New micro and small businesses formed by Filipinos flourished during the pandemic, and continued operating even in the new normal on the back of “considerable community support,” a new study from Manulife Philippines revealed.

In a report entitled “Filipino entrepreneurship and the bayanihan spirit: The resurgence of micro and small businesses in the Philippines,” it found that four in 10 Filipinos surveyed established micro and small businesses during the Covid-19 pandemic.

These new enterprises gained considerable community support, with 65 percent of respondents saying they patronized local small and micro businesses, according to the study.

Manulife found that 41 percent of respondents started businesses during the pandemic, and up to 50 percent said they are very likely to continue their operations in the new normal.

Their primary reasons for venturing into business were to earn income (43 percent), to maintain financial stability (34 percent), and to provide convenience and accessibility to people (eight percent).

The nature of their new ventures is uniquely reflective of market needs during the pandemic, with most business owners engaged in food preparation and processing (41 percent), retail (30 percent), or delivery of essential goods and services (24 percent).

Likewise, Filipino consumer patronage has been positive, as 65 percent of those surveyed said they availed themselves of products and services from local small and microenterprises, and 32 percent doing so more than once a week.

Furthermore, 51 percent said that they are very likely to continue their patronage of small businesses.

The “bayanihan spirit,” or the Filipino tradition of working together as a community, was seen as a strong motivator, with respondents saying that they bought from micro and small businesses to support the local economy (66 percent) or their local community (63 percent).

“The pandemic emphasized the vital role of micro and small businesses in sustaining our local and national economies, especially in times of crisis,” Rahul Hora, Manulife Philippines president and chief executive officer said.

New Filipino business owners, meanwhile, have also became more conscious about preparing for financial challenges or crises.

Among the respondents, life insurance (40 percrn) emerged as the top financial product they bought in the last 12 months, followed by medical/health/accident insurance (36 percent) and non-life insurance (17 percent).

Moreover, 41 percent of respondents said they intend to buy life insurance in the next 12 months.

“This study’s findings coincide with our previous studies that show how the pandemic spurred significant behavioral shifts among Filipinos, including business owners, regarding their finances,” Melissa Henson, Manulife Philippines chief marketing officer, said.

"The socio-economic disruptions Filipinos experienced in the past two years drove increased interest in purchasing life insurance as a financial safety net,” she added.