Gen Z formula reshaping small businesses in Phl

If you want to understand how Gen Zs are reshaping small businesses in the Philippines, don’t start with an economist, but with a 20-year-old who edits a 15-second promotional video to earn a percentage of the basket without owning a physical store.

- By KYLYN KYTH CUÑADO

Let us talk about the new generation, or what they call Gen Z. Born in the era of smartphones, high-speed internet and algorithm-driven platforms, they have become an unexpected economic catalyst for micro, small and medium enterprises (MSMEs).

It is not just a simple income stream; it is a pattern. A woven culture of digital fabric where trends, short-form videos, livestream, e-commerce and influencer-style marketing activities create a new product — new business opportunities.

The rise of Tiktok Shop, Facebook Marketplace, Shopee and Instagram as MSME hubs enabled these opportunities to appear as visible as ever, reshaping the ecosystem of small businesses.

Now heavily driven by Gen Zs, content creators operate as sellers, marketers and influencers in one, or what they call ‘nano-influencers.’

The numbers speak for themselves: TikTok’s ad reach in the Philippines reached 62.3 million in early 2025, while TikTok Phl’s gross merchandise value soared to $1.99 billion in the first half of 2025. For MSMEs, these platforms are not only marketplaces but also the main component of today’s e-commerce.

But digital fluency aside, digital instincts modernize MSMEs marketing strategies, expand audience reach and reshape the entrepreneurial landscape, creating content that can go viral, attention-grabbing hooks, aesthetics and humor style engagement.

MSMEs make up 99 percent of business in the Philippines and contribute more than 60 percent in employment, which means that Gen Zs’ digital influence has a ripple effect on a large slice of the economy.

Formula 1: Capture attention

Traditional advertising costs millions to capture attention, but Gen Zs can capture it in just 15 to 30 seconds at no cost.