Homegrown MSMEs see modest growth

The Philippines’ micro, small, and medium enterprises (MSMEs) posted modest but consistent growth in 2024, despite ongoing structural hurdles, according to the Manila-based multilateral lender Asian Development Bank (ADB).

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In its host country, “challenges remain in scaling access to finance, expanding regional outreach, and deepening capital market integration,” the ADB said in its report titled “Asia Small and Medium-Sized Enterprise Monitor 2025: Global Uncertainty, Trade, and Private Sector Businesses in Asia and the Pacific,” published on Wednesday, Nov. 12.

The ADB report noted that MSME lending in the country increased by 8.4 percent year-on-year to 545.2 billion last year but still accounted for only 3.9 percent of total bank loans, highlighting persistent structural financing barriers.

This, even as the report cited that the Philippine banking sector is evolving through digitalization, regulatory reforms, and rising consumer demand, playing a key role in supporting MSMEs.