The Department of Trade and Industry (DTI) plans to offer support the operating cost, capital and digital infrastructure of start-ups through setting-up economic zones.
“DTI will offer direct and time-bound assistance to help cover costs that start-ups usually have to obtain from the private sector,” Trade Secretary Ramon M. Lopez said at the report of Business World.
Moreover, DTI plans to fund Php1 billion for the project and hopes to propose the first P200-300 million in its 2020 budget.
Lopez said that DTI will boost more programs in a particular community. At present, there are minimal practices because there was no budget provided. If we want to support, there should be a budget.
“Start-ups operate under a different environment — it doesn’t have to be physical. It can be a co-working spaces type of arrangement all in one building or in one space. As long as all the other enablers (and) digital internet infrastructure are there to support their operations, lower their cost… Those are the usual needs of start-ups,” Lopez stated.
DTI’s project includes not just fiscal incentives but will also include rent assistance.
Further, program is available to Filipino-owned companies instead of export-oriented businesses. It obtains different guidelines, rules, and incentives.
Lopez emphasized that it can be a future export business model. However, it is not limited for exporters. The program is really different from Philippine Economic Zone Authority (PEZA).
“Asked about the funding schemes on offer, Mr. Lopez said: “You just have to take it as levels, step by step. Maybe a segmentized type of support. But you try to still create that environment that will encourage them to be creative and innovative with their business model and give (them) more training, mentoring so that they can fine tune their business models to be relevant,” stated by Mr. Lopez in the report.
Source:
DTI to set up ecozones subsidizing start-up costs