Document Type
Article
Publication Date
6-2025
Abstract
Executive Summary
This report examines the resilience of women nano- entrepreneurs in Mindanao and explores the impact of access to finance and digital technologies on their business sustainability. Utilizing data from the Social Enterprise Development Partnerships Inc. (SEDPI) and focus group discussions (FGDs), the study identifies key challenges and coping mechanisms employed by women-led nano- enterprises. The findings provide actionable insights for policymakers and microfinance institutions (MFIs) to design targeted interventions that strengthen the sustainability of these enterprises, particularly in the face of economic and environmental shocks. Women-led nano-enterprises in Mindanao typically operate informally, with assets ranging from PhP3,000 to PhP1 50,000, and are often unregistered. The entrepreneurs engage in various income-generating activities such as retail, food processing, farming, and service-oriented businesses. These enterprises are largely driven by necessity rather than opportunity, as most women start their businesses due to limited employment prospects rather than a strategic market advantage. Balancing household responsibilities with business operations remains a persistent challenge, particularly in times of economic hardship.
The adoption of digital technology has been a transformative factor for some women entrepreneurs, allowing them to diversify income streams and expand market reach through e-commerce, mobile payments, and social media platforms. However, many continue to face barriers to digital adoption, including limited digital literacy, unreliable internet connectivity, and the high costs associated with digital transactions. While mobile wallets like GCash have gained popularity, cash transactions remain the preferred mode due to accessibility concerns. The reopening of the economy post-pandemic has resulted in a shift back to physical transactions, though some digital adopters continue to leverage technology for business efficiency. The resilience of women nano-entrepreneurs is constantly tested by economic and natural disasters, including the COVID-19 pandemic, typhoons, and earthquakes, all of which have severely disrupted business operations. To cope with these challenges, women entrepreneurs rely on various strategies such as utilizing savings, seeking financial aid, availing loans from MFIs, and engaging in community- based insurance systems like damayan. Reducing household expenses and finding additional income sources are also common survival mechanisms. However, recovery is not uniform and depends largely on financial access, market resilience, and household support structures.
Access to financial services remains a critical issue, with MFls serving as the primary source of financial support for women entrepreneurs. Formal financial inclusion remains low, particularly for women, as many struggle with the high costs and eligibility restrictions of government social insurance programs such as SSS, Pag-IBIG, and PhilHealth. There is a strong need for financial products that integrate disaster mitigation measures and flexible savings schemes to ensure business continuity during crises.
To enhance the resilience of women nano-entrepreneurs, several policy and institutional interventions are recommended. Policymakers should focus on strengthening social protection programs by improving childcare support, coordinating social protection schemes, and easing access to government social insurance programs. Disaster mitigation strategies should include incorporating disaster coverage in government social insurance, streamlining
aid distribution, and investing in resilient infrastructure. Additionally, advancing digital and financial inclusion through enhanced financial literacy, improved digital infrastructure, and localized online marketplaces will help bridge the economic gap for women entrepreneurs.
Microfinance institutions play a crucial role in providing innovative financial products that integrate disaster mitigation strategies. These include affordable and fast-processed insurance schemes that cover disasters, sickness, and accidents, as well as flexible savings products that enhance financial resilience. Micro housing loans and financing options for digital tools should also be prioritized to support sustainable business growth. Furthermore, positioning MFls as conduits for government services can expand access to social protection and financial security for nano-entrepreneurs.
Ultimately, this study underscores the need for a holistic approach to strengthening the resilience of women-led nano-enterprises. Improving financial inclusion, expanding digital access, and integrating disaster risk management into economic policies are essential steps toward ensuring that women entrepreneurs in Mindanao can build sustainable businesses. Through targeted financial products and enhanced collaboration between government agencies and MFIs, these entrepreneurs can be better equipped to navigate economic shocks and contribute to long-term economic recovery and growth.
Recommended Citation
World Bank; Ateneo Center for Social Entrepreneurship (ACSEnt); (SEDPI), Social Enterprise Development Partnerships Inc.. Resilience of Women Entrepreneurs in Mindanao and the Impact of Access to Finance and Digital Technologies (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/099100125040527473
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