Filipino small business owners prioritize investment in digital tools — study
SMALL BUSINESSES in the Philippines increasingly view digital tools as major drivers for growth, a study by a web hosting and entrepreneurial aid company showed.
Around 95% of Philippine small business respondents have planned investments in online sales and marketing spending this year, according to the GoDaddy 2023 Data Observatory report released on Monday.
They have started using digital tools like internal social networks (84%), shared drives (72%), data storage and transfer services (67%), and video conferencing (65%) to improve business processes, the GoDaddy report added.
The Philippines’ digital economy is projected to grow by 13% this year to $24 billion in gross merchandise value, according to the e-Conomy report by Google, Temasek Holdings, and Bain & Co.
This will be mainly driven by ecommerce, which is expected to expand by 21% annually to hit $24 billion by 2025.
“Meaningful customer experiences are recognized by Filipinos as a key component for their business,” GoDaddy said in an e-mailed press statement.
It noted respondents seeing the impact of digital transformation on customer service (71%), payment systems (70%), e-mail notifications (67%), booking systems (63%), and invoicing (56%).
Additionally, 54% claimed to use a customer relationship management tool to manage customer interactions, which is close to the 55% global average, according to GoDaddy. The top priorities of small businesses in integrating digital solutions include web security (82%), social media presence (82%), establishing an online store (76%), digital advertising (75%), and having an own website (72%), it said.
The Philippines’ digital economy is projected to reach between $80 billion and $150 billion in gross merchandise value by 2030, the e-Conomy report said.
It projected that the Philippines’ internet economy will grow by an annual 20% to reach $35 billion by 2025. This 20% compound annual growth rate will be the fastest in Southeast Asia, along with Vietnam.
“Due to the rapidly rising adoption of digital payments and the global e-commerce boom, it is obvious that digital is the way to go if we want to see exponential growth,” Angelito M. Villanueva, Rizal Commercial Banking Corp. executive vice-president and chief innovation and inclusion officer, said in a Viber message to BusinessWorld.
“In this era of smartphones, tablets, and advanced technology, focusing on how to grow our digital economy should be the priority of all governments right now,” he added.
“We must take full advantage of this cash-lite, digitization movement, and capitalize on people’s new postpandemic, digital-dependent behavior for basic financial transactions.”
The GoDaddy 2023 Data Observatory was conducted globally in March, surveying 4,682 small business owners with one to 50 employees, including the Philippines.