Creating Niches in the Green Industries and the Role of Micro, Small and Medium Enterprises: Discussion Paper

Abstract

This paper argues that there is a robust environmental movement in the Philippines, evidenced in the policies and programs of government, non-government and the private sectors. Global warming not only changed the earth’s conditions but is changing industrial trends as well. In view of mounting ecological issues, some enterprises have begun to join the movement to address problem of the degradation of Mother Earth. Micro, small and medium enterprises (MSMEs) can well participate in this industrial trend because green enterprises require low capital investment and are service- or trade-oriented knowledge- or materials-providers.  MSMEs, comprising 99 percent of total enterprises in the Philippines, have an important role in employment generation. MSMEs employed 4.7 million in 2013. With this huge number of Filipinos employed in MSMEs, it is necessary to take serious steps in building the competencies of human resources in industries where wecan create niches and make employment sustainable. The niches are in the green industries.

Even if employment in these enterprises tends to be short-term, there are prospects for sustained work through Human Resource Development (HRD) in the form of education or trainings for the employees. By gaining new knowledge, competencies and skills, workers can have better chances for continuing work, even as they move to from one company to another. Moreover, employees will have entitlements for social security, occupational health and safety, with the right to organize and form unions as contained in State laws. This concept is called decent and sustainable employment.