Nearly half of micro, small, and medium enterprises (MSMEs) negatively impacted by the Covid-19 pandemic expect to recover in three to six months as they implement strategies to sustain the demand of their products and services, a survey result indicated.
Michelle Llorente, policy analyst at United Nations Development Programme (UNDP) in the Philippines, bared the result of the second MSME value chain rapid response survey conducted by UNDP Philippines on July 13 to 23 indicating the Covid-19 impact on operations of the MSMEs.
“With the majority of the population encouraged to continue staying home despite the lifting of the ECQ (enhanced community quarantine), 81 percent of total respondents confirmed that demand for goods and services remains sluggish,” she said in a webinar organized by UNDP Philippines and Philippine Disaster Resilience Foundation (PDRF) through the SIKAP MSME Recovery Hub.
Llorente said all respondents from the creative arts and entertainment industry experience reduced demand for their services, while other sectors that had the highest percentage of reported lower demand were accommodation, administrative support services, agriculture, food and beverage, and other service activities.
The second round of the survey was conducted to 285 MSME respondents, majority of them are from the National Capital Region, Caraga, Central Luzon, and Calabarzon. Seventy-nine percent of them are in operation for zero to 10 years.
On the supply side, Llorente said MSME respondents identified factors that prevented them from continuing the delivery of their products and services, including logistics, temporary closure of distributors, the government guidelines on businesses allowed to operate, and shortage of raw materials due to lack of stocks from suppliers.
To address these challenges, Llorente added the survey result found that MSMEs have started implementing adaptive measures, foremost of these is digitalization, followed by diversification of products and services, and provision of non-cash payment options for their customers.
The UNDP Philippines conducted the first MSME value chain rapid response survey to 315 respondents in May 1 to 15. Majority of the respondents were from the NCR, Calabarzon, and Central Luzon. – Press release
April 27, 2024
