OCCIDENTAL MINDORO, Philippines — A handicraft maker in San Jose, Occidental Mindoro, once struggled to produce just 10 coconut-shell keychains in a day. After a relatively modest technology investment, that output reportedly jumped to around 100 pieces daily — a tenfold increase that shows how equipment and innovation can dramatically change the economics of a small Philippine business.
The business belongs to Andrea B. Benoya, a local entrepreneur whose handmade products include bead necklaces, bracelets, bags, leis, ID laces, fridge magnets, coin purses and souvenir items fashioned from coconut shells.
Her products are sold through pasalubong centers and supplied for local events, schools and workplaces, according to a Philippine Information Agency report published on August 21, 2026.
But before technology entered the picture, production was painfully slow.
Benoya recalled that her husband had to manually cut coconut shells into the required shapes and polish them before they could be turned into keychains and other products. The labor-intensive process limited how many pieces the business could produce, at times forcing the family to reject orders or impose limits because they simply could not manufacture fast enough.
₱87,765 Technology Assistance Changed the Equation
The turning point came in 2018, when Benoya applied for assistance under the Department of Science and Technology’s Small Enterprise Technology Upgrading Program, or SETUP.
PIA reported that she received ₱87,765 in assistance to improve the enterprise’s production process.
The impact was significant.
According to Benoya, the upgraded operation was capable of producing around 100 keychains per day, compared with roughly 10 pieces previously.
That increase gave the business something that many microenterprises struggle to achieve: the capacity to accept larger orders without multiplying working hours at the same rate.
With production no longer constrained by the same manual bottleneck, Benoya was also able to expand into additional products, including coconut-shell bags, leis, magnets and coin purses. The improvement reportedly contributed to higher income and allowed the enterprise to serve bulk buyers.
She has since joined conventions and other events to look for new markets while continuing to serve regular customers.
Benoya’s Story Is Part of a Much Bigger Technology Push
The Occidental Mindoro case is not an isolated experiment.
SETUP is a nationwide DOST program designed to help micro, small and medium enterprises adopt technologies that can improve production, efficiency, product quality and competitiveness.
DOST describes the program as covering not only technology acquisition but also technical assistance, training, consultancy, packaging, testing, standards compliance and other business-support interventions.
The government’s investment in the program remains substantial.
In the first half of 2026 alone, DOST invested around ₱671 million in 386 SETUP projects, according to figures reported by the Philippine News Agency in July.
That suggests Benoya’s experience represents a broader government strategy: instead of relying only on loans or subsidies, small businesses are being encouraged to increase output by upgrading the actual technology behind production.
Evidence From Other Regions Shows the Same Pattern
Results reported elsewhere in the Philippines suggest that technology upgrades can have effects beyond individual businesses.
In Caraga, DOST technology interventions were credited with generating around ₱682 million in MSME sales and about 700 jobs between 2022 and 2024, according to the Philippine News Agency. Regional officials said SETUP helped modernize local enterprises through equipment upgrades, training and consultancy.
BusinessMirror separately reported that DOST data covering 2022 to 2024 showed SETUP had reached 21,920 firms and other science-and-technology entities, supported 3,379 projects and involved about ₱2.57 billion in funding nationwide. The same report said roughly 29,131 jobs were created in connection with the program’s interventions.
Those figures reinforce the argument behind SETUP: sometimes the difference between a microbusiness remaining small and becoming capable of competing for bigger contracts is not demand — it is production capacity.
The Next Challenge Is No Longer Just Machinery
Technology assistance itself is also changing.
DOST has increasingly pushed SETUP toward digitalization, automation and Industry 4.0, meaning assistance can go beyond basic production machines and include ICT systems, digital tools and advanced technology adoption.
That direction is becoming even more visible in 2026.
In February, DOST urged MSMEs to consider robotics and automation as tools for increasing production and productivity. Government-supported programs are also exploring artificial intelligence and autonomous technologies for businesses capable of moving further up the technology ladder.
The Department of Trade and Industry has pursued a parallel digitalization campaign, arguing that MSMEs need stronger digital capabilities, online market access and modern operating systems to compete in an increasingly technology-driven economy.
That matters because simply producing more goods does not automatically guarantee sustainable growth. Small enterprises must still find customers, manage financing, improve branding, comply with standards and develop distribution channels capable of absorbing higher production.
Benoya herself has received assistance not only from DOST but also from the Department of Trade and Industry and the Department of Labor and Employment, according to PIA.
From 10 to 100 Is More Than a Productivity Story
The most striking number in Benoya’s story is the jump from 10 keychains to 100.
But the bigger economic lesson may be what happens after production increases.
For a microenterprise, a machine that cuts hours of manual work can mean the difference between declining a major order and accepting it. It can also free workers to focus on design, marketing, packaging and new products instead of repetitive manual processes.
That is why the government’s MSME strategy increasingly treats technology as infrastructure for growth rather than a luxury available only to larger companies.
The challenge now is scale.
Thousands of Filipino businesses still operate with limited technology, capital and access to modern markets. Earlier DTI research found that many MSMEs remained concentrated at basic levels of digital adoption, with businesses reporting strong needs for capacity-building in areas such as financial management, customer development and content management.
Benoya’s experience shows what can happen when one of those constraints is removed.
A workshop producing 10 pieces a day became capable of producing 100.
The bigger question is how many other small Philippine businesses could make the same leap — if the right technology reaches them before their next big order does.
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