Cultural micro, small, and medium enterprises (MSMEs) play a dual role: safeguarding cultural heritage and contributing to the creative economy. Their ability to blend tradition with innovation showcases their adaptability to changing market demands. However, these enterprises face significant challenges, including limited access to technology, financial constraints, competition from mass-produced imports, and workforce sustainability. This Policy Note draws insights from a case study of cultural MSMEs in Northern and Central Luzon, highlighting how cultural preservation, economic survival, and community empowerment drive their innovation efforts. These motivations position cultural MSMEs as potential global leaders in cultural entrepreneurship. To ensure sustainable growth, the Note recommends a holistic approach that supports both heritage preservation and the expansion of MSMEs' market reach and economic potential.
