‘Enterprises hit by pandemic may pause operations’

MANILA, Philippines — Enterprises hit by the pandemic may have to pause operations temporarily once their cash flow turns negative and consider other opportunities in agriculture and digital space, Presidential Adviser on Entrepreneurship and Go Negosyo founder Joey Concepcion said.

“My advice to many of our MSMEs (micro, small and medium enterprises) and I always share this with them: You have to have a plan. You have to remain cash flow positive and if you turn cash flow negative, at a certain point in time, don’t wait until it depletes your entire working capital or even your family’s savings.”

“Close the business for the time being because it’s not going to be worth wasting all your family’s savings and it will create more problems for you. That’s my advice to many of our entrepreneurs,” he said in an interview on the The Chiefs aired on One News.

He said there are times when businesses have to rethink and consider continuing operations and if they cannot make it through, then they would have to pause.

“Don’t be brave and say, look, I can do this. No. This is not the time. This is not even an issue of the skill of an entrepreneur. It is not our fault that we have this big pandemic health issue,” he added.

Despite challenges faced due to the pandemic, he said there are still opportunities in certain sectors which individuals can consider.

He said online platforms like Viber communities and Facebook are providing a venue for individuals to sell products.

Housewives, for instance, are selling their delicacies through Viber communities and this is creating competition for restaurants doing deliveries.

“Everybody is shifting to online. People want food delivered at home. So, there are a lot of opportunities in this pandemic as well and you just have to be able to spot those opportunities,” he said.

As many individuals are trying to become entrepreneurs through online platforms as a way to cope with the impact of the pandemic, he reiterated his call to the government not to tax them.

“Actually, I was suggesting that we don’t tax until the end of this year. Give them a reprieve. Many housewives are trying to be entrepreneurs. Let’s give them a chance. Do that next year. Let’s allow them to test the waters and see if they will be successful in what they do. Then, starting next year, let’s start taxing them,” he said.