The country’s micro, small and medium enterprises (MSMEs), referred to as the lifeblood of the economy, bore the brunt of the COVID-19 pandemic.
With strict lockdown restrictions especially during the early part of the global health crisis in 2020, hundreds or perhaps thousands of these enterprises were forced to close shop. A good number were able to continue their operations, most of which were those who immediately adopted technology as online transactions and deliveries were the only way for their businesses to survive then.
MSMEs account for 99.51 percent of all businesses in the country, based on the 2020 List of Establishments of the Philippine Statistics Authority (PSA). Together, they comprise more than 60 percent of the country’s total employment and 25 percent of total exports revenue. With this data, the current challenging environment for the MSMEs definitely has a huge impact on the country’s economy.
Fortunately, major shopping malls in the country immediately responded as they adopted several initiatives to dampen the effects of the crisis on these MSMEs.
Through e-commerce adoption, SM Supermalls accelerated the digital transformation of their operations to assist their MSME partners. Social media platforms were utilized as virtual destinations for consumers to discover and buy items in the comfort of their own homes.
To address the lack of third-party delivery services, especially in the provinces, SM Supermalls reached out to tricycle drivers to transport goods from MSMEs to their buyers. Tricycle drivers also experienced a drop in their earnings (or they didn’t have any income at all) as public transportation was not allowed due to health protocols then.
“Towards the end, it [transition to e-commerce] really benefited everyone. We’re very happy that we’re able to help our tenants, but at the same time, we were also able to help the displaced tricycle drivers that were not doing any business at all, especially during the start of the pandemic.”
—Steven Tan, president of SM Supermalls
SM Supermalls also offered discounted rental fees to its MSME partners especially during the early part of the pandemic. It was only during the 2nd quarter of 2022 when they began charging full rental fees again.
Tan believes that the assistance they extended allowed the majority of their MSME tenants to reopen as restrictions eased.
Meanwhile, focusing on on-site initiatives, Robinsons Malls, in partnership with various government agencies, conducted trade fairs all over the country to allow MSMEs and startup entrepreneurs to reach a wider market.
One of these initiatives is Locally Sourced, a program designed in partnership with the Department of Agriculture, Kadiwa ni Ani at Kita, Bureau of Plant Industry, and Resto PH to allow local cooperatives of farmers and fisherfolk to make their fresh produce available at Robinsons Malls.
In support of local entrepreneurs, numerous Robinsons Malls branches, through the Lingkod Pinoy Center, also serve as one-stop hubs for all essential government services, including permit renewals, tax payments, and business registrations.
According to Jess S. Zulueta III, senior director, regional marketing and business development of Robinsons Malls, these initiatives have “helped countless entrepreneurs save time and money by eliminating the need to go from one government office to another.”
“On the mall front, we also continued to provide our local tenants with the means to grow their businesses and reach out to more customers. We always believe in giving local entrepreneurs a leg-up because we know that they are the backbone of our economy. Our malls across the country continue to become important areas for local businesses to thrive, and we are proud to have played a part in their success.”
—Jess S. Zulueta III, senior director, regional marketing and business development of Robinsons Malls
A vibrant MSME sector is an indication of a growing economy. Thus, supporting MSMEs is vital to the country’s full recovery from the pandemic.
