Filipino MSMEs experiment, huddle to fight Covid-19 chill

A quarantine imposed by the Philippines government is having a staggering effect on micro, small and medium-sized enterprises, which make 99.5% of all established businesses in the country. They're shifting their focus, going digital or even looking at their fellow entrepreneurs for help. It's do or die

Nonessential businesses shut their doors on orders from the government as Covid-19 cases surge

Many, especially small ones, lack the cash to stay afloat for a month or even less

But some business owners are doing everything in their power to keep employees and survive the crisis

The collapse of small businesses risks sapping economic growth, but Philippines authorities show businesses are not a priority

Business owner Jefferson Catimbang braced himself as Philippines President Rodrigo Duterte made the big announcement. On 16 March, a month-long quarantine was declared in Luzon—the main island group in the country, which includes the capital, Manila—to quell rising Covid-19 cases.

With the order taking effect the very next day, Catimbang had a few hours to figure out how to mitigate the huge blow to his 800-square metre wellness centre. Called Tribu Babaylan, it consists of a 40-bed spa salon, a cafe and a buffet restaurant that can seat 250 diners.

A quick calculation showed the business, which employs 80 people, would incur roughly US$128,000 in losses if closed down for a month.

AUTHOR

Jum Balea

Jum is a Manila-based reporter for The Ken, where she covers startups and business across Southeast Asia, with a focus on the Philippines. She previously was editor for Tech In Asia, and business editor for Philippine media companies Rappler and ABS-CBN.

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