MSMEs gain ground as science aid expands

What began as a sideline for couple Lucille and Eugenio Dalida in Singapore has now grown into a thriving local enterprise in Capiz.

Drawing from a family with more than 30 years of dried fish tradition, the pair started producing gourmet ‘tuyo’ (dried fish) in olive oil for the Filipino community abroad, until they turned the venture into a full-time business.

They have now expanded into dried fish variants and snacks-such as sweet dilis, squid rings and shrimp chips.

‘With these machines, we can already produce around 800 to 1,000 bottles of tuyo in a day,’ Eugene said. ‘For the snacks, we can also make about the same, around 1,000 daily. Before, we could only manage about 200 at most.’

Stories like this are what the Department of Science and Technology (DOST) hopes to multiply as it ramps up assistance to micro, small and medium enterprises (MSMEs).

Science Secretary Renato U. Solidum Jr. said the agency has already extended nearly P900 million worth of support to MSMEs, adding that the program’s expansion aims to help firms scale up and sustain growth.

‘We’re close to P1 billion funding for our MSMEs,’ Solidum told reporters during a visit to the couple’s home-based factory in Roxas City.

The event was part of the 2025 Regional Science and Technology Week hosted by DOST VI (DOST Western Visayas) at a mall in Roxas City from September 10 to 12.

‘Of course, if we can help more, we can increase a little bit. What we really want is to create more impact. If they are small and they want to grow into medium, we can still support them,’ he added.

Regional directors, he noted, are now authorized to approve up to P5 million in funding assistance, with larger requests endorsed to the central office. The aid covers not only production but also measures that reduce operating costs, such as investing in solar power.

According to the Science chief, the forecast for MSME participation is promising, citing repayment rates of 85 percent to 90 percent.

‘It means they are able to pay back the interest-free assistance, and they graduate,’ Solidum said.

Scientific help to MSMEs

INNOVATION initiatives such as technology transfer training, laboratory services and funding are some of the ways the DOST has broadened its support to enterprises, the agency said.

According to Solidum, for the first half of 2025 alone, 9,000 firms were assisted, creating 4,000 jobs and receiving P249 million in funding.

‘We are still catching up in the second half, but if we look at job creation, it was close to 10,000 jobs last year. Hopefully, we can match that,’ he said.

To allow more entrepreneurs to benefit, the Science department has removed the cap on assistance.

‘Before, MSMEs had a limit of only two chances to get help. Now it is unlimited, as long as they continue to grow and create employment,’ he added.

The requirement for firms to be at least three years in operation is also being reconsidered, with plans to reduce it to two years to expand the coverage.

Data provided by the DOST to BusinessMirror showed how its programs have supported MSMEs from 2022 to 2024.

The DOST’s Small Enterprise Technology Upgrading Program (SETUP)- the agency in charge of providing assistance to MSMES to adopt technology and innovation-has reached 21,920 firms and other science and technology (S and T) entities nationwide.

The National Capital Region (NCR) recorded the highest number of assisted firms with 4,059, while 29,131 jobs were created across the country, led by Cavite, Laguna, Batangas, Rizal and Quezon Region (Calabarzon) with 5,013.

Funding under the program has totaled P2.57 billion, with NCR receiving the largest share at P333 million.

In terms of projects, 3,379 were implemented nationwide, with Region IX (Zamboanga Peninsula), accounting for the most at 1,086.

On the other hand, the Community Empowerment through Science and Technology program (CEST), has also targeted poor and marginalized areas by introducing science-based livelihood opportunities, health and nutrition services, and environmental management practices.

It has assisted 2,018 communities nationwide, led by Central Luzon with 814.

The initiative generated 4,739 jobs, most of which were in NCR with 1,373. Investments reached P1.03 billion, with Central Luzon cornering the biggest share at P248.7 million.

DOST has likewise established 51 Innovation Hubs (iHUBs), as platforms where startups, researchers, and innovators can collaborate, access mentorship, and build prototypes. Region XI (Davao Region) hosts the largest number with eight hubs.

The Science department also runs the Innovation, Science and Technology for Accelerating Regional Technology-Based Development program (iSTART), which helps local government units (LGUs) integrate STI into their agenda.

So far, 88 LGUs have enrolled, with Caraga in Mindanao leading at 17. The program has resulted in 50 technology-based enterprises, most of them in Region I (Ilocos Region) with 23, and the formulation of 62 STI-driven policies, again led by Caraga with 17.

Moreover, the Science for Change Program (S4CP) has been piloted in 111 LGUs, with Western Visayas hosting the most at 17 investments have totaled P333 million, the largest share of which went to Region II (Cagayan Valley) at P104.6 million.

For overseas workers, the iFWD PH program has trained 708 OFWs, the highest number in NCR with 111.

A total of 176 were provided with technical and consultancy services, led by Mindoro, Marinduque, Romblon and Palawan region (Mimaropa) with 54, while 124 received funding, including 45 from Mimaropa.

Meanwhile, the OneLab network, which provides standardized testing and calibration services to industries and MSMEs, has conducted 61,081 services and assisted 104,197 firms nationwide.

Mimaropa posted the highest number of OneLab services at 158,904 and served the most firms at 40,550.

The network now links 336 laboratories locally and abroad, with Mimaropa hosting 147 of them.

Challenges

HOWEVER, according to DOST Western Visayas (Region VI) Director Rowen Gelonga, the Science department, particularly the regional office, faces the challenge of sustaining its programs, a difficulty exacerbated by limited public resources.

‘The number one challenge is that we have limited research and development [R and D] funds, but that has been partly addressed,’ Gelonga said in the same event on Thursday.

For 2026, the Science agency is set to receive P30.4 billion budget, an increase from its 2025 budget of P28.46 billion. A large portion, P8.9 billion, will go to the Grants-in-Aid program to fund projects under the Harmonized National Research and Development Agenda.

Meanwhile, the department’s R and D institutes will get P3.9 billion for work in various sectors like manufacturing, energy, and food. (See related story: https://businessmirror.com.ph/2025/08/15/dost-to-use-bigger-2026-budget-for-rd-commercialization/)

Gelonga added that ensuring the use of technologies generated by research institutions is another hurdle, as some policy-makers still struggle to fully appreciate and apply scientific knowledge.

‘But we have seen that many local chief executives are already embracing science-based policy formulation,’ he noted.

Tapping the aid

TO qualify for DOST support, enterprises must be duly registered with the Department of Trade and Industry (DTI) and paying taxes, a requirement Solidum said ensures government to recoup its investment through compliance rather than interest payments.

Applications are coursed through provincial or regional science and technology offices, where staff can help firms refine proposals and identify the type of assistance needed.

Solidum is encouraging interested entrepreneurs to take the initiative.

‘Talk to us if you have an idea or a business that needs productivity improvement or expansion. That is the major role of DOST, because if it is only for promotion, that falls under DTI,’ he said.

He added that regional standards and testing laboratories are also available to evaluate products and help businesses secure licenses to operate from the Food and Drug Administration.

‘What is good about this is that we provide assistance. If our DOST staff cannot handle it, we engage experts who can,’ he said.

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