MICRO, small and medium enterprises (MSMEs) must adopt bricolage and digital transformation to enhance their resiliency in the post-pandemic economy, said an associate professor from the Asian Institute of Management (AIM).
Dr. Jamil Paolo Francisco, Associate Professor in Economics at the AIM, said during The Manila Times forum titled "Empowering MSMEs, Generating Opportunities" on May 23, 2024 that MSMEs face numerous challenges, including the high cost of raw materials and inputs, which was the biggest obstacle identified in a survey of 500 MSMEs in the National Capital Region (Metro Manila) and Calabarzon (Region 4A).
"Inflation is one of those crisis situations that we are currently facing," he said, explaining that there are MSMEs facing the challenge of "liability of smallness" or lacking access to resources and opportunities available to larger firms.
Francisco said MSMEs generate 64 percent of employment but only contribute one-third of gross value added, indicating lower productivity.
Despite these challenges, Francisco lauded the entrepreneurial mindset behind bricolage — making do with what is available. "Entrepreneurs are people who have a bias toward action," he said, emphasizing the importance of resourcefulness and adaptability.
He argued that bricolage, traditionally seen as a desperate measure during crises, should be embraced by MSMEs as a permanent strategy for resilience.
Francisco also urged MSMEs to integrate digital transformation into their operations, noting that many have yet to fully digitize. "True digital transformation involves doing new things in new ways."
Also, by leveraging digital tools, MSMEs can test and refine their strategies more efficiently.
Francisco emphasized that the principles of bricolage and digital transformation are also key to MSMEs' future readiness. "Let's not put a good crisis to waste," he said, urging businesses to use the lessons from the pandemic to build more resilient and dynamic enterprises.
In his call to action, Francisco also encouraged MSMEs to embrace the opportunities presented by the current economic environment.
"Now is the time to embrace flexibility, adaptability and a bias towards action," he said, highlighting the importance of fostering a culture of openness and experimentation within firms and leveraging networks for greater flexibility.
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