1 in 3 Pinoy micro-entrepreneurs started business during pandemic

by Janvic Mateo (The Philippine Star), 14 Aug 2020

MANILA, Philippines — One in every three Filipino micro-entrepreneurs started a business during the COVID-19 pandemic, a survey conducted by web-hosting company GoDaddy showed.

The global entrepreneurship survey, which was conducted in 10 countries last June, revealed the extent of the impact of the coronavirus on entrepreneurs, especially those that have fewer than 10 employees.

“The Filipino’s ability to adapt in times of crisis is largely seen among these microbusiness owners. As COVID-19 caused uncertainty on various fronts, Filipinos turned to entrepreneurial pursuits with one in three Filipinos establishing a microbusiness during the pandemic,” read the report released on Wednesday.

“Filipino microbusinesses felt the brunt of the pandemic with 81 percent of Pinoys surveyed reporting a reduction in revenues. Respondents also had to deal with temporary closures brought by the various levels of quarantines imposed since March this year,” it added.

The survey had 5,265 entrepreneurs and microbusiness owners in the Philippines, Australia, Canada, Germany, India, Mexico, Spain, Turkey, United Kingdom and the United States.

Over 90 percent of the respondents have 10 or less employees, including half that are solo business operators.

Despite the impact of the pandemic, the survey showed that 72 percent of Filipino entrepreneurs believe that it is important for their ventures to positively impact local communities – the highest among all countries surveyed.

Thirty percent of the Filipino respondents said they shared a part of their profit with charities since the pandemic hit the country.

A total of 76 percent of Filipino respondents said they expect to recover within the year, slightly higher than the global average of 71 percent.

With the limitations of physical business during the health crisis, Filipino entrepreneurs are looking at digital technology to sustain their operations.

Sixty percent of the respondents said technology was essential for keeping their business afloat during the pandemic. Some 23 percent said they began using digital platforms as a main touch point with customers.

Another 51 percent said they have turned to social media and messaging apps as the main channel of communication for their business during the pandemic.

“Entrepreneurs around the world continue to inspire in the way they keep marching forward even in the face of the challenges caused by the pandemic,” said Tina Shieh, marketing director for GoDaddy Asia.

“The current situation has fast-tracked digitalization for a lot of business owners and enabled them to continue to reach customers online and also give back to their local communities,” she added.

The survey also showed the interest among Filipino entrepreneurs to learn more about digital technologies.

“Our survey shows that Filipino entrepreneurs are fast adopters, resilient and working hard to keep supporting their customers and their communities. Having a website that is integrated with social media and e-commerce tools can help microbusiness owners strengthen their online presence and stay connected with their customers,” added Shieh.