PEEDMO 2013 Midyear Report

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PEEDMO Midyear Report(January-June 2013)

GRACIELA E. MANTE

OIC-PEEDMO

Provincial Economic Enterprise Development

and Management Office


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2PEEDMO Midyear Report

Contents

Midyear Accomplishments ................................ 3

Issues and Concerns ......................................... 14

Recommendations and Future Direction ..... 16


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MIDYEAR ACCOMPLISHMENTS

The Provincial Economic Enterprise Development and Management

Office is pleased to present to you the accomplishments of our

department for the first half of 2013.

Revenue Generation

PEEDMO has consistently generated a substantial increase in our

income for the past three years. From an income of P 4.7M in July 2010,

we have raised it to P 7.5M as of June 2013 garnering an increase of

60.69%.

Due to rigorous efforts in encouraging health and wellness to our

customers, we were able to boost the proceeds from our sports

activities by 49.23% in 2012.


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The intensified collection of parking fees in the Sports Complex has also

shown a remarkable increase from year 1 to year 3. From only P 630.00

collection in Year 1(July 2010-June 2011), it soared to P3,680.00 in Year

2(July 2011-June 2012) and increased further by 388.86% in Year 3(July

2012-June 20,2013). Though the amount is small, it is still worth noting

that from year 1 up to year 3, a massive increase of 2,755.56% inparking fee earnings has been obtained. This is due to the new policies

implemented starting in the second half of 2011.

Since May 2012, we already remitted P 23,313.00 as proceeds from the

sales of our agricultural products.


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Enterprise Development

SURIGAOS BEST

We have enhanced the services and the look of Surigaos Best as the

provinces Local Products Display Center and Tourism Information

Center. We already started in the implementation of more efficient

system to better serve our suppliers and customers.

Together with Mrs. Karissa Fetalvero Paronia, Surigao del Nortes AECID

Coordinator, we sent product samples to Gifts and Graces Fair Trade

Foundation in Manila last month and was able to obtain their interest in

including some of our local products to their gallery. Gifts and GracesFair Trade Foundation,

an accredited

organization by the

World Fair Trade

Organization (WFTO)

Philippines is committed

to support communities

by pursuing

entrepreneurship as ameans to overcome

marginalization. G&G

works in the areas of

product development,

market access, technical

support on enterprise management, and advocacy of fair trade

practices. Currently, PEEDMO is working with the Provincial Agriculture

Office in completing the required profile for the selected products of

G&G. Hopefully, we could build a partnership with the said


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organization which will enable us to extend the market base of

Surigaos Best products and introduce the goods of the province to

other parts of the country and abroad. Our local suppliers will also

greatly benefit from this promising project.

PROVINCIAL INVESTMENT PROMOTION CENTER

Inaugurated last March 19, 2013 by Senator Paolo Benigno Bam

Aquino IV and Senator Franklin Drilon, the newly established Provincial

Investment Promotion Center is still in its infancy stage and is set to carry

out thefollowing functions when it is fully operational:

Provide Investmentservices such as

assistance in:

identifying businesspartners, business

sites, raw materials

suppliers, etc.

sourcingmanpower

requirements

facilitatingresolution of issues

and concerns

facilitating business visits Investment and Trade Promotion and Generation

Trade and Investment Missions Investment briefings/orientations Promo collateral preparation and dissemination

Information Management and Development Review existing incentives and prepare recommendations

and/or policy papers for improvement Prepare project profiles, pre-investment studies,feasibility,

industry profiles and situationers

Conduct regular review on the local Investments Priority Areas Recommend to the Board any amendments to existing legislation

or procedures on local investments for its appropriate action

Do networking with relevant organizations


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SEMINARS CONDUCTED FOR INVESTMENT PROMOTION & ENTERPRISE

DEVELOPMENT

Seminar-Workshop on Investment Promotion and Investment Code

Review

On March 6, 2013, PEEDMO conducted a Seminar-Workshop onInvestment Promotion and Investment Code Review with municipal

mayors , Municipal Planning and Development Coordinators(MPDCs)

and designated investment promotion officers. The event was

facilitated by Mrs. Alice Eusena the economic consultant of the

province and was graced by the following competent speakers with

their respective topics:

