Category: Microenterprise

What qualifies as microinsurance in the Philippines?

Insurance involves pooling risk over a large number of similar units such as households, persons, or businesses. It protects people and businesses against financial loss by spreading their risk among large numbers, and is similar to the concept of “bayanihan.”

Insurance is not an investment. You are not after financial gain. It is for protection against financial losses and involves exchanging the uncertain prospect of large losses for the certainty of small, regular premium products.

Term life is benefits paid to beneficiaries upon death. It is typically recommended for the breadwinners or those with dependents. Disability insurance is benefits paid to beneficiaries upon disability. Credit insurance ensures that loan principal and interest is paid by the insurance company upon death, rather than your estate.

Crop insurance offers protection against poor crop yields as well as recovery benefits from natural disasters. It is mainly utilized by farmers. Health insurance covers medical costs for illnesses and injuries. Property insurance covers damage, destruction, and theft of household assets. Business owners can also insure inventory and equipment at their stores and warehouses.

According to the Republic Act 10607 Amended Insurance Code, microinsurance is defined as meeting the risk protection needs of the poor. The “micro-” places emphasis on the fact that those with smaller incomes are the target policy holders. OFW’s can purchase microinsurance for loved ones back home so that the burden of having to personally absorb risk when loved ones are exposed to risks.

Furthermore, the premiums, fees, and charges of microinsurance do not exceed 7.5% of the policyholders’ current daily minimum wage. This means that for a daily income of PhP 570, the premium will not exceed ~PhP 15,600 for the year. The current benefits will not exceed x1000 the daily minimum wage, equivalent to PhP 570,000 to continue to be called a microinsurance.

Formal insurance is insurance provided by insurance corporations and co-operations and are regulated by the insurance commission. Although both corporation and co-ops are “for profit’ setups, co-ops are owned by the members. Rapisura recommends Mutual Benefit Associations (MBAs) or cooperative insurance, as it prioritizes the welfare of the people over the generation of profits.

Informal insurance refers to collectives such as damayan-based schemes, where insurance is a non-profit community endeavor. Hybrid insurance is a combination of formal and informal insurance. Public insurances are the social safety nets provided by the government such as the Universal Health Care Act and PhilHealth.

Never too small for hope (sari-sari store) – International Day of Rural Women 2020

Ms. Mary Jane Selecia, sari-sari store owner in Manguindanao, Philippines.

Mary Jane Selecia is a mother of five who lives in a rural community in Upi, Maguindanao in the Philippines. She runs a sari-sari store (corner store) in her community. COVID-19 has significantly affected their household and community.

To mitigate the spread of COVID-19, the government imposed community quarantine measures which includes physical distancing, movement restrictions, suspension of classes, and conduct of awareness campaigns on infection, prevention, and control measures (IPC). To cushion the socio-economic impact of the quarantine, subsidies were provided to households to complement their existing resources.

The government subsidy reminds Mary Jane that her household needs to maximize their savings. “My shop is bringing in one-third of the profit. I would earn around P4,000 (US$ 82) and now I am fortunate if I make P1,000 (US$20) a week. We invest P3,000 (US$ 61) a week just to keep the store running,” she said. Their household requirement for a month is estimated at PhP 9,000 (US$ 185) and was previously covered from the sari-sari store’s profits.

Borrowing money is becoming a vicious cycle for Mary Jane, “We have no savings and the income we make for our businesses go towards repaying our loans from relatives and friends. It seems like we are borrowing to pay over and over again,” she said.

Relief information is even more scarce when in the remote mountainous areas like Tinungkaan. The interventions in Mary Jane’s town were constrained to the Department of Social Welfare and Development (DSWD) conducting a survey to determine the poorest population in the village.

Mary Jane’s husband works as a Barangay Secretary and his work became an unexpected lifeline, “We did not need to apply for the Social Amelioration Program (SAP) because of my husband’s job. We are also beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps),” she explained.

The SAP has given qualified families P5,000 to P8,000 per month for two months. “We bought one sack of rice. The remaining money is additional capital for our store,” she said.

