DTI to catalyze digital capabilities of MSMEs

Micro, Small, and Medium Enterprises (MSMEs), which account for 99% of business establishments and employ 60% of its workforce based on the 2020 report of the Philippine Statistics Authority, are hardhit by the COVID-19 pandemic and related economic downturn.

For the past two years, the disruption in supply chains and reduction in consumption due to imposed quarantine measures and decreased consumer confidence have so far caused massive shutdowns, layoffs, defaults, and insolvencies among MSMEs.

In terms of assistance needed by MSMEs, it is noted that across all industries, majority of them require financing assistance the most. Other assistance needed include marketing assistance, complying with government regulations, and enabling policies on regulations providing improvements on administration and provision of taxes, discounts and incentives as well as assistance on rentals and utilities, among others.

“We are confident that by giving MSMEs the needed entrepreneurial and financial skills to operate their own businesses, they will contribute to economic activities that is crucial to revive our economy from the negative effects of COVID-19 pandemic. And as our MSMEs grow and flourish, they will create more jobs and employment that will benefit our people and boost our country’s economic growth in the post-pandemic future,” said Department of Trade and Industry (DTI) Regional Operations Group Undersecretary Blesila Lantayona.

Recognizing the need for a heightened focus on financial literacy and digital transformation of MSMEs especially highlighted when COVID-19 entered the country in 2020, the DTI has partnered with private sector to further boost growth opportunities for MSMEs by expanding their knowledge and upscaling their digital capabilities to improve their business operations.

The DTI and Mastercard entered a Memorandum of Understanding (MoU) to spearhead initiatives that will enable MSMEs to embark on a digital transformation of their business. This includes providing MSMEs with access to safe, reliable and affordable technology solutions to digitize their operations, and enable digital commerce – both accepting and making payments.

These initiatives, beyond enabling MSMEs to future-proof their business, also complements the government’s objective of building a cash-lite society.

“Mastercard is committed to building an inclusive digital economy in the Philippines where all stakeholders can realize their ambitions. Through the partnership with DTI, Mastercard is helping small businesses open their digital doors with access to resources and technology solutions,” said Mastercard Country Manager for the Philippines Mr. Simon Calasanz.

Mastercard is a global technology company in the payments industry with the mission to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible. Using secure data and networks, partnerships and passion, their innovations and solutions help individuals, financial institutions, governments and businesses realize their greatest potential.