An MSME in the Philippines is defined as any business activity or enterprise engaged in industry, agri-business and/or services, and to qualify, the enterprise must have total assets (excluding land) of up to PHP 100 million and employ fewer than 200 people. Regardless of ownership structure, businesses are classified as micro if they have fewer than 10 employees, small if they have between 10 and 99 employees, and medium if they employ between 100 and 199 employees, according to the Philippine Statistics Authority.

 

                      In 2022, the Department of Trade and Industries reported from 2022 List of Establishments (LE) of the Philippine Statistics Authority (PSA) documented 1,109,684 businesses in the country. Among these, 1,105,143 (or 99.59%) are micro, small, and medium enterprises (MSMEs), while large enterprises account for 4,541 (or 0.41%).

 

Micro-, small and medium-sized enterprises (MSMEs) play a significant role in fulfilling the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). They are essential in providing employment, decent work opportunities, and entrepreneurial support, particularly for women, youth, and marginalized communities.

 

Source: https://sdgs.un.org/topics/capacity-development/msmes

 

Micro, small, and medium enterprises (MSMEs) play a crucial role in the economic development of the Philippines. By creating jobs for the expanding workforce and promote economic growth in rural and remote regions, they help to reduce poverty. They can also serve as a partner for larger companies by supplying goods and services and fostering a culture of entrepreneurship. However, despite existing policies intended to support their growth, MSMEs continue to encounter numerous challenges that hinder their full development and potential.

 

Source: https://legacy.senate.gov.ph/publications/AG%202012-03%20-%20MSME.pdf

 

SMEs including Micro- particularly micro businesses, struggle to embrace sustainable practices and take advantage of emerging green opportunities due to limited access to knowledge, technologies, finance and market opportunities. 

 

Source: https://www.ilo.org/ilo-department-sustainable-enterprises-productivity-and-just-transition/areas-work/green-and-resilient-msmes

 

Micro, Small, and Medium Enterprises (MSMEs) face challenges in achieving sustainability due to various factors, including insufficient financial resources, knowledge, experience, education, and training.

 

Source: https://link.springer.com/article/10.1007/s11356-022-24742-7

 

In the Philippines, the widespread Sari-Sari store system has contributed to a culture of purchasing small quantities, known as Tingi, which has led to an increase in plastic pollution due to the prevalence of single-use sachets.

 

While it is helpful for low-income consumers because it is much affordable and accessible, sachets, particularly plastic sachets, are made of fuel. Many companies producing these sachets do not have recycling initiatives, prioritizing profit over sustainability. These companies do not support the tingi culture in a way that can contribute positively in the environment and sustainability, but rather in a more harmful way.

 

The country faces significant environmental challenges, ranking 158th out of 180 on the Environmental Performance Index due to issues like poor waste management, deforestation, and air pollution. Although the government has initiated Zero-Waste policies like the Renewable Energy Act (2008), Climate Change Act (2009), and National Greening Program (2011), sustainable living remains a challenge for many Filipinos.

 

Though companies are also heavily encouraged to produce sustainable products, while consumers are urged to support eco-friendly options and practice better waste management, this is not enough as the country struggles to implement these policies.

 

The lack of resources and equipment for local government units (LGUs) hinders effective waste management is one of the examples.

 

According to our own conducted survey, 96 out of 100 respondents from Metro Manila area believes that MSMEs should adapt sustainable practices for reasons such as: they can promote more eco-friendly options, to elevate their competitiveness in the market, and to increase operational efficiency.

 

In our own opinion, if large companies are not doing it, we must encourage the MSMEs to promote eco-friendliness and sustainable living, as it is the more accessible and common to any families. In our own conducted interview with random residents of Metro Manila, some of them believes that MSMEs are capable of influencing consumer behavior and purchasing decisions.