Small and Medium Enterprises Technology Upgrading Program

The Small Enterprises Technology Upgrading Program (SETUP) is a Department of Science and Technology (DOST) nationwide strategy to encourage and assist the local micro, small and medium scale business firms to implement technological innovations and improvements in their operations. The program enables the firms to address their technical problems through DOST technology transfer and technical interventions. The activity improves on the aspects of operation such as productivity, product quality, manpower development, cost of production, waste management and other operation related activities. The program helps modernize the production line of the firms and indirectly stimulate the country’s economic growth.

To fully support the program, DOST Grant-in-aid (GIA) is made available for venture financing to qualified beneficiaries. It is payable in two (2) years without interest provided the firm complies with the agreed schedule of repayment.


DOST launched SET-UP to help provide some if not all the needs of MSME’s, in response to President Arroyo’s call for a more focused and integrated program of assistance to MSME’s. SET-UP is a national program of DOST to :

  1. Assist and encourage MSME’s to adopt technological innovations to increase productivity and competitiveness.
  2. Provide services and other technical assistance for MSME’s to have better product quality that conforms with international standars.
  3. Training for the development of human resources and skills upgrading of MSME’s.
  4. Provision of technologies/consultants for other related activities such as cost minimization, reject reduction and waste management.

General Objective

Improve viability of small and medium enterprises and enhances their competitiveness through infusion of:

  • Technologies
  • Technical assistance and
  • Manpower development

Specific Objectives

  • Improve productivity of participating enterprises
  • Higher quality products meeting world standards
  • Increase employment opportunities in rural areas
  • Improve socio-economic conditions in rural areas

Priority Sectors

  • Furniture
  • Food processing
  • Gifts, toys, house wares, handicrafts, fashion accessories, natural fibers and dyes
  • Marine, Fishery and Aquatic Resources
  • Horticulture (Cut flowers, fruits and high value crops)
  • Metals and Engineering


A. Provision of Technology

  • Technology needs assessment, sourcing and installation of technology
  • Seed fund for technology acquisition
  • Human resource development
  • Productivity consultancy and technical advisory services

B. Product Standards and Testing

  • Laboratory upgrading to include shelf-life studies and nutritional labeling facilities and ISO accreditation
  • Product testing and enhancement of DOST testing laboratories
  • Product standards

C. Packaging and Labeling

  • Development of functional package designs and identification of alternative packaging materials using local resources
  • Development of appropriate labels for priority products esp. ethnic food products
  • Establishment of packaging and labeling centers in the region

D. Database Management and Information System

  • List of available technologies
  • List of S&T experts
  • Directory of testing laboratories with testing services offered
  • Networking with other relevant databases (e.g. DBP, DTI and other offices)

What benefits can the participants get from the Program?

The beneficiaries shall be able to:

  • Address current problems
  • Get free technical advice from the consultants
  • Avail of technical training
  • Acquire new equipment to mechanize and/or improve production line through venture funds
  • Standardize and improve the quality of products
  • Be competitive

Who may apply?

  • Any company or individual firm that is based in the Philippines and wholly owned by Filipino citizens;
  • Any small and medium scale business firm that can be classified under the identified priority sectors;
  • Individual firm that is willing to apply technological improvements in their existing operations.