PROJECT PROPOSAL

PANGKABUHAYAN para sa BAYAN

RATIONALE:

Cottage industries have faced many challenges over the ages from, at the time, the
industrial revolution and now, globalization. Yet people living in rural areas even now often
engage in small scale manufacturing activities like weaving, sewing and other artisanal
crafts, to supplement their income. These activities need little investment and are usually
conducted at home, sometimes passed on from generation to generation.

The benefits of cottage industries and other small scale enterprises are a no-brainer.
Apart from productive income activities, they create an environment of lower income
inequality and allow people to take control of their lives and bring earnings into their
community. Most importantly, they generate gainful non-agriculture based employment
for those who cannot find jobs elsewhere. They can play a surprisingly large role in
improving a nation’s economic standing. In addition to general poverty alleviation
programs, developing cottage industries is an approach that can boost the rural economy
and diversify its production.

In spite of its benefits, cottage industries struggle to survive under the pressure of
globalization. Their products are unable to compete with the cheap goods of efficient
production. Lacking the marketing savvy to advertise their products and safeguard their
interests, these entrepreneurs lose out on the global playing ground. On the flip side,
globalization also opens new markets and increases demand for products of all kinds,
ranging from tourism to uniquely embroidered textiles and crafts.

What can be done to help the cottage industry thrive, even in the face of globalization?
The main issues that face cottage industries in most countries are the same—lack of
finance, infrastructure and an easily accessible method to advertise and sell their
products.
Cottage industry clusters promote employment, local capacity and collective power for
small entrepreneurs. This development program addresses all these issues by providing
basic machineries, increasing market linkages, profit margins, empowerment of women
artisans, improved marketing skills, vocational training and access to raw materials can
help small domestic business broaden their customer and product base. The scope for
involvement of community service organizations and business associations in working
towards this goal is large.

So far cottage industries have been focusing on products and services that have high
demands and markets. However, the scope for such small community organizations in
environmental, health and other sectors is also large. Cottage industries can accomplish
so much given the right support and infrastructure.

SPECIFICS:
Since this will be a nationwide project, a system shall be created to be implemented at as
low as the Barangay level sparking an organizational approach towards the distribution
of basic machineries and providing trainings and seminars to the target areas and to the
gathering of reports upon its implementation. This is further described under the following
diagram:

Barangay City/Municipal Regional System of National System

System of System of Implementation of Implementation
Implementation Implementation