The country’s micro, small, and medium enterprises (MSMEs) are optimistic towards a stronger performance this year, including higher revenue and tapping more customers, following weaker results last year, according to a report by Boston Consulting Group (BCG).

BCG, a global consulting firm, presented its findings on Filipino MSMEs during the 2025 MSME Bayanihan Caravan hosted by the Department of Trade and Industry (DTI) on Tuesday, July 15.

In collaboration with the DTI, BCG said it conducted a nationwide survey of 3,098 MSMEs to capture a robust view of the sector that represents 99 percent of all businesses in the country.

Based on the report, only 43 percent of MSMEs said their business performed better last year compared to the year prior, meaning the majority of the sector believed they had a poor showing in 2024.

Findings showed that 64 percent of MSMEs started their business to provide for their family; thus, a year of lower earnings can significantly impact the day-to-day lives of many Filipinos.

MSMEs also cited the need to pay for their children’s education, gain financial independence, and pursue their passion as key reasons for starting a business.

“For many MSMEs, business is not the dream—it is the vehicle to achieve the dream,” the report read.

Notwithstanding a down year, the resilient Filipino spirit still shines among MSMEs, with 73 percent of the sector optimistic about achieving stronger results in 2025.

The main goal of MSMEs this year is to grow their respective business by increasing revenue, expanding customer base, improving product or service quality, and securing additional financing.

BCG said that being able to grow is dependent not just on their effort and ambitions but also on the environment and resources available to them.

In its survey, it found that access to financing remains the most pressing concern for MSMEs since many establishments often start with only their saving and support from friends and families.

“Formal financial institutions remain distant, intimidating, and above all, underutilized,” the report read.

This “intimidating” aspect in formal sources of loans pushes 44 percent of MSMEs to continue leaning on their savings.

BCG noted that the fear of debt and high interest rates are holding the sector back from borrowing, which could drive their growth.

This fear is often misplaced, as most approved rates only fall between one and five percent.

To encourage the sector’s growth, BCG said the government should shift its perception of MSMEs from a “sector worth celebrating” to a central piece in the country’s national policy.

“Investing in their growth should be treated with the same rigor as roads, ports, or power grids,” it said.

The American firm said the government should provide long-term funding and harness institutional coordination that will help MSMEs usher in sustainable growth.