2nd episode of 'Shell Future Festival' tackles challenges faced by MSMEs

MANILA: As the country seeks to get to a post-pandemic new normal, smaller businesses have faced major challenges in their recovery and stability. The second Future Festival of Pilipinas Shell Petroleum Corporation brought together industry leaders to propose solutions to these problems facing micro, small, and medium enterprises (MSMEs), small communities, and the marginalized sector to fuel economic resilience and national development.

MSMEs in the Philippines account for 99.5% of the national economy and employ 62.4% of the population or 5.5 million Filipinos. The webinar, titled “The Future of Livelihood: Multi-Sectoral Approach that Empowers Local Economies to Power Progress,” discussed how the government, business organizations, and community-engaged individuals might help MSMEs thrive and expand.

According to Pilipinas Shell Vice President for Corporate Relations Serge Bernal, the energy company's approach to livelihood is based on communities. “When communities are able to provide for and support their own needs, they promote an overall more robust national economy,” he stated.

Furthermore, he highlighted the need for partnerships in meeting goals, saying, “We aim to continuously create a positive and rippling change towards the future, starting with various initiatives that target the needs of the communities in the areas where we operate. We continue to encourage other institutions and enterprises to engage their immediate communities so that we welcome progress together.”

In this age of digitalization, one challenge MSMEs encounter is the difficulty in quickly adjusting to a competitive and fast-paced environment. One solution is to support Filipino businesses in integrating into the larger local economic ecosystem by increasing their access to key markets, products, services, and resources.

“From the conception of ideas to the protection of IPs (intellectual property); from the development of a prototype, to pilot production; and eventually, to commercialization and marketing, we have the necessary programs for our stakeholders to literally put their innovation in the market,” Department of Science and Technology-Technology Application and Promotion Institute (DOST-TAPI) Director Atty. Marion Decena said. She also mentioned that the DOST-TAPI helps accelerate the commercialization of MSME's innovative technologies payable within three years at zero percent interest.

Another problem impeding MSMEs' development is the lack of and inaccessibility to financial products and services. UnionBank First Vice President and SME and Microentrepreneurs Head Jaypee Soliman stressed the importance of addressing this issue, saying, “It’s being able to provide financing to the people who really need it the most with whatever available data they have. That’s a big problem, especially in the countryside.”

Department of Trade and Industry-Philippine Trade Training Center (DTI-PTTC) Executive Director Nelly Nita Dillera added to the discussion that Filipino entrepreneurs can also benefit from the programs offered by national line agencies that can help them become competitive businesses.

“There’s a need for upskilling and reskilling our workforce,” Dillera stated. “We’re really networking and going to the regions just for us to get what the needs and gaps are, so we can respond to them with programs that are really relevant.”

These programs include trainings to qualify MSMEs for certifications, such as Food Connect; programs to help shape and scale businesses, such as ASEAN SME Academy, Push Start, and ASCEND; and even programs to protect entrepreneurs from disasters and other unforeseen situations through PAYONG, which is available in digital.

In addition to serving the needs of MSMEs, technical upskilling empowers emerging entrepreneurs to respond to their customers' evolving needs and come up with new products and services that can enhance their competitive edge.

QBO Co-Founder Katrina Chan noted that while the Philippines may lack unicorns or startup companies worth more than US$1 billion, “we do have 'Qalabaws' that are diligently getting the job done.”

“The pandemic has shown us how quickly startups can adapt. We believe supporting startups is the key to recovery and creating an innovative and competitive country. It’s a great way to create jobs for people,” she added.

Institutions can also assist MSMEs in securing vital capital to make them grow and expand. Supporting these enterprises to prosper will give Filipinos an economic landscape that allows for leisure, entertainment, and other aspects of life aside from basic necessities.

Shell's Future Festival is becoming a platform for leaders, advocates, and stakeholders to welcome partnerships in order to realize the discussed proposals.

Rags2Riches President and Founding Partner Reese Fernandez-Ruiz explained the collaborative process to support SMEs. “To solve something that is fundamentally wounded and that is hard to untangle. We are here to establish that trust. What we did in the beginning was create bridges and give access points… A bridge [will> help them see what it’s like. We also have to see the perspective of who we are serving and who we are collaborating with,” she said.

A more reliable and secure economy will stimulate a new generation of entrepreneurs who will be able to develop a more sustainable and prosperous future. “With the support from our government, the best practices from established enterprises, help from the private sector, and the vigor from Filipino communities will be important factors that help differentiate the economy we have now to the future we aspire to build,” Bernal stated.

Photo from Pilipinas Shell Petroleum Corporation

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