How Delivery Can Help MSMEs Bounce Back

June 27 is the designated annual day of recognition for micro-, small- and medium-sized enterprises (MSMEs). Often in the shadow of well-known corporate brands and multinational companies, MSMEs are far more vital for local and global economies than most of us realize.

Disclaimer: This has been optimized last December 2021.

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There’s a reason why MSMEs are called the ‘backbone’ of any healthy economy by those in the know. According to the Department of Trade and Industry (DTI), MSMEs make up over 99.5% of all businesses in the Philippines and account for on average 63% of total employment. Simply put, they drive growth, provide employment opportunities and open up new markets.


What’s more, MSMEs generate competition and can increase productivity across industries. By capitalizing on a gap in the market or making a niche of their own, MSMEs often force larger businesses into enhancing their innovation and competitiveness.


But small businesses are among the hardest hit during the COVID-19 pandemic. Before the pandemic, about 20% of small businesses fail by the end of their first year. With lockdown measures, resulting in severe disruption to supply chains and drops in consumer demand, it is no wonder the attrition rate has accelerated substantially. 

There is no denying the unprecedented challenge millions of businesses face across the world, especially in the Philippines. As the recovery phase begins in many regions, small business owners have learned to adapt and are poised to bounce back. 

Could delivery be holding MSMEs back?

There are a number of factors that can prevent MSMEs from building a stable foundation for growth, and delivery is one of them.

Digitization

In the midst of the health crisis, digitization across the business has become more important than ever. Pivoting in time to become an online business platform and starting e-commerce sales saved many small businesses when COVID-19 threatened to stop their operations for good.
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When deliveries are digitized, businesses can enjoy a new level of automation and transparency through real-time vehicle tracking, consolidated online records, and hassle-free driver communications. This allows businesses of every size to take a more active and informed role in managing their logistics processes.

 

Flexibility

Small businesses have the potential to be agile in response to a changing world. But where advantages of a small size help with quick decision-making, there happens to be lack of access to finance and a skills shortage. This can hinder small businesses to make the necessary pivots or adapt to external changes, unlike how larger organizations can easily do so.


Scalability

Investing in the necessary amount of vehicles for delivery as well as the manpower and employer training is, more often than not, not the easiest for small businesses. This is especially true when a business begins a delivery service for the first time or is attempting to expand.


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Tapping into a fleet of experienced delivery drivers and a wide range of vehicle types is the kind of service that MSMEs need to scale their delivery service, and that’s where Lalamove comes in. With Lalamove, services and business operations can be scaled up even during busy periods and equally scaled back during quiet seasons

 

Lalamove is committed to supporting MSMEs to unlock their potential. To find out more about our delivery solutions and see if they could save your business time and money, get in touch with us.



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