Creating Solutions for the Small Entrepreneur in the Age of Covid-19

by Mikey Quinn April 23, 2021

Keeping your business afloat during normal days is challenging enough– and since COVID-19 emerged to upend our lives in more ways than one, more micro, small and medium enterprises (MSMEs) in the country soon shuttered and gave in to the worst economic downturn on a global scale since the Great Depression.

Here in the country, a study made by the Philippine Institute for Development Studies projected economic losses of up to Php2.5 trillion with industries in manufacturing, wholesale and retail trade, and logistical services as the most precarious and poised to suffer by the billions. Despite these ominous projections and considering how Pinoy entrepreneurs always stay resilient during tough times, there is still a bright light shining down the tunnel as the spirit Bayanihan emanates in business to business (B2B) form.

The current MSME challenge

MSMEs comprise 99.5% of all local businesses that employ 63% of the total workforce population in the country. In a survey conducted by the Philippine Disaster Resilience Foundation (PDRF) and the Synergizing Recovery Initiatives, Knowledge, and Adaptation Practices for MSMEs (SIKAP), 81% of entrepreneurs shared how their businesses are suffering during the pandemic specifically in aspects such as transportation, logistics, and the lack of monetary capacity owing to low profits to sustain their operations.

With recurring lockdowns and community quarantine guidelines hampering smoother business processes all over the country, these MSMEs have greatly experienced disrupted cash flows and rising expenses to weather the pandemic storm. Soon, employees were being furloughed in about 80% of MSMEs as businesses suffered significant monthly income losses during the 2nd quarter of 2020. Business analysts are not as bullish on economic progress as well with a base forecast of a 5% recovery should local immunization take longer until 2022.

However, MSMEs remain confident according to Guidant Financial which reported that 60% of over 3,100 respondents across the globe shared how they are somehow hopeful to overcome the COVID-19 challenge via B2B solutions. Almost half of the small businesses in the U.S. that offer food or retail products resorted to eCommerce to address both their delivery and other logistical pain points creating a ripple of win-win solutions across businesses from various niches.

The BOPIS or buy in-line or pick-up in-store model took the U.S. by storm as consumers found ordering online to be more convenient since there’s no more need to queue in line for food orders or make cash payments.

In a way, this same business model was adapted by local MSMEs that discovered how online B2B processes on orders, purchases, customizations, and shipping can be a way to reduce costs and diversify what each business can offer to more consumers.

The B2B solution you need to know about right now

With the manufacturing sector expected to suffer the greatest loss in terms of profit during the pandemic, such small businesses like print company Ezee Prints began to upgrade their online marketing strategies to reach targeted audiences and streamline business processes that promise higher ROI. By helping small businesses get either small or bulk orders for their businesses, the company was able to boost their online engagement which translated to an increase in sales for their customized boxes and raw material products.

In what has become an unprecedented case of businesses helping each other out during the pandemic, MSMEs were able to get their needs from online businesses that are ready to offer more practical services on convenient shipping costs, faster turnarounds, and even discounts via promotional campaigns. And all that on a cashless basis to solve the social distancing guidelines set by the government.

Ezee Prints, who through its 24 years in the printing and manufacturing industry have learned a lot in terms of overcoming business challenges, knows that business is as essential to everyone as the safety and infection protocols set to curb the spread of the coronavirus.

Considering that the pandemic acts as a double-edged sword that curtails both the nation’s health and economic capacities, MSMEs need to adjust to a more agile way of doing safer business while competing with a sea of online competition.

One good example is how focusing your marketing strategy on brand building through customized product packaging can help your business stand out both on and offline for target consumers within your marketing funnel. Fortunately, there are already businesses out there like Ezee Prints that look out for smaller businesses that don’t have the capital to place large-scale orders and are starting with minimal customer figures.

Thanks to how the company has redefined its services through the acceptance of smaller and rush orders for customized products and packaging, smaller businesses and startups are getting what they need to continue with both their brand building and respective business operations in more manageable and cost-efficient ways.

Moving forward and beyond

While B2B solutions help a lot, 60% of MSMEs in the country still need help from the government in terms of stakeholder assistance on credit access, tax breaks, or deferred loan payments. As the shift to become more digital is imminent for every business in the country, companies have started allocating large slices of their marketing budgets on both their on and offline marketing strategies.

However, with many small businesses still experiencing difficulties to find the right capital to shift to digital technologies, starting offline with products that can create positive word-of-mouth and a bit of social media monitoring and management can do a lot for non-tech MSMEs.

On another aspect, reaching out to businesses who can help during these difficult times is another route that companies across all industries can take. As more companies find solutions to address their clientele’s pain points, expanding your business network right now can lead to more untapped opportunities even after the pandemic is long gone.

There’s no question how this B2B model has indeed become prevalent throughout the country with delivery and food apps teaming up with online eCommerce sites to perform deliveries, in-store pick-ups, and supply tiering, in what can only be described as entrepreneurial Bayanihan at work.