Module 4 - Lesson 2 - Entrep

The document discusses the significance of Micro, Small, and Medium Enterprises (MSMEs) in ASEAN countries, highlighting their contribution to the economy, employment, and the challenges they face, including digital integration barriers. It emphasizes the importance of innovation and technology for MSMEs to thrive in a competitive environment and outlines initiatives like the ASEAN SME Academy to support their growth. Additionally, the document mentions the specific role of MSMEs in the Philippines and their efforts to enhance productivity through Shared Service Facilities.

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Module 4 - Lesson 2 - Entrep

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Nova Babaylo

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The MSMEs in

ASEAN Countries

LEARNING OUTCOMES:
At the end of this lesson, the students will be able
to do the following:
Develop deeper understanding of the importance of MSMEs in ASEAN
Countries; and

Discuss the trends in MSMEs in ASEAN Countries.

INTRODUCTION:

Welcome to lesson 2 of module 4! In this lesson, we will explore the MSMEs in ASEAN
Countries and the recent trends. This will allow us to appreciate this great cooperation initiative and
understand the ways it can impact an enterprise. Enjoy and keep learning!

ACTIVITY: Who Said That!

Have you ever heard of the status of MSMEs in ASEAN Countries? Let’s try to compile ideas about
it! In the Bubble Quotes below, write the ideas about MSMEs in ASEAN Countries and write the name of
the person who mentioned the idea in the box below the Bubble Quote. It can be from different book
authors, blogs or even Professors! Let’s give it a try!
ANALYSIS:

What did you notice in your

activity? Explain.

ABSTRACTION:

Let’s Unveil the Essential Knowledge!

You have to read and understand the journal article entitled Does Trade Facilitation Really Matter for the
Growth of MSMEs' Export? The ASEAN Case” by Tulus Tambunan1 & Fachru Nofrian (2017).
Retrieved from
http://jsbednet.com/journals/jsbed/Vol_5_No_2_December_2017/3.pdf

After reading, fill up this PMI (Plus, Minus and Interesting) Chart. On “Plus” you will fill up the good
points you read while you will fill up the “Minus” entries with the negative points. In “Interesting”
column, write your list of questions that can be further researched.

Plus Minus Interesting

Let’s Build on!

The ASEAN MSMEs

The Micro, small and medium enterprises (MSMEs) in ASEAN is a significant contributor to
the livelihoods, communities and economies. It accounts up tp 99% of business establishments
in the emerging key sectors. It further contributes more than 50% of the ASEAN's GDP and
employ a staggering 80% of the workforce.

The ASEAN is evidently building the ASEAN MSMEs to become immune of disruptive
technologies and embrace opportunities towards the dreamed Digital ASEAN. The collaborative
interventions are geared towards capitalizing on innovation and technology. This digitalized
MSMEs is seen as a great way to promote equal opportunity for vulnerable groups such as
women, young entrepreneurs and poor communities. However, it was also discovered that there
are barriers to digital integration. The barriers include limited access to internet and affordable
digital tools, limited cross-border payment choices, complicated and difficult border trade
processes, and insufficient digital skills and the digital regulations.

It is however important to notice that despite the significance of the MSMEs to the ASEAN's
economy, they pressed by several challenges which include globalization, technological advances
and cut-throat competition from larger businesses. In the ASEAN Economic Community (AEC)
2025 Blueprint, the promotion of innovation to allow MSMEs to grow was emphasized. There are
is an ASEAN SME Academy which serves as online learning platform which can be accessed in
http://www.asean-sme-academy.org/. There is also an SME Service center which can be
accessed at http://www.aseansme.org/ which act as the online portal for several important
information and services on MSME and other significant publications.

In the Philippines, the MSMEs are a major driver of economic growth. MSMEs account 99.6
percent of the total enterprise and 62% of the entire Philippines workforce. It also contributes 36%
of the total GDP. Like other MSMEs in the ASEAN country, the MSMEs in the Philippines is also
faced by challenges. In order to open access to technology, the Philippines is promoting Shared
Service Facility. The facilities are being implemented by the Department of Trade and Industry.
These Shared Service Facilities are aiming to increase productivity and improve collective
competitiveness. The facilities are managed by cooperators for the common use of beneficiaries.

Reflections:

A. Why are innovation and digitalization very important to MSMEs?

APPLICATION: Let’s connect the dots!

Activity 1: Individual Reading

Read and understand the article entitled “COVID-19 and Southeast and East Asian
Economic Integration: Understanding the Consequences for the Future ” by Economic
Research Institute for ASEAN and East Asia (2020). Retrieved from
https://www.eria.org/uploads/media/policy- brief/COVID-19-and-Southeast-and-East-Asian-
Economic-Integration.pdf.
After reading, answer the questions below. Use the Segmented Explanatory Organizer
Table. Write key ideas on each box.

I think COVID-19 made the I also learned from the

ASEAN ... article that...

COVID-19 and Southeast and East Asian Economic

Integration:
Understanding the Consequences for the Future

This learning is helpful I think the future of ASEAN

because... will be...

Activity 2. Metaphor of Learning

a. Discuss major highlights and understanding you have gained from this lesson.
b. Present your own view and beliefs about ASEAN Integration.
Well-done! So you have successfully completed the
activities and tasks for lesson 1 of module 4. It is expected
that you have gained insights and meaningful experience.
May you continue to use these analysis techniques for the
benefit of not only yourself but for the benefit of the
community!