The Department of Science and Technology (DOST) offers the Small Enterprise Technology Upgrading Program (SETUP) to help micro, small, and medium enterprises (MSMEs) enhance their operations through technology and equipment upgrades. This nationwide initiative aims to show support to MSMEs by providing access to new technologies, equipment, and technical assistance to improve productivity, develop new products, and strengthen innovation among businesses. It focuses on improving business processes, increasing productivity, and helping enterprises become more competitive in their respective industries. The program also enables businesses to refine existing products and services while maintaining sustainability and inclusive growth in local communities.
In essence, it provides MSMEs with opportunities to enhance their businesses through technology and innovation. By making sure to go through with the detailed application process and preparing the required documents, enterprises can take advantage of this program to improve efficiency and competitiveness in their industry. To learn how, then keep on reading this guide.
Features and Benefits
This transformative DOST program is especially created for the purpose of helping MSMEs integrate advanced technologies into their operations to boost productivity, enhance product quality, and create sustainable market niches. Some other features and benefits offered by the program include:
- Technology and equipment upgrading tailored to specific enterprise needs
- Comprehensive technical assistance including technology needs assessments and consultancy
- Access to innovation funds and financing options with flexible repayment terms
- Training and capacity-building initiatives to improve operational efficiency
- Support for product development and adherence to quality standards
- Facilitation of technology transfer and commercialization strategies
- Strengthened collaboration among government agencies, academic institutions, and industry associations
- Enhanced competitiveness and market expansion for MSMEs
Who Can Apply for DOST SETUP?
The following entities are eligible to apply for DOST SETUP:
- Philippine-based enterprises and industry associations that are wholly owned by Filipino citizens
- Government agencies, local government units (LGUs), and civil society organizations
- Academic institutions with business-like operations and entrepreneurial projects
Eligibility Criteria
To be eligible for this program, the target beneficiaries listed above must at least meet the following minimum qualifications:
- Be a Philippine-based enterprise or industry association wholly owned by Filipino citizens.
- Alternatively, be a government entity, local government unit, or civil society organization.
- Or be an academic institution with a business-like operating unit or entrepreneurial project.
- Possess valid business permits and registration documents (e.g., from DTI, SEC, or CDA).
- For cooperatives or associations, submit articles of incorporation along with a board or council resolution authorizing the application.
- Provide recent audited financial statements (three years for SMEs, one year for micro-enterprises) along with a notarized sworn statement verifying the accuracy of the information.
Requirements for Application
To apply for the DOST SETUP, applicants must prepare and submit the following documents:
- Letter of Intent: A formal request stating the applicant’s commitment to refund the financial support and cover insurance costs for acquired equipment.
- Technology Needs Assessment (TNA) Form 01: A completed application for a Technology Needs Assessment.
- SETUP Project Proposal: A detailed proposal following the prescribed format.
- Business Permit and Licenses: Issued by LGUs and other relevant government agencies.
- Certificate of Business Registration: From the Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC), or Cooperative Development Authority (CDA), including an official receipt.
- Articles of Incorporation: Required for cooperatives and associations.
- Board or Legislative Council Resolution: Authorizing the application and designating a signatory for funding assistance.
- Financial Statements: Audited reports for the past three years for small and medium enterprises, or at least one year for micro-enterprises. A notarized sworn statement verifying the accuracy of the information is also required.
- Sworn Affidavit: Declaring that none of the incorporators or officials are related to the approving authority up to the third degree of consanguinity or affinity and confirming that the applicant has no outstanding debts.
- Projected Financial Statements: Based on the proposed project duration.
- Technical Specifications and Equipment Details: Including designs, drawings, or pictures.
- Supplier Quotations: Three quotations from different suppliers or fabricators for each piece of equipment. If fewer suppliers are available, an affidavit stating their unavailability must be submitted.
Step-by-Step Guide to Applying for DOST SETUP
To apply, you simply need to follow the steps listed below:
Step 1: Technology Needs Assessment (TNA)
- Submit a Letter of Intent – The applicant submits a formal request to the Provincial Science and Technology Office.
- Complete the Technology Needs Assessment Form 01 – The DOST team assists the applicant in filling out the form.
- Conduct an Onsite Technology Needs Assessment – DOST representatives visit the business site to assess technological requirements.
- Prepare the TNA Report – The findings are documented in a formal report.
Step 2: SETUP Project Proposal Submission
- Gather and Submit Required Documents – The applicant compiles all necessary documents, including business permits, financial statements, and supplier quotations.
- Proposal Review and Endorsement – DOST reviews and endorses the proposal for further evaluation.
- Submit the Proposal to the Regional Office – The approved proposal is forwarded for regional evaluation.
Step 3: SETUP Proposal Evaluation
- Evaluation by the Review and Technical Evaluation Committee (RTEC) – The committee assesses the feasibility of the proposal.
- Compliance with RTEC Recommendations – Applicants may need to revise their proposal based on feedback.
- Endorsement to the SETUP Unit – The final version is submitted to the DOST Regional Office.
- Final Evaluation and Recommendation – The project undergoes a final review before being recommended for approval.
- Approval or Disapproval by the Regional Director – The applicant is notified of the decision.
Where to Secure the Application Form
To secure the application form for DOST SETUP, applicants can visit the nearest Provincial Science and Technology Office (PSTO) or Regional Office of the Department of Science and Technology (DOST). The application forms, including the Technology Needs Assessment Form 01 and the SETUP Project Proposal Format, are available at these offices. Alternatively, applicants can contact the DOST offices for assistance or request for digital copies. You can also access the official DOST website or regional DOST office for the most updated instructions.
Costs and Processing Time
The application process for DOST SETUP does not require any processing fees. The process is structured into three phases: an initial Technology Needs Assessment taking about 4 days and 4 hours, followed by a SETUP Proposal submission phase of roughly 16 working days and 2 hours, and concluding with a Proposal Evaluation phase that takes about 14 working days. Overall, beneficiaries can expect the entire process—from the initial assessment to final approval—to span approximately 30 working days.
Additional Notes
For a seamless application, interested applicants are encouraged to keep these things in mind:
- Applicants should carefully prepare their financial and technical documents to avoid delays.
- The availability of suppliers should be verified in advance to ensure that the required equipment can be acquired.
- Follow-up with DOST regularly to check the status of the application and address any concerns.
Video: DOST SETUP 4.0 Explainer
To better understand what the DOST SETUP Program is all about and how it was designed to help the MSMEs in the country push forward to better heights, you may check out this explainer video from ScienceTechPH:
For more details, applicants may also visit the nearest Provincial Science and Technology Office (PSTO) or Regional Office of DOST.