JANUARY 2022

DISCUSSION PAPER SERIES NO. 2022-03

E-Commerce Adoption and Its Impact on the

Performance of Women-led MSMEs in Metro
Manila: An Ex-ante Study for RCEP

Jill Angeli V. Bacasmas, Jean Clarisse T. Carlos,

and Jovito Jose P. Katigbak

The PIDS Discussion Paper Series constitutes studies that are preliminary and subject to further revisions. They are being circulated in a limited number of copies only for
purposes of soliciting comments and suggestions for further refinements. The studies under the Series are unedited and unreviewed. The views and opinions expressed are
those of the author(s) and do not necessarily reflect those of the Institute. Not for quotation without permission from the author(s) and the Institute.

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E-Commerce Adoption and Its Impact on the Performance of
Women-led MSMEs in Metro Manila:
An Ex-ante Study for RCEP

Jill Angeli V. Bacasmas

Jean Clarisse T. Carlos
Jovito Jose P. Katigbak

PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES

January 2022
Abstract

This ex-ante study analyzes the impacts of e-commerce adoption on the performance of
women-led MSMEs in Metro Manila, their awareness and perceptions of government efforts
towards internationalization, and their readiness to engage in cross-border e-commerce through
the Regional Comprehensive Partnership Agreement (RCEP). Findings validate the
observation that the COVID-19 pandemic has accelerated e-commerce adoption and this has
substantially enhanced the performance of women-led MSMEs in terms of sales growth,
customer base, customer satisfaction, and process enhancement. The data further highlight that
there is low level of awareness on both existing government programs for women-led MSMEs,
and on RCEP and its chapters on e-commerce and MSMEs. However, certain provisions within
the chapters appeal to women-led MSMEs, such as “information on trade and
investment-related laws and regulations for export-oriented MSMEs” and “acceptance of
electronic transaction documents in online cross-border transactions.” Women-led MSMEs
in Metro Manila demonstrate strong interest to engage in cross-border trade under RCEP if
implemented in 2022. This study also further reveals that a high propensity for cross-border
e-commerce—fostered by an enabling policy environment that supports their e-commerce
adoption and growth—will potentially heighten the participation in regional trade and the
global value chain.

Keywords: MSMEs, RCEP, e-commerce, WoMSMEs, cross-border trade, regional

comprehensive economic partnership agreement, women-led businesses

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 Table of Contents

Table of Contents.......................................................................................................................ii
List of Boxes............................................................................................................................. iii
List of Figures .......................................................................................................................... iii
List of Tables ............................................................................................................................ iii
1. Introduction ...................................................................................................................... 1
1.1. Statement of the Problem ......................................................................................... 2
1.2. Research Objectives ................................................................................................ 2
1.3. Research Questions ................................................................................................. 3
1.4. Significance of the Study .......................................................................................... 3
1.5. Scope and Limitations .............................................................................................. 4
1.6. Structure of the Study ............................................................................................... 4
2. Review of Related Literature .......................................................................................... 5
2.1. Snapshot of RCEP and its Chapters on MSMEs and E-Commerce......................... 5
2.2. Definitions, Developments, and Policies for MSMEs and E-Commerce in the
Philippines ........................................................................................................................... 7
2.3. Women-led MSMEs and E-Commerce: Digital Divide or Opportunities? ............... 12
2.4. Case Studies of WoMSMEs and E-Commerce Adoption: Developing Lessons and
Practices ........................................................................................................................... 13
3. Conceptual and Operational Frameworks .................................................................. 17
3.1. The Impact of E-commerce Adoption on MSMEs Performance and Financial
Inclusion (FI) in Indonesia ................................................................................................. 17
3.2. Women-Owned Businesses in Cross-Border E-Commerce ................................... 18
3.3. Operationalization of Impact of E-commerce Adoption on MSMEs and Women -
Owned Businesses in Cross-Border Frameworks ............................................................ 19
4. Methodology ................................................................................................................... 22
4.1. Data Collection Methods ........................................................................................ 22
4.2. Validity and Reliability of Data Instrument .............................................................. 24
5. Data Results and Analysis ............................................................................................ 24
5.1. Profile of the Surveyed WoMSMEs ........................................................................ 24
5.2. Experiences of WoMSMEs in E-Commerce Adoption ............................................ 29
5.3. Perceptions on the Impacts of E-commerce Adoption by WoMSMEs .................... 33
5.4. Awareness on RCEP, and Cross-border Transactions Experiences and Aspirations
35
5.5. General Views on the Role of the Government to WoMSMEs ............................... 38
6. Conclusions, Policy Recommendations, and Summary........................................... 39
6.1. Conclusions ............................................................................................................ 39
6.2. Policy Recommendations and Suggestions for Further Studies ............................ 41
6.3. Summary ................................................................................................................ 43

ii
Bibliography ........................................................................................................................... 45
Annex: Women-led Micro, Small, and Medium Enterprises (WoMSMEs) in Metro Manila Using
E-Commerce Questionnaire .................................................................................................... 50

