Obstacles and Enablers of Internationalization of Philippine SMEs Through Participation in Global Value Chains

This paper attempts to determine the challenges and enablers of connecting small and medium businesses to global value chains. It uses data from a survey of SMEs in Metro Manila and a set of key informant interviews of SME owners and of officials of government agencies tasked to assist SMEs. Findings show that Philippine SMEs are weakly linked to GVCs. The challenges and enablers can be grouped into five themes: 1) competition in ASEAN and East Asia; 2) international standards, regulatory requirements, and local institutions; 3) role of the government; 4) international market demand and inputs supply; and 5) entrepreneurial mindset. Based on the results, some policy implications were formulated.