Business Resilience During COVID-19: A Case Study of Philippine SMEs

SMEs

Business Resilience During COVID-19: A Case Study of Philippine SMEs

The COVID-19 epidemic threw off economies all over, including those of the Philippines. Many companies struggled economically, experienced layoffs and closures. Still, several SMEs showed extraordinary fortitude under trying circumstances. Here is our results:

Adapting to the New Normal

Philippine SMEs quickly adjusted to the new reality of remote labor, digital transformation, and shifting customer expectations as the epidemic spread across the world. Embracing e-commerce platforms, digital marketing, and virtual collaboration tools, companies used technology to move activities online. This change allowed SMEs to access clients in a fast changing environment and maintain continuity among lockdowns.

Innovating for Survival

Philippine SMEs shown amazing adaptability and creativity in the face of economic turmoil. To survive, companies changed their product lines, converted buildings, and looked for fresh income sources. From providing contactless delivery services to producing personal protective equipment (PPE), SMEs demonstrated inventiveness and ingenuity in meeting developing market demands.

The Rise and Fall of Philippine SMEs

The Department of Trade and Industry (DTI) notes a 50,142 registered company drop in the Philippines from 2018 and 2020. By mid-2020, stricter lockdown policies resulted in 26% of the companies surveyed closing. Pandemic-related closures claimed 69,222 displaced workers. Read this article to learn more.

E-commerce as a Resilience Tool

Previous pandemics (e.g., SARS, Ebola, H1N1) showed increased e-commerce activity during crises. Filipinos, resilient by nature, turned to online businesses after layoffs. E-commerce adoption became crucial for survival and adaptation.

Barriers and Drivers in E-commerce Adoption

A study at De La Salle University identified barriers and drivers for e-commerce adoption among Philippine SMEs during COVID-19. Surprisingly, socio-cultural and organizational barriers were found to be drivers. Read this article to learn more.

Policy Implications

The government of the Philippines should help SMEs to embrace e-commerce. Policies need to remove obstacles, improve digital literacy, and inspire entrepreneurship.

Conclusion

During the epidemic Philippine SMEs had hitherto unheard-of difficulties. Their ability to withstand the storm was much aided by their resilience, agility, and embracing of e-commerce. Support of SMEs is still very vital for economic recovery and development going ahead.

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