Local businesses drive an important force in a country’s progress. Apart from contributing to economic growth in terms of revenues and taxes, they help in parading local pride by ensuring that a wide range of products such as various delicacies and crafts are available to consumers.
When the pandemic struck, almost freezing everything Filipinos used to do in their daily lives, among those greatly impacted are the Micro, Small, and Medium-sized Enterprises (MSMEs). According to a study published by the Asian Development Bank released in September of this year, 70.6% of MSMEs in the Philippines temporarily halted their operations following the announcement by the national government of a stringent lockdown in March.
Despite this adversity, some MSMEs in the Philippines remained bullish that business growth is attainable amid a global health crisis. A survey conducted by Oxford Economics and SAP revealed that an estimated 88% of small and medium-sized businesses in the Philippines are confident that they will achieve positive development in the next three years.
Among the local businesses that continue to hold onto an optimistic stance is manufacturing company Lick the Spoon which started in 2006 with a vision of bringing quality gourmet food using proudly Filipino ingredients.
To counter problems like low sales and limited movement of production staff, Mr. Arnold Bernado of Lick the Spoon shared that they boosted marketing efforts, particularly enhancing their online presence. This in turn led to more opportunities for them, enough to sustain the business while avoiding employee layoffs.
For Pangasinan-based bottled Bangus maker Mama Cili Enterprises, connections with customers helped their business continue accepting orders even when the enhanced community quarantine was in place. After a small tranche in sales during the first quarter of the year, their shop saw a gradual increase in revenues as the holiday season neared.
"People were not allowed to work during the ECQ. We had no production. , regular customers called in their orders. It was personal selling as well as online shops helped generate sales," shop owner Ms. Cecilia Natividad said.
From making Christmas baskets with their best-selling products included, Mama Cili Enterprises bounced back. Ms. Natividad shared that these were sold at the Department of Trade and Industry's Go Lokal Store. The DTI Go Lokal Concept Store contributes significantly to the mainstreaming of MSME products as it serves as a sourcing hub for retail partners and an accessible shopping destination for the buying public.
Go Lokal Program
The Go Lokal! Program is a free-market access platform for Philippine MSMEs introduced by the DTI in collaboration with select retail partners. Since its launch in December 2016, the Go Lokal! program has partnered with 19 retailers, assisted 619 MSMEs of which 275 were already mainstreamed, and have become regular suppliers of partner retailers.
To date, the program has rolled out 125 Go Lokal stores nationwide generating over P358 million sales and highlighting local products like home and food items in places frequently visited by shoppers such as malls, supermarkets, department stores, and e-commerce platforms.
Under the DTI’s Go Lokal Program, MSMEs are given the opportunity to introduce their products to a wider audience for free with the support of retailers.
"This program has allowed small businesses, like us, to achieve bigger milestones faster and in a more efficient manner. This huge exposure has allowed us to tap more of those who are part of our niche and gain new and sustainable clients," shared Ms. Kirsten Liamzon, Business Development and Sales Manager of Lunas Living Oils Philippines, Inc., makers of Virgin Coconut Oil and Moringa Oil from Marikina.
The DTI also supported MSMEs to leverage online platforms more. Mr. Mark Sultan, the Chief Executive Farmer of Bambuhay Social Enterprise, said that the Go Lokal campaign opened their start-up to embrace digital selling through various e-commerce channels.
“Go Lokal has played an important role in supporting Bambuhay and the start-up community. This digital transformation has provided multiple options for MSMEs to interact with customers, which sustained our sales, created jobs, and meant more revenue in the long run,” Mr. Sultan said.
Through the Buy Local, Go Lokal National Advocacy Campaign, the DTI is also aiming for a bigger goal of encouraging Filipinos to be patrons of proudly Philippine-made products. The Go Lokal’s website, https://golokal.dti.gov.ph/, provides valuable information for those who wish to participate and support the program.