Need Assesement

Chapter 1

INTRODUCTION

Background of the Study

Small and Medium Enterprises (SMEs) in the Philippines play a vital role not only in wealth creation but also in dispersing new industries to the countryside and stimulating gainful employment. To encourage the development of SMEs, the Government of the Philippines enacted into law the Magna Carta of Small Enterprises (Republic Act 6977) which outlines the general policies for the development of SMEs. Among others, the law mandated the establishment of Small and Medium Enterprise Development Councils throughout the country to promote public-private sector partnership in the promotion of SMEs.

SMEs are defined as any business activity or enterprise engaged in industry, commerce, agribusiness and/or services, whether single proprietorship, partnership, cooperative or corporation, whose total assets, inclusive of those arising from loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated.

It is unquestionably the case that small firms provide less (formal, external) training for their managers than larger firms. What is less clear is whether this justifies government intervention in the market to rectify a shortcoming which could be a result of market failures. Why a certain firm grows slowly or fastly or why a certain firm succeeded or failed.

Training is essential to cover paramount work skills/knowledge and how an organization can conduct Training and Development of its employees thus promotion of a learning organization. The needs and expectations of learning and development should be defined within a person's career development plan. This plan is developed to provide the requirements of employees to carry out their role. A person should not be allowed to progress in position until they have completed the required