List of Boxes
Box 1 Link of E-Commerce Empowerment to the Achievement of the Sustainable
Development Goals ................................................................................................................ 8
Box 2 Gender-Focused Internationalization of WoMSMEs ................................................... 10
Box 3 Recommendation for a Gender-Inclusive E-commerce Governance for RCEP ......... 16
Box 4 Key components of a user-friendly government website for WoMSME exporters ...... 43

List of Figures
Figure 1 E-Commerce effect on marketing and MSMEs performance ................................ 18
Figure 2 Key Concepts of the Diagnostic Toolkit .................................................................. 19
Figure 3 Impact of e-commerce adoption on the perceptions on performance of WoMSMEs
and on their propensity to engage in cross-border e-commerce trade through RCEP ......... 20
Figure 4 Micro, Small, Medium Classifications of WoMSMEs .............................................. 25
Figure 5 Location of WoMSMEs in Metro Manila .................................................................. 25
Figure 6 Age and Figure 7 Educational Attainment of WoMSMEs Owners/Managers ......... 26
Figure 8 Type of Products and Services ............................................................................... 27
Figure 9 E-commerce platform usage ................................................................................... 27
Figure 10 Timeline of WoMSMEs Establishment .................................................................. 28
Figure 11 Reason for E-Commerce Adoption ....................................................................... 29
Figure 12 Biggest Gain in E-Commerce Adoption ................................................................ 30
Figure 13 Online Marketing Strategy and Figure 14 Payment Transaction Preference........ 30
Figure 15 Preferred Application for Online Payment Transactions ....................................... 31
Figure 16 Cybersecurity Issues of WoMSMEs ..................................................................... 31
Figure 17 Safety in Using Online Platforms for Transactions ............................................... 32
Figure 18 Sources of Financial Assistance ........................................................................... 33
Figure 19 Sales Growth ........................................................................................................ 34
Figure 20 Customer Base ..................................................................................................... 34
Figure 21 Customer Satisfaction ........................................................................................... 35
Figure 22 Process Enhancement .......................................................................................... 35
Figure 23 Awareness of WoMSMEs on RCEP and its Chapters .......................................... 36
Figure 24 WoMSMEs and Cross-Border Transactions ......................................................... 36
Figure 25 Perceptions on the benefits of RCEP for MSMEs Chapter ................................... 37
Figure 26 Perceptions on the benefits of RCEP for cross-border trade through e-commerce
.............................................................................................................................................. 37
Figure 27 General Perceptions of WoMSMEs on the Role of Government .......................... 38
Figure 28 Government Assistance ........................................................................................ 38
Figure 29 Operational Framework of WoMSMEs Study ....................................................... 44

List of Tables
Table 1 Operationalization of the Variables Affecting E-commerce Adoption of WoMSMEs 20
Table 2 Operationalization of the Performance Areas .......................................................... 21
Table 3 Gender-based Cybersecurity Experiences of WoMSMEs ....................................... 32

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 E-Commerce Adoption and Its Impact on the Performance of Women-led
MSMEs (WoMSMEs) in Metro Manila: An Ex-ante Study for RCEP

Jill Angeli V. Bacasmas 1, Jean Clarisse T. Carlos 2, and Jovito Jose P. Katigbak 3

1. Introduction

The Philippines, through President Rodrigo Duterte, ratified the Regional Comprehensive
Partnership Agreement (RCEP) on 02 September 2021 after eight years of negotiations. This
mega-free trade agreement (FTA) is considered as the largest free trade deal in the world. The
pact is envisioned to boost the recovery efforts of its 15 signatories – 10-member states of
Association of Southeast Asian Nations (ASEAN), Australia, China, Japan, New Zealand, and
South Korea – as they grapple with the economic fallout of the coronavirus (COVID-19)
pandemic.

To date, only Cambodia, Singapore, Thailand, China, and Japan have deposited their
instruments of ratification. Meanwhile, the Philippines targets to complete its ratification
process this year. The Department of Trade and Industry (DTI) has urged the Senate to expedite
its concurrence, lest putting the country in a position of losing out on the benefits of the
agreement (DTI 2021a).

The RCEP takes into consideration changing and emerging trade realities, including the
proliferation of electronic commerce (e-commerce), the underexplored potential of micro,
small and medium-sized enterprises (MSMEs), the deepening regional value chain, and the
complexity of market competition (ASEAN 2020). In the Philippines, MSMEs are technically
defined as enterprises with an asset size (excluding land) of up to PHP 100 million 4 with less
than 200 employees. The sector constitutes 99.51 and 99 percent of business enterprises
operating in the country and in the ASEAN region, respectively (DTI 2020c).

Accordingly, MSMEs are perceived as drivers of socio-economic activity and stability due to
their capacity to create jobs, cultivate innovation, and foster a competitive business
environment. Nevertheless, they perennially face a multitude of challenges such as lack of
resources and know-how, small economies of scale, higher transaction costs, access to finance,
and underutilization of information and communications technology (ICT) (Yoshino and
Taghizadeh-Hesary 2016). MSMEs in the Philippines experience similar conditions, and the
emergence of e-commerce presents new business opportunities such as greater participation in
domestic and international trade.

