Nearly 5% of MSMEs remain closed – DTI

MANILA, Philippines — Around five percent of micro, small and medium enterprises (MSMEs) in the country remain closed as of this month, the Department of Trade and Industry (DTI) said.

Speaking at the Association of Filipino Franchisers Inc.’s anniversary podcast, Trade Secretary Ramon Lopez said based on the DTI’s latest survey on the impact assessment of COVID-19 on MSMEs covering 15,434 respondents, those that have fully halted operations declined to about 4.6 percent from five percent in November, 10 percent in October and its peak at 34.2 percent last year.

“This means fewer MSMEs have closed and some are reopening. I’m sure some that closed may have moved to other businesses. During the time of pandemic, some faced challenges, some opened and had opportunities for a new business,” he said.

Recognizing the important role MSMEs, which account for the bulk of the country’s registered businesses, play in rebuilding the economy, he said the DTI is focused on helping enhance the sector’s resilience for recovery.

With 68 percent of MSMEs involved in franchising, he said the DTI is also encouraging both existing and aspiring entrepreneurs to consider opportunities in this space which has 200,000 franchise outlets and employs two million individuals.

Among the programs being implemented by the DTI to support MSMEs is the COVID-19 Assistance to Restart Enterprises (CARES) program administered by the agency’s financing arm Small Business Corp.

Under the program, MSMEs can avail of zero interest loans without collateral.

Lopez said a total of P2.5 billion worth of loans have been released to MSMEs under the CARES.

Apart from financial assistance, the DTI is also helping upskill existing and would-be entrepreneurs through the conduct of webinars and training on e-commerce, e-payment, and digital marketing.

In addition, the DTI has regular capacity building interventions like the BEST Bootcamp 3A Training program designed for distressed MSMEs and returning overseas Filipino workers who lost their jobs and are currently looking for new sources of income.

“Of the 52 that recently completed the 3A program, 31 passed with flying colors,” Lopez said.

He said the DTI has launched Batch 2 of the 3A program focused on 75 women entrepreneurs who will receive livelihood kits worth P10,000 from the National Council of Women of the Philippines.

“As we face the pandemic, the DTI continues to work on its mandate to promote the growth and development of MSMEs…We encourage all entrepreneurs to help in the recovery by taking advantage of available business opportunities so we may build back better,” he said.