NEWS: Tagum 99% dependent of microenterprises- DTI

aug 1

Is the economy of Tagum suffering a continuous meltdown since the recent years as indicated by the constant lows of the renewal rate of business name registrations with the Department of Trade and Industry?

The DTI provincial office released an official report Wednesday citing a 74-percent increase of the business name registrations from 2006 to 2007 but its trade and industry chief specialist Vedastito Galvez said that they also observed an average of a low 30-percent yearly renewal rate of businesses after the five-year period of effectivity of business name registrations.

The statistics of business name registration from January to June is still being collated at press time.

In an interview, he said that economy of City of Tagum is 99-percent dependent of its microenterprises with capitalization of less than P3 million, based alone on the bulk of businesses that have registered their business names with the DTI.

But Galvez said most of these registered microenterprises “do not last for long” and are either assumed by other owners.

He bared that based on DTI statistics about 80 percent of these microenterprises is engaged services, trading and retail businesses such as parlors, repair shops, sari-sari stores and the like.

“The microenterprises are the backbone of Tagum’s formal economy,” said Galvez, who excluded from the counting those belonging to the so-called underground economy like the sidewalk and ambulant vendors and the like who have no business permits from the City Hall, nor have business names being registered with the DTI.

Galvez also described the Tagum’s economy as also agriculture-based, and particularly cavendish banana-industry dependent as Davao del Norte remains to be the country’s top exporter of the commodity.

If Tagum wanted to generate more jobs it has to attract large-scale manufacturing industries, he said noting that the city at present could only boast of its few medium-scale banana chip processing plants and small-scale wood processing plants, which are reportedly suffering downturn at present.

In DTI’s definition, a microenterprise is those having a capitalization of less than P3 million, while the small enterprise has P3 million to P60 million capitalization, medium enterprise, P60.1 million to P100 million, and the large enterprise, P100 million above capitalization. (Cha Monforte/Rural Urban News)


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