MSMEs most affected by lockdown, DTI survey shows

MANILA, Philippines — Majority of micro, small and medium enterprises (MSMEs) experienced a decline in sales and workforce as their operations were disrupted by the community quarantines imposed by the government to prevent the spread of the coronavirus disease 2019 or COVID-19, the Department of Trade and Industry (DTI) said.

In a statement Thursday, DTI said a survey conducted by the agency from June 4 to 17 covering over 2,000 respondents showed 91 percent registered lower sales.

Based on the survey, 74 percent of respondents also reported a reduction in workforce.

Of the total respondents, 26 percent ceased operations when the community quarantines were put in place starting March, while 52 percent went on partial operations and 22 percent remained on full operations.

MSMEs are considered the country’s engine of growth as they account for the bulk of all registered business establishments.

As part of efforts to help MSMEs, DTI, the National Confederation of Cooperatives (NATCCO), US Agency for International Development (USAID), Facebook Philippines, Shopee and Lazada launched a project focused on empowering women entrepreneurs to become digital savvy and embrace e-commerce opportunities.

Through the project called Connecting Women Entrepreneurs to the Digital Economy, the parties would be providing training on online storefronts, digital marketing promotions, as well as use of digital payments to turn Filipino women entrepreneurs into effective online sellers.

Under the project, 400 women entrepreneurs nationwide with products ready to go online are nominated to undergo a tailor-fit and intensive capacity building program aimed at expanding market reach and growing revenues within six months.

To sustain the program, 150 DTI and NATCCO personnel will undergo a mentorship program to guide participating entrepreneurs and for immediate course corrective measures.

Citing a recently concluded Digital Readiness Study, DTI said while many women entrepreneurs motivated to grow their business have started their digital journey through popular social media sites like Facebook, they still need more knowledge and skills to take advantage of the digital platform and convert engagement to sales.

The project is among the initiatives of USAID to help women entrepreneurs bounce back from the impact of the health crisis.

“USAID is pleased to collaborate as we pursue a future where digital technology spurs robust inclusive growth, fosters resilient societies, and empowers all, including women,” Jenna Diallo, deputy chief of the Office of the Economic Development and Governance at USAID, said.

“This presents the biggest opportunity we can harness in building back our communities during this period of the COVID-19 pandemic. Women entrepreneurs – as agents of innovation and change – will help our country bring us towards digital connectivity as we re-open the economy, we want to see not only a new normal, but a better normal. This will create more jobs and employment for our people,” Trade Secretary Ramon Lopez said.

Online platforms Facebook, Lazada and Shopee have also vowed to help women entrepreneurs take advantage of opportunities online.

“We have long recognized the immense potential of Filipina entrepreneurs to succeed and innovate, and we want to help them connect meaningfully with their communities so they can grow their business further and contribute to the Philippines digital economy,” Facebook Philippines head of policy Clare Amador said.

“Through this partnership, we will arm them with the resources to strengthen and future proof their businesses for the journey ahead,” Lazada chief operating officer Carlos Barrera said.

For his part, Shopee associate director Martin Yu said the “partnership reflects our commitment and continued efforts to empower local entrepreneurs to succeed online and set them up for sustainability and long-term growth.”