Further, women own 50 percent of microenterprises and 59 percent of small and medium-sized
enterprises (SMEs) in East Asia and the Pacific according to the Asian Development Bank
(ADB) (2018). For women entrepreneurs, the opportunities are bountiful: the internet improves
access to information; mobile technology enables new payment channels; and ICT-enabled
solutions address time and mobility constraints (UNCTAD 2017).

1
Executive Assistant V and Program Officer, Philippine Competition Commission. Email: [email protected]
2
Project Evaluation Officer III, Philippine APEC Study Center Network, Philippine Institute for Development Studies; Senior
Lecturer, Institute of Global Affairs and Diplomacy, Miriam College. Email: [email protected]
3
Foreign Affairs Research Specialist II, Foreign Service Institute, Department of Foreign Affairs. Email:
[email protected]
4
Republic Act 9501 or the Magna Carta for Micro, Small and Medium Enterprises (MSMEs)

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However, e-commerce does not always translate into actual gains for women entrepreneurs
despite advances in ICT and digital technologies. Evidence suggest that lack of literacy, skills,
and resources mainly hinder women entrepreneurs from capitalizing on e-commerce adoption
and its potential as an engine for their internationalization. In fact, to date there is limited
research that has addressed women’s participation or success on e-commerce platforms (IFC
2021) nor their participation in cross-border trade (CBT) (Akter 2021). To contribute to the
literature in this area, this study aims to analyze the impact of e-commerce adoption on the
performance of women-led MSMEs (WoMSMEs) in Metro Manila, and their propensity to
engage in cross-border e-commerce under RCEP.

Statement of the Problem

A DTI (2020c) survey in June 2020 revealed that the pandemic-induced nationwide community
quarantine affected over 2000 MSMEs in the country. Of the respondent firms, only 22 percent
managed to remain in full operation. Meanwhile, 91 percent reported a decline in sales and 74
percent reported a decline in the workforce (Rivas 2021). Not surprisingly, those
disproportionately affected are WoMSMEs (Inquirer.net 2021). WoMSMEs are particularly
vulnerable to the economic impacts of COVID-19 due to their lack of access to resources to
keep their businesses afloat and their large share in the informal sectors. Notwithstanding these
challenges, the International Finance Corporation (IFC) (2021) noted that WoMSMEs stand to
benefit substantially from e-commerce as platforms increase their access into the digital
economy.

Evidently, the pandemic has prompted an exponential expansion of e-commerce and other
digital industries. Data from DTI (2020c) showed that e-commerce had contributed 3.4 percent
or USD12 billion to the country’s gross domestic product (GDP) in 2020 (The Star 2021).
However, barriers such as lack of access to information on international trade and programs,
digital connectivity and know-how, and even gender-based harassment and violence continue
to hinder women-led MSMEs (WoMSMEs) from capitalizing on the gains of e-commerce.
Failure to recognize gender specific issues constraining WoMSMEs’ participation in cross-
border e-commerce would result in a missed opportunity to harness the full benefits of RCEP.

The implications for trade policy with regard to WoMSMEs and e-commerce are, thus,
important given the growing female share in the MSME sector in the Philippines and the crucial
role they play in the Philippines’ efforts to recover from the crisis through RCEP.

Research Objectives

This study aims to examine the impacts of e-commerce adoption on the performance of
WoMSMEs in Metro Manila, and the latter’s willingness and readiness to engage in e-
commerce cross-border trade through RCEP. It is also a modest attempt at presenting a gender
perspective on the concomitant challenges and opportunities of RCEP’s impending effectivity
in January 2022. Ultimately, this exploratory study aims to better understand WoMSMEs
perception of government efforts and of RCEP, particularly insofar as these can foster an
enabling environment for their recovery, growth, and expansion in the region.
By the end of this study, the authors aim to have achieved the following objectives:
1. Survey the current domestic policy environment covering WoMSMEs
and e-commerce;
2. Describe the motivations of WoMSMEs in adopting e-commerce;

2
 3. Characterize the impact of e-commerce adoption on the performance of
WoMSMEs in Metro Manila;
4. Assess the willingness of WoMSMEs to engage in e-commerce cross-border trade
under RCEP;
5. Gauge the awareness level of WoMSMEs concerning RCEP and government
programs on MSMEs and e-commerce; and
6. Recommend policy options and considerations for the Philippine government
concerning WoMSMEs and e-commerce, and the impending ratification of RCEP.
Research Questions

As an ex-ante study for RCEP, the authors seek to address the following questions:
1. What is the current policy environment encompassing MSMEs and e-commerce;
2. What are the motivations of WoMSMEs in Metro Manila for pursuing e-commerce
adoption;
3. How has e-commerce adoption impacted the performance of WoMSMEs;
4. What is the extent of WoMSMEs’ willingness to participate in e-commerce cross-
border trade under RCEP;
5. What is the awareness level of WoMSMEs on RCEP and government programs
relating to MSMEs and e-commerce; and
6. How can the government support WoMSMEs jn their internationalization efforts
through RCEP?
Significance of the Study

Responsive to Chapters 12 (E-Commerce) and 14 (MSMEs) of RCEP, the findings of the study
are important in two primary aspects, namely, knowledge, and policy. First, the authors aim to
conduct awareness-raising research targeting both WoMSMEs and the Philippine government.
The main goal of this research is to enhance awareness of what RCEP is and its possible
benefits to WoMSMEs engaged in e-commerce. The key findings of this paper may be taken
as a preliminary contribution to the study of e-commerce adoption by WoMSMEs in the
Philippines. The exploratory nature of this study also underscores the vast opportunities for
future research projects.

