Insights for MSMEs: Understanding Economic Well-Being in the Philippines through SWS Surveys
On July 2, 2024, the UP Center for Integrative and Development Studies hosted a lecture by Dr. Mahar Mangahas, Chair Emeritus of Social Weather Stations (SWS), titled “The Social Weather Surveys of Economic Well-Being (1983-2024).” This event, held at Bahay ng Alumni, offered valuable insights into the economic well-being of Filipinos over the past four decades, with implications for micro, small, and medium enterprises (MSMEs) in the Philippines.
Dr. Mangahas emphasized the necessity of high-quality statistical data for scientifically guiding governance and business decisions. Survey-based statistics provide a “bottom-up” perspective, offering an accurate reflection of the public’s economic conditions. For MSMEs, understanding these statistics is crucial for identifying market trends, consumer behavior, and potential areas for growth. SWS’s consistent sampling and field interviewing methodologies enhance historical analysis, ensuring the validity of their findings, which can be instrumental for businesses in strategic planning.
The lecture highlighted several key economic well-being indicators tracked by SWS that are particularly relevant for MSMEs:
1. Self-Rated Poverty (SRP):
– Since 1983, SWS has conducted 142 surveys on self-rated poverty, with quarterly surveys starting in 1992.
– Respondents are asked where they would place their family on a card labeled “Not Poor” and “Poor,” often identifying with the border between these categories.
– As of Q1 2024, 46% of respondents identified as poor, 30% at the border, and 23% as not poor. These fluctuations can significantly impact consumer spending and demand for MSMEs.
2. Joblessness:
– As of March 2024, SWS reported a joblessness rate of 14.9% among individuals aged 18 and older, similar to the PSA’s 14.9% for individuals aged 15 and older as of November 2023.
– High joblessness rates can affect the purchasing power of consumers, influencing MSMEs’ sales and growth prospects.
3. Hunger:
– Hunger data from 1998 to 2024 reveals no significant net gain, with hunger steadily increasing.
– In Q1 2024, 12.6% of respondents reported experiencing hunger, with 11.2% experiencing moderate hunger and 1.4% severe hunger.
– Hunger rates vary regionally, with higher rates often recorded in the north, including NCR, affecting regional market dynamics and consumer priorities.
Dr. Mangahas provided a detailed historical analysis of economic well-being trends:
– From 1983-1990, the initial poor rate was 55%, peaking at 74% in 1985.
– Record lows in the not-poor category were observed between 1991-2000 (8%).
– During 2001-2010, the poor rate ranged from 43% to 46%.
– From 2011-2024, the peak not-poor rate was observed in Q4 2014 at 30%.
– The weak trickle-down effect of economic growth was highlighted, with GDP growth having an insignificant impact on reducing SRP.
– Regional disparities in poverty rates were evident, with higher rates in Visayas (46%) and Mindanao (44%) compared to NCR (28%) and Balance Luzon (24%) as of Q1 2024.
Understanding these trends helps MSMEs tailor their business strategies to different regions and market segments, ensuring they can effectively address varying consumer needs and economic conditions.
The lecture also underscored the inverse relationship between educational attainment and poverty:
– 65% of non-elementary graduates identified as poor.
– This percentage decreased progressively with higher educational attainment, with only 28% of college graduates identifying as poor.
For MSMEs, investing in employee education and training can enhance workforce productivity and economic stability, contributing to overall business growth.
To address poverty and hunger effectively, Dr. Mangahas suggested several policy measures:
– Implementing larger, lengthier, and better-targeted cash transfers.
– Raising the minimum schooling requirement to junior high school completion.
– Cutting inflation to around 2% per annum through monetary and fiscal tightening.
MSMEs can align their business strategies with these policy recommendations by advocating for educational initiatives, supporting community welfare programs, and adjusting pricing strategies to account for inflationary pressures.
Dr. Mahar Mangahas’s lecture provided a comprehensive overview of the economic well-being in the Philippines over the past four decades. The SWS surveys offer crucial insights into the lived experiences of Filipinos, emphasizing the need for targeted policies and business strategies to combat poverty and hunger. For MSMEs, leveraging these data-driven insights can guide effective decision-making, foster resilience, and drive sustainable growth.
This lecture has illuminated the ongoing challenges and potential strategies for improving the economic well-being of Filipinos, highlighting the essential role of accurate and consistent data in guiding policy and business decisions. By understanding and addressing these economic indicators, MSMEs can better navigate the complexities of the Philippine market and contribute to national development.
For more detailed insights and information, please visit the Social Weather Stations website: sws.org.ph.