Ms. Lourdes Ellen Kionisala(OIC of the Board of InvestmentsCagayan de Oro Extension Office) - Functions and Operational

Mechanisms of the Provincial Investment Promotions Center,

Investment Incentives Formulation and Provincial Investment

Code Review

Engr. Leonel Santos(President of the Surigao EconomicDevelopment Foundation, Inc.)- SDN Economic Development

Framework Mr. Celestino Negapatan(DTI Provincial Director)- Status of

Investments in Surigao del Norte

Mr. Domingo Bulabog(DILG Provincial Director) - Role of LocalEconomic and Investment Promotion Officers (LEIPOs) in

Economic Development

As output of the seminar-workshop, participants were asked to list

down what they still need to know about Investment Code formulation

and what needs to be done in their respective municipalities. They

were required to make action plans for the formulation of their own

Local Investments and Incentives Code (LIIC).


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As the late DILG Secretary Robredo advocated, the LIIC is a

guidepost for the LGUs to create competitive communities that are

able to leverage private sector creativity, enterprise growth, job

creation and investment, and decent work towards a better quality of

life. The LIIC is also believed to address the disturbing trend of

growing dependency of LGUs on their Internal RevenueAllotment(IRA) thus making them more creative in sourcing out local

resources to revitalize local economies, Robredo added.

Convergence of Agencies and Organizations Promoting

Entrepreneurship in Surigao del Norte

On March 8, 2013, PEEDMO in coordination with the Surigao Chamber

of Commerce and Industry(SCCI) initiated the Convergence of

Agencies and OrganizationsPromoting Entrepreneurship in

Surigao del Norte which was

aimed to consolidate and

harmonize the plans, projects

and programs of agencies and

organizations providing

entrepreneurial services and

interventions in the province.

It was a highly participated

event attended by

representatives from different

line agencies, NGOs, and

organizations such as DTI,

BFAD, BFAR, DOST, DOLE, Surigao Marine Traders Association among

others.

Two models for micro, small and medium enterprises (MSMEs)

development were presented to guide the agencies in grouping

themselves according to the kind of services they offer. The MSME

German Model has the following components :

A. Enabling Environment;B. Business Development Service Provider;C. Financial services; and,D. Demanddriven Trainings

while the DTI Model has the following sections:


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A. Business and InvestmentEnabling Environment;B. Access to Finance;C. Access to Market ;D. Productivity and Efficiency

With the groupings done, it would be easier to establish linkages for

entrepreneurs who are seeking for particular business development

services.

Aside from clustering the agencies according to the services they

provide, the activity also adopted the SME Stars Framework which

categorizes the different stages of development of entrepreneurs.

The framework also identifies the types of services belonging to acertain stage as expanded below:

A. Startup & SME Capability Building Stage

Seminars/Trainings on Business Opportunity Consultancy Market Awareness Start-up Biz Seminar Design & Market Trends Financing AwarenessB. Expanded/Sustained Domestic Market Presence and/or Exports Entry

Preparedness

Expand Domestic Market Base Export Clinics Market Facilitation Seminar Export Mentoring Export Opportunities Online Marketing Product Development Clinics Market Referrals


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C. Market Penetrated and Sustained Presence

Domestic Supply Base Subcontracting Productivity Enhancement Trade Missions International Trade Shows

Border Issues Resolutions Regulatory Reforms

In order to monitor the

development of entrepreneurs,

they start from stage A and

acquire the necessary services

and trainings in order to proceed

to stages B and C. When

implemented, this would be agreat tool in preventing stagnation

of the business status of local

suppliers. The transition of

entrepreneurs to stage C would

also signify a more progressive

economic environment for the

province.

The Convergence of Agencies forEntrepreneurship was a great start

in creating a progressive path towards the economic development of

Surigao del Norte. With services properly identified and stages

strategically set, there would be a more guided and coordinated route

to all Surigaonon entrepreneurs in the achievement of our economic

goals.

Capacity Building for PEEDMO Employees

Recognizing the need to develop the human capital of PEEDMO, we

were able to conduct two seminars during the first half of 2013.

