment

Policies, Plans, Programs

Budget

Organization

Communication

Coordination

Environment

PROJECT FORMATION STAGES

FUNCTIONAL ROLES/PLAYERS LIMITING FACTORS

Support Role

- educator

- persuader

- communicator

- service provider

- change agent

an

oney

aterials

anagement

ind

ethods M ENTREPRENEURENTREPRENEUR

EXTENSION WORKEREXTENSION WORKER

INSTITUTIONAL AGENCIESINSTITUTIONAL AGENCIES

Direct & Indirect support

Policies, programs Information Training Finance

PROJECT

Complexity Risk Requirements - market - technology - organization - skill - finance

F

E

E

D

B

A

C

K

ENTREPRENEUR AND EXTENSION INSTITUTION

INTERACTION IN RURAL PROJECT FORMATION

Project Profile

Nature, Complexity

Requirements of Project

Rural Enterprise Formation Entrepreneur Extension

Worker

Back-Up Support

Extension

Organization

Other

Agencies

Project Stages and Input

Requirements

1. Identification Stage

a. perception of opportunity

b. crystallization

c. risk-taking

2. Documentation and

Formulation Stage

a. market study

b. feasibility study preparation

3. Evaluation/endorsement

4. Initiation/implementation

COORDINATIONCOORDINATION

COOPERATIONCOOPERATION

COMMUNICATIONCOMMUNICATION

Strong and

Weak Points

Limiting

Factors

Gaps

an

oney

aterials

anagement

ind

ethods M

Perceived

Role

Limiting

Factors

Gaps

Support Role

Education

Persuasive

Communication

Service

Information

Training

Perceived

Role

Limiting

Factors

Gaps

Policies

Programs

Information

Training

Finance

COUNSELING

What is counseling any form of providing help

on the content, process or structure of a task or a series of tasks where the consultant is not actually responsible for doing the task itself but is helping those who are.

Who are counselors they are helpers or enablers and

assume that such help can be provided by persons doing a wide

range of different jobs.

Contd.

Counseling in another view

counseling is a professional service and emphasizes a number of characteristics that such a service must possess eg. identify, analyze and recommend solutions and helped wherein requested in the implementation of solutions.

What counseling is not- it do not provide miracle solutions to burning issues.

SCOPE OF WORK OF A COUNSELOR

Development Worker usually works for an agency engaged in the promotion of entrepreneurship and business creation.

They are usually employed in government

institutions and non-government agencies or organizations supported by Overseas Development Assistance(ODA).

Professional Counselors on the other hand, are

organized to do business rendering consultancy services for a fee. There ranks are increasing as the profession of business counseling gets to be valued and appreciated by the client entrepreneurs of MSME’s

COUNSELOR’S DIVERSE ROLES

As Change Agent because he brings about a positive change

in the business, measured in concrete outcomes of productivity and profitability for the client. More importantly he brings about behavioral change in the client.

As Coach he influences the way the client should

carry out the operations of the business. As Educator he is an advocate for development by

passing on to a client data and information on development out of which new perspective are shaped.

COUNSELING AS A PROFESSION

It traces its foundation to guidance counseling in school and social work with juvenile delinquents

it is a history of helping other people. it helps other through advice. assistance or support on the way

towards achieving a goal. providing some form of intervention to

alleviate the status or condition of a person or persons.

provide some remedy. correct certain practices.

DESIRABLE SKILLS OF A COUNSELOR

Intellectual and technical competence in at least one business function.

Good oral and written communication skills. Objective and impartial. Professional in delivering your commitment. Interpersonal skills. Creativity. Analytical and problem solving ability. Ability to synthesize. Confidentiality. Skill of limiting engagements. Special skills are needed at different stages of

the engagements.

DESIRABLE TRAITS OF A COUNSELOR

• Passion to help. • Be honest or truthful. • Positive criticism is a trait that distinguishes

a good counselor from one who is not. • Good physical and mental health • Etiquette and courtesy. • Self-confidence. • Integrity. • Independence of mind is necessary but do

not be obstinate if you know that you are not accurate or incorrect.

• Psychological maturity

QUALITIES OF A COUNSELOR

Intellectual ability

Ability to understand people and work w/ them

Ability to communicate, persuade and motivate

Intellectual and emotional maturity

Personal drive and initiative

Ethics and integrity

Physical and mental health

COUNSELING PROCESS

Making first contact or entry. Establishing a win-win relationship. Diagnosing your client situation. Goal setting and decision making. Planning the work, working the plan. Evaluation and termination.

EFFECTIVE BUSINESS COUNSELING Phase One: Making The First Contact getting to know establishing rapport preparing the counselling proposal formalizing the relationship Phase Two: Studying The Client development levels of the client planning the work- accountability limitations and potential constraints Phase Three: Diagnosing where is the firm now? what seems to be the problem? what are causing the problem? where does the firm want to go?

CON’D what is the nature of the gap between the current

situation and the desired state? what are the forces that block the progress towards

the desired situation? what is the client ability to solve the problem? Phase Four: Working The Plan what is to be done? how will it be done? where will it be done? when will it be done? who will do What, When, Where and How?

PARTIES INVOLVED

Counselor who attends to the client’s needs giving

some advice and recommending possible courses of action.

He may deliver his services in various modes: through individual personal counseling or through group counseling and/or via some crises intervention. He may conduct his advisory services with the client through interpersonal face-to-face communication, the telephone, cell phone, the internet, or some combination of interpersonal, mass, and electronic media.

CON’D.

The Client is the entrepreneur, firm, association, or group.

UNDERSTANDING THE CLIENT-ENTREPRENEUR

Initiate Ideas new ideas, new designs, use of products, etc.

Take Risks chance of success, opportunity-uncertainty

Plan aware of the importance of planning

Control entrepreneurs are leaders rather than followers

Coordinate coordinates all the production factors, i.e., capital, labor, and land

PERSONAL

Personal and entrepreneurial traits

Of clients indicative of a business sense

Achievement drive

Adaptability

Independence

Decisiveness

Energy

Social skills

Growth motivation

Intuition

Opportunity-seeking

Perseverance

Risk tolerance

Entrepreneurial management

ENTREPRENEURIAL

CRITICAL THINKER

Open minded and mindful of alternatives Desire to be and is well informed Judges well the credibility of sources Identifies the reasons, assumptions, conclusions Asks appropriate clarifying questions Judges well the quality of arguments including

the reasons assumptions, evidence ands their degree of support for the conclusion

Can well develop and depend on reasonable position regarding belief or an action.

CRITICAL THINKING ASSESSMENT

Vigorously Analytical

Evaluative

Diagnostic

Motivator

Informative

Research Oriented

Make reasonable judgment

THE CLIENT’S TEN COMMANDMENTS

Learn about counseling and counselor Define your problem Define your objectives Choose your counselor Develop a joint program Participate actively Involve the counselor in implementation Monitor progress Evaluate the results Beware of dependence on counselor