- Filipino small businesses made greater use of digital technologies in 2020.
- Difficulty accessing finance may act as a brake on small business growth in 2021.
- A young workforce and strong focus on innovation will boost small business momentum.
MANILA, PHILIPPINES – Media OutReach – 20 April 2021 – Small businesses in the Philippines significantly increased their use of online payment technologies and sales in 2020. However, difficulty accessing external finance may hamper their growth prospects in 2021, according to CPA Australia‘s 2020-21 Asia-Pacific Small Business Survey.
The survey canvassed 4,227 small businesses in 11 markets across the Asia-Pacific region, including Australia, Mainland China, Malaysia and Vietnam. Three hundred Filipino small businesses took part.
More than half (58 per cent) of Filipino respondents reported being negatively impacted by COVID-19. However, 46 per cent say they have already recovered or expect to recover in 2021. Sixty-two per cent of small businesses grew in 2020.
“The survey shows that small businesses in the Philippines are eager to innovate and engage with customers through social media. A vibrant and youthful workforce together with growing domestic demand supported the sector in 2020,” said Mark Chau, Regional General Manager of Business Development International at CPA Australia.
“Pending the effectiveness of the rollout of COVID-19 vaccinations and the control of COVID-19 cases, the dynamism of Filipino small businesses should help drive an economic rebound this year as restrictions are gradually eased and global economic activity returns to normal,” Chau said.
Filipino small businesses made greater use of digital technologies in 2020 as the pandemic accelerated the use of e-commerce. Twenty-seven per cent of Filipino small businesses reported that they began or increased their focus on online sales in response to COVID-19.
Sixty-one per cent of respondents received more than 10 per cent of sales from digital or online payment technologies such as GCash, DragonPay and PesoPay, up from 47 per cent in 2019. Sixty-two per cent of small businesses received more than 10 per cent of their revenue from online sales, up from 50 per cent in 2019.
“A re-opening of the economy in 2021 is likely to contribute to the continued expansion of e-commerce and digital transactions in the Philippines,” said Chau.
Seventy-three per cent of Filipino small businesses expect to grow in 2021, with 52 per cent intending to increase employees. Twenty-two per cent anticipate that revenue from overseas markets will grow strongly. Thirty-one per cent say they will introduce a new product, process or service to the local or overseas markets, the second highest of the markets surveyed.
Nevertheless, cashflow difficulties are having a negative effect on some Filipino small businesses. Sixty-four per cent of respondents sought external funds last year; 43 per cent sought funds for business growth and 32 per cent sought funds for survival.
However, only 13 per cent of respondents found accessing external finance easy or very easy, the lowest of the markets surveyed. This may explain why respondents mainly sought funds from friends or family (21 per cent) or personal resources (21 per cent), compared to 15 per cent from a bank.
Only 16 per cent of Filipino small businesses expect accessing external finance to be easy or very easy in 2021, which is lower than the survey average of 28 per cent.
“Difficulties in accessing external finance may hinder business plans to hire more employees, invest in technology or expand to new markets. Small businesses in the Philippines should consider seeking professional advice to maximise their success in obtaining external finance,” Chau said.
CPA Australia recommends that Philippines small businesses consider the following actions to improve their recovery prospects:
- Seek advice from a trusted adviser to maximise success in obtaining external finance.
- Improve cashflow by collecting outstanding debts.
- Keep innovating products and services.
- Invest in staff training to improve their productivity.
- Invest in up-to-date devices and relevant technologies.
Download CPA Australia Asia-Pacific Small Business Survey 2020-21
About CPA Australia
CPA Australia is one of the largest professional accounting bodies in the world, with more than 168,000 members in over 100 countries and regions. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au
Services
Stakeholder mapping, analysis, engagement and communication needs to be detailed to avoid business losses or even worse, a crisis. How can you do this effectively to prevent failure? ...
Data-driven business decisions have never been as crucial, especially in this era. MGBF leverages off, technology, experience and market presence to aid businesses in making accurate decisions. ...
MGBF provides comprehensive strategic advice and results-focused solutions to solve clients' problems in business-government relations so they can focus on their core business. ...
A critical business challenge is meeting the right decision-makers and potential buyers through the best channel and platform. How will you improve your business competency? ...
Upcoming Events
A series of networking sessions with various business associations and trade organisations exploring high-value opportunities for business leaders and entrepreneurs looking to build the relationships that matter.
This integrated event will include a forum, dedicated business matching, site visits, a gala dinner and golf. The focus will be on regional food security issues and trends in the context of the supply chain, agriculture technology and trade regulations and policies.
The ASEAN two-wheeler market represents more than 25 per cent of the global market and growing exponentially. What are the business opportunities for Malaysia especially in the context of mobility, ESG and supply chain?
MGBF is hosting a networking session focusing on building a resilient future for critical industries as part of the networking series leading up to ASEAN's Food Security Nexus 2023.
