- Ziggurat Realestatecorp
- Jul 23
- 3 min read
More than half of MSME (micro, small, and medium enterprises) owners in the Philippines started their business as a source of income for their family, as well as to increase their revenue as a short-term goal, according to a survey by US-based management firm Boston Consulting Group (BCG) and the Department of Trade and Industry (DTI).
Released this month, the study, “Heart of Hustle: What Fuels the Filipino MSME,“ involved 3,098 MSME owners.
Data showed 64 percent of startups aimed to achieve financial independence for the family; 41 percent were driven by a passion for their product or service; and 38 percent sought personal financial independence.
“These are not corporate ambitions, they are deeply personal goals. For many MSMEs, business is not the dream, it is the vehicle to achieve the dream,” the report pointed out.
For MSMEs’ growth priorities for the next 12 months, 60 percent want to increase their revenue; 53 percent desire to reach more customers; 48 percent intend to improve their product or service; and 40 percent wish to secure additional financing.
BCG said there are five access points that can trigger MSME growth, namely: financing, market, tools, government support, and labor.
The survey said 33 percent cite access to financing as the most common concern and consistent barrier for MSMEs to grow.
Meanwhile, 55 percent have never applied for a loan, 42 percent of whom are afraid of going into debt; 34 percent said high interest rates discourage them from taking out loans, 16 percent of whom are intimidated by complex application process.
“Accessibility is not the same as availability. MSMEs need financing solutions that feel safe, understandable, and tailored to their context, not just technically open to them,” the survey said.
Thus, 44 percent of MSMEs continue to depend on personal savings, while 34 percent want to learn more government programs in the future.
Government support
The respondents ranked export training, trade promotions, and access to credit as top priorities for government support.
The study found that only 36 percent believe the government is doing enough to support access to financing. “Many MSMEs are aware of public loan programs but find it difficult to access them or do not see them as applicable to their needs,” the report said.
As for awareness of DTI support programs such as Negosyo Centers, Kapatid Mentor ME, Go Lokal, and Pondo sa Pagbabago at Pag-asenso, over 70 percent of MSMEs said they are familiar with the initiatives, but actual participation is much lower at less than 20 percent.
Some respondents said they have difficulty in meeting requirements, while others are unsure of which programs to apply.
MSMEs are also eager to expand and upskill, the study said. However, they have concerns on talent readiness and government support.
Some 72 percent said they want to expand their workforce, while 82 percent want to upskill their existing employees.
Even so, only 54 percent feel they are currently providing enough training opportunities, and 53 percent believe their current workforce is skilled enough to support business growth.
Only 48 percent feel the government is doing a good job in upskilling jobseekers.
“MSMEs show a clear desire to grow and receive support. They are investing in their products, exploring new channels, hiring staff, and engaging with support systems where they can. But in many cases, the systems around don’t keep up. The barriers are not about resources, but rather fit,” the survey said.
“MSMEs need support that reflects the way they operate: fast-moving, resource-constrained, and more personal than corporate. Bridging these gaps will require more responsive programs, simpler processes, and stronger coordination across public and private sectors,” the survey added.
Source: Manila Times