FOR many small business owners in the Philippines, technology used to be something they could think about later. If the business was already earning, customers were coming in and the bills were being paid, there was probably no urgent reason to change the way things were being done. A notebook for sales, a calculator for expenses, Facebook for advertising, and cash for payments could be enough.
But things have changed. Today, customers are already digital. They search for businesses online, send inquiries through Messenger, pay using QR codes, order through apps and check reviews before deciding where to spend their money. Because of this, businesses, especially small and medium enterprises or SMEs, also need to adapt. Digitalization is no longer just about having a website or posting on social media. It’s now an integral part of every business operation.
A small restaurant, for example, can now accept digital payments, use an online delivery platform, promote its products through social media and even use simple software to monitor sales and inventory.
A small contractor can use cloud storage to organize project documents, inventory management and communicate with suppliers and clients more efficiently. All of these changes are now accessible even for small enterprises, as most of the apps offering such tools are free or within a base cost, they do not only boost sales but promote efficiency and tremendous growth!
One of the biggest advantages of technology is that it allows small businesses to do more without necessarily hiring more people. Tasks that used to take hours can sometimes be completed in minutes. And now, there is another tool that is becoming more accessible to SMEs: artificial intelligence. AI is no longer something that only large technology companies can use.
A small business owner can use it to help write emails, create social media content, prepare proposals, organize information, research competitors, or even come up with ideas for marketing. Of course, technology is not a magic solution. Buying every new application available will not automatically make a business successful. In fact, it can sometimes make things more complicated.
The better question for a business owner is: What problem am I trying to solve?
If customers are having difficulty paying, perhaps digital payment options can help. If inventory is difficult to monitor, maybe an inventory system is needed. If the business spends too much time answering the same customer questions, automation may help. It does not have to be expensive.
This is probably one of the biggest misconceptions about digitalization. Some business owners think they need expensive software, new computers, or a large IT department before they can start. In reality, many useful digital tools are already available at relatively low cost, and some are even free.
The challenge is not always access to technology. Sometimes, it is the willingness to change.
Many Filipino entrepreneurs have built their businesses through hard work, personal relationships and experience. These are still very important. Technology should not replace those things. Instead, it should help business owners make better use of them. There is also something else that SMEs should consider: competition.
A business that refuses to adapt does not necessarily lose customers overnight. But little by little, customers may start choosing businesses that are easier to find, easier to contact, easier to pay and faster to respond. That is where digitalization becomes more than just a technology issue. It becomes a business issue.
The good news is that SMEs do not have to transform everything at once.
Start small. Accept digital payments. Create a proper online presence. Organize records digitally. Try one tool that can save time. Learn how AI can help with simple tasks. Then, once something works, build from there.
The future of Philippine SMEs will not necessarily belong to the businesses with the biggest budgets.
It may belong to the businesses that are willing to learn, adapt and make better use of the tools already available to them. For a small business owner, going digital may have once been an option.
Today, it is becoming part of staying in business.
Jerome Antonio is an acquisitions manager at First Circle.