Customer Service Training Seminar-Workshop

Being in the frontline service, we conducted a Seminar-Workshop on

Customer Service to be able to acquire the right attitude and

professionalism in providing excellent services to our clients.The seminar

instilled new learning experiences to the participants with the insightful


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discussions on proper customer service skills. In addition, actual

demonstration on phone courtesy and role-playing in handling

customer complaints were also done by the employees. The seminar

was aimed not only to increase customer satisfaction but to also boost

the morale of the employees and add value to the organization in

general.

Workplace Safety Seminar

Workplace safety is a major concern in PEEDMO as it manages an area

of 36,233 square meters composed of sports and cultural facilities

frequented by the public. The seminar conducted on May 25 provided

the employees with basic knowledge and skills in disaster prevention

and preparedness and on how to handle workplace risks.


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Health and Wellness Promotion

Compared to the past years, there has been a remarkable increase in

the number of people visiting the Sports Complex. With the brand,

Exercise is more fun at the

Provincial Sports Complex, we

have promoted health and

wellness awareness to our patrons

and we continually strive to

provide them with a wide range

of sports activities to get involved

in. At present, the Sports Complex has become not only a popular

venue for jogging, running and ball sports but also an area for playing

Frisbee and practicing flair bartending.

To encourage health and wellness for Surigaonons and at the same

time attract more paying customers, we established the following

fitness programs that are now regularly conducted in the Provincial

Sports Complex:


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In cooperation with the Provincial Health

Office, we were able to place a weighing

scale inside the Sports Complex that helps

motivate our customers to achieve their

desired weight targets.

Strategic Partnerships

As the government

counterpart in the business

community, we have

partnered with Surigao

Chamber of Commerce and

Industry in hosting the 18th

Caraga Business

Conference last June 13-14,

2013 at Hotel Tavern, Surigao

City. Hon. Sol F. Matugasalso sponsored the very

joyous Fellowship Night on

the evening of June 13 with the Pista sa Nayon theme. PEEDMO also

represents the province in the SMED Council.

Social Media Marketing

Part of its innovative approach in marketing and promotion, PEEDMO

created the Facebook fan pages of Surigaos Best and the ProvincialSports Complex which caters to a growing number of supporters in the

Philippines and around the globe.

www.facebook.com/SurigaoGrandstand www.facebook.com/surigaobest


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ISSUES AND CONCERNS

Despite the constantly improving performance of PEEDMO for the past

years, we are still confronted with the following challenges:

Financial Sustainability. Even with the consistent increase in thegenerated income of PEEDMO, it could not still establish itself as

a sustainable enterprise due to the amount of expenditures in its

operations. Furthermore, the accommodation of discounts and

free use of the facilities contribute to this challenge.

Personnel Problems. There is a mismatch in the knowledge, age,salary, skills and attitude requirements of the job to the current

profiles of the regular employees.

Underutilization of some facilities. We still need to make theProvincial Swimming Pool and the Provincial Cultural Center for

Children income-generating.

Provincial Investment Promotion Center still to be fullyoperationalized. The organizational structure, office equipment,

investment promotion materials and training of staff among

others are still to be addressed.

Surigaos Best still to be enhanced. The local products displaycenter and tourism information center still needs a transformation

in its services and product offerings. A competent staff with the

appropriate business background is still needed to focus on the

Center especially on its marketing and promotion mechanisms.

The presence of a tourism information officer is also needed to

accommodate guests and visitors and provide answers to

tourism queries which the PEEDMO personnel could not impart

due to lack of training.

Lack of means of mobilization. Due to the isolated location of theProvincial Sports Complex and the nature of the operations of

PEEDMO, we find transporting chairs, sound system and musical

instruments to and fro the Provincial Capitol a challenge. We are

always depending on the availability of the E-trike especially in

the purchase of fuel for generator among other similarly

important errands.


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Lack of expertise in handling the repair and maintenance of theProvincial Sports Complex. No training from the previous

contractor of the complex on the proper handling of the facilities

was handed down to the personnel of PEEDMO. There are

specific areas where technical expertise is needed and applying

untested measures could prove risky to both personnel andproperties.

Lack of new technology/systems in providing more comfortableand efficient ways to serve customers. There is still a need to

acquire computerized systems in the operations of the business

enterprises of PEEDMO.