Farming has augmented the dwindling income of the household. “Our alternative sources of income are planting vegetables and raising farm animals. The small farm supports us while providing us with food. We are often forced to consume supplies from the sari-sari store,” she explained.

Stock in her store is already limited because of the limited supply in Noro, where she buys her supplies. Transportation cost for each of the trips to Noro is now P100, which is an exacerbated cost during the lockdown.

Everyday expenses have become a challenge for her community. “There is a decline in sales because many of our neighbors and customers do not have work,” she said. As the COVID-19 situation evolves, Mary Jane adapts to provide food on the table for her children and access to basic commodities in her community.

This case study on the plight of microenterprises in the Philippines was selected for the International Day for Rural Women (15 October 2020). It was originally shared across the Asian Disaster Preparedness Center (ADPC) platforms for the International Day for Rural Women

Here are the links:

Cambodia– Website: The Grain of the Matter
Link: Facebook, Twitter

Link: Facebook, Twitter

The Philippines– Website: Never too Small for Hope
Link: Facebook, Twitter

Never Too Small for Hope- Part III (Service Economy)

Cover

Federic Caneta / Resident of Cebu City – Furniture Maker 

The miter saw is silent in Federic Caneta’s workshop. The carpenter has a cabinet and a couple of shelves from commissions that were canceled because of the lockdown. His monthly projects vary with demand, “I make furniture on a custom-made or pre-order basis. Orders would range from P8,000 to P15,000 a month. There has been no demand since the enhanced community quarantine.” Never Too Small for HopeHis daughter, Rica Caneta, is a private school teacher. She has been helping him sell some of his works, “I made a hanging cabinet and a storage cabinet with the extra wood from the previously commissioned projects. I sold them for P2,500 and P3,000 respectively. Rica is working from home so she takes some time to promote my pieces through social media.” The average monthly salary for a carpenter is P16,800. Profits come from down-payments upon the order or balance payments upon delivery. Federic is concerned that he might not have supplies to continue the few online sales, “I had one piece that I was not able to complete. I was unable to obtain the needed materials due to travel restrictions. Some customers have also canceled their orders.”Never Too Small for HopeFederic’s son, Drake, is an animal handler and is supporting the family through these times, “My children are providing financial support we need. Our monthly expenses are usually P10,000 which was primarily covered through my business.” He has discovered the potential of taking his business online to help it grow, “I would need around P10,000 to buy materials for future orders. Online sales have made me realize that professional guidance in promoting our business would really help it expand.”

Chierrie Villarosa Marces / 29 years old / Resident of General Santos City- Pisonet 

When life gives you the Internet, make digital solutions for your business. Chierrie Villarosa Marces owns a small Pisonet (pay-by-the-minute computer and Internet shop). The lockdown has forced her to close her shop so she is selling goods through digital networks, “I have closed the pisonet since mid-March. I am focusing on online trading which includes buying and selling dry goods, food items, and other basic commodities.”

Online sales are the only means of income for Chierrie, “I make around P200 for every P1,000 I invest in online selling. I have been doing it for some time but even that has experienced a decline.” Her customers have stopped ordering dried foods, “Basic goods and essential commodities such as fruits and cooking ingredients are the priority now. We own a tricycle that we use to transport orders. Travel restrictions have made getting the goods from my supplier difficult.” NeverHowever, these sales do not provide stability for the pisonet. Filipinos spend the most time on the Internet around the world, averaging in at 10 hours per day. Her Internet business had expanded to printing, scanning, and photocopying services, “I would make around P25,000 every month from the pisonet. The expenses would be around P8,000 for the Internet and electricity bills. My direct suppliers have been generous enough to offer freebies on their services for now.”

Chierrie is struggling to make ends meet, “Our household expenses are about P10,000 every month. I am grateful to the government for providing us with rice, meat, canned goods, and other staples.” She is worried about restarting the business once the community quarantine is lifted, “I estimate that we will need at least P5,000 to restart the pisonet. It would cover two months of our Internet bill. We can manage the cost of computer maintenance and business equipment.”