MGBF In The News
Last week SPM results came out, 373,974 aspirants who have been waiting patiently over the last few months would now know their fate. Some 10,109 have received all A’s, the golden standard of academic success and the ticket to those looking to study the “more advanced” subjects in university. Proudly, […]
The classic knee-jerk reaction is to say, fire the coach, change the leadership of associations, and reduce the funding till they start performing better. This kind of negative reinforcement may work for kindergarten children, but we are dealing with high-performance adults – individuals much further along in their psychological and […]
Since its earliest tea plantations in 1929, Cameron Highlands has grown to become a key player in the agricultural landscape of Malaysia, producing 40 per cent of all vegetables grown. Despite Malaysia shifting its economic focus away from agriculture, the industry remains imperative for food security and the livelihoods of […]
Although at first glance the travel industry and the agricultural sector appear to have nothing in common, they actually share more than meets the eye. The economic benefits of tourism to the agricultural sector can be multiplied several times over. “Tourism brings the end consumers closer to the source, which […]
The Malaysia Global Business Forum (MGBF) recently held a high-level roundtable themed ‘Designing the Future of the Digital Economy’, attended by industry leaders and business associations. The guest of honour was Yang Berhormat Syerleena Abdul Rashid, the Member of Parliament (MP) for Bukit Bendera in Penang. The MP’s Special Session […]
The Malaysia Global Business Forum (MGBF) will be hosting a roundtable on ‘Designing the Future of the Digital Economy’ on 23 February 2023. It is the culmination of the first three MGBF Exclusive Roundtable Series titled ‘The Evolving Threat Matrix in the Digital Economy’ held throughout 2022. According to the […]
The Founding Chairman of the Malaysia Global Business Forum (MGBF), Nordin Abdullah, today spoke on Bernama TV’s leading English talk show, The Brief, hosted by Jessy Chahal, on the topic of a stable political reality and what that means for the Malaysian economy. Nordin said, “The first thing that it […]
More than 1,100 years ago, Muhammad ibn Musa al-Khwarizmi was developing the mathematical formulas that we know today as algorithms which now have become so intertwined with the business fortunes of global media giants and the very fabric of geopolitics. A series of recent high level international reports have revealed […]
KSK Land has been recognised by the Malaysia Global Business Forum (MGBF) for its role in attracting high net-worth individuals to Malaysia post-pandemic. The first challenge in investor attraction is “selling” the country. In the context of Asia, Malaysia is competing with some very established investment destinations. The second […]
Malaysia, in particular Kuala Lumpur, continues to position itself as a regional centre to do business, educate a family and enjoy a global lifestyle. One company, KSK Land, has taken the lead in positioning itself and the city of Kuala Lumpur as a property investment destination for the global citizen […]
The upcoming budget represents an opportunity to build resilience in the critical sectors that will form the backbone of the country’s future-facing economic ambitions. This however needs to be achieved in the context of managing the community sectors most impacted by COVID-19 over the past two years. The Keluarga Malaysia (Malaysian Family) […]
Malaysia Global Business Forum (MGBF) has moved to support the creative economy as the overall economy moves into a recovery phase following the COVID19 pandemic. As a step in the direction of normalcy, the MGBF has agreed to host the art exhibition “I Know You’re Somewhere So Far” by one […]
Congratulations to Datuk Seri Ismail Sabri Yaakob for taking up the mantle of the ninth prime minister of Malaysia. There is nothing normal about the situation; it could not have been scripted but it has kept the spectrum of media, mainstream and social, gripped. The first order of business for […]
In a stirring speech to the nation, President Joseph R. Biden, Jr. stamped his brand of leadership on the presidency, in his first act as the 46th president of the United State of America, it signaled several shifts. Perhaps the weather was foreboding with snow falling before the ceremony that […]
KUALA LUMPUR, 6 July 2022 – As the global economy continues to deal with unprecedented levels of disruption caused by the pandemic and the conflict between Russia and Ukraine, the convergence of energy security and food security issues has become a front-of-mind issue faced by policy makers and consumers alike. […]
KUALA LUMPUR, 23 June 2022 — Malaysia Global Business Forum (MGBF) ties up with scoutAsia to ensure that businesses are equipped with deeper regional insights. The past two years has seen a massive shift in the way businesses are conducted with digitisation, digitalisation and automation continuously being adopted to improve […]
KUALA LUMPUR, 25 May 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Security Concerns in Critical Value Chains’ was held in a hybrid setting yesterday at the Eastin Hotel Kuala Lumpur. The guest of honour was Yang Berbahagia Tan Sri Dato’ Seri Rafidah Aziz, former minister of […]
We live in the age of crisis. At the heart of any crisis is the threat of rapid change. Change too deep or too wide that the current coping mechanisms for an individual, corporation or government are unable to remain resilient. An unwelcome paradigm shift, like the proverbial spider, that […]
The Malaysia Global Business Forum (MGBF) has released a report following the roundtable on ‘Digital Resilience in the Corporate Sector’, which was recently held in Kuala Lumpur. In attendance as guest of honour was Deputy Minister of Communications and Multimedia, Datuk Zahidi Zainul Abidin. The report recommended several critical development […]
