The Department of Trade and Industry (DTI) is allocating P300 million of its budget next year for programs and projects intended at cultivating the country’s start-up community.
In an interview with reporters on Thursday, Trade Undersecretary Rafaelita M. Aldaba said the DTI is setting aside P300 million of its 2020 budget for start-up programs. The DTI is one of the three agencies required under the Innovative Startup Act to bankroll projects that will foster the start-up sector.
“We originally requested P300 million for next year. We have to wait because next month is the [approval of the 2020 national budget]. Next month, we’ll find out,” Aldaba said.
Aldaba clarified the P300 million will only be the DTI’s allocation for start-ups. The Departments of Science and Technology (DOST) and of Information and Communications Technology (DICT) are also mandated under the law to put aside funding for up and coming firms.
Under the Innovative Startup Act, the start-up grant fund (SGF) is created to be managed by the DOST, DICT and the DTI, each directed to provide initial and supplemental grants to start-ups and enablers that passed their respective selection and application process.
The grants can then be utilized by the developing firm for research, development, training and expansion projects. They can also be spent on fees and charges required to join domestic and international start-up events or competitions.
Sought how much in total the SGF would be if the DOST and DICT funds are included, Aldaba said she has yet to learn the programs and projects to be carried out by the two agencies.
“It would depend on the programs that would be crafted by DTI, DOST and DICT. Each one would make a proposal and there’s going to be budget that we would be requesting from the GAA [General Appropriations Act],” the trade official explained.
As for the DTI, Aldaba bared the P300 million, if approved, will be used to fund workshops and trainings for start-ups, as well as finance their payment for business license fees.
President Duterte signed the Innovative Startup Act in April, but the law was only promulgated in July. Under the law, the government will provide incentives and remove constraints intended to encourage the putting up of innovative new businesses, also known as start-ups.