Some 500 micro-, small-, and medium-sized enterprises (MSMEs) in the country said that exports accounted for 89 percent of their annual revenues, reaching a combined value of $1.4 billion a year, a study said.
This is according to the findings of an independent study on international trade patterns of small firms in the Asia-Pacific, commissioned by FedEx Corp. subsidiary FedEx Express.
John Peterson, managing director for the local operations of FedEx Express, said the study involved more than 4,500 MSME senior executives across the region.
The study, conducted by Harris Interactive, is not necessarily representative of the MSME export sector in the country, he later clarified on the sidelines of a press briefing, as it only covers around 500 MSMEs here who were interviewed between March and April this year, along with other MSME senior executives in the region.
Nonetheless, 69 percent of those interviewed said they exported within Asia-Pacific, and more than half, or 53 percent, also exported to other regions.
“Two out of three local [MSMEs] say they will continue or even increase their export activities beyond the Apac region within the next year,” he said in a statement.
Peterson, who is part of the world’s leading transportation company, said that they were “pleased to see that more [MSMEs] are growing their business beyond Asia-Pacific with an increasing need for more sophisticated logistics solutions.”
While 59 percent of the SMEs surveyed prefer to source items locally, Philippine SMEs also source raw materials and finished products from China, Japan, Singapore and India.
Though Philippine SMEs are posting robust trade numbers, they continue to face two challenges: customs procedures (66 percent) and logistics issues (53 percent) in both exports and imports.
According to the report, 96 percent of local MSMEs interviewed use e-commerce, which accounts for half (52 percent) of their total revenues.
Mobile commerce has high penetration among these MSMEs as well, with 89 percent using m-commerce to import goods and to find new customers.
Moreover, a significant 95 percent of MSMEs use social platforms to reach new customers in other markets.
These MSMEs are also quickly adopting new technologies with eight of 10 saying they use both mobile payments and software automation to make their supply chains and distribution channels more efficient.