According to the Philippines Statistics Authority, study by the Department of Trade and Industry, 90.5% of the business entities operating in the Philippines are micro, small and medium enterprises, as of 2021. Also known as MSMEs, these businesses contribute 35.7% of the total trade value. Given its high market share, MSMEs are by and large one of the most important contributors to the country's economy.
In the Philippines, there is strong government support for such microbusinesses, giving micropreneurs a boost in the form of training, mentorship and other side business development services. As a result, starting a side hustle has become an attractive way to make additional money. So, what exactly is a micropreneur and why should you become one?
A micropreneur is defined as someone who runs a micro-entrepreneur business. While an entrepreneur operates a full-fledged business, micropreneurs usually operate on a smaller scale. The most common features include having little to no employees and no delegation or outsourcing of tasks.
In most cases, micropreneurs are both the owners and sole employees of their business. Therefore, they handle all aspects from budgeting to sales and marketing on their own. Some popular side hustle jobs are vlogging, content writing, or even running a small e-commerce store.
Apart from its smaller scale and low barrier of entry, a small scale side business comes with several advantages.
One of the best advantages of running these side hustles is that you can have complete control over the business. This form of micromanaging allows you to focus on expanding your own idea and allows you to scale up or down at your own pace.
The lack of board meetings or multi layers of processes and protocols gives micro business owners almost instantaneous results. This unique business model means you get to measure the success of your activities without having to wait for lengthy reports to come back.
Whether it is a new product, service, or another small business opportunity, owning a microbusiness gives you the freedom to experiment. Moreover, micropreneurs can fully customize how they implement their side hustles to make money.
Typically, the bigger a business grows, the greater the pressure to perform as there are employees and customers to take care of. Additionally, the bigger the company, the higher the operations costs, too. Fortunately, micropreneurs usually do not suffer from such issues, as they often have little to no utility costs. Moreover, they can decide how much work to take and when to do it.
Finally, it's worth noting that executing side hustles ideas often requires learning to manage and solve issues yourself. Even something as simple as how to package orders for shipment can teach you important business skills. In fact, many micropreneurs tend to develop a natural curiosity in their niche which makes them more knowledgeable and productive in their work.
While there are many benefits to becoming a micropreneur, owning a small business also comes with challenges. In most cases, owners fund their side business ideas with their own money. This type of financing can be risky as failure can mean a total loss in the investment.
The lack of delegation of responsibility means they often have to focus on mundane affairs which can take up a lot of time. Also, most of these businesses, especially online side hustles, come with stiff competition, which means little to no breaks. Since everything depends on the business owner, their earnings entirely depend on these fluid factors.
The global pandemic has taken many activities online, and as a result e-commerce has become an easy side hustle for many looking to embark on a small business venture. New buying habits and strong social media usage have driven the Compound Annual Growth Rate (CAGR) of e-commerce businesses to 58% from 2019 to 2020 alone, according to the country’s Department of Trade and Industry. This fuelled the growth of online marketplaces. As such, there are many opportunities to be discovered.
Apart from e-commerce, there are many ways to make money on the side. With the help of DHL Express, micropreneurs from the Philippines can take their side business ideas to new levels. As a logistics service provider, we offer reliable delivery services such as same-day delivery, and even reports of business trends and insights. Sign up for a DHL Express account today or contact us for any enquiries.