Lastly, the study seeks to highlight gaps within the current policy environment covering
MSMEs, particularly those owned by women, and e-commerce in the country. At the national
level, the results of this study may serve as valuable inputs to the DTI, Department of
Information and Communications Technology (DICT), Department of Foreign Affairs (DFA),
and the Legislature as they advance the realization of the country’s e-commerce and MSME
development strategies, respectively. At the regional level, data on cross-border trade
aspirations by WoMSMEs may be shared with the cited government agencies to contribute to
the formulation and implementation of internationalization-related initiatives covering
MSMEs. This study may also be utilized by students, members of the academe, non-
government organizations, and private institutions, locally and internationally, who wish to
conduct further studies on the similar matter.

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Scope and Limitations

This study will utilize both primary and secondary data. The primary data was gathered by
administering a survey questionnaire to 300-600 WoMSMEs respondents. Due to lack of sex-
disaggregated data on MSMEs engaged in e-commerce from official sources, limited financial
and human resources, time constraints, and mobility restrictions at the time of data gathering,
the authors selected the respondents based on a homogenous purposive (non-probability)
sampling technique. Hence, sample size may not reflect the sentiments of the totality of the
population size. The respondents shall be based on the following pre-defined eligibility criteria:

1. Female business owner or manager as defined by the ADB;

2. Asset size of no more than Php 100 million and no more than 199 employees;
3. Located in Metro Manila; and
4. Engaged in “e-commerce” as defined by the OECD and DTI.

For the secondary data, the authors reviewed other related studies, government documents,
news articles, and reports from various organizations and institutions. As such, “E-commerce”
in this study, is defined as “the selling of products or services over electronic systems, such as
the Internet Protocol-based networks and other computer networks (PSA 2017, p.ii).” By this
definition, the scope of this study includes WoMSMEs who either purchase or sell goods and
services for their businesses online either through digital e-commerce platforms (also known
as marketplaces) 5 or through other internet-mediated channels (social media sites, messaging
applications, own websites, etc.).

Moreover, this study is delimited by its definition of a “woman-led” MSME. There is no

official definition of “women-owned” or “women-led” business, or even of a “woman
entrepreneur.” In fact, authors and policymakers have tended to use them interchangeably.
Using a succinct definition used by the ADB, this study will focus on entrepreneurs who
identify as “female”, are owners or co-owners of their businesses, and exercise financial
and/or operational decision-making power in the business (ADB 2018).

Finally, as the effectivity of the RCEP is still underway, the study has adopted the current
provisions of the E-commerce and MSME chapters in lieu of the actual commitments and
implementation plans of the Philippine government.

Structure of the Study

This study is guided by an extensive review of literature and prior research on RCEP, policies
on MSMEs and e-commerce, and select cases studies on WoMSMEs and e-commerce. This
section is followed by an explanation of the framework and research methodology, and the
descriptive and statistical analyses of data gathered from a survey of 486 WoMSMEs in Metro
Manila. Finally, observations and insights drawn from the data analyses are translated into
actionable policy recommendations.

5
There are different types of platforms, such as e-Commerce platforms or marketplaces, which are online sales channel open
for all sellers for marketing their goods and services, and may or may not collect payment on seller’s behalf. Marketplaces shall
be differentiated from online retailers which refer to single seller’s own online channel for marketing its goods and services that
complements its brick and mortar retail business model and collect payment on its behalf.
https://ecommerce.dti.gov.ph/madali/thebasics.html

4
2. Review of Related Literature

This section is divided into four sub-portions. First, the authors provide an overview of salient
features of RCEP, particularly the chapters on MSMEs and e-commerce. Second, the
definitions, developments, and policies on e-commerce and MSMEs in the Philippines are
discussed. Next, the opportunities and challenges for women-led MSMEs engaged in e-
commerce are tackled. Lastly, examples and case studies of e-commerce adoption by
WoMSMEs in Asia-Pacific and in Africa are presented.

2.1. Snapshot of RCEP and its Chapters on MSMEs and E-Commerce

The RCEP agreement was launched in November 2012 by the Leaders of the ten (10) ASEAN
Member States (AMS) plus its six FTA partners, namely, Australia, China, India, Japan, South
Korea, and New Zealand. ASEAN envisions RCEP as a “modern, comprehensive, high-
quality, and mutually beneficial economic partnership that will facilitate the expansion of
regional trade and investment and contribute to global economic growth and development”
(2020). The mega-FTA is ASEAN’s largest pact to date, as it encompasses 2.2 billion people
with a total size of USD26.2 trillion or 30 percent of the world’s gross domestic product (GDP).
RCEP is the first multilateral agreement to include China.

