The Great Pivot: Why MSMEs Must Shift Gears Amid the COVID-19 Crisis
By Nina Tambal, Senior Editorial Associate
As the global pandemic continues to affect us, the new normal and reimagined future are gradually becoming our reality. For big companies, business continuity plans have been implemented and are being improved for sustainability. But how about micro, small, and medium enterprises (MSMEs)?
While various degrees of quarantines are being lifted across the nation, MSMEs in the Philippines are still struggling to cope with the COVID-19 crisis, according to Jorge Noel Wieneke, president of the Association of Filipino Franchisers, Inc. (AFFI) and president and CEO of Tokyo Tempura. Which is why there is a need for them to shift their mindsets and here are the important reasons why.
Recover, repurpose, remodel
The moment that the lockdown was imposed, the reset button was pressed on all businesses and institutions. It does not matter how renowned or powerful your company is. Every asset, from financial statements to income to growth plans, were at a standstill. More so for MSMEs.
Ramon Lopez, the Secretary of the Department of Trade and Industry (DTI), stated in early May that approximately 525,000 out of 998,342 MSMEs in the country had to temporarily close due to the quarantine. In order to address one of the effects of this particular problem, the government has rolled out a PHP 51-billion subsidy program to aid middle-class workers employed by MSMEs.
Then, in late May, Lopez called for the immediate passage of the PHP 1.3-T stimulus bill, which provides assistance to various sectors such as MSMEs (PHP 10 billion) and loans for MSMEs through Small Business Corp (PHP 50 billion) this year. For 2021, PHP 80 billion will be allocated for loans for the same industry.
So, what does this crucial aid from the government mean for us? The reality becomes clearer during this pandemic: MSMEs are the backbone of the Philippine economy. And hitting the reset button does not mean that your business is a failure or should close. In fact, it is a chance for you to bounce back stronger and more innovative than ever.
It’s been challenging, it’s been tough but we believe our businesses are resilient. Shift your mindset, and re-strategize how to move forward. To recover from the crisis, repurpose your mission however you see fit in this future reimagined, and remodel your possible ways of working.
Doors and windows of opportunities
Pivoting your business will certainly benefit you, especially in the short-term. The key is to build new doors and even windows of opportunities that will help you get back up. Do not focus on the door that has closed in front of you because of the global health crisis. Let your eyes and mind roam elsewhere, to avenues that can be explored by your business.
In episode 5 of our podcast, B2B: Breakfast to Business, on the future reimagined, Jaypee Soliman, Vice President of the SME Business Group of Unionbank of the Philippines, cited an example based on his experience with a client who owns a massage parlor. He stated that the truth about their operations is that they most likely will not resume until 2021.
So, what can be done to somehow sustain or reinvent their business? One, is that they can impart knowledge that customers may take an interest in with topics such as aromatherapy or facials. Two, is they can sell something related to their expertise like essential oils.
At TeamAsia, we’ve been utilizing our PR and Digital services with unwavering commitment to continue delivering next-level experiences for various brands. It’s all about creating a place where your business can stay present while at the same time, make a mark in people’s minds and engage with them in the best way possible.
Person to person
Above all else, your business is alive because your people are carrying it with you. It is important to remember that in a dire situation like what we’re experiencing, people should come first. Your team, your audience, and your community are essential elements to overcoming unexpected storms and braving the unforeseen yet opportunistic future. They are the ones that put humanity and heart in your organization.
“Let’s talk about person to person rather than business to business. Getting in touch better with the person behind the business is what’s going to drive the new normal,” Soliman shared in episode 5 of our B2B podcast.
And we could not agree more. As part of the MSME sector, TeamAsia has always been a people-first company and we believe that our associates are family. When it all comes down to it, everyone needs to unite and conquer one challenge at a time to emerge victorious. As an African proverb goes, “If you want to go fast, go alone. If you want to go far, go together.”
Ready to shift gears and conquer the great pivot? Need more advice on how to sustain your business amid the crisis? Talk to us at info@teamasia.com.
