‘10% of MSMEs stopped operation as of December 2020’ – DTI CAR

Baguio City, Philippines – Department of Trade and Industry – CAR this Wednesday, February 3, revealed in their report that as of December 2020, 10 percent of the Micro, Small and Medium Enterprises stopped operation.

During the Kapihan sa Baguio, DTI Regional Director Myrna Pablo said that DTI national office conducted an independent survey to the MSMEs and found that as of December 2020, 45% of MSMEs were still fully operational, 45% were partially operational, while the remaining 10% stopped operation.

Pablo added that the same pattern was shown in Cordillera.

Among the reasons for these are attributed to the difficulty of accessing the market and very expensive logistics to transport products since the pandemic started.

“and dahil technology based na tayo, karamihan po kasi ng mga MSMEs natin dito sa CAR range in ages from 40-60. So technology wise medyo nahirapan na silang magconnect sa market kasi nagiging virtual na ang marketing, nagiging online na,” she added.

The regional director further said that others closed their businesses since they have also lost capital and that they face financial challenge since they closed for months.

“the others nawalan na rin ng kapital, nagsara na rin sila ng businesses nila and they had a difficulty accessing financing also dahil ilang buwan kang nagsara ibig sabihin nun, wala kang profit na dumadating sa’yo everyday,” she said.

Meantime, the agency again conducted another survey this January 2021 and as of February 2 she said, MSMEs that are fully operational increased to 50 %, those partially operating remains at 45 %, and those that closed decreased to 5%.

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