John Cuvin / Resident of Naga City – Laundry Shop 

John Cuvin, his wife, and his mother are bonded in their dream to be business owners, “My wife owns a beauty salon and my mother has also had a number of businesses.” He established a laundry shop, JJS Suds Laundry Service as a lucrative business opportunity. Dry cleaning and laundry services ranked second in the service industry, providing business opportunities for 18% of entrepreneurs. John’s monthly expenses amount to P25,000 as he provides support for his family, “My wife and mother live in different provinces and I would pay for their utilities and my mother’s caretaker. I want to provide them with financial support.”

Never Too Small for HopeJJS Suds is a connection to the local community, “We would normally have 30 to 50 customers a day before the lockdown. We are lucky if there are five customers these days. Our daily revenue would reach up to P15,000 per day and that target is now P5,000.” John has had to cut corners to adapt to the new normal, “We had seven workers on a daily basis and now there are only two at any given time. The store is only open for limited hours because customers no longer come in late at night. It has led to slower service delivery. We have also started using electric fans.”

Basic supplies have become much harder to procure. His team promotes the use of dryer sheets when the fabric conditioner is short on supply- “Wholesalers have increased the price of fabric conditioner and liquid detergent from P10 to P11 per sachet. Sometimes we have to buy them from the local retailers for P17. The dryer sheets would be available for P500 per box but they are not locally available. We sell each sheet for P10.”Never Too Small for HopeCommunication is a constant with John’s regular clientele. The staff coordinate with customers on Facebook. John has also decided to bring the business to his regulars, “We also support our personnel needs by helping with the laundry and delivery. The shop currently relies on delivery modality to remain operational. Finding alternative solutions is necessary to keep the business running.”

Although business expenses were high, John would earn between P30,000 to P50,000 a month, “I spent around P120,000 which included the P50,000 for my staff’s salary on a monthly basis.” He anticipates support or policies in order to relieve the challenges they are facing, “It would be really helpful if the government could provide financial support to cover the salaries of our staff, and postpone rent collection or allow us to pay it in installments.”

Pureza Elopre Granario / Resident Naga City – Sari-sari store 

Opening Pureza’s shop is necessary for survival but also puts her family at great risk, “My husband and mother-in-law are both over 50. I worry that I might bring the virus home.” Work is scarce for her husband who is a plumber. “We are fortunate that profits from the store are still P800 to P1,000 per day.”

The green and white awning in her shop have been a part of her neighborhood’s fabric for years, “My supplies get sold easily. Before the quarantine, sales were mostly liquor and sodas. Customers now want canned goods and frozen foods which ensure that they can stay at home. Sales of phone credit are always in-demand and have gone up by 20%.” Pureza maintains is systematic when it comes to buying stock for her shop, “We have to go at a specific time and day so that we can avoid the long lines. There is still a queue but any steps we can take to be cautious are necessary.”

A savings and investment scheme supports small businesses from any shock in income flow. Pureza is fortunate to have enough to restart her business. She estimated that P10,000 was enough to restock her full inventory, “I was a part of the Social Amelioration Program (SAP) through which I received P5,000. We used the money to purchase additional inventory for the store.” Her mother-in-law has also contributed to the shop. “She gave me a P2,000 loan which I used to buy coffee, sugar, and soap.”Never Too Small for HopePureza’s shop is her saving grace during the uncertainty, “We need P9,000 for our household expenses and about P7,000 for the store.” The store is a constant for her. Its history in the community mirrors Pureza’s presence and determination, “We reinvest all of our profits into the shop. I’m obtaining inventory through other channels because I want to see my store grow despite the circumstances.”

At APP, we focus on the vulnerable sectors of our society in our development initiatives. MSMEs are among the priority sectors of our national chapter, Philippine Preparedness Partnership’s (PHILPREP) and its targets in local program activities. PHILPREP has developed these case stories to amplify the voices on the ground, especially during the COVID-19 pandemic. It seeks to amplify human stories to raise awareness on how disasters affect the most vulnerable communities.

This article was developed in partnership with the Asian Preparedness Partnership (APP). More information about APP may be found using this link: Asia Preparedness Partnership (APP).

