The future is digital: Helping MSMEs thrive in a tech-driven economy

Small businesses are the lifeblood of the Philippine economy, employing the majority of our workforce. However, despite their crucial role in driving economic activity, many micro-small-and-medium-enterprises (MSMEs) still struggle to keep pace with digital advancements — an essential factor in staying competitive and ensuring long-term success in an increasingly technology-driven market.

- JAIME ARISTOTLE B. ALIP, PHD

Fortunately, with a high percentage of smartphone users, a tech-savvy young population, and increasing internet penetration, the country is well-positioned to embrace digitalization. The MSME Development Plan 2023-2028 prioritizes the integration of digital tools, artificial intelligence, and financial technology to enhance competitiveness in e-commerce and supply chain efficiency. We should all do our part to ensure that MSMEs — especially those in rural communities — benefit from emerging digital opportunities.

Digital champions

The Digital Financial Inclusion Awards (DFIA) — an annual program recognizing microfinance institutions (MFIs) and microentrepreneurs who successfully integrate digital solutions into their operations — is an important initiative. The DFIA builds on the success of the Citi Microentrepreneurship Awards (CMA), which has honored hundreds of microentrepreneurs and MFIs over the past 18 years.

The 4th DFIA was recently launched by the Microfinance Council of the Philippines, Inc. (MCPI) in partnership with Citi Foundation and Bangko Sentral ng Pilipinas (BSP). During the launch, BSP Governor Eli Remolona Jr., MCPI Chairperson Gilbert Maramba, and Citi Philippines CEO Paul Favila underscored how digital finance is making financial services more secure, efficient, and inclusive. The testimony of 24-year-old Teodoro Lamang Jr., — one of last year’s DFIA winners — was a pivotal moment of the launch, highlighting the role of microfinance and digitalization in transforming small businesses.