Connect with us

BizNews

MSME sector is key to COVID-19 inclusive recovery for Phl – UNDP

Majority of the MSMEs still need assistance to recover from their losses. At least 60% of the respondents reported that they have not received any assistance from any stakeholder (gov’t, private sector, NGOs, and others) yet. Among the most pressing needs of MSMEs are access to credit facilities, tax breaks, and deferred loan payments.

Published

on

Photo by Luke Chesser from Unsplash.com

Despite the lifting of the enhanced community quarantine (ECQ) in Metro Manila, majority of the micro, small, and medium enterprises (MSMEs) are still temporarily closed or are operating at decreased capacity—an indicator of the difficulties they are facing in getting back to their business operations according to the recent survey conducted by the United Nations Development Programme (UNDP) on the impact of COVID-19 on MSMEs in the Philippines.

MSMEs comprise 99.5% of business establishments in the Philippines and are employing approximately 63% of the country’s workforce. In the past years, MSMEs were responsible for 40% of the country’s Gross Domestic Product (GDP). During the second quarter of 2020 and almost four months since the community quarantine was put in place, the country’s GDP sank to 16.5% as the Philippines experienced recession due to the COVID-19 pandemic.

In the first MSME online forum organized by the Philippine Disaster Resilience Foundation (PDRF) and UNDP Philippines through SIKAP (Synergizing Recovery Initiatives, Knowledge, and Adaptation Practices for MSMEs), the results of the survey were presented to more than 170 MSME owners and development organizations.

The survey also showed that out of the 285 respondents, 81% reported experiencing low consumer demand. This low demand alongside shortages related to transportation and logistics, and lack of financing capacity were cited as the primary challenges of MSME owners in resuming their operations.

Since the implementation of community lockdowns, MSMEs continued to suffer from disrupted cashflow and continuing expenses, which led to income losses. Close to 80% of the respondents reported a reduction in their average monthly income from April to June compared to their average monthly income prior to the pandemic. While 20% of the respondents tried to retain employees with full pay despite income losses, their cashflow was so severely affected that 25% of them began to lay off employees.

“We are in the middle of a once in a lifetime medical emergency. I know you are worried about your health, scared to open your businesses. But for the sake of our families and ourselves, we have to take that step and reopen while maintaining safety standards. We have to find a way to keep going as long as we need to,” said Butch Meily, President of PDRF.

MSMEs comprise 99.5% of business establishments in the Philippines and are employing approximately 63% of the country’s workforce. In the past years, MSMEs were responsible for 40% of the country’s Gross Domestic Product (GDP).

To address the adverse impacts of the COVID-19 pandemic, MSMEs started implementing adaptive business measures. Among which are digitalization or the use of online platforms for their business transactions, cost reduction, diversification of products and services, utilization of non-cash payment options, and allowing employees to work from home.

However, despite these adaptive measures, majority of the MSMEs still need assistance to recover from their losses. At least 60% of the respondents reported that they have not received any assistance from any stakeholder (gov’t, private sector, NGOs, and others) yet. Among the most pressing needs of MSMEs are access to credit facilities, tax breaks, and deferred loan payments.

“MSMEs play a crucial role in the Philippines’ efforts to recover from the crisis brought about by this pandemic. UNDP will continue to support Government and its development partners to facilitate their sector representation in policy dialogues and program planning so as to capitalize on available solutions that could prevent further closures of MSMEs. We are also working very closely with the private sector to provide online resources and to ensure that all MSMEs can get the right access to e-commerce trainings to support their digital transition. Digital infrastructure in the country is key to enable the development of a new market space online,” said Enrico Gaveglia, Officer-in-Charge of UNDP Philippines.

The result of the survey intended to provide data-driven recommendations that can help the Inter-Agency Task Force come up with more effective policies and programs that are responsive to the immediate and long-term needs of MSMEs.