Click the links for Part I and Part II of this series.

Never too Small for Hope – Part II (Transport and Logistics)

Image Credit: FreePik

Respondent: Jhun Rodriguez / Resident of Quezon City- Tricycle Driver

Jhun Rodriquez’s day would start with morning commuters in Quezon City. He is one of 4.5 million drivers across the country who have left their vehicles in garages until quarantine conditions are lifted. Jhun has put a ‘Family Use – Private’ sign on his tricycle, “We are only allowed to use it for business purposes and personal family needs.” The lockdown has banned tricycle drivers from passenger transport since March 15, 2020. “I attempted to take my tricycle the day after the lockdown. The authorities had warned me that it would be impounded. My tricycle is leased so I did not want to take the risk.”

The rent for the tricycle is P200 per day. Jhun had previously earned enough to support the family of 11, “I would usually earn up to P24,000 a month.” Support comes from the family during the worst disasters. Jhun was able to rely on his brother when tropical storm Ondoy ravaged the city in 2009, “My brother is too old to work now so it is my turn to ensure his well-being. I do not have enough money to start a business and our savings have gone towards food and medicine.” Jhun and his brother’s family only eat lugaw, a rice porridge, most of the time. “Eating the same meal every day becomes really difficult for the children. I assure them that when I am able to resume working, we will eat like we used to again.”

Never Too Small for HopeThe city was distributing P2,000 for tricycle drivers which Jhun was unable to collect, “I believe it is because my house is far from the collection point. The local government did provide us with rice and sardines on two occasions. We have also received grocery items from Gawad Kalinga.” Local organizations have become the most dynamic advocates during the pandemic.

Jhun’s tricycle has become an unexpected business tool: “I was able to borrow P5,000 from my friend and I used the money to buy and sell fish.” He uses the tricycle to take his supply to the local market. “Everyday kindness keeps me optimistic. My customers don’t haggle for lower prices and some do not even ask for their change. It has allowed me to pay back the loan within a week.” Jhun usually buys 20 kilograms of fish and was able to make a profit of P600 per day. Matters have gotten worse since the total lockdown has restricted him from selling at the marketplace.

Respondent: Edwin Cawit / Resident of Lagao, General Santos City – Food delivery service 

The onset of social distancing and isolation steadily witnessed a decline in Edwin Cawit’s food delivery service, “We started to feel the effects of COVID-19 in the second week of March when many of our clients canceled their previous orders. Our services came to an immediate halt as of March 18. I understand that safety measures are necessary but the indefinite timelines put us in a dilemma.” His business was growing with profits of P60,000 to P80,000 a month. Although food delivery services make up a small portion of the industry, it has witnessed a steady increase with an expansion of 7.3% between 2016-2017.

Edwin’s passion project has always been on the plates, “I started the business after years of savings because I wanted to be my own manager and operator. Cooking meals was always a family affair so it was a natural career move. I am able to cope because I do not have to compensate for any employee’s salaries.” Edwin has savings to sustain his family but the uncertainty remains a concern. “The only way to prevent fines or penalties was the ‘wait-and-see’ option at the beginning of the lockdown. We listen to and follow updates from our local news outlets and social media pages. We are very careful because our services involve people’s consumption.”Never Too Small for HopeInflation of necessary supplies during a disaster event makes business continuity an even greater challenge. Edwin’s main concern is procuring inventory, “We pick up essential ingredients from outside the local area because of lack of availability. The city’s clustering policy during the lockdown prevents vendors from sourcing some of the vegetables we need from Bukidnon.” The scarcity in supply and increase in price has forced Edwin to shut down despite being able to operate under COVID-19 safety guidelines. “The price of vegetables has inflated by 20 to 30%. Rice and grains have only gone up 10%. However, these cumulative prices make it impractical to continue operations.” The emerging caterer hopes that small businesses will receive the aid they need to carry on after the restriction, “We would appreciate logistical support, availability of supplies from the National Capital Region and other key cities, tax relief, and easing of local cluster market restrictions.”

