There was good news coming out of the Philippine Statistics Authority early this month. The agency’s recent report showed that unemployment in the country reached its lowest point in nearly 20 years. Its latest Labor Force Survey reported that unemployment continued to decline last December, bringing the full-year average to 3.8 percent; that’s the lowest it has been in 19 years.

Meanwhile, average underemployment (individuals seeking extra hours in their current role, an additional job or a new position with longer hours) was also at its lowest in 2024 since 2005. That is indeed good news because it reflects stability and that a higher quality of jobs are now available to Filipinos.

Now this may be a bold claim but I do believe that the rising number of Filipinos venturing into entrepreneurship contributed to the positive results in the country’s employment numbers. Of course, I view these data through the lens of MSME development. For 20 years now, I have lived and breathed MSME; over the years, this conviction has only strengthened with every small entrepreneur I meet, with every conversation I have with my peers in the private sector and government and even with my counterparts in the other ASEAN countries.

Since resuming our public entrepreneurship events after the pandemic, we at Go Negosyo have seen a significant rise in the people coming to us for mentoring. Our walk-in participants at our free entrepreneurship mentoring event 3M on Wheels alone reached nearly 20,000 over the last three years. In fact, the number of attendees to 3M on Wheels has doubled from 2022 to 2024, and these numbers do not even include the active and aspiring entrepreneurs Go Negosyo assists through its other programs like Kapatid Mentor ME (which we conduct alongside the Department of Trade and Industry) and the various national summits for women entrepreneurs, OFWs and their families, online sellers and tourism-based MSMEs, where we conduct pop-up mentoring alongside the intensive sectoral discussions and lectures during these summits.

Our last three 3M on Wheels in the first quarter of 2025 drew a large number of attendees. In Pasig City, we were so overwhelmed by the number of active and aspiring entrepreneurs that the staff could hardly keep up with the influx. In Antipolo, Rizal and San Pedro Laguna, we saw by the number of attendees just how dynamic the entrepreneurship scene has become in rising urban areas outside the NCR.

This growth in the number of Filipino entrepreneurs can be attributed to many factors and I am sure the economists can help us paint a more accurate picture and explain why more Filipinos are pursuing entrepreneurship. I could venture a guess that it might be because of the shifts in people’s employment situations during the pandemic, when we saw people moving away from the cities and exploring alternate income streams.

MSMEs generate more than half the jobs in the country and they comprise almost all of its enterprises. MSMEs employ people of different skill levels and spread this employment even outside the urban areas. MSMEs help diversify the country’s growth drivers. They spread out the jobs and employ a wider pool of people, they are a wellspring of fresh business ideas and by their sheer number they create a wider base for economic activity.

I can’t stress enough the importance of creating jobs; to be more specific about it, creating high-quality jobs. Jobs, more than dole-outs, give people a sense of control, that they determine their future. It gives them not just income but also dignity. The ripple effect of job creation extends far beyond individual financial stability. When people have jobs, they are more likely to invest in their communities, fueling local economies and driving further growth.

They are also more likely to spend on goods and services, which in turn creates demand and opportunities for other businesses. Moreover, a thriving job market fosters innovation and entrepreneurship, as people are more willing to take risks and pursue their ideas when they have a safety net of employment options. Job creation also plays a crucial role in reducing poverty and inequality, providing pathways for marginalized communities to improve their living standards and participate more fully in society.

Moreover, investing in skills development and training programs can further enhance the quality of jobs and ensure that Filipinos have the skills they need to succeed in a rapidly changing economy.

But just to put a little caveat on it, the mere presence of MSMEs does not necessarily translate to income growth. To realize the full potential of MSMEs in job creation, we have to help them become more productive. That is why we have to help MSMEs by teaching them to use digital tools and business skills so they can run their small businesses professionally. With professionalization, they can become better credit candidates and access more financing to scale up their operations.

Together with government, we can create a conducive environment to help MSMEs thrive. We must remember that MSMEs are at a disadvantage versus large corporations. It is good that we have the big-brother corporations volunteering to help them by incorporating them in their value chain, by training them through franchising and easing their access to markets. When we grow our MSMEs, we create a jobs environment that is sustained and inclusive.

This coming elections, it is important to keep this in mind. Filipinos need better quality jobs and they need the source of these jobs to be stable. By investing in our MSMEs and supporting those who can help them, we are investing in the future of our nation.

 Originally Published in Philippine Star