Financing needs of MSMEs

MICRO, small and medium enterprises (MSMEs) also contribute a large part to our country's economy. According to the Department of Trade and Industry in 2022, MSMEs comprise 99.5 percent of the 1.109 million business enterprises and 90.5 percent of these MSMEs are micro enterprises. MSMEs contribute 5.6 million jobs or 65 percent of the country's employment with close to 33 percent from micro enterprises. They contribute significantly to the country's gross domestic product and in providing additional income to families.

Among these MSMEs and micro enterprises, also most prevalent are the sari-sari (neighborhood variety) stores. They can be seen in every alley or street in both urban and rural areas all over the country. According to Asian Preparedness Partnership, the number of sari-sari stores reached 1.3 million in 2023 and as per Packworks, 70 percent of manufactured goods are transacted through this retail channel.