Respondent: Shirly Erum / Lagao, General Santos City – Driving Instructor 

Shirly Erum’s classroom is the road of General Santos City- “I believe that driving is in our blood. Five out of our nine family members are driving instructors.” The school of driving can be a promising career as instructors make an average of P235,451 annually. The number of students started to slow down in March. “We no longer have enrollees because of the transportation restrictions. Physical distancing also makes it impossible to hold practical sessions.” They would offer three package deals – a five day tutorial for P2,800, seven days for P3,800, or a monthly package between P10,000 to P20,000. Never Too Small for HopeKeeping their office is the biggest challenge, “Our maintenance cost fluctuates between P5,000 to P10,000 and the rental fee for the office is P7,000. We have used our savings to continue paying the rent and any vehicle maintenance that was necessary.” Shirly also has to consider the family expenses, “My sister works in Hong Kong and has sent us remittance of P20,000 during the lockdown. We were able to use the money for four months of household expenses. If we can resume operations soon, we would only need P5,000 to start functioning again.”

Respondent: Giselle Pastrano / Resident of Cebu City – Self-service Car Wash Business 

The Pastranos anticipated that 2020 would be a year of new beginnings and opportunities. Giselle and Arnold welcomed a new baby, Arnold, in April. They had also opened a new business to provide for their growing family. Transforming their garage in front of their home as optimal for starting their venture. Giselle would be able to take care of her family and work, “Our space was large enough to situate a self-service car wash and food stall. We would earn around P9,000 to P12,000 from the car wash and P16,000 to P18,000 from the food stall.” Both businesses had minimal expenses because they were run by Giselle and Arnold, “We would spend P1,000 to P1,500 that was mostly for the water bill. The expenses for the food stall were P9,000 a month. The profits were more than enough to cover the P7,000 we would need for the household.”

They had only been operating for a month when they decided to shut down. Giselle’s immediate concern was her family’s safety, “Our business is in front of the house. Customers coming in and out expose my family. Compromising their health is never an option.” She also has a seven-year older son, Travis, who is currently unable to attend school. The food & beverage industry is expected to reach $415 million by 2024. Food stalls are becoming more popular as the younger generations opt to eat out. “Many of our ingredients have gone up by 40% to 50%. Our regular customers shared the same concerns and we started seeing a decline in customers when the lockdown started.” Commuter restrictions eventually led them to cease operations of the car wash. Never Too Small for HopeMultiple income-generating opportunities are a proven solution for many small businesses to sustain their needs. The COVID-19 restrictions have limited these prospects to entrepreneurs. Giselle currently works as a cashier for a university. It is the only stable income for the household. The lack of earnings has forced her to take loans, “My husband has a van that he would use for delivery operations. He would regularly work for Lazada but that has also stopped since March.” Loss of revenue sources has multifold consequences for microentrepreneurs. “We have lost around P19,000 a month since the lockdown. We also had an SUV that we would rent out through the Grab app. Unfortunately, we had to give it back to the dealership because we were unable to cover the monthly payment or the driver’s salary.”

At APP, we focus on the vulnerable sectors of our society in our development initiatives. MSMEs are among the priority sectors of our national chapter, Philippine Preparedness Partnership’s (PHILPREP) and its targets in local program activities. PHILPREP has developed these case stories to amplify the voices on the ground, especially during the COVID-19 pandemic. It seeks to amplify human stories to raise awareness on how disasters affect the most vulnerable communities.

For Part I of the series, click here.

This article was developed in partnership with the Asian Preparedness Partnership (APP). More information about APP may be found using this link: Asia Preparedness Partnership (APP).

Almost 4 in 10 nanoenterprises bounce back to pre-pandemic level

Update 10: SEDPI Rapid community assessment on the impact of COVID-19 to nanoenterprises

Two months after the government started easing lockdowns in most parts of the country, 36% of nanoenterprises reported to have bounced back to pre-pandemic level. In May, only 18% expected to bounce back within one month which may be a good sign of recovery if the spread of the virus is contained.