In November 2020, the 15 signatories of RCEP officially concluded negotiations at the virtual
4th RCEP Summit. Notably, the decision of ASEAN plus five leaders, excluding India, to
finally sign the mega-trade pact, after eight years of negotiations, highlights their commitment
in advancing greater trade liberalization amid the challenges brought by the COVID-19
pandemic. RCEP contains 20 chapters, 17 annexes, and 54 schedules of commitments which
encompasses market access, rules of origin, intellectual property, e-commerce, competition,
and economic and technical cooperation, among others (ASEAN 2020).

Petri and Plummer (2020) estimate that RCEP may generate an additional USD186 billion to
the world real income by 2030, with RCEP members forecasted to gain USD174 billion in real
income during the same period. China, Japan and South Korea are projected to benefit the most
given their sheer size and comparative advantage in higher-value added segments of industrial
production, while Indonesia, Malaysia, Thailand, and Vietnam may reap incremental gains. In
terms of sector, manufacturing, automotive, and electronics are perceived as the biggest
winners. RCEP also presents opportunities for greater liberalization of investment and services
trade.

International observers have often pegged RCEP as a China-led initiative to “counterbalance

the Trans-Pacific Partnership,” or now known as the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP). However, though there is a heavy
involvement by China, RCEP should be considered as an ASEAN-led pact due to the great
highlight of its centrality and interests (Katigbak 2017).

Against the backdrop of the COVID-19 pandemic, the case for fast-tracking RCEP’s full
implementation in the region has grown stronger than ever. Secretary Ramon Lopez of DTI
expressed his optimism that the RCEP will not only facilitate the recovery efforts of the country
but will also pave the way for the internationalization and deeper participation of MSMEs into
global value chains (DTI 2021a). Chapters 12 and 14 of the RCEP recognize: (a) the importance
of electronic commerce in fostering economic growth and opportunities in the regions; and (b)
the contributions of MSMEs to economic growth, employment, and innovation, respectively.

5
Together, these emerging trade areas enable businesses to take advantage of the increasing
globalization and creation of new supply chain linkages (Yunan 2020).

Specifically, the E-Commerce Chapter (Chapter 12) envisions an enabling environment for
businesses regionally and globally. It recognizes the economic growth and opportunities
provided by e-commerce, the importance of frameworks that promote consumer confidence in
e-commerce, and the significance of facilitating the development and use of e-commerce.
Specifically, the chapter enjoins parties of the agreement to work together to assist MSMEs to
overcome obstacles in the use of e-commerce, enhance their respective e-commerce legal
frameworks, encourage business sectors to enhance accountability and confidence in the use
of e-commerce, and promote the development of e-commerce (i.e., electronic authentication,
paperless trading). To wit:

“The E-commerce chapter recognizes the increasing digitalization of trade,

and aims to promote e-commerce among the parties and the wider use of e-
commerce globally and enhance cooperation among them. It also sets out
provisions that encourages to improve trade administration and processes
by using electronic means. It also requires the parties to adopt or maintain
a legal framework which create a conducive environment for e-commerce
development including protection of personal information of e-commerce
users and provides protection for consumers using electronic commerce.
The E-Commerce Chapter also addresses certain data- related issues,
through provisions on location of computing facilities and cross-border
transfer of information by electronic means. The parties also agreed to
maintain the current practice of not imposing customs duties for electronic
transmissions, in accordance with WTO Ministerial Decision. In the event
of any differences in the interpretation and application of this Chapter, the
parties agreed to first engage in consultations in good faith and make every
effort to reach a mutually satisfactory solution. This chapter is not currently
subject to Dispute Settlement, and the general review of the RCEP
Agreement will review the application of Dispute Settlement to this
chapter 6.”

The MSME Chapter (Chapter 14), on the other hand, aims to increase the ability of small and
medium enterprises to leverage the preferences afforded by RCEP. It seeks to promote the
sharing of information related to RCEP that is relevant to MSMEs, including through the
establishment and maintenance of a publicly accessible information platform, and information
exchange to share knowledge, experiences, and best practices. It also advances the sharing of
information on trade and investment-related laws and regulations that parties consider relevant
to MSMEs such as the full text of the RCEP Agreement, trade and investment-related laws and
regulations pertinent to MSMEs, and other business- related information that would be useful
for MSMEs to benefit from the RCEP Agreement. To wit:

“The MSME chapter acknowledges the significant contribution of MSMEs

to economic growth, employment, and innovation and therefore seek to
promote information sharing and cooperation in increasing these
businesses ability to utilise and benefit from the opportunities created by the
RCEP Agreement. This chapter also aims to strengthen cooperation in the

, Summary of the RCEP Agreement (p.7): https://rcepsec.org/wp-content/uploads/2020/11/Summary-of-the-RCEP-

6 5

Agreement.pdf

6
 areas of e-commerce, intellectual property rights, access to markets, and
innovation, among others.” 7

Given the opportunities presented by the E-commerce and MSME chapters, the succeeding
section provides an overview of the pre-pandemic policy landscape encompassing MSMEs,
and a review of the Philippines government’s efforts to promote digitalization through e-
commerce.

