Though the majority of small and medium enterprises (SMEs) are flocked together in Luzon, the southernmost region of the Philippines is already shaping up to be an exciting and diverse frontier to SMEs. The latest data indicates that more businesses are being put up in the region than ever, with most of them engaged in the wholesale and retail trade.
SMEs in Mindanao face challenges such as access to roads, security in rural areas, gaps in information technology use for ease of doing business, lack of opportunities for farmers, and need for more financial assistance for agribusiness.
However, SMEs in the region are surpassing these challenges through other means and finding smarter ways to build and strengthen their brands. Here are some emerging trends for SMEs in Mindanao this year:
1. Embracing technology
Photo via Streetby Facebook Page
SMEs in Mindanao have begun to embrace technology as a valuable investment that will drive work efficiency and growth in the future. Innovative solutions are aiding these enterprises to push boundaries, providing them with faster, more reliable communication systems in spite of Mindanao’s geographical challenges. SMEs also strive for high-quality, user-friendly websites and apps to keep customers engaged with their brands.
It’s the motto by which Streetby, Cagayan de Oro’s homegrown app, operates. With its sleek design and user-friendly interface, the app serves as the ideal bridge for customers and businesses alike to conduct seamless transactions online.
2. Adapting to the needs of the customer
Photo via Streetby Facebook Page
Most, if not all, business owners would agree that understanding and adapting to the customers’ needs is vital in growing a business. Streetby, for instance, addresses this particular sentiment by integrating different services in a single platform. With the app, customers can book restaurants and hotels, order food, and even, request laundry services.
Streetby has also adjusted to the needs of travelers as it offers informative walkthroughs and maps for wanderers who would just like to make the most of their trips. Who would’ve thought that a company which started as an app that offers hotel or restaurant bookings and food deliveries would later expand to other features like parcel delivery and on-demand laundry?
3. Expanding into new markets
Supported by the right technology, SMEs are starting to look beyond their home turfs to tap into larger and more diverse markets. The ASEAN market, for example, is rife for Mindanao businesses to tap into. They are moving one step at a time, excelling in their respective markets through sheer quality and craftsmanship in their products and services.
This is how Malagos Chocolate, a world-famous chocolate manufacturer from Davao City, broke through the international market. Now, it has expanded into other countries like Singapore, Thailand, the UK, and the US—a testament to its excellence in the field of chocolate production.
Before Malagos started offering their products to the other areas of the world, they were simply known as a local cocoa manufacturing and distribution company. But after taking a chance and participating in a few noted contests, this confectionary business grew in popularity and received more than 30 international awards from different chocolate competitions around the world. Due to their product’s stellar quality and their drive for international excellence, the company has grown and moved on to bigger and better ventures.
4. Coming up with cost-saving measures
Photo via Tagum Cooperative Facebook Page
Not all companies use outside resources like technology or increased workforce to improve their businesses. Others develop wiser strategies in their operations, generating more savings from more efficient use of their resources and improved handling.
Cost-saving measures were instrumental to putting Tagum Cooperative back on its feet as it used to be hounded by loan delinquency and financial mismanagement from its previous administration. Tagum Cooperative, a cooperative based in Davao, used cost-saving programs along with tight internal control in their loan processes. These measures eventually helped the cooperative decrease its debt and increase its budget for members. It was even awarded as a Finance Organization achieving Certified Credit Union Standards or FOCCUS in 2001. Certified FOCCUS awardees are firms that have achieved and maintained international standards for safe, sound, and sustainable cooperative businesses.
To aid SMEs in Mindanao, as well as other parts of the country, in embracing these trends and growing their businesses, Globe myBusiness offers best in value business solutions.
Through programs like the GSuite, Vehicle Tracker, Auto SMS Blaster, Go Canvas, myShopkeeper, and RUSH loyalty rewards app, Globe myBusiness is able to provide the best value for money as it equips enterprises with the right technology to make it future-ready. With the goal of helping SMEs establish and develop their brand and operations by providing customizable and leading edge business solutions, Globe myBusiness indeed stays true to its primary goal: to help every entrepreneur grow their businesses—regardless of size, industry, and where they are in their business journey.
Globe myBusiness, in partnership with the DTI, especially celebrates all SMEs for their contribution to nation building during SME Week. Saludo, SMEs!
For more information on Globe MyBusiness solutions, visit: https://www.globe.com.ph/business/sme.html