MICRO, small and medium entrepreneurs (MSMEs) are more bullish in 2025 than they were in 2024, a survey released on July 15 by Boston Consulting Group (BCG) showed.
Jamie Bawalan, researcher at BCG, told the MSME Bayanihan Caravan in Pasay City on Tuesday that the survey of 3,098 MSMEs across the Philippines in November 2024 found that 73 percent believed they would do much better in 2025 compared with only 43 who said they did better in 2024 compared with the previous year.
The respondents, mostly in manufacturing, retail, sari-sari stores, food, and other service activities, pointed to a slow recovery last year, BCG said.
“The results show a hopeful outlook in 2025,” Bawalan said, adding that optimism is driven by MSMEs’ focus on short-term goals — to increase revenue, expand the customer base, and improve products and services.
Access to credit remains a challenge for MSMEs, she added, since less than 10 percent of businesses said they have access to bank loans, and 55 percent have not taken advantage of them.
“The main reasons for this are fear of debt and intimidation by high interest rates,” Bawalan said.
For those who did get loans, 59 percent received loans with an interest rate of 1 to 5 percent.
Bawalan said MSMEs are eager to expand and upskill, but have concerns on talent readiness.
The survey showed 72 percent of MSMEs said they want to expand their workforce, and 82 percent want to upskill their existing employees.
However, only 54 percent felt they were providing enough training opportunities, and just 53 percent believed their workforce is skilled enough to support business growth. Another 54 percent said there is enough talent in the market to meet their needs, and fewer still—only 48 percent— felt that the government is doing a good job in upskilling jobseekers
“If the skills mismatch is addressed, it can unlock further opportunities,” Bawalan said.
Around 77 percent of MSMEs said they intend to use digital tools more but only 20 percent have increased usage from last year.
For Bawalan, these findings show information and trust gaps need to be addressed.
One is market access, where 88 percent said they want to expand products and offerings, with some eyeing international expansion.
Second is digital tools, as there is a high level of interest in those, including POS and accounting software, but adoption is low.
Third is government support. “However, program participation and awareness are uneven,” Bawalan said.
