Published at 10:00 AM PHT,
by
Dennis Cabrera
Growth Engine: Aggressive in expansion, Resilient in crisis
1Global volatility → 2Assess digital infrastructure → 3Make calibrated capital decisions → 4Act on cash flow management → 5Allocate & redirect resources → 6Adjust & adapt with new PH MSME financial system
Times are changing. But sometimes it appears similar to past historical circumstances. Though nothing happens the same way twice, it is still important to be proactive and prepare.
My grandparents (b. 1908, d. 1990s) always shared stories about their experiences before, during, and after World War II (WWII). They always say, "mamera lang dati ang itlog". Translating, "eggs only cost one centavo each in the past".
Now, an affordable medium-sized egg from the supermarket costs about Php 10.58 each. That's a 105,700% increase according to an AI LLM.
Astronomical rise in price, isn't it?
My grandmother also added that when people bought at the marketplace, they brought their "bayong", which was filled with bills of money. That's how inflation spiked during World War II.
PH MSMEs, which are often based on extended family systems that are resilient due to blood ties, have to think proactively and prepare for such a scenario.
My grandparents (b. 1908, d. 1990s) always shared stories about their experiences before, during, and after World War II (WWII). They always say, "mamera lang dati ang itlog". Translating, "eggs only cost one centavo each in the past".
Now, an affordable medium-sized egg from the supermarket costs about Php 10.58 each. That's a 105,700% increase according to an AI LLM.
Astronomical rise in price, isn't it?
My grandmother also added that when people bought at the marketplace, they brought their "bayong", which was filled with bills of money. That's how inflation spiked during World War II.
PH MSMEs, which are often based on extended family systems that are resilient due to blood ties, have to think proactively and prepare for such a scenario.
Audit cash flow to make informed decisions & allocate wisely
It is natural to react wisely to any geopolitical risk with more caution. But a more informed assessment of the risk can still make decisions to allocate capital & value better. This is where AI analytical tools fit exactly to understand the macro-scenarios and the MSME-scenarios. MSMEs do not have control of what goes on in the global geoeconomy. But they can make a list of what can influence their operations and how they can adjust within their own internal and disciplined financial systems.
One method is to make a study of the following with AI:
One method is to make a study of the following with AI:
- Examine how the receivables are being converted into cash
- Check the inventory turnover of products being sold
- Analyze the behavior of working capital
- Make frequent computation of sources and uses of funds with AI to avoid the domino effect of global shocks
- Monitor info on the big three:
1 fuel prices & its effects on the supply chain/logistics,
2 USD-PHP exchange rate & the inflow of OFW remittances, and
3 BSP moves to pause or hike rates after the February 19, 2026, 4.25% rate cut - Identify which storefront expenses are import-dependent or fuel-linked before reallocating anything
- If fuel prices rise 15%, logistics costs rise as well. Protect margin by prioritizing high-value products.
Data-driven iteration & Performance optimization tactics
Geopolitical instability that raises the price per barrel of oil accelerates consumer migration from onsite store purchases to online buying. Redirecting from your physical MSME storefront sales activities to another digital storefront, such as Shopee, TikTok Shop, and Enstack, will significantly offset the overhead expenses of a physical storefront. Be aware of this and other behavioral shifts of consumers (B2C) or other MSME partners (B2B).
Analyze your storefront's data and make inventory or pricing adjustments. Use free AI tools to make a forecast on future trends based on regular data gathering.
Improve your site's content architecture, brand visibility, and performance/monetization as discussed in E-SEO to Income: Architecture, Repurposing, and CRO Workflow.
Check & review your site's page speed and make content edits if needed to improve performance and rank higher in the AI SERPs. Improve your E-E-A-T, adjust for better E-SEO for NCR search intent, and make A/B testing listings for higher impressions and CTRs.
Be aware that the logistics cost pressure from oil price volatility hits e-commerce MSMEs first. Instead of reacting with impulsive decision-making, regularly gather information, produce solid analyses based on AI tools, and make informed decisions with your workforce based on these. Proactive and analytical MSME allocators position themselves ahead of reactive business operators who tend towards "emotional borrowing".
Analyze your storefront's data and make inventory or pricing adjustments. Use free AI tools to make a forecast on future trends based on regular data gathering.
Improve your site's content architecture, brand visibility, and performance/monetization as discussed in E-SEO to Income: Architecture, Repurposing, and CRO Workflow.
Check & review your site's page speed and make content edits if needed to improve performance and rank higher in the AI SERPs. Improve your E-E-A-T, adjust for better E-SEO for NCR search intent, and make A/B testing listings for higher impressions and CTRs.
Be aware that the logistics cost pressure from oil price volatility hits e-commerce MSMEs first. Instead of reacting with impulsive decision-making, regularly gather information, produce solid analyses based on AI tools, and make informed decisions with your workforce based on these. Proactive and analytical MSME allocators position themselves ahead of reactive business operators who tend towards "emotional borrowing".
Build cash flow visibility before the next shock strikes
In managing cash flow, discipline is key. If your MSME's payment systems are integrated with GCash and Maya, consider other options. Remember the wise logic, "do not put all your eggs in one basket". Consider PayPal, Google Pay, and choose banks with low Instapay transfer fees.
Adjust and readjust your digital cash flow system to make sound allocation decisions under pressure. Emotional discipline and a trained mind in cash flow management help your MSME adapt to new systems before the next external shock arrives.
Remember, MSMEs and large businesses are all in this together. And the business sector is not alone. Current legislative moves in the past and at present are being produced to address geopolitical risk with nationwide concerns to fix electricity, internet, and employment woes.
Adjust and readjust your digital cash flow system to make sound allocation decisions under pressure. Emotional discipline and a trained mind in cash flow management help your MSME adapt to new systems before the next external shock arrives.
Remember, MSMEs and large businesses are all in this together. And the business sector is not alone. Current legislative moves in the past and at present are being produced to address geopolitical risk with nationwide concerns to fix electricity, internet, and employment woes.
Ready. Set. Allocate.
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