2.2. Definitions, Developments, and Policies for MSMEs and E-Commerce in the
Philippines

In 2018, MSMEs comprised 99.5 percent of Philippine firms and employed 62 percent of the
workforce, making them an important generator of jobs. As such, MSMEs have a major role
in sustaining the country’s economic growth. In the region, prior to the COVID-19 pandemic,
there were over 70 million MSMEs in Southeast Asia, representing 99 percent of all businesses,
and employing more than 140 million people. Collectively, MSMEs accounted for most
economic activity, and were a major source of innovation, entrepreneurship and trade, both
within the region and within the broader global community (UNESCAP and UNCTAD 2021).

The call for inclusive growth is often understood in the context of integrating MSMEs into the
mainstream of national and international commerce but despite the extensive presence of
MSMEs, they account for only 36 percent of the country’s gross value added (Medalla and
Mantaring 2019). This indicates low productivity among Philippine MSMEs, which continues
to be a real concern that demands policy attention.

In the Philippines, there are two criteria for operationally defining MSMEs—employment and
asset size (Aldaba 2012). The recognized size categories are: micro, 1 to 9 employees; small,
10 to 99 employees; medium, 100 to 199 employees; and large, 200 and over employees. Note
that the operational definition adopted by policymakers in identifying MSMEs refers to asset
size and not employment. The Magna Carta for MSMEs (Republic Act 9501), for instance,
defines the range of asset sizes for micro (not more than PHP 3 million), small (PHP 3–15
million), and medium (PHP 15–100 million). There are limitations when using asset size as the
basis for firm size classification. As Aldaba et al. (2004) stated, changes in price levels would
affect the nominal values, which, in turn, could have implications on the classification (Bautista
and Manzano 2018).

The Philippines has championed the cause of internationalizing MSMEs in various

international fora even before the COVID-19 pandemic. In the Asia-Pacific Economic
Cooperation (APEC), under the Philippines’ chairmanship and in the 2015 Leader’s
Declaration, it recognized the promotion of a trading environment conducive to the
development and participation of MSMEs. This set into motion the Philippine-led Boracay
Action Agenda to Globalize MSMEs (Bautista and Manzano 2018).

In ASEAN, the country’s position to include MSMEs among the priority agenda was echoed
in the ASEAN Leader’s Declaration on its 50th anniversary (ASEAN 2017). As a result, the
call to integrate MSMEs into the global value chains was re-emphasized and greater priority
was given to them in the research agenda at the national level (Bautista and Manzano 2018).

7
Summary of the RCEP Agreement: https://rcepsec.org/wp-content/uploads/2020/11/Summary-of-the-RCEP-Agreement.pdf

7
Quimba and Calizo (2019) have noted that e-commerce accounts for 1. 3 trillion USD of the
world’s economy. It allows local businesses to broaden their markets well beyond Philippine
shores. In addition, personal e-commerce is now easily accessible to Filipinos through any of
the numerous buy and sell sites currently available, and businesses can set up their own e-
commerce facility using their own websites and other digital platforms.

Box 1. Link of E-Commerce Empowerment to the Achievement of the Sustainable

Development Goals

Quimba and Calizo (2019) linked e-commerce and industrial development to the achievement
of the Sustainable Development Goals:
• Become a driver of inclusive growth and sustainable development by empowering
women as entrepreneurs and traders (Goal 5, Target 7: “Undertake reforms to give
women equal rights to economic resources, as well as access to ownership and control
over land and other forms of property, financial services, inheritance, and natural
resources, in accordance with national laws;” and, Target 8: “Enhance the use of
enabling technology, in particular Information and Communications Technology (ICT),
to promote the empowerment of women”);
• Support productive activities, create decent jobs, entrepreneurship, creativity and
innovation, and encourage the formalization and growth of MSMEs, including through
access to ICT-enabled financial services (Goal 8, Target 3);
• Help MSMEs gain access to financial services (including online and mobile payments)
and gain their integration into value chains and markets (including virtual
marketplaces) (Goal 9, Target 3); and
• Contribute to significantly increasing the exports of developing countries, in particular,
doubling the share of global exports by Least Developed Countries by 2020 (Goal 17,
Target 11).

Source: Quimba and Calizo (2019, p.7)

Reyes (2016) traces the roots of e-commerce in the Philippines to Multiply (a former social
networking website) which effectively ushered e-commerce into the mainstream around 2011.
From a social networking site, Multiply shifted to an e-commerce website since 90,000
merchants opt using the site for “Multiply Shopping”. The Philippines was one of the largest
and fastest growing market for the newly shifted e-commerce site then, and by 2015,
e-commerce had grown with 44.2 million active internet users and 47 million active Facebook
accounts in the country.

Masigan (2020) underscored that Filipinos, among the ASEAN users, have one of the highest
internet penetrations specifically on social media platforms with more than 73 million users
and 99 percent of which are active. The average time spent is nine hours and 45 minutes daily,
and three hours and 53 minutes of which is on social media sites.

Nevertheless, Filipinos have not been quick adaptors to e-commerce despite being highly
connected to the worldwide web (Masigan 2020). Prior to the pandemic, statistics showed that
only 2 percent of Filipino netizens have purchased goods or services online, compared to 10
percent in Thailand, 9 percent in Hong Kong and in Taiwanese, 6 percent in Vietnam, 5 percent
in Singapore and Indonesia, and 4 percent in Malaysia. In 2021, e-commerce adoption among

8
Filipinos is projected to reach around 80 percent of internet users aged 16 to 64, from 76 percent
in 2020. This figure puts the Philippines above the global average of almost 77 percent (Chua
2021). According to Ismail et.al. (2020), in developing countries, many internet users equate
the internet with social media services like Facebook rather than the more diverse services
it offers.

