Filipinos have a vast imagination especially when it comes to thinking of ways to make money. They like to start unique businesses, no matter how small. According to BusinessWorld, micro-, small-, and medium-sized enterprises (MSMEs) grew to 911,768 in 2016 from 896,839 in 2015.
Countless international achievements have proven how far-reaching and globally-competitive Filipino creativity is. That’s why some businesses based in the country want their products available abroad. With the abundance of cargo handling and delivery services in the Philippines, it’s high time MSMEs take advantage of exporting their products internationally. Here’s why:
1. Exporting Broadens the Customer Base
Philippine MSMEs offering products that are unique to the country will benefit from exporting because no other market offers what they do. If the product is universally useful, even better. This is called the first-to-market advantage. It solidifies the MSMEs’ customer base, even if competitors may follow.
2. Exporting Adds Stability
International trade benefits companies by providing additional stability. The Institute for International Economics found out that businesses that export are about 8.5 percent less likely to close than non-exporting companies.
3. Exporting Expands the Life Cycle of Mature Products
The domestic market may become saturated with the goods that a business is offering. When this happens, exporting will be a way to introduce these goods to new markets in other parts of the world.
4. Exporting Improves Overall Sales
Adding export capacity to a business diversifies their source of income. In the Philippines, just the external trade of goods amounted to $15.84 billion in August 2018 alone. It shows that even if the domestic economy falters, businesses that export may still have their growing international market to rely on.
The domestic market may be a safe and reliable option for many MSMEs in the Philippines. But, they should learn how to take advantage of exportation and the larger global market to sustain their business.