Small to medium enterprises (SMEs) form an integral part of our economy. They contribute to our gross national product (GNP). However, the Covid-19 global pandemic, like a great equalizer, has preyed on both established and relatively new enterprises. The crisis has drastically changed the playing field for businesses everywhere.
A well-established spa is closing by month’s end. Ditto a skin-care clinic that had been enjoying a steady clientele but whose operations plunged into the red at the onset of the pandemic. We also know of an entrepreneur who still peddles their line of clothing despite garnering only 10 percent to 20 percent of what they used to generate from sales, because he is optimistic things will go back to normal.
“In investing, never put all of your money in one and the same thing. Always diversify,” advised entrepreneur Wilbert Tolentino, who is holding tight onto his ventures as he rides the Covid-19 pandemic. “Ever since I started my businesses, I’ve been following the traditional Chinese business mindset of not putting my money on a singular merchandise, product, or undertaking. That’s because in the long run, the stronger ventures will subsidize the struggling undertakings until they get their bearings and be self-sufficient.”
The NEDA (National Economic and Development Authority) has observed that the “acid test” for a local enterprise to join the market as one of its many players is passing the two-year “rite of passage.” Those who operate continuously for five years has a greater chance of surviving the rigors of the trade. Yet, as the pandemic erupted, it has folded a number of enterprises that had been in business for longer than a decade.
Continuing, Tolentino said: “While the Covid pandemic has crippled most traditional business set-ups, technology has found a way in helping merchants peddle their stuff online. Entrepreneurs need to adapt to the prevailing business atmosphere in order to be in the running with others in the fast-changing market. Telecommunication companies have been offering tailor-fitted packages that address the needs of their varied clientele.
“Despite the obstacles presented by the pandemic, some observers think me and my staff seem to be taking the many restrictions in stride. This is because long before the pandemic erupted, right from the beginning of my journey as businessman, I already envisioned a scenario wherein an external factor would close businesses one day. I didn’t know what it would be but I was certain it would happen one day.
“When the outbreak happened, I had to close most of my shops. The good thing was all of my businesses have set aside contingency funds regularly. In times of peace and quiet, we use it for bonuses or incentives during the holiday season. In this case, we used it to extend cash and relief goods for all staff members. We suffered from advanced rental payments because the checks have been issued postdated beforehand. It was an overhead paid with no revenue in return for the meantime.
“The other setback we encountered was the momentary closure of our overseas business partners for our few BPO offices. Fortunately, they have re-opened when the Philippine government allowed a number of certain business to reopen.”
Aside from Wemsap, a web development BPO that promotes products online, Tolentino also runs a bar, a spa/salon, as well as a buy-and-sell business of imported items.
“Also, if you have the gumption for securities and futures investment, put your money in some blue chip stocks or T-bills. Always take care of your personnel, especially in rough times. They will be your fallback. Be innovative. These loyal set of workers will be the rungs that will catapult you to heights you may never have dreamed to attain. This fight could be a long one. As an adage inspire us, ‘When the going gets tough, the tough gets going.’ We hold tightly on our reins with no intention of quitting midstream,” said Wilbert, concluding our phone interview.
As of press time, the Philippines has recorded confirmed cases of 32,455 patients with 8,442 recovered cases and counting. Worldwide, the tally shows 9.37 million confirmed cases with 4.61 million recovered cases. The countries hardest hit by the pandemic are the United States, Brazil, Russia and India. All of the world’s governments are setting their sights on the release of a vaccine that would bring things back to normal.