Majority of the MSMEs still need assistance to recover from their losses. At least 60% of the respondents reported that they have not received any assistance from any stakeholder (gov’t, private sector, NGOs, and others) yet. Among the most pressing needs of MSMEs are access to credit facilities, tax breaks, and deferred loan payments.

Among these recommendations were the integration of MSMEs in public sector procurement, a balanced and complementing mix of monetary and fiscal policies including wide-reaching government guarantees for MSME lending that will support overall spending, and mechanisms to increase household consumption in the country. Other recommendations included addressing the challenges in public transportation to ensure safe and efficient mobility of people, products, and services, and the strengthening of supply chain management by integrating more local suppliers.

BizNews

UPS helps its Phl customers maintain critical infrastructure following typhoon

UPS’s recent expansion of its Worldwide Express Freight (WWEF) shipment service to more postal codes in the Philippines comes as welcome news to West Point Engineering, a long-time customer of UPS.

Published

on

Sitting in a tropical storm-prone belt of the Pacific Ocean known as ‘typhoon alley,’ the Philippines experiences an average of 20 tropical storms every year. 

Last year, on top of dealing with the pandemic, the Philippines was hit by Super Typhoon Goni, the most powerful tropical cyclone in the world in 2020. Goni, or Rolly as it’s locally known, ploughed through Luzon and affected 2.7 million people, displacing 31,000 and damaging or destroying 281,000 homes. Sanitation and hygiene become immediate concerns in the aftermath of a storm like this, with essential water infrastructure usually damaged.

West Point Engineering Supplies Incorporated provides specialized products and solutions to essential infrastructures in the Philippines, such as water, energy and meteorology. 

Among its list of projects is a 10-year program with the weather information services company, Earth Networks, and the Philippine Atmospheric, Geophysical and Astronomical Services Administration. They’ll collaborate to use weather monitoring sensors that provide earlier warnings for tropical storms. 

For West Point Engineering, speed and efficiency is essential in installing and maintaining specialized equipment like weather radars, which can save lives and homes. 

That’s why UPS’s recent expansion of its Worldwide Express Freight (WWEF) shipment service to more postal codes in the Philippines comes as welcome news to West Point Engineering, a long-time customer of UPS.

Businesses like West Point Engineering will benefit from time-guaranteed palletized shipments above 70 kilograms to more areas in Bulacan, Mabalacat, Angeles City, Laguna and Batangas, allowing businesses to more easily and quickly replenish bulk inventories. This helps customers meet urgent, sometimes life-saving, delivery requirements. 

“We have been a partner of UPS for over seven years,” said Dennis Ziganay, president and CEO of West Point Engineering. “Through this pandemic, we’ve been able to meet the demands of these challenging times … thanks to UPS.” 

With businesses needing a more agile and precise process in responding to the needs of the market and its customers, accessibility is key in responding to natural disasters around the globe.

“Exporters, SMEs and long-time partners like West Point Engineering are important contributors to the local economy. As they grow and expand, we listen to their changing supply chain requirements and cater to their needs,” said Chris Buono, managing director of UPS Philippines and Indonesia. 

 “Whether it’s one of the several natural calamities that occurred in the Philippines or an ongoing pandemic, UPS is committed to delivering what matters for our customers as they bounce back from a difficult year,” Buono ended. 

Continue Reading

BizNews

Community banks a key resource for small businesses when crises arise

Community banks are an important source for small businesses when crises, like the COVID-19 pandemic, arise and business owners need to secure help quickly to continue paying their employees.

Published

on

Photo by lucas Favre from Unsplash.com

With billions on the table for struggling small businesses, new research from the University of Florida Warrington College of Business finds that community banks are a critical source for helping these businesses keep their workforce employed during the pandemic through loan access.

“Smaller community banks have traditionally been an important source of funding for small businesses,” said Christopher James, William H. Dial/SunTrust Eminent Scholar and research author. “Community banks tend to be relationship lend­ers, characterized by local ownership, local control and local decision making. Relationship lenders had strong incentives to make… loans in order to preserve small business relationships in the face of the massive economic downturn caused the pandemic.”

