The Philippine government knows SMEs are critical to the economy—and knows they struggle. That’s why the Department of Trade and Industry launched the MSME Development Plan 2023–2028, a roadmap to address red tape, finance gaps, and digital adoption.

COVID-19 pushed thousands of SMEs online. Suddenly, businesses had Facebook stores, GCash payments, and delivery riders. But as the dust settled, many SMEs slipped back to old habits. Some abandoned their online presence. Others failed to maintain digital systems they rushed to adopt.

Sustainability has become more than a buzzword. Customers want it, regulators demand it, and investors reward it. Many SMEs in the Philippines are aware of this shift—and a growing number are eager to adopt greener practices.

Across ASEAN, SMEs power economies. But the ASEAN SME Policy Index 2024 shows Philippine SMEs lag peers in digital maturity, finance readiness, and sustainability adoption. The risk? Falling behind as neighbors surge ahead.

Small and medium-sized enterprises make up 99% of registered businesses in the Philippines and employ over 60% of workers. Yet their productivity remains low, and most never break into export markets or supply chains.

Running a small business today almost always means going digital. From online payments to social media marketing, digital tools promise to make life easier and markets bigger. And yet, many SMEs in the Philippines remain hesitant. They create Facebook pages or accept GCash, but very few go beyond the basics. Advanced tools like cloud systems, e-commerce platforms, or customer analytics feel out of reach.