Cultural micro, small, and medium enterprises (MSMEs) in the Philippines must embrace innovation while preserving tradition to remain competitive in an evolving market.
Experts emphasized this during a symposium hosted by the Philippine APEC Study Center Network (PASCN) of the Philippine Institute for Development Studies (PIDS) in collaboration with Xavier University (XU)-Ateneo de Cagayan on March 10, 2025.
The discussion highlighted the need to integrate modern business strategies with tradition to ensure the sustainability and growth of cultural and creative industries.
Central Luzon State University Acting Vice President for Business Affairs Dr. Karenina Romualdo, underscored the dual economic and cultural significance of MSMEs, which account for 99.63% of businesses in the country.
Presenting findings from the PIDS study, “Advancing Innovation in Philippine Cultural MSMEs: Balancing Tradition and Modernization,” Dr. Romualdo highlighted that these enterprises contribute to both preserving Filipino heritage and driving economic development through crafts, textiles, and culinary arts.
“While innovation is essential for growth and adaptation, it is crucial to maintain the authenticity and cultural integrity of these products,” Romualdo emphasized.
She cited digital platforms like e-commerce and social media as tools to expand market reach while maintaining cultural authenticity.
Despite government policies supporting the creative economy–such as the Philippine Creative Industries Development Act (RA 11904) and the Philippine Development Plan 2023-2028–cultural MSMEs still face challenges. These are mass-produced imports, an aging artisan population, limited access to technology, and financial constraints.
Romualdo called for government intervention, particularly in funding and training, to help cultural enterprises remain sustainable.
“Cultural MSMEs are not just economic entities but also vital cultural institutions that preserve heritage and foster inclusive development,” she noted.
Building on Romualdo’s points, Dr. Glenda Orlanes, XU-Ateneo de Cagayan Department of Economics Faculty Member, highlighted the importance of collaboration in strengthening cultural MSMEs.
“MSMEs must operate on the premise that mutual support and collective efforts can drive greater resilience and success than isolated competition,” Orlanes said.
She pointed out that partnerships among artisans, businesses, and academic institutions facilitate knowledge-sharing and skill development, ensuring traditional craftsmanship evolves while maintaining its cultural significance.
She also underscored the need for tailored government support, including financial incentives and mentorship programs, to enhance the competitiveness of cultural MSMEs.
“Ensuring that financial aid and training programs are accessible to cultural entrepreneurs will help sustain traditional industries,” Orlanes explained.
Encouraging collaborations between traditional artisans and technology-driven entrepreneurs, she argued, is key to helping cultural MSMEs thrive in an evolving economic landscape.
Meanwhile, National Economic and Development Authority OIC-Regional Director Richardson Cua emphasized the role of continuous learning and adaptation in helping MSMEs stay competitive.
“Cultural MSMEs are more than just businesses. They represent Filipino identity and traditions,” he said.
Cua highlighted digital transformation and e-commerce as game-changers for market expansion and called for stronger collaboration among government agencies, private institutions, and MSME networks.
“Investing in technology allows MSMEs to streamline production, reach wider audiences, and create more efficient supply chains,” he added.
Cua also emphasized the importance of urging all stakeholders to actively support cultural MSMEs, ensuring their sustainability in a rapidly changing economic environment.
Watch the symposium playback at https://bit.ly/pidslive031025. ###
