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Small & Medium Enterprise Technology Upgrading Program (SETUP)

Small Enterprise Technology Upgrading Program (SETUP), a nationwide strategy to encourage MSMEs to adopt technological innovations to improve existing products, services, and operations; increase productivity and competitiveness; and more importantly to enable MSMEs to develop new products and establish or sustain market niches.

Purpose of the Program

The Program enables MSMEs to address their technological requirements and limitations to improve productivity and efficiency through:

    1. Infusion of appropriate technologies to improve/develop products, services and/or operations;
    2. Human resource training, technical assistance and productivity consultancy services;
    3. Design and execution of functional packages and labels;
    4. Assistance for compliance to regulatory and market standards including testing services; and
    5. Provision of financial assistance to facilitate acquisition of appropriate technologies.

Objective

ISS enables qualified MSMEs to have access to appropriate technology, equipment and technical assistance to improve production efficiency, product quality and improve their competitiveness.

Priority Sectors

The Program focuses assistance on the following priority sectors:

    1. Food Processing
    2. Furniture
    3. Gifts, decors, handicrafts
    4. Agriculture / Marine / Aquaculture
    5. Metals and Engineering
    6. ICT
    7. Pharmaceuticals, health and wellness products

Coverage

Innovation System Support (ISS) fund covers S&T interventions and/or technologies that satisfy the following criteria:

    1. Introduce improvement in product quality, production processes and production efficiency such as mechanization, automation among others;
    2. Enable MSMEs to comply with regulatory and specific market requirements;
    3. DOST-developed technologies;
    4. Packaging solution which covers execution of DOST-developed package/label design at appropriate volume;
    5. ICT-based technology needed to improve/enhance firm operations.

Eligibility Requirements

    1. MSME must be wholly owned by Filipino citizens and willing to apply technological innovations to improve existing products, services and/or operations.
    2. Any government entity (including state universities and colleges) operating business-like projects/activities (such as Common Service Facilities, innovation, incubation centers) for entrepreneurs/graduates of entrepreneurship.

Application Requirements

    1. Letter of intent to avail of SETUP assistance
    2. Accomplished "Application for Technology Needs Assessment" Form
    3. Project Proposal
    4. Copy of business permits and licenses
    5. Copy of Environmental Compliance Certificate (ECC) or Certificate of Non-Coverage (CNC)
    6. Certificate of registration of business name
    7. Board/Legislative Council resolution for corporations, cooperatives, non-single proprietorship, and LGUs
    8. Financial statements for the past three (3) years with notarized Sworn Statement from the proponent
    9. Projected financial statements for the next five (5) years
    10. Complete technical specifications for equipment
    11. Three (3) quotations from suppliers/fabricators for each equipment

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