03/06/2026
If SMEs Are the Backbone of the Economy, Why Are We Making It Harder for Them to Grow?
The government often refers to Micro, Small, and Medium Enterprises (MSMEs) as the backbone of the Philippine economy. This is not merely a slogan—it is a fact. MSMEs account for the overwhelming majority of businesses in the country and provide employment opportunities to millions of Filipinos.
That is why the recent backlash against the Department of Trade and Industry's proposed advertising permit system struck a nerve among entrepreneurs, online sellers, content creators, and startup founders.
Under the draft proposal, businesses would have been required to secure permits before running advertisements and promotional campaigns, with fees ranging from hundreds to thousands of pesos per advertisement and approval periods that could take up to 30 working days. Following strong opposition from business groups, lawmakers, and the public, the DTI eventually withdrew the proposal and clarified that it would not be implemented.
While the proposal has been withdrawn, the public reaction revealed a deeper concern: many entrepreneurs feel that government policies are increasingly disconnected from the realities faced by small businesses.
For large corporations, additional compliance requirements may simply be another operational expense. For MSMEs, however, advertising is not a luxury—it is often the most affordable and effective way to reach customers. Social media platforms have allowed small businesses to compete with larger brands without requiring massive marketing budgets. Adding permit requirements, fees, and lengthy approval processes would have created another barrier to growth for businesses already struggling with inflation, rising logistics costs, taxes, and declining consumer spending.
The controversy also raises an important question about policy direction.
If MSMEs are truly the backbone of the economy, should government agencies be looking for new fees to impose on business promotion, or should they be finding ways to reduce the cost of doing business?
Consumer protection is important. No responsible entrepreneur would argue otherwise. Misleading advertisements and fraudulent promotions should be penalized. However, there is a significant difference between enforcing existing laws against bad actors and creating additional layers of bureaucracy that affect every legitimate business owner.
The strong public response to the proposed advertising permit system was not simply about one fee. It was about a growing frustration among entrepreneurs who feel that they are repeatedly asked to shoulder new costs while being told they are essential to economic growth.
Words matter, but policies matter more.
If MSMEs are indeed the backbone of the economy, then government action should focus on empowering them to innovate, advertise, expand, and create jobs—not making those activities more difficult and expensive.
