The state of the nation’s MSMEs

Today will be President Marcos Jr.’s third State of the Nation Address and I will be following the events from Bali, where I flew this weekend to attend the wedding of Patricia, the daughter of my close friend Butch Prieto.

I had several interesting conversations with the groom’s father, Mark Cojuangco, about business, entrepreneurship and his advocacy, nuclear power. I will share more of that in my next column. But foremost on our minds is the present course of our country’s economy, which no doubt will be discussed at length in today’s SONA.

As a longtime champion of entrepreneurship in the Philippines, I follow closely every development in the MSME sector, especially the direction being set by the government. The policy-setting and support from the nation’s leaders are crucial and affect the lives of millions of Filipinos. After all, more than half of them are employed by these enterprises; even the largest corporations are dependent on the sector’s overall health.

Therefore I was thrilled to listen to DTI Sec. Pascual and Usec. Cris Roque’s speeches during the National MSME Summit last week, where they unveiled the many programs that will help our MSMEs. One is the OTOP Retail and Learning Center, a dynamic hub offering mentoring and educational sessions alongside its retail offerings. OTOP stands for One Town, One Product, the highly successful program of DTI to promote unique local products based on their geographical origins and reflective of local culture and resources.

Usec. Roque introduced us to the DTI-Bagong Pilipinas Marketplace, the largest B2B e-commerce platform showcasing products and services from Filipino MSMEs. It further broadened the scope and concept of OTOP, and now encompasses all locally produced offerings across the country.

What surely piqued everyone’s interest were the programs like the AI Strategy Roadmap 2.0 and the establishment of the Center for AI Research, which are to accelerate the digital transformation of MSMEs. These are in keeping with the President’s direction to embed AI and digital technologies to increase MSME capabilities, not just to keep up with global trends and potential international marketplaces, but to break down barriers and propel Filipino entrepreneurs to even broader markets.

The latest MSME Development Plan echoes these priorities. The release of the blueprint for our country’s MSME development is always a watershed moment for our nation’s business landscape, as it paves the way for this major engine of our country’s development.

I believe that the integration of cutting-edge digital technologies, including AI and data-driven solutions, is a true game-changer. By embedding these transformative tools into the very fabric of our MSME ecosystem, we are not merely modernizing our enterprises – we are laying the foundation for a resilient, globally competitive business environment.

Go Negosyo’s programs support this vision, and we are committed and driven to create a thriving environment where every Filipino can succeed and contribute through entrepreneurship. We offer free mentoring during our 3MOW events at the big shopping malls across the country, we go to the public schools to introduce entrepreneurship to senior high school students and we organize public plenary sessions where women entrepreneurs, tourism MSMEs, online sellers and OFWs and their families can learn and interact with successful entrepreneurs as well as business and thought leaders. Since 2019, we have incorporated digital solutions in our mentoring sessions, with entrepreneurs-slash-content creators now a fixture as resource persons during our public events.

President Marcos Jr. and his team at the DTI have demonstrated a deep appreciation of the challenges facing our entrepreneurs in the 21st century, and a commitment to empower our MSME sector.

The key pillars of the MSME Development Plan – digitalization, innovation and sustainability – strike at the very heart of what it means to be a successful entrepreneur today. By equipping our MSMEs with the necessary tools and infrastructure to thrive in the digital economy, we are positioning them to capitalize on emerging market opportunities and stay ahead of the curve.

The introduction of AI-powered solutions will significantly streamline arduous processes like loan approvals, removing critical barriers to growth and allowing our entrepreneurs to focus on what they do best: driving innovation and creating value.

Equally impressive are the initiatives aimed at fostering a supportive ecosystem for new and aspiring business owners to help reduce operational costs and eliminate barriers to entry, nurturing the entrepreneurial spirit that has long been a trait of the Filipino people.

The next few years will be transformative for Filipino MSMEs. It is now critical that we cultivate collaboration across all levels of government and across all members of the private sector. I have had the pleasure of having worked with the many DTI secretaries over the years: Peter Favila, Jesli Lapus, Gregory Domingo, Adrian Cristobal Jr., Mon Lopez, and now Fred Pascual. Always, it is through partnerships with government that we empower MSMEs and leverage the strengths of the public and private sectors to create a more robust and inclusive entrepreneurial ecosystem in the Philippines – one that encourages the adoption of digital technologies, spurs innovation and builds resilience to drive sustainable, inclusive growth.

The participation of key stakeholders involved in the MSME Development Plan – the Departments of Agriculture, Labor and Employment, the Interior and Local Government, Science and Technology, Budget and Management, Information and Communications Technology – underscores the whole-of-government approach being taken to ensure the seamless implementation of this plan. The increasing role of the Department of Tourism and the Department of Migrant Workers in tapping key sectors can only boost our efforts to harness that entrepreneurial spirit that lies in every Filipino.

By aligning our collective efforts and resources, we can empower our MSMEs to reach new heights, driving economic growth, creating jobs and solidifying the Philippines’ standing as a regional hub for entrepreneurship and innovation.

The future of Philippine enterprise is here, and it is digital, innovative and primed for success. As an advocate of the Filipino MSME for nearly 19 years now, I am honored and excited to be part of this pivotal moment. I am confident that our nation’s entrepreneurs will rise to the occasion and propel our country towards a prosperous and sustainable future.