How MSMEs in the PH Can Grow Their Global Footprint

Published at 7:26 PM PHT,
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Grow Your Global Footprint w/ "Think Global, Act Local"

Introduction

After a stint as an economic researcher, and working for our family business in microfinance, I began night classes in theological education for lay people at CICM Maryhill School of Theology. This was only a few months after the PH People Power Revolution in happened.

  • A theological slogan taught at the school resonated well with me: "Think Globally, Act Locally".
  • Although the origins of the slogan are not traced to just one person, in the context of theology, the credit goes to French sociologist and theologian Jacques Ellul.
  • Ellul believes that Christians should understand global issues while focusing their efforts on local actions.
  • This means not changing society on a global scale, but bringing hope to people through concrete actions and hands-on work [1][2].

Translating this theology slogan to the world of MSMEs in the Philippines gives MSMEs a wider understanding of how information technology can expand their awareness of global issues. These big issues ripple not only to the Philippines' shores, to Asia and the Pacific, but to all areas of the world. How can this theology slogan of global awareness be a local & practical strategy?

  • Simply to automate relevant news updates based on specific keywords or key phrases, understand how those big news can affect local MSME businesses, and innovate services to solve the needs of customers within the MSME's basic niche expertise.
  • Geotargeting is one strategic niche expertise to connect and meet customers where they are.
  • This allows MSMEs to increase their visibility online with customized content, target the right audience who uses search, and study data analytics to better serve the needs of their market.
  • "Think globally, act locally", therefore, means awareness of world economic issues, how it affects your PH MSME, and formulating new service strategies to solve customer needs.

There are current statistics to support the need of MSMEs to grow their global footprint for growth and scale in services. The projected Philippine economic growth of 5.9% in by the International Monetary Fund (IMF) is one. Also, according to the ASEAN Innovation Business Platform (AIBP), there are 79.3% of enterprises in the Philippines who intend to invest in AI & Machine Learning within the next 2-4 years. This is a testament to the fact that there is a growing ecosystem in-the-works to enhance the growth of MSMEs [3].

What irreplaceable skill can PH MSMEs capitalize on?
AI is a tool, but it does not yet have the capability for an irreplaceable human skill: resilience. So, with a proactive mindset and a strong resilient spirit, MSMEs in the Philippines, together with its neighbors in Asia and the Pacific region, can prepare for the many disruptions caused by big changes in the climate. Human resilience works well with the Services sector, which records a strong Gross Value Added (GVA) growth rate, averaging 6.7% in and meeting its target range.

Strategies for resilience include having digital services that provide better data protection, wiser business continuity plans, and innovative investments for creating fund reserves. Applying AI productivity strategies and in-house training services for integrating AI tools in time management and efficiency also strengthen resilience in MSMEs.
How can MSMEs gain financial resilience and access credit?
An MSME needs to be growth-oriented. One strategy is to build an online footprint by blogging, website development, and social media marketing. These are key to attract investors who can see, know, and understand the MSME's value and growth potential. A global footprint can geotarget a wider local niche market where interested investors can capitalize on innovative and knowledge-based operations. A global footprint can also expand an MSME's financial information database and connections to help develop its entrepreneurship ecosystem.

The entrepreneurial spirit and skills of every MSME is reinforced with the government's plans for digitalization in the Philippine Development Plan (PDP) 2023-2028. This Plan mandates digitalization to enhance the country's global competitiveness and encourage MSMEs to adopt financial innovation strategies. Innovative financing models like digital invoice financing, which streamline operations, reduce transaction costs, and connect MSMEs with multiple financiers at competitive rates, help avoid financial losses and secure profit.
How can an ecosystem make MSMEs' growth sustainable?
Building an ecosystem supports the business and entrepreneurial environments in which MSMEs manage their service operations. It also includes all innovations and knowledge that can scale their niche expertise. One graphic image in nature that can represent an MSME's ecosystem-building activity is the beaver. Like the beaver, who builds a dam as its own ecosystem to survive & thrive, MSMEs can build its own "business ecosystem" with a solid supplier-chain network linked to reliable and secure logistics systems. To increase sales of its services, "innovative" and "knowledge" ecosystems can be built to leverage the right digital platforms for income streams.

MSME branding, AI-optimized outreach in LinkedIn, amplifying reach through AI-powered SEO in geotargeted content, and Zero-click success to obtain a vital leads for tapping into income streams [4].
Who is their strongest and most valuable ally?
The local government and the private sector are strong allies. But the biggest ally in terms of strength and value comes from the expert studies and initiatives of the United Nations SDG 8 for Decent Work and Economic Growth. As MSMEs build within their sphere of expertise the ecosystems they need, their efforts attain certitude by aligning their strengths with the local government they are registered, and the private sector that provides both affordable and quality supplies.

But the strongest power to tap and be in alliance with is the UN's organizational support through its partnership with local government and the private sector. The policies and initiatives of this linked network can widen the pool of resources needed by MSMEs to grow and scale their services. A recent article in the Philippine News Agency website also supports this objective as it mentions The Department of Economy, Planning, and Development (DEPDev) call for a strengthened whole-of-nation approach to accelerate the country's Sustainable Development Goals' (SDG) progress [5][6].
What are some specific steps to take at this time?
For professional branding and MSME startup ideas, you can easily go through the many articles in this Archive.

We also offer one "free consultation" or a "strategy session" to assist you in discovering actionable insights from your business idea to navigate well today's dynamic AI-business landscape.

Trust the Archive's expertise to guide your business idea towards all the practical work needed to register and start your operations.

When ready to harness AI for your MSME idea, or need advice on WFH workspace ideas, digital services, AI productivity, content strategies, or how to build a robust, self-sufficient business ecosystem, you can follow the Archive at LinkedIn. (requires LinkedIn.com registration/membership to access)

Building an ecosystem for your future-ready business idea is easier, enriching, and more sustainable when networking!

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Location: Kapitolyo, Pasig, Metro Manila, Philippines