College of business administration-graduate school

Since there is no statistical data recorded in PSA and DTI regarding the demand for enterprise application software by SMEs in the Philippines, past demand is computed by multiplying the number of SMEs in the Philippines for the year 2017 – 2019 based on PSA’s statistical report by the percentage of market acceptability. Since there is also no statistical data recorded in PSA and DTI as to the market acceptability of enterprise application software by SMEs in the Philippines, the market acceptability was based on the survey conducted by Tally and Kantar (2018) in India amongst 2250 Micro, Small and Medium Enterprises (MSMEs) across the country. The survey showed that less than 25% business management software users have adopted business applications like financial applications, customer relationship management applications, etc., but a strong 45% looking to adopt these in the near future. Based on the foregoing, the market acceptability is 70% which is computed as the sum of the percentage of MSMEs which have already adopted business applications (25%) and the percentage of enterprises looking to adopt these in the near future (45%). India is a suitable reference country for the Philippines since both are considered as developing countries. The average annual growth rate is 7% based on the annual number of SMEs from 2017-2019 as per the PSA.