The country should implement a comprehensive approach to support cultural micro, small and medium enterprises (MSMEs) in preserving their heritage while expanding their market reach and economic potential, including providing financial support, simplified regulations, and digital literacy programs, according to local researchers.
This was among the recommendations in a policy note published by the Philippine Institute for Development Studies (PIDS) authored by Central Luzon State University (CLSU)-College of Business and Accountancy faculty members June Ann Casimiro and Via Shane Santiago, as well as CLSU-University Business Affairs Program acting Vice President Karenina Romualdo.
Casimiro, Santiago and Romualdo underscored the need to enhance access to finance and investment, and boost digital literacy to these businesses.
“Microfinance initiatives tailored to the unique needs of cultural MSMEs should be expanded, along with increased grants for innovation and business expansion to further support their growth,” they said.
The authors said efforts should focus on helping cultural MSMEs secure funding by connecting them with investors who prioritize social impact.
They said digital infrastructure, particularly in rural areas, must be improved to ensure that all MSMEs can participate in the digital economy.
“The government should offer affordable digital literacy training programs to equip MSMEs with the skills needed to leverage digital tools for marketing, sales, and operations. Additionally, e-commerce adoption should be prioritized by supporting the development of platforms tailored to the specific needs of cultural MSMEs to help them access wider markets,” they added.
To promote innovation while preserving cultural heritage, the researchers said cultural MSMEs must be supported through research grants and funding opportunities aimed at developing new techniques, materials, and designs.
Casimiro, Santiago and Romualdo said design centers should be established to foster collaboration among artisans, designers, and technologists, driving innovation.
The Policy Note draws insights from a case study of cultural MSMEs in Northern and Central Luzon which employ key innovation strategies including product and process adaptation and diversification, leveraging technology, strategic marketing and promotion, and collaboration and partnerships.
To promote fair competition and market access, the authors said measures must be implemented to level the playing field, ensuring fair competition and addressing unfair trade practices, such as the dumping of cheap imports.
“Domestic production should be supported by providing incentives for the local production of raw materials and finished goods, reducing reliance on imports,” they said.
Casimiro, Santiago and Romualdo said consumer awareness must be strengthened through campaigns that educate consumers on the value and cultural significance of handmade products, encouraging them to support local businesses.
Moreover, the researchers cited the need to streamline government regulations and enhance support services, ensure product quality and supply chain resilience, and preserve traditional knowledge and foster skill development.
“Regulations for permits, licenses, and compliance requirements must be simplified to make it easier for MSMEs to operate legally. Establishing a centralized platform or website with clear and concise information on relevant regulations, licenses, and support programs will provide guidance for these businesses,” they said.
Casimiro, Santiago and Romualdo said quality standards for cultural products should be implemented to ensure consistency and consumer confidence.
“Supporting supply chain development will help MSMEs strengthen their operations, establish reliable supplier relationships, and diversify sourcing options. Encouraging cooperative models for sourcing materials and managing logistics collectively can enhance overall supply chain resilience,” they said.
They added linking experienced artisans with young craftspeople can facilitate the transfer of skills and expertise, while financial incentives, such as scholarships or grants, can encourage the pursuit of traditional crafts.
