Revolutionizing Microbusiness in the Philippines: Exploring the Potential of CNC

Technology for Innovation and Growth

Racquel A. Cortez
Technological University of the Philippines
cortez_racquel@plpasig,edu.ph

Abstract discussed in the review, along with the significance of

technology adoption for the competitiveness of
The impact of CNC (Computer Numerical MSMEs. The research highlights the advantages once
Control) technology on entrepreneurship and business more. It showcases the example of a Filipino
growth, notably in the Philippines, is examined in this entrepreneur who utilized CNC technology to enhance
paper. The introduction emphasizes the value of his woodworking and furniture-making business.
entrepreneurship and being technopreneurs in the Additionally, the report highlights the CNC devices
nation, as well as the difficulties experienced by developed by the Metals Industry Research and
Filipino businesspeople. It also offers the results of a Development Center in the Philippines to assist local
study on how Filipino micro businesses use emerging entrepreneurs. These devices include the CNC Super
technologies. The Shared Service Facility (SSF) "Lilok" for woodworking and metal-cutting industries
initiative, which provided machinery, equipment, and and the CNC "Plasmanoy" for metalworking.
training to increase the competitiveness and
productivity of MSMEs in the Philippines, is examined Keywords: Filipino Technopreneurship, CNC
in the literature review section. The benefits of CNC technology, MSME Development Plan, CNC Devices
technology, including higher precision, greater
efficiency, greater flexibility, and improved safety, are

APAC region. Filipinos are known to be tech-savvy

but lack knowledge and resources. The Philippine
I. Introduction government is supporting digital start-ups and
technopreneurs, with two new hubs recently opened to
Entrepreneurship is the activity of organizing, kickstart the development of the innovation
managing, and assuming the risk of a business ecosystem. [1]
enterprise as described by Webster's Dictionary.
Technopreneurship is the application of technological Applying CNC technology is one of the possible
advancements with entrepreneurial skills. In the solutions for entrepreneurs to enhance their business.
Philippines, Filipino business owners launch and CNC stands for Computer Numerical Control which
expand their enterprises. They provide an economic operates using programmable automation. It enables
contribution to the nation. They bring unique products designers to create intricate pieces and produce these
and services to the market, creating solutions to products on a massive scale. With a small budget,
improve life. Despite being underrated, they have small-scale CNC machines can be bought and used in
made significant contributions to the lives of Filipinos. a garage, basement, or bedroom. Additionally, there
Filipino business owners currently face issues with are lots of online resources for those creating CNC
inadequate access to technology, funding capital, projects.
marketing guidance, and challenges in establishing
and maintaining competitiveness in their community. II. Literature Review

