Micro, small, and medium enterprises (MSMEs) make up the economic backbone of the Philippines. In 2020, the List of Establishments of the Philippine Statistics Authority recorded over 950,000 MSMEs operating in the country, with 88.77% of these businesses categorized as micro-enterprises.
Seeing that MSMEs alone account for 63% of employment in the Philippines, it is no wonder that there’s no dearth of programs undertaken by the Philippine government to help this sector of businesses. The MSME Development Plan is as extensive as it is thorough, and provides support for MSMEs in the Philippines with regards to:
Improved business climate
Improved financial access
Enhanced management and labor capacities
Improved access to technology and innovation
Improved integration into the global market
However, such aid will do little good if MSMEs themselves do not know how to best capitalize on the support given.
There are countless business opportunities presented by global market integration, and MSMEs in the Philippines can look to leverage these market opportunities if they want to significantly grow their bottom-lines and achieve greater success.
Global market integration effectively expands the sphere in which businesses can operate. MSMEs looking to grow can capitalize on the entailed business opportunities to both increase revenue lines and decrease business expenses.
MSMEs should actively identify relevant market opportunities in accessible international markets, where potential demand for their products or services may lie. Strategic expansion of business offerings to suitable locations determined through robust analysis can not only increase demand size and revenue volume, but grant MSMEs competitive advantage in terms of credibility that may allow for higher margins as well.
MSMEs in the Philippines should also look to source for cost-saving avenues in their analysis of business opportunities. For example, moving manufacturing plants or call centers to countries with cheaper land and specific labor market advantages to do with these business functions can potentially help MSMEs save millions in the long-run.
Global market integration also effectively births a globally accessible workforce. In other words, there is now a larger talent pool for MSMEs to recruit from. MSMEs in the Philippines can thus capitalize on this larger talent pool selection to pick the best talents possible and fill in previously hard-to-fill roles.
There are also numerous other proven benefits of having an internationally-diverse workforce, including:
Better matching of roles and responsibilities with most-suitable talents
Increased levels of creativity and product/process refinement
Richer workplace culture that fosters innovation and problem-solving
One of the biggest problems experienced by MSMEs in the Philippines is securing affordable and consistent financing to execute growth strategies and expand business operations.
With prevalent global market integration, however, MSMEs have the option of looking for alternative financing options such as foreign investors looking to diversify or even public-private collaborations with governments in other countries.
Of course, any global business that looks to be successful requires a supply chain system that can support its global operations.