The plight and resilience of our MSMEs
LLastoftwoparts
AST Sunday, we shared the challenges a sports bar and a coffee shop are facing during the coronavirus disease 2019 ( Covid-19) pandemic. They may not completely represent their industries, but they offer a glimpse of the struggles of our micro, small and medium enterprises (MSMEs). These struggles cannot be ignored, as MSMEs contribute a significant portion of our country’s gross domestic product— about 36 percent — and employ at least 62 percent of the Filipino workforce, according to an Association of Southeast Asian Nations report, titled “Sharing access to technology, the story of MSME’s path to innovation in the Philippines.”
In the conclusion of this column, the focus is on how a food joint overhauled its entire business model to cope and survive the pandemic.
Carlo Soriano Owner, Fourth Foods
Fourth Foods is a family-owned food establishment in the bustling city of Lipa, Batangas province. Lipa is known for its historical sites and food, and Fourth is the go-to food joint for steak and kebab for both locals and tourists.
One of its owners, Carlo Soriano, discussed the challenges and opportunities presented to the business during the Covid-19 crisis.
On the impact of the crisis on the business, Soriano said: “With the current pandemic, our business has transformed from [ offering] food service [ into a] food product dealership. As [we observed consumers] in-store and online, we were able to pinpoint certain items that we can tap into.”
On steps taken to counter the negative impact, he said: “In every opportunity, timing [ is] everything. We acted quickly by contacting our former supplier for a partnership to represent their products. We initially started at the reseller position, and being aware of the competitive environment our community has, we immediately applied to become an authorized dealer during our early weeks of [operations].”
“The term to get this was, of course, to perform, to sell,” he added. “We relentlessly marketed the product on our social media platforms, delivery services (aside from our own) and resellers in our community. We made sure our items are within reach to every customer. In a month’s time, we doubled our initial investment and sealed the authorized dealership contract.”
Asked if he saw any silver lining amid the pandemic, Soriano replied: “For us, even during these trying times, we still see an opportunity to continuously build our market base. For the past month, we have been aggressive and successful in increasing our brand presence and gaining more partners outside of Lipa.”
He offered this advice to fellow and aspirting entrepreneurs: “To aspiring entrepreneurs, be observant of the demands and needs of the market during this current situation. If you are an existing entrepreneur and your business is struggling, be bold and adapt.”
Bottomline
No doubt about it, MSMEs are hurting. Cash-flow bleeding, the prospect of closure and all other uncertainties are emotionally and mentally draining. It doesn’t matter whether economic recovery would be shaped like “V,” “U” or “L,” for the road to it would still be painful. There might not be a precedent for the magnitude of this crisis, but if there is something we have witnessed from previous disasters and from the entrepreneurs featured here, it’s that Filipinos have an indomitable spirit, and that they are resilient and naturally optimistic.
I’d like to think that those characteristics would be enough to have our MSMEs bounce back, but they need a lot of support. While the government has its own ways of providing aid for MSMEs, let’s support them by buying local. If you’re a big company with a war chest to survive and even grow amid this crisis, pay your MSME supplier on time! Your prompt payment could spell the difference between its survival and demise.
All the best to our MSMEs!
JesiBondocisaregisteredfinancial PlannerofRFPPhilippines.Heis anentrepreneurwithbusinesses in food and beverage, finance, andfitness.Heisalsothedirector ofMyWealthMDandPartners Inc., specializing in investment advisory[andchiefexecutiveofficer of SignopsysInc., a print advertisingcompany.Sendyour money questions to jesi.rfp@ gmail.comorjj_bondoc@yahoo. comandthey’llbeansweredinhis nextarticle.Formoreinfoabout theRegisteredFinancialPlanner program, email info@rfp.ph or text