Nanoenterprise (NE) is a SEDPI-coined term that refers to unregistered livelihoods of self-employed individuals. They typically operate informal businesses alone or with the help of unpaid family members targeting their own immediate local communities.

Status of nanoenterprises

Those that bounced back report that they are already able to earn about the same income; and experience normal demand to their products and services. For the month of June, there were twice as many nanoenterprises reporting slowdown in sales compared to those that reported strong demand.

Access to supply on inputs needed to operate their livelihoods remain stable.

Financing options

Nanoenterprises typically access loans from informal sources which make them vulnerable to predatory financing practices. Most of them borrow money from cooperatives, rural banks, microfinance NGOs and pawnshops.

On average, nanoenterprises borrow a small sum of money ranging from PhP3,000 to PhP10,000 to finance their livelihoods such as sari-sari stores, carinderia, farmers, fisherfolks, dressmaking and vending. Microfinance institutions offer collateral-free loans to them payable in three to six months with interest rates ranging from 2% to 5% per month.

With microenterprises cautious on demand, they prefer not to access loans. Only two of three of those who finished their loans opted to renew their for another cycle. This is also a sign that nanoenterprise have the ability to weigh risks and returns.

For the month of June, when normal loan collections resumed, one in three nanoenterprises was able to repay in accordance with amortizations based on the Bayanihan Act’s loan deferment schedule. A majority are requesting for up to two months additional grace period to allow them more time to adjust and cope with the new normal.

Essential financial service to low income group

There are approximately 8 million low income households that access microfinance services in the Philippines. MFIs are frontliners in the delivery of financial services to low income groups who find it difficult to open deposit accounts and access loans from commercial banks.

SEDPI estimates that a PhP40B economic assistance to nanoenterprises channeled through MFIs will address their financing needs to jumpstart their livelihoods. This is based on 8 milion estimated number of microenterprises and PhP5,000 economic assistance package.

The proposed Philippine economic stimulus package contains a total of PhP245 billion budget to assist micro, small and medium enterprises. Only a small fraction of this is expected to reach nanoenterprises.

Prioritizing nanoenterprises

The negative impact of COVID-19 to nanoenterprises is undeniable. The research shows that nanoenterprises are showing positive signs of bouncing back faster.

Preferential option to those at the bottom of the pyramid should be extended first since these groups can bounce back quickly; only need a small amount of stimulus; will reduce need for cash dole outs; and will reach millions of Filipino low income households.

 

Note:

The research is part of a series of rapid community assessments that determines the economic impact of COVID-19 to microenterprises and the informal sector. SEDPI, a microfinance institution (MFI), conducted the survey from June 23-30 with 5,791 respondents located in Agusan del Sur and Surigao del Sur.

It is not a representative sample of the entire Philippines. It is highly localized but should be a good case study that reflects the situation in the countryside. SEDPI believes that the nationwide experience may not be far from our research results.

Previous updates:

The titles are hyperlinked. Click on the titles to full read article online.

• June 12 (Update 9): Microenterprises show signs of bouncing back as lockdown eases
• May 28 (Update 8): 8 out of 10 microenterprises open for business one month after GCQ
• May 22 (Update 7): Demand for microenterprise products remain weak amid COVID pandemic
• May 15 (Update 6): Demand slumps on microenterprise products 2 weeks after GCQ
May 8 (Update 5): Only 5% of microenterprises back to “normal” in first week of GCQ
• April 30 (Update 4): Two in three microenterprises hopeful to bounce back two months after lockdow – UPDATE 4
• April 24 (Update 3): Community assessment and recommendations for support to microenterprises and the informal sector during and after COVID-19 – UPDATE 3
• April 14 (Update 2): Community assessment and recommendations for support to microenterprises and the informal sector during and after COVID-19 – UPDATE 2
• April 6 (Update 1): Community assessment and recommendations for support to microenterprises and the informal sector during and after COVID-19 – UPDATE 1
• March 30: Immediate impact of COVID-19 lockdown to microenterprises

Plight of Microentrepreneurs in the Philippines Part 1 of 3 Sari-sari Stores

Never too Small for Hope- Part I

Doing business is largely a family affair in the Philippines – 80% of enterprises are family-owned or family-controlled. Microenterprises are the most intimate and the most common of these businesses. Nine of out of 10 MSMEs in the Philippines are microenterprises. Their kinship is the most deep-rooted because members of the community build these businesses around local needs.

