Weathering the storms in business
Resilience is key to staying in business in the Philippines. With the country naturally experiencing several disasters and typhoons year in and out, there is a constant need to prepare for their impact on business and the economy. Apart from the homes and communities largely affected by these threats, those bearing the brunt of the natural disasters are the country’s 900,000 micro small and medium enterprises (MSMEs).
The need to plan for contingencies is at the core of the Business Continuity Planning program, pioneered by Unilever Philippines, in partnership with the Humanitarian Leadership Academy (HLA) and conducted by Philippine Disaster Resilience Foundation (PDRF). Designed to prepare businesses in times of calamity, the program aims to instill resilience in MSMEs.
Experience with disasters
Helen Fabros and Leonora Mayos, participants of the program, tell us their experiences as entrepreneurs.
Both store owners see the need to maintain their performance on delivering quality. This becomes challenging especially when major disasters ensue.
In 2004, when the Philippines experienced Typhoon Winnie, one of the country’s strongest typhoons, Fabros’s house was flooded, damaging her small grocery. According to her, she didn’t know what to do then. “We didn’t expect chest-deep flood to wash over the market and ruin the goods,” she shared.
Fabros said the severity of the calamity really reflect in loss of customers, sales and profit.
For Mayos, a pharmacy owner in Benguet, she recovers her losses by putting more effort in promotions. She said this needs to be done to avoid further losses. “Businesses are forced to close because of huge losses,” she lamented.
Business planning for MSMEs
In 2016, the Humanitarian Leadership Academy with the support of Unilever Philippines launched “Strengthening Disaster Preparedness of Micro, Small, and Medium Enterprises through Business Continuity Planning,” a program to train 1,000 entrepreneurs nationwide. The academy is a global learning initiative set up to facilitate partnerships and collaborative opportunities to enable people to prepare for and respond to crises in their own countries. These sessions are facilitated in partnership with the PDRF.
“Recognizing the struggle of MSMEs to recover after a disaster, we collaborated with the Humanitarian Leadership Academy to create a program that will increase preparedness for businesses while enhancing their competitiveness,” said Benjie Yap, chairman and chief executive officer of Unilever Philippines.
“The academy puts a premium in investing in knowledge and preparation, especially in preparing for disasters. Through the program, MSMEs are trained to create business continuity plans according to their location, context, and needs— a significant component in strengthening the resilience of businesses as well as communities,” said Joyce Pilapil, Academy Center director of the Humanitarian Leadership Academy.
Values and skills learned
Both entrepreneurs shared the values and skills learned from the training allowing them to gain a better sense of their respective businesses.
Mayos particularly cited the importance of product safety. She makes sure that medicines from her drugstore are secure and in place to avoid possible damage and need for stock replacement.
“We may not know when disaster might happen but it will happen.” It’s just right to know how to prepare yourself. I don’t want to be complacent,” she shared. “We do monthly and weekly inventories so we also don’t overstock on items. You have to balance availability of stocks that will convert into sales, and your remaining funds,” Mayos said.
She highlighted that the training taught her to be vigilant. Aware that fires may also happen, she asked help on how to operate the store’s fire extinguisher in case of accidents. She also saw the need to protect equipment, such as her computers, which contain her files and inventories.
This is also true for Fabros. “The program helped me a lot. I learned how to prepare for different types of disasters, depending on the storm signal, and the measures to take hours before a typhoon arrives,” Mayos said.
Fabros’s views on business also developed; from a way to make profit to become a service to the community as well. She narrated a noteworthy experience.
“I remember when it rained for six days straight. Some kidded me on why I kept the store open, and I responded that it was not to make a profit but a service to the community. Local officials saw me and helped transport my goods so I can make them available to people who need these,” Fabros said.
Fabros saw the value in building her network and contributing to the community. She said this also helps in maintaining relationships with customers.
Enhancing customer satisfaction
Business continuity makes it possible to service customers, despite non-ideal conditions after disasters. Unless enterprises have a failsafe plan, it would be challenging to make it through unexpected scenarios.
For Mayos, keeping her pharmacy open in times when it’s most needed builds people’s trust and customer satisfaction. “I’ve been a pharmacist for almost 20 years, and I feel fulfilled when I give my best advice. Serving what people need is how I establish customer relationships. That’s what’s important to me,” Mayos said.
Sustainability and resilience
Unilever Philippines sees improving livelihoods as one of its sustainability goals.
“Our working business model is inclusive because it affects the entire value chain—manufacturers, suppliers, distributors, retailers, including MSMEs. One way to improve this model is to support MSMEs, which we are doing through this program. We want to coach our entrepreneurs to plan ahead, be prepared, and not be a victim of uncertainty in times of disasters,” said Ed Sunico, vice president for Sustainable Business Communications.
Fabros and Mayos are just two examples of the thousands of MSME operators who go through the same experience. As they’ve learned, product safety, customer relationship, and contribution to the community have never been more important in times of disasters.
“What I’ve learned is treasure that can’t be stolen. It’s embedded in my heart and mind,” Fabros said.
The program’s primary purpose may have been for entrepreneurs to protect their livelihood, but it also builds vibrant and resilient spirits which can weather storms of any kind.