ABSTRACT
The Philippines experienced many challenges brought about by the COVID-19 pandemic. In 2020, the country experienced a decline in economic growth. The agri-food sector's micro, small and medium enterprises (MSME) are amongst the country's most vulnerable. This study analyses the various policy constraints and enablers related to food manufacturing as well as the distribution in the agri-food supply chain. This study applied a mixed methods approach. Interviews with 30 agri-food enterprise owners and key officers were conducted and concept mapping was applied using Leximancer software. Key themes emerged including introduction of new products, increased online selling activity, limited supply of inputs and packaging materials, increased cost of production and delivery, and availability of government assistance. A subsequent survey (n=125) for the food manufacturers, logistics operators, traders, wholesalers, and retailers was also implemented. The effect of policy measures on enterprises' profitability was assessed using ordered probit regression. The results suggest that the likelihood of reporting profitability after the pandemic increases when the owner or key officer is male, the business is operating under a partnership, enterprises suspended their operations at some point during the pandemic, enterprises implemented health and safety protocols for their employees, there is no oversupply of employees during the lockdown period, and enterprises increased operation work hours during lockdown. The study also highlighted that manufacturing and distribution of food during the pandemic should be unhampered. However, MSMEs in the agri-food chain experienced delays and increases in prices of raw materials despite clear policy guidelines. Interregional trade was affected due to varying localised policies on health protocols and lockdowns. These policy constraints generally affected the profitability of the enterprises.
ABSTRACT
In the Philippines, economic recovery in the aftermath of the COVID-19 pandemic necessitates a digital shift for businesses. Through this innovation, their operations can continue under the new normal. The adoption of digital payments is one of the common business recovery options supported by the government. In this study, the factors affecting the adoption of digital payments were examined. From July 2020–January 2021, an online survey was conducted on a sample of 433 respondents with at least supervisory level positions. On average, the firms operated their enterprises for 16.22 years and employed 1.8 workers with 57% being sole proprietors, 54% micro enterprises, and 30% having information technology (IT) infrastructure. A decline in their business performance during the pandemic was observed. Two-thirds of the firms across the country employed digital payment technology, and 55% of these firms started using the technology during the pandemic period. Logit analysis was conducted to analyze the determinants of digital payment adoption. Being relatively younger, operating under a partnership business structure relative to sole proprietors, employing more human resources, having IT facilities, and experiencing business growth before the pandemic were found to be predictive of the adoption of digital payments in the business operations of these firms. While younger firms are more receptive to this new payment technology, digital capacity development programs may further revitalize businesses and industries. Such mechanisms need to be put in place targeting vulnerable enterprises: firms under sole proprietorship, without infrastructure for IT, with relatively fewer employees being relatively smaller organizations, and in decline in terms of business growth even prior to the pandemic. © 2022, Department of Science and Technology. All rights reserved.