Philippines’ Top SME Business Trends for 2024

SMEs will still be dealing with same issues in 2024, but they will also have new opportunities in technology, global markets, and governance. They should strengthen their capacities and look into alternate funding sources for flexibility and resilience in order to take advantage of these. Their long-term existence and profitability depend on their ability to navigate these new business trends in the Philippines.

Hybrid work and working remotely

The intentional pursuit of flexibility by employees in their workplace has an impact on SMEs’ ability to attract and retain talent. AT&T projects that the hybrid work paradigm will be adopted by 81% more people worldwide, with Gen Z being among its most ardent proponents. To find the best work arrangements, SMEs should consult with staff members, taking into account both in-office and remote/hybrid choices. Investment in technology and effective online and in-person procedures are crucial for distant or hybrid work. The secret to drawing and keeping talent in in-office models is to prioritize wellness initiatives, learning opportunities, career advancement, and work-life balance.

Growing operational costs for businesses

Global industries are being impacted by rising operational costs, which are caused by problems with the supply chain and shifts in the market. The Bangko Sentral ng Philippines may raise interest rates in 2024 in an effort to curb consumer spending if inflation keeps going up. For SMEs, this is a difficult scenario because it would result in lower profit margins and more expensive company loans.
SMEs can think about alternatives like obtaining a credit line for efficient cash flow management in order to combat these growing costs. A free-to-open credit account offers a constant stream of funding for unforeseen expenses or business ventures. Moreover, it enables SMEs to bargain for better conditions from suppliers. Finally, a credit line costs nothing unless you use your credit limit, making it a wise risk management tool in difficult economic times.

Outsource key talents

Important functions like accounting and human resources are increasingly being outsourced, primarily as a result of the rise in outsourcing companies that have reduced the cost of doing so. SMEs in the Philippines may now access a pool of specialized talents and knowledge thanks to this business trend, which eliminates the need for internal staff training, office space, software or infrastructure investments, and employee benefits costs.

Your company can boost productivity, realign its emphasis on its core competencies, and expand its operations as necessary with the aid of outsourcing.

E-commerce and digital marketing

The Philippines is well-positioned to see additional expansion in e-commerce; nevertheless, the rise in e-commerce stores and the resurgence of in-person shopping have increased competition in the market. Due to the abundance of options available to them, consumers find it simpler to switch brands depending on aspects like price, convenience, or recommendations. Younger, more technologically sophisticated consumers (Gen Z) are also greatly impacted by social media trends and digital marketing tactics that continually bring new brands into their awareness. As a result, they are more likely to try out several brands rather than stick with just one. In order to stand out from the competition, SMEs need to investigate specialized markets and create deep connections with customers through tailored experiences, excellent customer care, and creative marketing techniques.

Design Engine is a design and technology company, whose mission is to help small businesses and companies use technology and design to meet their business goals. They aim to differentiate their services with a customer-focused process and engage closely with their client throughout the process to deliver the best result and the best experience. 

Brand ethics, corporate responsibility and brand strategy

Filipino consumers are gravitating toward sustainable and ethical brands, appreciating not only eco-friendly operations but also honesty in advertising. In order to exceed customer expectations, it is critical to maintain total brand sensitivity, especially in customer service.

AI tools VS your work force

Artificial intelligence (AI) is leveling the playing field between small and large companies by automating processes and giving predictive insights. SMEs who are able to implement AI will be able to increase their competitive edge and drive efficiency by producing marketing content faster, using chatbots to improve online customer care, and requiring less human input for administrative tasks.