A survey conducted by FedEx Express across The objective of the Shared Service Facility
nine Asia Pacific countries revealed that 85 out of (SSF) project in the Philippines is to improve the
approximately 500 domestic SMEs in the Philippines productivity of micro, small, and medium enterprises
have adopted emerging technologies to enhance their (MSMEs) by providing machinery, tools, equipment,
supply chains and distribution channels. The most knowledge, and skills training [2]. The project
widely used technologies among these businesses received substantial funding and implemented its
were software automation and mobile payments. The objectives nationwide. It had cooperators from various
survey also found that on average, exports accounted organizations that support the cooperatives, MSME
for 89% of the surveyed small enterprises' total annual groups, individuals, students, and researchers. The
revenue, with 56% of these exports being within the SSF project aims to increase productivity, accelerate
competitiveness through energy-efficient reduce waste and improve product quality.
technologies, facilitate market access, promote [3] [4]
convergence, and address value chain gaps. Key
performance indicators for the project encompassed • Increased efficiency: CNC machines can
the number of MSMEs assisted, jobs generated, sales operate continuously and produce large
generated, and investments generated. With a volumes of parts quickly and efficiently,
budgetary commitment of Php 1,019,613,517.13, which can help to reduce production times
Aquino administration established a total of 2,007 and costs.
shared service facilities. Duterte government
continued the project, which allocated Php • Greater endurance: CNC machines can
1,439,130,764.07 and built 1,274 facilities. The operate 24/7 with minimal human
MSME Development Plan for 2017-2022 focused on intervention, allowing for increased
improving the business environment, business production capacity and quick production
capacity, and business opportunities for MSMEs. It changes. CNC machines also require less
emphasized technology access, market access, and maintenance and may incorporate sensors to
industry upgrading. The plan aligned with the detect wear on parts, preventing breakdowns.
objectives of the SSF project. Both administrations Integrating IoT technology could improve
emphasized the importance of technology CNC machine endurance and automate the
improvements for MSMEs' competitiveness, as removal and packing of finished products. [3]
outlined in the Philippine Inclusive Innovation
Industrial Strategy. President Duterte allocated more • Greater flexibility: CNC machines can be
funds per SSF compared to his predecessor, potentially programmed to produce a wide range of parts
indicating a higher level of technology provided. The and components, which can help businesses
Philippine government allocated Php to adapt to changing customer demands and
2,458,744,281.20 for the SSF project, which lasted market trends. [4]
nine years and spanned two administrations. The
outcomes of this project, including its impact on • Enhanced safety: CNC machines have safety
MSME competitiveness, should be evaluated to assess features that help to minimize the risk of
its success and identify areas for improvement. accidents and injuries in the workplace. [3]
Technology adoption is crucial for economic [4]
development as it improves productivity and
competitiveness. This project aimed to enhance CNC programming is creating code for a
MSME productivity and competitiveness by providing computer to operate CNC machines to manufacture
equipment to the MSME. However, the actual impact parts automatically. It allows manufacturers to
on MSMEs' competitiveness and product produce precise product parts in large batches. There
improvement needs further assessment based on are types of CNC processes, such as CAD software,
productivity gains and other desired outcomes. [2] CAM software, G-code, and M-code. CNC
programmers work in various industries like
CNC machines offer many advantages over transportation, defense, medical, aerospace, power
traditional methods. They can handle a variety of generation, and construction. CNC programmers read
materials and require less human labor, which leads to blueprints, transform paper drawings into CAD
fewer mistakes. CNC machines also offer uniform drawings, operate CNC machines, inspect products,
product and design retention, digital simulations of and repair or replace tools. To become a CNC
prototypes, lower costs, improved safety, and low programmer, you need technical skills, online
maintenance. In the future, full mobility will hit the research, connections with professionals in the field,
CNC industry. Overall, CNC machining is suitable for training, and work experience [5]. CNC programming
different applications across many industries [3]. is essential for businesses that use CNC machines. It
Computer Numerical Control (CNC) solutions benefit allows the creation of custom parts with high
businesses that rely on manufacturing and fabrication precision, automation of repetitive tasks, optimization
processes. Some of the key advantages of using CNC of tool paths, and improved quality control. CNC
technology include: programming can also create prototypes quickly and
accurately, reducing the time and cost associated with
• Improved precision and accuracy: CNC product development. CNC programming can increase
machines can produce precise and accurate efficiency, productivity, and low-cost production for
parts and components, which can help to businesses.
 CNC technology can be a valuable tool for produces high-quality solid wood furniture and offers
entrepreneurs starting a business. Here are some ways: interior design, fit-out, and renovation services. In
2015 and 2020, the company availed of the Small
• Rapid prototyping: CNC machines can create Enterprise Technology Upgrading Program (SETUP)
prototypes of new products quickly and of the Department of Science and Technology (DOST)
accurately, allowing entrepreneurs to test and to acquire upgraded production equipment, resulting
refine their designs before going into full- in increased production output, improved product
blown production. quality, and opened business opportunities. Mr.
Inocencio is grateful for DOST's SETUP and hopes
• Personalization: Using CNC technology can that more Filipino entrepreneurs will benefit from the
produce customized crops, allowing program [8].
entrepreneurs to offer personalized products
to their customers. The DOST developed CNC devices that could
help Filipino entrepreneurs to enhance their businesses
• Small-batch production: CNC machines can without spending too much capital on machines:
produce small batches of products cost-
effectively, allowing entrepreneurs to test the • The CNC Super “Lilok” is a Router machine
market and respond to demand without combined with a CNC device that uses G-
committing to large production runs. Codes to operate. It can cut and engrave on
various materials like wood, metal, and
• Niche markets: CNC machines can produce acrylics by translating the codes into
specialized products for niche markets, mechanical movements. Using the stepper
allowing entrepreneurs to differentiate motor, the Router moves in three directions
themselves from competitors and target (X, Y, and Z). The machine aims to help local
specific customer segments. woodworking and metal-cutting industries
stay competitive by producing intricate
• Low overhead: CNC machines can be designs in large quantities while increasing
operated with minimal labor and space efficiency. The target sectors for this machine
requirements, making it an attractive option are metalworking and woodworking.
for entrepreneurs looking to start a business
with low overhead costs. • The CNC “Plasmanoy” is a highly versatile,
accurate, and efficient equipment that uses
An example of CNC Technology applications in Digital Signal Processing control and servo
business is CNC routers. A CNC router is a computer- drive mechanism for the 2-axis gantry
controlled cutting machine that can cut various system. The third axis uses a Torch Height
materials such as wood, composites, metals, plastics, Controller. The workpiece is on top of the
glass, and foams [6]. It can cut any shape of different platform and made from mild steel laser-
materials and produce crafted goods. Entrepreneurs fabricated cutting grates. The spatter catch,
can have ideas such as home decor products, Kitchen made of bent mild steel, is put below the
tools, office supplies, Custom signage, toys, and more. cutting grates. The machine's heavy-duty
In purchasing a suitable CNC router, decide on a plasma generator and compressor provide
woodworking project. Then, validate product ideas, flexibility and robustness. It follows
create a business plan, build an online store, and instructions in an orderly manner using a
market the products. Digital marketing is also string of codes to produce a tool path on the
necessary nowadays. Launch the store after reviewing machine. The CNC Plasmanoy can bore and
the business plan, testing the store's functionality, cut ferrous and limited non-ferrous metal
creating a shipping strategy, and reviewing the store materials with its high-temperature plasma.
launch checklist. With the availability of affordable The target sector for this machine is
CNC machines, small businesses can produce custom metalworking [9] [10].
items faster and more efficiently [7].
CNC technology has had a significant impact on
One example is the story of Benjie Inocencio, businesses. It has revolutionized the manufacturing
who learned the woodworking and furniture-making industry, making it possible to produce complex parts
industry from his father's business. He went to Kuwait and products with high precision and accuracy. CNC
to gain more experience. Eventually, he opened his machines have also increased efficiency and
own company, Journey Woodblock Enterprises, which productivity in manufacturing processes, reducing the
time and labor required to produce goods. (https://beta.entrepreneurship.org.ph/2022/08
Additionally, CNC technology has enabled businesses /01/technology-upgrading-for-msmes-under-
to customize products to meet specific customer needs, two-administrations/)
meeting customer satisfaction and loyalty [9] [11].

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Philippines has successfully enhanced the
competitiveness and productivity of micro, small, and
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tools, equipment, knowledge, and skills training. that-sell#:~:text=in%20your%20planning.-
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CNC technology has revolutionized the industrial
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[10] youtube,com," [Online].
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