On the policymaking front, it was the passage of the Electronic Commerce Act (ECA) or
Republic Act No. 8792 in 2000 that first recognized e-commerce in the national agenda (DTI
2016). Quimba and Calizo (2019, p.8) cited the roots of the Philippine Statistical Authority’s
(PSA) definition of “e-commerce” from Organisation for Economic Cooperation and
Development (OECD) (2002): “the sale or purchase of goods and services, whether between
businesses, households, individuals, governments, and other public or private organizations
conducted over computer-mediated networks. The goods and services are ordered over those
networks, but the payment and the ultimate delivery of the good or service may be conducted
on- or off-line.” The DTI adopts the same PSA definition for e-commerce: “e-commerce refers
to the selling of products or services over electronic systems, such as the Internet Protocol-
based networks and other computer networks.”(Quimba and Calizo 2019, p.8) With virtually
all firms belonging to the MSME sector, the Philippine government acknowledges the need to
ensure that MSMEs can effectively harness e-commerce in order to support regional and
national economic development.

Further, Quimba and Calizo (2019) found that there was a low e-commerce adoption rate pre-
pandemic in the Philippines, with about 1 in every 7 firms adopting e-commerce in 2015. Data
showed that most of the e-commerce adopters are stock corporations and are located in regions
associated with mega-cities. Significant bottlenecks to e-commerce adoption in 2015 include
firms’ preference to retain their current business model, security concerns, and unreliable
internet connection. It also found that the internal factors primarily determine e-commerce
adoption in the Philippines, particularly firm size, availability of computers, access to the
internet, and firm use of ICT in other aspects of firm operations, which are all positively
correlated to e-commerce adoption.

An exponential rise of e-commerce has been observed across the world, attributed to how the
COVID-19 pandemic impacted people mobility. Evidently, Filipinos have become more
comfortable with buying goods and services online. As of 19 October 2020, the DTI was able
to register 75,029 online business from January to August in 2020. This trend is foreseen to
continue post-pandemic (Masigan 2020; Chua 2021).

Clearly, developments in the policy environment for e-commerce and MSMEs are headed
towards the right direction. However, it begs the question as to whether these policies are still
in step with the acceleration of e-commerce brought about by the pandemic.

2.2.1. Domestic Policy Landscape for MSMEs and E-Commerce

Serafica et. Al. (2020, p.2) identified key national policies and strategies that aim to harness e-
commerce and digital trade. These include:
• Philippine Development Plan 2017-2022 (NEDA 2017) which acknowledges the role
of digital trade and e-commerce in developing high-value added, competitive, and
sustainable sectors;
• Micro, Small, and Medium Enterprise (MSME) Development Plan 2017- 2022
(MSMED Council n.d.) which encourages the use of digital technologies and platforms

9
 by various enterprises, regardless of scale or industry promotes the digital and internet
economy as one of the cross-cutting strategies;
• Inclusive, Innovation and Industrialization Strategy (i3s) which has identified e-
commerce as one of the priority sectors; and
• Philippine E-commerce Roadmap (PECR) 2016-2020 which is the main policy
initiative of the government to develop e-commerce in the country. The primary
objective of the PECR is for ecommerce to contribute 25 percent to the country’s GDP
by 2020, from 10 percent of GDP in 2015.

Box 2. Gender-Focused Internationalization of WoMSMEs

The Department of Trade and Industry (DTI) promoted measures to aid the women-led MSMEs
during the COVID-19 pandemic. One of the projects DTI spearheaded is the SheTrades PH Hub
where women-owned businesses in the Philippines can look forward to connecting to international
markets. The hub is part of an initiative which aims to connect three million women entrepreneurs
around the world to international markets (DTI 2020d).

Furthermore, SheTrades initiative is aligning government initiatives on women’s economic

empowerment for increased local ownership and sustainable long-term impact. DTI stated they
recognize the importance of the government’s role in supporting women-owned businesses, not
only for MSME development but also for the internationalization of women-MSMEs as well.

Under SheTrades, women-owned businesses were said to benefit from a wide range of
opportunities to expand their business and advance women’s economic empowerment: CONNECT
with global businesses; export products and services; learn through e-learning courses; and
participate in workshops, trade fairs, and other business events (DTI 2020d).

Another recent initiative of DTI is the signing of a memorandum of agreement (MOA) with
Women’s Business Council Philippines (WomenBizPH). The MOA said to affirm mutual
commitment to promote inclusive growth for the country through economic interventions that are
enabling, innovative and job-generating. WomenBizPH serves as role models for women in
business and acts as change agents to forge political and business influence as lead organizer of
Philippine women’s business groups. DTI recognizes WomenBizPH as the leading voice of women
in commerce, and for inspiring and empowering women in the Philippines (DTI 2021b).

