Small and Medium Scale Manufacturing
The large number of small and medium enterprises (SMEs) greatly contributes to the economic growth and industrial progress of developing countries. They are valuable to the manufacturing industry of the Philippines. Global expansion and growing economic integration allows SMEs to be potential product exporters. Through using locally available materials, SMEs have the opportunity to manufacture food and non-food products in small and medium scale
Small Scale Manufacturing
Food and beverage are constantly being purchased and consumed because it is one of the most essential needs of humans. In addition, Filipinos have a taste for delicious and healthy food and beverage products.
Manufacture of food and beverages are two of the Philippines’ major industries. From 2010-2013, food and beverage manufacturing had 5% and 6% growths, respectively. To ensure the development of the industry and to encourage potential investors, the Philippine government considers it a priority sector.
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How to register a food and beverage processing business?
1. Register the Business Name at the Department of Trade and Industry (for Single Proprietorships) or the Securities and Exchange Commission (for Partnerships and Corporations).
The law governing the registration of business name is Act No. 3883, as amended by Act No. 41476 and R.A. No. 863, otherwise known as the Business Name Law. The business name is valid for five years
2. Get a Mayor’s permit from the municipality or city where the business is located. The permit is valid for a year.
3. Apply for an Employer’s Tax Identification Number (TIN) at the Bureau of Internal Revenue (BIR).
4. Apply for Authority to Print Receipts and Invoices at the BIR.
5. Investors should register for a Social Security System (SSS) Certificate.
6. Register for a License to Operate at the Food and Drug Administration (FDA).
7. For businesses with five or more employees, owners must register with the Department of Labor and Employment (DOLE).
What are the opportunities in the food and processing sector?
1. Balut making
2. Banana chips
3. Burger
4. Corned beef
5. Daing
6. Fruit shake
7. Honey bee and honey production
10. Lambanog
11. Longganisa
12. Mango Chutney
13. Nata de coco
14. Pandesal
15. Siomai
17. Smoked sausage
18. Tinapa
19. Tocino
20. Tomato Catsup
21. Tuyo
Products that are not fit for human consumption are called non-food products. They are produced for their respective purposes such as decorating and cleaning.
Home style products are always marketable because of the need to decorate homes. The Philippines is considered as the top manufacturer of home style products in terms of craftsmanship and design. Because of this, the potential for exportation of home style products is very viable.
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Some home style products are décor and furniture.
1. Home Décor
Philippine-made home décor products are often crafted from eco-friendly materials. In the advent of the call for protection of the environment, buyers are becoming environment-conscious. Thus, the marketability of Philippine-made home décor products increases.
2. Furniture
The furniture industry largely contributes to the Philippine economy. It had a growth of 57% from 2010-2013. In line with this, the Philippine Statistics Authority considers furniture as one of the top ten exports of the country as of April 2014. Products are sold to local buyers, distributor-wholesalers, and retailers.
Some furniture pieces are sofas, benches, beds, cabinets, tables, and chairs.
Philippine furniture is noted as well-crafted, skillfully designed, and made from durable materials. Furniture can be made from different materials such as wood, buri, metal, stone, rattan, and bamboo.
Click here to know more about the furniture industry.
How to register a home style business?
1. Register the Business Name at the Department of Trade and Industry (for Single Proprietorships) or the Securities and Exchange Commission (for Partnerships and Corporations).
The law governing the registration of business name is Act No. 3883, as amended by Act No. 41476 and R.A. No. 863, otherwise known as the Business Name Law. The business name is valid for five years.
2. Get a Mayor’s permit from the municipality or city where the business is located. The permit is valid for one year.
3. Apply for an Employer’s Tax Identification Number (TIN) at the Bureau of Internal Revenue (BIR).
4. Apply for Authority to Print Receipts and Invoices at the BIR.
5. Investors should register for a Social Security System (SSS) Certificate.
6. For businesses with five or more employees, owners must register with the Department of Labor and Employment (DOLE).
Soap is one of the most essential products when it comes to body hygiene. Many Filipinos look for effective, yet affordable soap products that suit their needs. Because of this, many soap making businesses emerge in the Philippines.
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Manufacturers can make bath soaps, whitening soaps, detergent soaps, and dishwashing soaps.
1. Herbal bath soap
• Papaya, radish, calamansi, cucumber, and kamias
• Aloe vera, patchouli, citronella, rose, and sampaguita
2. Powdered detergent
3. Fabric softener
5. Biodegradable detergent soap
How to register a soap manufacturing business?
1. Register the Business Name at the Department of Trade and Industry (for Single Proprietorships) or the Securities and Exchange Commission (for Partnerships and Corporations).
The law governing the registration of business name is Act No. 3883, as amended by Act No. 41476 and R.A. No. 863, otherwise known as the Business Name Law. The business name is valid for five years.
2. Get a Mayor’s permit from the municipality or city where the business is located. The permit is valid for one year.
3. Apply for an Employer’s Tax Identification Number (TIN) at the Bureau of Internal Revenue (BIR).
4. Apply for Authority to Print Receipts and Invoices at the BIR.
5. Register for a License to Operate at the Food and Drug Administration (FDA).
6. Investors should register for a Social Security System (SSS) Certificate.
7. For businesses with five or more employees, owners must register with the Department of Labor and Employment (DOLE).
Sources: Philippine Institute for Development Studies, Department of Trade and Industry, Philippine Statistics Authority, Online Developing Country Sourcing, and related websites
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