UNLIMITED Global Opportunities: The Rise of Filipino MSMEs through OTOP Next Gen
photo credit: DTI Baguio-Benguet
OTOP
One of the noteworthy endeavors in the Philippines that champions local entrepreneurship and cultural heritage is the One Town, One Product (OTOP) program. OTOP, introduced in 2004 under then-president Gloria Macapagal-Arroyo, is a comprehensive government strategy to empower micro, small, and medium enterprises (MSMEs) nationwide.
This program highlights each town or locality’s unique products and skills, underscoring their distinct cultural identity. By spotlighting regional specialties and traditional crafts, the program fosters economic growth and cultivates a sense of pride within communities.
Through OTOP, talented Filipino artisans and producers have garnered acclaim for their exceptional craftsmanship and boundless creativity, significantly contributing to preserving and promoting Philippine culture and heritage. Today, OTOP thrives as a dynamic catalyst for local industry development, empowering individuals and communities while brilliantly showcasing the abundant diversity of Philippine products.
I sat with Richard Avelino Limpin III, Chief Trade-Industry Development Specialist, at DTI Baguio-Benguet. He gave facts about OTOP—what it stands for and what it feels like to be a part of this incredible initiative.
What does OTOP Next Gen signify in the development of MSMEs?
Amidst the wave of globalization, OTOP has provided local MSMEs with a platform to compete domestically and internationally.
Recently, OTOP has evolved into its new phase – OTOP Next Gen. This transformation aims to adapt to market trends and focus on innovation, further empowering Filipino MSMEs. Along with this is the expansion of criteria and marketable goods coverage. Phase 2 supports towns in developing their unique products and welcomes potential productions.
OTOP Next Gen adopts a forward-looking approach by assisting MSMEs with basic yet promising products to innovate new product lines or refine existing ones regarding quality, design, standards, and beyond. This initiative aims to enhance the global marketing prospects of local products, which are first subjected to localized specialization, branding, and marketing.
a deeper look at otop next gen
OTOP Next Gen emphasizes the production of goods that echo the Philippines’ profound cultural heritage and traditional richness. This strategy instills a sense of pride and connection in Filipino MSMEs in the international marketplace, ensuring that the products encapsulate the nation’s distinctive character on the global stage.
A significant aspect of this initiative is its focus on locally sourced raw materials, native expertise, and established resource networks. It highlights resources unique to specific locations, promoting not only product supplies but also tourism, thereby increasing the market value of these regions.
OTOP Next Gen aids MSMEs in numerous ways, from mentoring programs like the Kapatid Mentor Me (KMME) and Youth Entrepreneurship Program (YEP) that offer resources and training to product development and assistance initiatives that provide consultancy services for product improvement.
The Shared Service Facilities (SSF) Project is another supportive mechanism designed to enhance the quality and productivity of MSMEs. It supplies processing machinery and equipment for collective use, benefitting MSMEs unable to procure such tools for their manufacturing processes.
Furthermore, the Negosyo Center provides essential services including business registration, business advisory services, and access to information on markets, suppliers, and government assistance programs.
The program features diverse product categories including processed foods, agricultural products, arts and crafts, home and fashion items, and various services.
These categories include a wide range of products such as preserved fruits, delicacies, beverages, coffee, cacao, agricultural produce, weaves, bamboo, sculptures, furniture, decor, houseware, garments, wellness products, and more. This diversity encourages Filipino MSMEs to innovate, explore new areas, and scale their businesses.
Overall, OTOP Next Gen provides Filipino MSMEs with a comprehensive platform to grow their businesses. It equips these enterprises with the necessary resources and support to compete effectively in local and global markets. The transition from OTOP to OTOP Next Gen signifies a promising future for MSMEs and the broader Filipino market, affirming that local products, especially those rooted in the rich Filipino culture and agricultural landscape, hold significant value in the global market.
The team leaders for OTOP DTI Baguio-Benguet. From left to right: Layla Corro (POC) and Lydia Alhambra
The esteemed team of DTI Baguio-Benguet, ready to serve and empower lead by Sir Richard Limpin CTID.
A beneficiary of the OTOP program. Therapy Clinique’s indulgent collection of scented candles, room spray, soap, and reed diffusers
OTOP certified representing the Creative Designs category. “Embracing the beauty of local weave and commercial fabrics, our meticulously curated blend of colors and designs sets the trend and makes a striking statement.” —Tribo Estilo by G & G
WANT TO BE OTOP Certified?
Get detailed information on obtaining OTOP Certification by visiting your nearest DTI office where you can complete the required forms and receive expert guidance on the subsequent actions to proceed with.
The OTOP (One Town, One Product) program in the Philippines drew inspiration from Japan's OVOP (One Village, One Product) movement. The OVOP concept, initiated by Professor Morihiro Hiramatsu in the 1970s, aimed to revitalize rural economies by identifying and promoting a unique product from each village. Impressed by the success of OVOP in Japan, the Philippines adopted a similar approach and launched the OTOP program in 2004. Since then, OTOP has played a significant role in empowering local communities and showcasing the diverse range of high-quality products made in different towns across the Philippines. Today, numerous towns across other countries embrace the OTOP approach, emphasizing and promoting their distinctive local products
photo credit: DTI Baguio-Benguet
2 thoughts on “Harnessing Global Opportunities: The Rise of Filipino MSMEs through OTOP Next Gen”
The one town one product program here in the Ph is so helpful for our MSMEs countrymen. Can’t wait for my business ownet friends to be registered 🤗
I know the OTOP program, and I enjoy shopping locally made products and supporting small entrepreneurs. We need to continuously support this program.