Author: APPLE KATE SABAR

Issue: 2021-2022

Abstract:

Micro, Small, and Medium Enterprises (MSMEs) are regarded as major economic drivers in the Philippines. They are engines for progress, innovation, economic prosperity, and wealth generation. They help alleviate poverty by providing employment for the country’s growing labor force. The current study seeks to shed light on micro-level entrepreneurial crisis management and local policy initiatives. While previous studies have looked at early mitigating measures and policies put in place by various national governments to help businesses during a pandemic, this study intends to propose key policies that the Pasig City Government can implement to help MSMEs achieve sustainable recovery.

Although much emphasis has been placed on the immediate effects of COVID-19 on businesses, the researcher believes that less attention has been paid to localized fiscal, microfinance, and development strategies to aid in their recovery. The researcher believes it is also critical to recognize the role of local governments in enacting these laws, initiatives, and projects for MSMEs.

This research aims to uncover development strategies, recommend viable policies such as fiscal and micro-financial, and develop a clear model for effective MSMEs efficiency and long-term viability. It also discusses business adjustments, challenges, and strategies that MSMEs undertake to survive during the COVID-19 pandemic. The study used both quantitative and qualitative methods with correlational and cross-sectional survey designs, all of which were based on the interpretivism philosophy. A total of 379 MSMEs from Pasig City participated in the survey and 5 out of 15 government officials were interviewed.

According to the data, the COVID-19 pandemic was responsible for a considerable variation in business operations. MSMEs experienced financial distress or insolvency, resulting in massive job losses and business closures. COVID-19 has potentially dire consequences for MSMEs; it requires more than financial assistance to protect people’s lives and livelihoods, particularly the most vulnerable.

Finally, the study recommends that MSMEs stakeholders, including national government, local government units, barangay, banks, microfinance institutions and other interested parties, to implement new fiscal, microfinance and development strategies for MSMEs to support immediate liquidity challenges and negative impacts raised by COVID-19 containment and to sustain their existence, recovery and development.

Keywords: MSME, local government business policies, microfinance