Strength comes in numbers. Being small and having few employees put microenterprises in the most disadvantageous position. Most microenterprises are cottage industries, typically employing only family members. They are comprised of one to nine members and the very few largest ones have $6,000 in assets.

The Philippines is one of the countries with the highest economic damages as a result of disasters, having an Average Annual Economic Loss (AAL) of $284 million. Financial deficits hit the smallest enterprises the most. Economic losses have a ripple effect that magnifies and multiplies the challenges, especially for microenterprises. The COVID-19 pandemic has introduced lockdowns that prolong the hardships for many of these businesses.

The first part of our series explores the most inherent microenterprise in the Philippines. The sari-sari stores (mom and pop shops) are built into the DNA of every neighborhood and block across the national landscape. There are over 1.3 million sari-sari stores in the Philippines and 94% of consumers depend on them for everyday necessities.

Monalisa Maiquez, 41, Resident of Sta. Maria Kalamasig, Sultan Kudarat

Monalisa is the breadwinner in her family. It is a role that keeps her committed to maintaining her sari-sari store during the lockdown period. She lives with her brother, sister-in-law, and their two kids.

The family of five depends on local government assistance since the community quarantine that started on March 16, 2020, “We have received relief goods four times since the lockdown started. The local government unit of Kalamansig provided five kilograms of rice, two cans of sardines, three packs of instant noodles, 250 grams of sugar, and one pack of instant coffee.”

These rations are essential as Monalia’s revenue has been cut in half since the lockdown, “We would invest P8,000 to P10,000 every week for a profit of P1,000 to P1,500. We are only able to buy up to P5,000 of supplies for the store and our profits do not reach more than P500 weekly.” Her profits barely cover the P2,500 to P3,000 for household expenses.

Mobility restrictions introduce new obstacles for businesses as they lack supplies from the shortage of stocks. Monalisa is currently limited in procuring supplies, “I would travel to the market depending on what I needed. Now I am only allowed to make these trips once a week. We are also constrained to the number of purchasable items. For example, each business owner can only buy six-packs of instant noodles and six cans of sardine.”

Any form of financial assistance would promote the sustainability of Monalisa’s shop, “I have never experienced such a blow to my daily operations. I would need about P15,000 to recover. The business income is siphoned into funding our daily needs making savings nearly impossible.”

Mary Jane Selecia, 41, Resident of Tinungkaan, Maguindanao

The subsidy in income only reminds Mary Jane that her household needs to cut corners – “My shop is bringing in one-third of the profit. I would earn around P4,000 and now I am fortunate if I make P1,000 a week. We invest P3,000 a week to keep the store running.” She lives with her husband and five children. Their daily expenses come to P9,000 per month and were previously covered from the sari-sari store’s profits.

Borrowing money is becoming a vicious cycle for Mary Jane, “We have no savings and the income we make for our businesses go towards repaying our loans from relatives and friends. It seems like we are borrowing to pay over and over again.” Relief information is even more scarce when in the remote mountainous areas like Tinungkaan. The interventions in Mary Jane’s town were constrained to the Department of Social Welfare and Development (DSWD) conducting a survey to determine the poorest population in the village.

Mary Jane’s husband works as a Barangay Secretary and his work became an unexpected lifeline, “We did not need to apply for the Social Amelioration Program (SAP) because of my husband’s job. We are also beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps).” The SAP has given qualified families P5,000 to P8,000 per month for two months. “We bought one sack of rice. The remaining money is additional capital for our store.”

Her family’s coping mechanism is in her backyard, “Our alternative sources of income are planting vegetables and raising farm animals. The small farm supports us while providing us with food. We are often forced to consume supplies from the sari-sari store.” Stock in her store is already limited because of dwindling supply in Noro, where she buys her supplies. Transportation cost for each of the trips to Noro is now P100, which is an exacerbated cost during the lockdown.

