Road to Recovery and Resilience for Philippine MSMEs During the COVID-19 Pandemic

Abstract

The COVID-19 pandemic has significantly affected major industries, resulting in the transformation of the business landscape, and small businesses have taken a particularly severe impact. Whenever crises occur, micro, small and medium enterprises (MSMEs) tend to be more vulnerable than large firms. Amidst such challenges, many small businesses have suffered immediate losses. While some struggle to cope and survive, others are able to thrive in unprecedented situations. This report analyzes MSMEs’ performance and behavior in the National Capital Region (NCR) and Calabarzon Region in the Philippines about six months into the implementation of lockdown restrictions under “community quarantine” in March 2020. Using results from the 2020 Asian Institute of Management Rizalino S. Navarro Policy Center for Competitiveness Wave 1 MSME Recovery Survey, we investigated how MSMEs in NCR and Calabarzon responded to the COVID-19 crisis, focusing on their coping behavior and strategic approach.