Kalinga MSMEs stuck at the starting line as market access, financing remain tough

PTO Lorraine Ngao-I identified limited access to financing, costly participation in trade fairs, dependence on middlemen, inadequate product packaging and branding, digital marketing gaps, and skills shortages among the major challenges facing local businesses.

TABUK CITY, Kalinga — Despite the growing number of businesses in the province, market access and financing remain major hurdles for Kalinga’s micro, small, and medium enterprises (MSMEs), limiting their ability to expand and compete in bigger markets.

Provincial Tourism Officer Lorraine Ngao-i raised the concerns during the Kapihan sa Kalinga held August 18, 2026, at the Grand Zion Hotel in Bulanao, where government agencies and stakeholders discussed ways to strengthen support and coordination for local MSMEs.

Ngao-i said many local entrepreneurs struggle to connect with larger markets despite the availability of government assistance programs.

She identified limited access to financing, costly participation in trade fairs, dependence on middlemen, inadequate product packaging and branding, digital marketing gaps, and skills shortages among the major challenges facing local businesses.

Under the standard classification discussed during the forum, micro enterprises have less than P3 million in capitalization, small enterprises have P3 million to P15 million, while medium enterprises have P15 million to P100 million in capitalization.

Most businesses in Kalinga remain classified as micro enterprises, raising concerns about the barriers that prevent long-established businesses from moving into the small-enterprise category.

Financing remains difficult

Ngao-i said government agencies offer various programs to assist MSMEs, but many entrepreneurs find it difficult to meet the requirements for accessing financing.

“Sa tourism naman, andaming magagandang programs ang government na about sa pagtulong or pag-assist sa mga MSMEs. But the gaps or challenges na nae-encounter ay yung sobrang hirap na maka-tap sa mga financing programs... kapag MSME ka, small-medium ka, wala namang mga documents, especially when they are requiring na dapat may deposits na mga ganoon—kaya nga sila naghahanap ng financing kasi they need money.

Hopefully, sana ma-categorize na merong for small enterprise and medium,” she said.

She suggested developing financing programs that are better suited to the financial capacity and documentary circumstances of small and medium businesses.

Middlemen eat into producers’ earnings

Market access, she said, remains another major challenge, particularly for tourism-related products and locally made crafts.

Ngao-i said producers may receive only a small portion of the final value of their products when middlemen take over marketing and distribution.

She noted that middlemen often have better access to technology, advertising platforms, and wider markets, allowing them to resell products at significantly higher prices.

“Ang isang challenge pa sa amin sa tourism, yung market access... it remains a challenge to our MSMEs. May mga middleman kasi—parang they will come here in Kalinga or may iko-contact sila na MSME and then kukunin nila yung product. Kasi mas techy sila, sila na yung nag-a-advertise and the price is sobrang layo talaga,” she explained.

Ngao-i cited instances where products bought locally for around P1,500 to P3,000 were later sold elsewhere for as much as P40,000, highlighting what she described as the disparity between the amount received by producers and the final selling price.

Trade fairs: Big opportunity, bigger expense

Ngao-i acknowledged that market opportunities are available through trade fairs facilitated by government agencies such as the Department of Trade and Industry (DTI).

However, many Kalinga MSMEs are unable to participate because of the costs involved.

“On our part, it's the promotion naman, pero kulang or meron mang mga invitation [for trade fairs], even international na pinapasa namin sa kanila [MSMEs] but they cannot tap the fairs kasi nga magastos siya. Maganda sanang opportunity pero wala silang assistance,” she said.

She said the provincial government currently lacks a dedicated program to help shoulder the costs of bringing local MSMEs to markets outside the province.

This leaves entrepreneurs who want to expand their markets struggling to cover transportation, participation, and other related expenses.

Ngao-i said some entrepreneurs are forced to seek donations or solicit financial assistance to participate in trade opportunities, a situation she said carries a negative connotation.

Good products, but not enough packaging and digital skills

Beyond financing and market access, Ngao-i said Kalinga businesses need stronger assistance in product development, packaging, branding, and digital marketing.

She said many local products have strong potential but lack the packaging and branding needed to compete in wider markets.

The digital skills gap is another concern, particularly among indigenous artisans and other producers who are unfamiliar with online platforms and digital technologies.

As a result, some producers rely on middlemen to market and sell their products online, potentially allowing intermediaries to earn more than the people who actually make the products.

“Meron din yung product development, packaging and branding. Magaganda ang ating products pero kulang tayo ng packaging. Especially sa digital marketing—yung ating mga artisans, indigenous artisans, some, they don't know how to operate technologies kaya nahihirapan sila. Kaya may mga middleman at sila na yung nagdi-digital marketing in which sila na yung mas kumikita kesa yung mismo na gumagawa,” she said.

From micro to bigger businesses

The concerns were raised as government agencies and stakeholders explored ways to improve coordination and strengthen support for Kalinga’s MSME sector.

The discussions emphasized the need not only to sustain existing businesses but also to help long-established micro enterprises transition into small and medium enterprises.

This could include easier access to financing, stronger market linkages, improved product development, digital skills training, better packaging and branding, and assistance in joining domestic and international trade opportunities.

For Kalinga’s entrepreneurs, addressing these barriers could mean more than simply selling more products.

It could help ensure that the growing value of the province’s agricultural, tourism, indigenous, and locally made products stays with the people who grow, create, and produce them.