Everyday expenses have become a challenge for her community, “There is a decline in sales because many of our neighbors and customers do not have work. I fear that we may have to shut down if this continues. I would feel more hopeful if I had P10,000 to replace the needed inventory.”

Marcia Mangubat, 53 years old, Resident of Tinagacan, General Santos City

The Mangubats are a persevering matriarch. Marcia Mangubat lives with her mother and two daughters. She runs her sari-sari store and the household with the mantra, “Maningkamot nalang gyud ta na mabuhi (we will work hard to survive).” The pandemic is no exception to this mind frame. Marcia’s store is the only source of income as her daughters look for jobs.

General Santos City is still under a curfew to prevent the spread of infections. Marcia makes sure that her family obeys the rules while trying to carry on with daily life, “The new regulations include wearing a mask whenever one steps out of the house. The first offense is a P3,000 penalty. The following offenses can lead to one-month imprisonment.”

She understands that safety measures are necessary and adapting to the challenges is the only way forward: “I go to the market myself to buy all of my supplies from the market at the center of the city. I would go at least once or twice a week. The lockdown conditions have led me to make this trip every two weeks.” The supply shortage has decreased Marcia’s revenue from P4,000 per day to P1,500. Her current profits do not cover the P7,000 she needs for the monthly household expenses.

The small bench and table for tea at the corner of Marcia’s shop is vacant these days. She has not experienced such a sales decline in 11 years, “I have been a member of Tinagacan Agrarian Reform Beneficiary Cooperative (TARBC) for six years so I was able to withdraw a savings amount of P5,000. I am afraid that I may reach a point where I will have to withdraw more of my savings.” TARBC teaches small business owners like Marica about how they can apply and access loans as well as create a savings scheme.

The local government has distributed rice, noodles, and canned goods to families like Marcia’s. It is one of the many sources of hope Marcia holds, “The supplies from the store sometimes meet our daily needs. I start the day grateful that all of us are in good health.”

Alejandra Cinco, 56, Resident of Lanao del Sur

Cassava was imported from Latin America through the Manilla Galleons over 400 years ago. It has become a staple across the Philippines since then. For Alejandra Cinco, the vegetable is a saving grace during the lockdown, “We grow cassava on our farm and I make homemade cakes to sell. Our harvest is not selling as much. I purchase sugar and the other ingredients for P100 and sell the cakes for P200. The cakes are the only profit I make some days.”

The virus outbreak may not affect everyone’s health but it deprives many of their basic needs. “I was able to stretch P20,000 towards household needs during the first month of the lockdown. The expenses included the P3,000 I need for asthma medication every two months. We have reduced our investment in the sari-sari store from P1,500 to P1,000 or P500. Buying food for our family is the top priority.”

Alejandra and her husband are housing her mother-in-law, brother-in-law, daughter, and two of their grandchildren during the lockdown period. The additions have raised her household expenses from P6,000 to P11,000 – “We have cut costs wherever we can. My husband delivers cassava to the Malabang area. He earns P700 per trip. I have started to accompany him during these trips to buy some of my supplies at competitive prices.”

Alejandra’s husband was the only one issued a quarantine pass when security measures were taken in April. She became unable to buy supplies from her local vendor: “I was referred to another grocery store but the prices were much higher. Our store sells basic goods such as sugar, coffee, soap, canned foods, and snacks. Some of these items have gone up to P10 more than before. It forces us to retail them at a higher price and lose the already dwindling number of customers.”

The higher prices and limited supplies have taken a toll on everyday operations. “I would have P500 to P1,000 in sales every day. Now I am fortunate if I make P300 on certain days,” states Alejandra.

She currently relies on her savings and one of her children for support, “My son lives in Cebu City and has sent financial support through the remittance center in the Malabang area. We are fortunate that he is able to provide a portion of his salary.”

This article was developed in partnership with the Asian Preparedness Partnership (APP). More information about APP may be found using this link: Asia Preparedness Partnership (APP).