Lack of promotional materials available to the public. Due tolack of personnel who will handle the design and content ofpromotional materials, we are at the moment not able to

provide flyers, leaflets, brochures, etc to customers.


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RECOMMENDATIONS AND FUTURE DIRECTIONS

To be in sync with the enhanced HEALS Plus development agenda of

the province, PEEDMO needs to be fully empowered to make it

perform better and to maximize its potential to be one of the driving

economic forces of the province.

On increasing revenue generation

Venturing out on other business opportunities that could generatebigger income for the province should be focused on, which

include the following initial list:

Sand and Gravel Operations Hollow-block Making Water Station Generator Rental

Feasibility studies should also be done regularly to identify possibleincome-generating programs.

Analysis on the expenditure pattern of the offices in the provinceshould also be considered to discover the areas we spend the most

and convert it into a business opportunity.

On human capital development

As Andrew Carnegie points out, "The only irreplaceable capital an

organization possesses is the knowledge and ability of its people."

Indeed, having the right people for the job is very important to ensure

success in every undertaking. PEEDMO therefore needs a thorough

evaluation of its organizational structure and a properly reviewed

human resource plan be placed. The hiring of individuals with

significant technical expertise should be considered to speed up theformulation of plans and projects of the department. PEEDMO needs

people with the right knowledge, skills and attitude in their respective

jobs. They must also be dynamic, young, enthusiastic, creative, and

responsible to make the operations of the department flourish more.

Having a continuing commitment to excellence is also preferred.

With this, the organizational development review of PEEDMO is highly

recommended to be prioritized.


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On the Improvement of Surigaos Best

We recommend the launching of Project SHEEN (SERVICES TOHELP EMERGING AND EXISTING ENTREPRENEURS) conceptualized

by Mrs. Alice Eusena which focuses on various activities that will

be made available to local suppliers. This would be in

convergence with other agencies supporting entrepreneurship in

the province. Some of the programs include Business Skills

Development, Product Development, E-library and Reference

Services and enhancement of the existing center through visual

merchandising improvement, etc.

Proper staffing of the center is also recommended. We will encourage all the municipalities of the province to

showcase their products at Surigaos Best through the

OTOP(One-Town One-Product) scheme.

Partnerships with other relevant agencies will also bestrengthened.

On Making the Provincial Investment Promotion Center(PIPC) Fully

Operational

The following Operational Mechanisms of PIPC is recommendedto be followed based on the Board of Investments:

Workforce

Aside from the PIPC head, at least two (2) regulartechnical staff is needed for

o Investor Servicingo Database establishment/updating and

networking with LGUs in the province

Must be models in effective frontline servicing(knowledge, skills and attitude)

Office and Equipment Office must

o be easily accessible to businessmeno never be emptyo clean and comfortable

Minimum equipmento a working phone and faxo Conference tableo computer with dependable internet

connectiono TV and projector for presentations


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The PIPC will also be responsible for the monitoring of theformulation of the Local Investments and Incentives Code of the

municipalities of the province.

It will also serve as the Public-Private-Partnership Center of theprovince and the channel of the Regional CompetitivenessCouncil

PIPCs proposed activities for 2013 include the following: Continuation of the review of the Investment Code of the

Province

Series of meetings for the convergence of agenciessupporting entrepreneurship in the province

Institutionalizing the designation of LEIPOs in the municipalities Video showing for livelihood and investment opportunities Creation of promotional materials Creation of an AVP presentation featuring the Investment

Priority Areas of the province

Municipal Investments ProfilingOn the Full Utilization of the Provincial Swimming Pool and

Provincial Cultural Center for Children

Intensified marketing and promotion campaigns should be done toattract more customers for the mentioned facilities. Accredited

lifeguards and maintenance personnel should also be assigned at the

swimming pool at the required shifts. A memorandum of agreement

should also be made between schools and universities regarding the

paid use of the mini-theater for their cultural and musical events.

On providing a wider range of sports and entertainment services

in the Provincial Sports Complex

In addition to the current services offered in the sports complex, the

following programs are to watch out for:

Boxing Fitness Program Aerobics and Bellydancing Friday Entertainment Night (live band, local delicacies, etc.) Monthly Swimming, Running, Basketball and Volleyball

competitions

Sports Clinics

PEEDMO 2013 Midyear Report

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