By John Mark V. Tuazon
Computerworld Philippines
June 1, 2010

In order to help local SMEs gather much-needed funding from financial institutions to further their businesses, a global collaboration of three large institutions recently launched SMEToolkit, a website which contains valuable resources for SMEs.

While the website (http://philippines.smetoolkit.org) has been live since 2002, it didn’t contain interactive tools and resources as it did now, thanks to more than five million dollars in investments funneled to the cause by global tech giant IBM since 2006.

The SMEToolkit initiative is a collaborative effort by the IFC (International Financial Corporation), IBM, and local SME bank Planters Development Bank (PDB). There are 32 others of its kind in other countries, mostly developing nations.

“This truly is a one-stop shopping for small businesses as it levels up the playing field,” remarked James Velasquez, country general manager, IBM Philippines. “We know the tools that large enterprises use most and we know the role technology can play in leading to growth. Now, every business can have the same chance to succeed. It’s vitally important that we help small businesses who are the major employers and growth engines in the country.”

The refurbished website has been rebuilt on an open source platform to feature Web 2.0 elements such as live chat, online forums, business directories and survey forms in order to fuel collaboration among SMEs here and abroad.

This way, SMEs, will have relevant information at their fingertips, and would not have to be shy about asking for help regarding funding and other things that concern their businesses. “[The website hopes to] contribute to the reduction of self-censorship among SMEs,” related Luc Villancourt, program manager for access to finance, IFC.

Villancourt shared that in a 2003 study, only 16% of local SMEs had access to funding, due mainly to their apprehension to approach banks and other financial institutions, in fear of being rejected anyway.

“The toolkit helps SMEs understand how to apply for funding and to be confident enough to apply for it,” the IFC executive added.

In the Philippines, the global initiative’s local bank partner, PDB, has been very eager in promoting the site’s use. “SMEs are asking us for articles that can help them with their business,” remarked Bernadette Ratcliffe, SME solutions treasurer, PDB.

Ratcliffe said they have started to see real potential for the program to benefit SMEs all over the country, which prompted them to conduct over 30 roadshows around the country to promote the initiative. “SMEs [we’ve talked to] have been very enthusiastic about it so far,” she recalled.

PDB has touched base with over 1,800 SMEs across the country, Ratcliffe said, conducting intimate discussions with about 30 to 50 SMEs per visit. “There have been a lot of inquiries from them so far,” she added.

The group has also started planning for new content to add to the website, aside from eyeing more roadshows and a more aggressive online marketing in the future. “We are negotiating with the Ateneo Graduate School of Business to get more content online, such as videos and online tutorials,” Ratcliffe detailed, adding that they have also forged a pact with DTI (Department of Trade and Industry) and BIR (Bureau of Internal Revenue) to post their respective publications, such as tax calendars and tax codes.

“We see the toolkit as a good introduction for SMEs to get involved with technology,” Ratcliffe proposed. “We expect even more participation from tech-savvy second-generation SMEs.”

The IFC has been a major investor for public developments in the country, pooling $2 billion worth of investments for the country since 1962. It has set up its office in Manila in 1977, and has expanded to Davao recently in 2006. Its second largest investment in the country goes to projects promoting access to finance, next only to public infrastructures.

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