You can download the situationer Micro, Small, Medium Enterprises in the Philippines: Understanding the Vulnerability of MSMEs to Disasters and their Roles in the Economic Recovery of Affected Communities in PDF format here: A-PAD-PH-_IEC-Situationer-2023
MSMEs: Micro, small, and medium enterprises
Any type of business—single proprietorship, cooperative, partnership, or corporation—engaged in agri-business,
industry, and services with an asset size, land excluded, of up to PhP 100 million and with less than 200 employees.
Classification of MSMEs
Economic Role & Contribution
The Philippines Disaster Situation and its Economic Impact
The Philippines is vulnerable to disasters due to its physical characteristics, geographical location and socio-economic and political condition.
Vulnerabilities of MSMEs
According to the United Nations Development Programme (UNDP) Crisis Prevention and Recovery, MSMEs in developing countries, like the Philippines, are considered to be more vulnerable to natural hazards than larger firms, given the more limited range of risk-management system they can access.
The country’s exposure to natural hazards incurs heavy economic disruption that largely contributes to the slow development growth of the Philippines.
Philippine MSMEs have more difficulties than larger firms in terms of recovering from loss of assets, supplies, customers, and staff when disasters strike.
Smaller businesses have less financial and technical resources to reduce and cope with risk.
The close relationship between MSMEs and their communities through employment and local economic dynamism is particularly important for livelihood.
MSMEs are also dependent on community recovery for their own business continuity.
Strengthening Disaster Resilience of MSMEs
A-PAD Philippines’ conducts Business Continuity Planning (BCP) workshops for micro-enterprise at the community. This is one way to address the immediate concerns of the government and DRR stakeholders in promoting and improving disaster resilience of small enterprises.
Why we need BCP?
This is one method of ensuring the comprehensive development of a disaster resilient community. A resilient micro-enterprise contribute to economic stability and enhance overall capacity of the community to effectively prepare for, respond to, and recover from disaster.
Proposed Strategies in Promoting and Strengthening Disaster Resilience of MSMES
Challenges in Promoting & Improving Disaster Resilience of Microsmall Enterprises
The Department of Trade and Industry (DTI) administered a survey and policy review on the disaster resilience of Micro, Small, and Medium Enterprises (MSMEs) in the Philippines in February 2016. The results identified top three challenges that the government encounters in promoting and improving SME disaster resilience.
- Only few experts provide consultancy services, education, and awareness on pre-disaster management including BCP.
- Low awareness on BCP and disaster management activities.
- Lack of coordination mechanism within and across public agencies at all levels.
Asia Pacific Alliance for Disaster Management
A-PAD Philippines is a non-stock, non-profit organization, committed to fostering collaboration among humanitarian organizations, civil society groups, the private sector, and government units. Our mission encompasses delivering emergency response, early recovery, and embarking on vital projects for disaster risk reduction, and the mitigation of vulnerabilities within communities and among people.
A proud member of the Asia Pacific Alliance for Disaster Management (A-PAD), A-PAD a trans-national disaster aid alliance. Together, we are devoted to facilitating cooperation and nurturing mutual understanding among governments, the private sector, and non-governmental organizations across the Asia Pacific Region.
With a resounding commitment encapsulated in our tagline, “Saving more lives in less time,” A-PAD Philippines continues to play a pivotal role in building resilience, reducing disaster risks, and championing the well-being of communities in the Philippines and the wider Asia Pacific Region.