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SMALL ENTERPRISES TECHNOLOGY UPGRADING PROGRAM (SETUP)

Rationale

The Department of Science and Technology’s Small Enterprise Technology Upgrading Program (DOST-SETUP) is a nationwide strategy encouraging and assisting micro, small, and medium enterprises (MSMEs) to adopt technological innovations to improve their products, services, operations and increase their productivity and competitiveness.

Purpose of the Program

The Program enables MSMEs to address their technical problems and improve productivity and efficiency through:

  • Infusion of appropriate technologies to improve products, services and/or operations
  • Human resource training, technical assistance and consultancy services
  • Design of functional packages and labels
  • Assistance in the establishment of product standards including testing
  • Database management system
  • Provision of assistance for technology acquisition

Priority Sectors

The Program focuses assistance on the following priority sectors:

  • Food processing
  • Furniture
  • Gifts, housewares, decors
  • Agriculture/Marine/Aquaculture
  • Metals and engineering
  • Others (including ICT, pharmaceuticals and health products)

DOST Strategies to Assist MSMEs

To attain its objectives, the program has five major strategies.

Provision of Technology

  • Technology needs assessment and sourcing of technology
  • Technology acquisition
  • S&T training
  • Consultancy and Technical Advisory Services

Product Standards and Testing

  • Development of product standards with DTI-BPS (Dept. of Trade & Industry-Bureau of Product Standards)
  • Product testing and enhancement of testing laboratories

Packaging and Labeling

  • Development of functional designs for packages
  • Identification and development of suitable or alternative packaging materials especially from indigenous materials

Database Management and Information System

  • List of available technologies
  • List of S&T experts
  • List of testing laboratories including available testing services
  • Development of website for MSMEs for product promotion and access to information

Linkaging and Networking

  • Raw material sourcing
  • Marketing
  • Financing
  • Equipment design and fabrication

Who may apply?

  • 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 sector
  • Any company or individual firm willing to apply technological innovations to their existing products, services and/or operations
  • Any LGU willing to apply technological innovations to the existing operations in their locality

What documents must be submitted?

  • Letter of intent to avail of the SETUP assistance, stating commitment to refund the cost of innovation system support and, as its counterpart, cover the insurance for the acquired equipment.
  • Accomplished DOST TNA Form 1, “Application for Technology Needs Assessment”
  • Proposal using SETUP Form 1, “SETUP Project Proposal Format”
  • Copy of business permits and licenses issued by LGUs and other government offices
  • Copy of Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC) issued by DENR/EMB.
  • Certificate of registration of business name with the Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC) or Cooperative Development Authority (CDA), whichever is applicable.
  • In the case of corporations, cooperatives and non-single proprietorship, LGUs, organization, Board/Legislative Council resolution authorizing the availment of the assistance and designating authorized signatory for the financial assistance.
  • Financial statements at least for the past three (3) years with notarized certification (SWORN STATEMENT) from the beneficiary that all information provided are true and correct.
  • Projected financial statements for the next five (5) years
  • Complete technical specifications for equipment to be purchased and design/drawing of equipment to be fabricated, as determined in the TNA Report
  • Three (3) quotations from suppliers/fabricators for each equipment to be purchased/fabricated

Also, proposals from qualified proponents should be supported by the following:

  • Accomplished DOST TNA Form 4, “Technology Needs Assessment (TNA) Report”; and,
  • Regional Technical Evaluation Committee (RTEC) Report (SETUP Form No. 2)

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