#MINDANAO
In last week’s column, I discussed how the growth of Micro Small, and Medium Enterprises (MSMEs) is the future of the local economy. In this time of uncertainty and disruption, strong local economies will be necessary to make sure that people have access to goods and services.
Competitive MSMEs can help bring this about. The main point, therefore, is that we, as citizens, should help our local businesses grow and thrive in the future. This week, we will explore what other things can be done to boost MSME growth.
For one, we will need to keep inflation at a manageable level. High prices hamper growth and expansion since additional costs deter the accumulation of funds that can be used for expansion. On the other hand, consistent savings per month can be programmed as funds for expansion. When costs are high, the same savings can be depleted.
Local business groups can organize trade fairs and bazaars so small businesses can find new customers. These same events allow business-to-business opportunities, as supply deals and marketing collaborations can spur revenue growth even further.
The same groups can develop online business matching sessions with external business groups for local businesses. This alone can bring great dividends for small local businesses that otherwise would be limited to immediate local markets to reach new buyers beyond their localities.
Moreover, the current social media craze enables many local businesses to reach many customers in a way that was impossible two decades ago, when hefty advertising budgets were necessary to craft and distribute a brand and its message on traditional channels. Today, social media platforms, and available design and publishing capabilities enable small businesses to compete in the branding arena.
Knowing how to maximize these readily available channels will greatly help many local enterprises that would otherwise be dependent on local foot traffic for their shops, restaurants, and resorts. As these businesses grow, the capacity to engage more professional branding and marketing capabilities will broaden their reach even more.
Likewise, big brother programs between local medium and large enterprises and groups of micro and small businesses will be helpful. This would be particularly beneficial for local agricultural enterprises and cooperatives to complement government-provided technical support and extension to help them improve productivity, harness available resources and training from government and private sector institutions, and secure desirable long-term supply contracts with customers. Admirable big brother programs in this area include the KALAP Project of business group Go Negosyo, which matches large buyers with small agri-enterprises.
For agro-processors, technical support programs from the regional and provincial offices of the Food and Drug Administration, and the Department of Science and Technology’s regional offices can help improve product quality, shelf life, and packaging. This helps add value to their products and enables shipment to markets outside the region.
To ensure continuous training of company personnel and local entrepreneurs, local colleges and universities can develop continuing education programs and short-term courses on management, innovation, and process improvement.
Another suggestion is to improve affordable local cargo transport. This enables local producers to ship products to markets cheaply. With many new last-mile logistics providers enabling the delivery of goods to customers, the competitive landscape to enable faster, cheaper logistics is clear.
All these initiatives bolster the local MSME ecosystem, making it a space for success and resilience amid many obvious uncertainties we face. Building a robust, competitive base of the MSMEs of tomorrow will help future-proof our local economies, providing opportunities for the next generation.