What we can do to propel MSMEs forward

Unlocking the Philippines' aspiration economy:

- By Tiffany Uy and Jaymes Shrimski

FROM market stalls to neighborhood stores in the Philippines, small businesses are doing more than selling goods — they’re carrying dreams.

For many Filipino micro, small and medium enterprises (MSMEs), starting their own business is motivated not by the profit alone, but by purpose. The people behind these energized enterprises are driven by goals to build a better future for their families, pursue personal passions, and send their children to school.

Growth is the top priority for many MSMEs, but achieving growth requires more than grit and dreams. It demands an environment made up of digital technologies, new markets, skilled labor, accessible capital, and government programs that work for them. Too often, these systems fall out of step with everyday realities.

The question is, what will it take to help MSMEs not just survive but thrive? Behind every MSME is a parent, a provider, a builder of opportunity. Supporting MSMEs is therefore not only an economic priority, but a commitment to the people behind them, and the dreams they carry.

Boston Consulting Group’s recent publication, Heart of Hustle: What Fuels the Filipino MSME — developed in partnership with the Department of Trade and Industry (DTI) — captures insights from over 3,000 MSMEs across five key dimensions of support. It uncovers where the system is falling short and where focused action can unlock the full potential of the country’s most avid dreamers.

ACCESS TO FINANCING

Most MSMEs know that growth requires capital, yet for many, formal financing still feels out of reach. Today, 83% of MSMEs rely on personal savings to fund their business. And while credit is technically available, it’s not meaningfully accessible. More than half of MSMEs (55%) have never applied for a loan, with 42% citing fear of debt, 34% pointing to perceived high interest rates, and 16% feeling the application process is too complex.