In a recent discussion with Ernie Abella, former presidential spokesman, writer, and businessman, the question arose: Can entrepreneurship make a substantial contribution to enhancing the Philippine economy? Abella referenced a recent survey in which nearly half of Filipinos perceive themselves as impoverished, prompting the inquiry into how entrepreneurship can disrupt the cycle of poverty that has long afflicted many families in the nation.
The notion of survival entrepreneurship is widespread among micro and small entrepreneurs in the Philippines. Many of these individuals exist hand-to-mouth, grappling to make ends meet on a daily basis. This perpetuates a cycle in which they are unable to progress or ameliorate their circumstances. Nevertheless, it is crucial to recognise that this need not be an inescapable cycle. There exist strategies that can aid these small entrepreneurs in elevating themselves and their enterprises.
A fundamental principle is cash flow management. It is imperative for small business proprietors to segregate business funds from personal expenses. By doing so, they can accurately evaluate the performance of their enterprise, identify areas for enhancement, and avert capital depletion as a result of mingling finances. Consequently, this obviates the necessity to constantly borrow funds to sustain the business.
Alongside cash flow management, small entrepreneurs can implement a range of techniques tailored to their respective industries. For instance, those operating carinderias can emphasise offering value and differentiation rather than participating in price competition. Enhancing product quality, improving services, and identifying unique selling points can distinguish enterprises and draw in more patrons.
Endeavours to bolster the upskilling and upscaling of Micro, Small, and Medium Enterprises (MSMEs) extend beyond initiatives such as Go Negosyo. Major companies in the retail and manufacturing sectors have also undertaken the responsibility of supporting small business proprietors through training, market connections, and credit opportunities. This collaborative approach benefits both parties, as the success of small retailers directly impacts the larger companies as well.
It is essential to safeguard MSMEs while simultaneously preparing them to vie on a global scale. The impending economic integration within Southeast Asia presents both challenges and opportunities for Filipino enterprises. The heightened competition from other ASEAN member-states is inescapable, but efforts to fortify the capacities of local enterprises to compete are already in motion. Collaborative programmes like the ASEAN Mentorship for Entrepreneurs Network and the Kapatid Angat Lahat sa Agri Programme are oriented towards fostering collaboration and knowledge exchange among neighbouring countries.
In conclusion, the trajectory to success for Filipino MSMEs entails continual advancement and expansion. By enriching their abilities and potential, these small entrepreneurs can not only flourish in domestic markets but also assert themselves resolutely in the face of regional and global competition.