MANILA – Eight in every 10 small and medium enterprise or SME in the Philippines use mobile payments and software automation to manage their supply chains, highlighting the role of technology in the sector, a study released Thursday showed.
Ninety six percent of SMEs also use e-commerce platforms which account for 52 percent of their revenue, according to the study by logistics provider FedEx in 10 Asian markets with over 4,500 respondents.
Philippine SMEs sell up to $1.4 billion overseas every year, accounting for 89 percent of total revenues, according to the FedEx poll.
"So that’s a great thing. SMEs are incubator of innovation," said said FedEx Philippines managing director John Peterson.
Peterson said that if the country's richest man and mall tycoon Henry Sy had the technology SMEs enjoy today, it wouldn’t take him half his life to build the SM empire.
"That’s why we’re seeing entrepreneurs today were able to build fortunes and businesses faster because they now have a market. They now have access to a market that’s in billions," Peterson said.
By competing globally, small businesses are challenged to offer more high-value products. This also creates jobs, he said.
"They’re able to hire people... they hire people with maybe different skills and that would require Filipinos to upscale some of the talents that they have," Peterson said.