In their research, James, Warrington Ph.D. student Jing Lu and Georgetown University Ph.D. student Yangfan Sun, find that community banks were able to respond faster to loan requests from small businesses as compared to larger banks. They also find that community banks made more loans per dollar of deposits than larger banks, particularly during the early stages of the pandemic.

“Community banks tend to specialize in lending based on close personal ties between the loan officer and the small business customer,” James said. “This type of lending requires providing branch managers with greater decision rights in making lending decisions. As a result, lenders at community banks were able to respond faster when the PPP was introduced.”

Consistent with community bank focus on small business lending and their faster implementation of lending, the authors find significantly more loans per small business in counties where community banks had higher market shares. More important, the authors find that higher levels of lending are associated with significantly fewer small business bankruptcies.

Overall, James, Lu and Sun’s research finds that community banks are an important source for small businesses when crises, like the COVID-19 pandemic, arise and business owners need to secure help quickly to continue paying their employees.

Continue Reading

BizNews

Shopee launches #TatakPinoy virtual trade fair to support Filipino businesses

Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, launches #TatakPinoy, a virtual trade fair geared towards supporting homegrown Filipino brands and micro, small, and medium enterprises (MSMEs).

Published

on

Shopee, the leading e-commerce platform in Southeast Asia and Taiwan, launches #TatakPinoy, a virtual trade fair geared towards supporting homegrown Filipino brands and micro, small, and medium enterprises (MSMEs). 

Shopee consistently advocates for the growth of local businesses. Amid the COVID-19 lockdown, which forced hundreds of Filipino businesses to close physical shops, Shopee supported over 1,000 sellers transitioning online through Shopee’s Seller Masterclasses and its partnerships with the Department of Trade and Industry (DTI), United States Agency for International Development (USAID), and local government units. The initiatives helped Filipino entrepreneurs gain a basic understanding of e-commerce and digital marketing. Sellers were also able to master Shopee’s marketing tools, helping them achieve their maximum potential in e-commerce. 

To further strengthen support for local entrepreneurs, Shopee and DTI are set to launch the very first #TatakPinoy Virtual Trade Fair, a campaign that aims to promote products from Filipino brands and local MSMEs. From February 19 – 21, shoppers can discover local delicacies and pasalubong items, particularly those from Regions XII and IV-A, on Shopee. They can also buy products from Filipina-owned businesses, championed by Shopee and USAID’s partnership to empower local female entrepreneurs. 

In its statement, DTI’s Bureau of Domestic Trade Promotion announced, “The Department of Trade and Industry – Bureau of Domestic Trade Promotion is proud to be a partner for #TatakPinoy on Shopee. This initiative will connect thousands of consumers to more than a hundred MSMEs on one platform. We invite Filipinos from all over the country to patronize and take pride in products that are certified #TatakPinoy from the National Trade Fair Pop-up Store and Go Lokal! Shopee Mall.”

Martin Yu, Director at Shopee Philippines, said, “We strongly believe in the importance of uplifting homegrown entrepreneurs. From microbusinesses to SMEs, these local brands all contribute to the Philippine economy’s growth as a whole. Considering that most local businesses still can’t promote their products outside of online platforms due to the pandemic, Shopee also wants to create the opportunity to showcase the best Filipino brands. We will continue to spearhead campaigns that help reignite pride and demand for local products and drive the growth of the economy.”

Aside from discovering high-quality local craftsmanship and assisting local businesses in the process, shoppers can enjoy exclusive discounts up to 10% off on participating Filipino brands such as Colourette, Vice Cosmetics, and Human Nature. 

Shoppers can also enjoy more deals when they checkout using ShopeePay. For more information about the #TatakPinoy Virtual Trade Fair, visit https://shopee.ph/m/tatak-pinoy

Continue Reading
Advertisement
Advertisement

Like us on Facebook

Trending