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.

The plan aligns with findings from PHILSME 2025 and the Funding Gap Report (2025): SMEs face a $206 billion credit shortfall, struggle with compliance, and lag behind ASEAN peers in digital and sustainability.

The Everyday Roadblocks

The Plan identifies the following SME challenges:

1. Bureaucratic red tape. Slow permit and registration processes.

2. Financing limits. Credit access is restricted due to lack of collateral and financial records.

3. Digital lag. Low adoption of e-commerce, digital finance, and advanced systems.

4. Weak integration into supply chains. SMEs are sidelined from global and regional value chains.

5. Sustainability gaps. Few SMEs embed ESG practices or reporting into operations.

The Missed Opportunity

The government’s roadmap highlights opportunities SMEs can seize:

• Faster, simpler permitting through regulatory reforms.

• Greater financing support through new credit programs.

• Better digital infrastructure and adoption programs.

• Policy support for sustainable practices.

SMEs that align with these policy directions will be best positioned to receive support.

The Way Forward

Three steps SMEs can take to match the Plan:

1. Align strategy with policy. Track government priorities and tailor your business accordingly.

2. Get finance-ready. Organize records and prepare for upcoming credit programs.

3. Go digital and sustainable. These are not side issues—they’re the core of the next five years.

Where Ampersand Fits In

• Purpose & Impact: We align SMEs with policy frameworks so they’re ready for government programs.

• Brand & Creative: We position SMEs as credible partners in development initiatives.

• Culture & Capability: We prepare leaders and teams for compliance and digital readiness.

• Commons & Campaigns: We mobilize SME groups to benefit from government programs collectively.

The Big Picture

The government has sent a signal: the next five years are about making SMEs finance-ready, digitally mature, and sustainability-driven. Those who align with the MSME Development Plan 2023–2028 will be the first to access loans, grants, and partnerships.

The challenge is big, but so is the opportunity. SMEs that move now will shape not only their own futures but also the future of Philippine economic growth.

References

• Department of Trade and Industry (2023). MSME Development Plan 2023–2028.

• Department of Trade and Industry (2025). PHILSME 2025: Innovation, Resiliency, and Customer-Centric Growth.

• BusinessWorld / PhilStar (2025). Funding Gap for Philippine SMEs.