Sources: DTI (2020d); DTI (2021b)

Furthermore, the authors collated other relevant laws as of recent which may affect the
developments of MSMEs and e-commerce (Quimba et al. 2020):
• RA 10844 (The Department of Information and Communications Technology (DICT)
Act of 2015, section 5) – the agency is mandated to be the primary policy, planning,
coordinating, implementing, and administrative entity of the government to plan,
develop, and promote the national ICT development agenda;
• RA 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of
2018, section 11) – aims to further simplify requirements and streamlining procedures
related to starting and operating a business;
• RA 11057 (Personal Property Security Act, section 2) – aims to promote economic
activity by increasing access to least cost credit, particularly for micro, small, and
medium enterprises (MSMEs), by establishing a unified and modern legal framework
for securing obligations with personal property;

10
 • RA 11127 (The National Payment Systems Act, section 3) – empowers the BSP to
ensure a safe, secure, and reliable operation of the Philippine payment systems. It is
expected to foster the adoption of electronic receipts, invoices, and tax-related
documentation, allow the adoption of digital signatures to establish identity of people
entering into transactions, and promote the adoption of e-notary to authenticate and
further formalize agreements between parties;
• RA 11232 (Revised Corporation Code of the Philippines) – introduces many provisions
drastically changing the process of organizing corporations, day to day activities, and
compliance with regulatory requirements;
• RA 11293 (Philippine Innovation Act)- mandates the creation of the National
Innovation Council (NIC) that will steer the whole-of-government coordination and
collaboration and to remove the fragmentation in the country’s innovation governance;
and
• RA 11337 (Innovative Startup Law) – grants incentives and removes constraints to
promote the establishment and operation of innovative new businesses and businesses
crucial to growth and expansion of the Philippine industrial sector;
• RA 8792 (Electronic Commerce Act of 2000, section 3) – aims to facilitate domestic
and international dealings, transactions, arrangements agreements, contracts and
exchanges and storage of information through the utilization of electronic, optical and
similar medium, mode, instrumentality and technology to recognize the authenticity
and reliability of electronic documents related to such activities and to promote the
universal use of electronic transaction in the government and general public;
• RA 10175 (Cybercrime Prevention Act of 2012) – specifies the obligations for entities
and sets higher penalties for offenses committed through the use of ICTs in addition to
the offenses listed under the law. On digital payments, the sector regulator and the
regulatory frameworks have been adaptive to innovations in technology and business
models. In terms of intellectual property, protection mechanisms under intellectual
property regulations are in place to support technology developers and inventors;
• RA 10173 (Data Privacy Act (DPA) of 2012) – the DPA, and the accountability
structure of the law, is in line with the standards of the General Data Protection
Regulation (GDPR) of the European Union. The DPA is also aligned with the GDPR
in its rationale which is to protect the privacy rights of the individual while still enabling
the free flow of information (Serafica et.al. 2020); and
• RA 10963 (Tax Reform for Acceleration and Inclusion) – requires the issuance of
electronic receipts or electronic sales/commercial invoices in lieu of manual receipts
and sales/commercial invoices.

More recently, the DTI launched the E-Commerce Philippines Roadmap 2022 which aims to
produce 1 million e-commerce enterprises and increase e-commerce’s GDP share to 5.5 percent
(PhP1.2 trillion) by 2022 (Desiderio 2021). An “all of e-Government” approach is being
employed to support e-commerce MSMEs in gaining market access, undergoing digitalization,
and adopting logistics integration. The Roadmap likewise contains 22 action agenda
encompassing policy, investment, infrastructure, e-government, training and education,
knowledge management, and communication areas (DTI 2021c). MSMEs can also access a
Reboot Package, which is a “is a suite of assistance for micro small and medium enterprises
designed to facilitate their online journey” (DTI 2021d). They may freely avail of webinars,
trainings, and assistance on e-commerce adoption, e-payment, and loans.

Further, the DTI (2020e) is pushing for the passage of House Bill 6122 or the Internet
Transactions Act to realize the creation of an E-Commerce Bureau that will oversee the
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advancement of e-commerce in the country through improved trust level between online sellers
and consumers, better customer protection, simpler online business registration process, and
safer e-payment channels, among others. The signing into law of Republic Act No. 11534 or
the Corporate Recovery and Tax Incentives for Enterprises Act is then projected to ease SMEs’,
especially exporters, tax burden amid the COVID-19 pandemic and promote the inflow of
foreign investments into key sectors and industries.

Indeed, the enumeration above is testament that policy architecture for MSMEs and e-
commerce is robust and responsive. However, there is room for improvement of the business
environment to further empower and support women-led businesses in e-commerce.

With this survey of policies developed before and amid the early stages of the pandemic, the
succeeding section aims to juxtapose the current policy environment with the developments in
the digitalization of MSMEs due to the pandemic. It sheds light on the specific sector of
MSMEs and e-commerce adopters which are at the heart of this study – women-led MSMEs.

2.3. Women-led MSMEs and E-Commerce: Digital Divide or Opportunities?

As highlighted earlier, “MSMEs are a driving force of economic and social stability due to
their capacity to create jobs, forge innovation, and foster a competitive business environment.
The MSME sector is important especially for women as it offers significant job and income
earning opportunities” (ADB 2014, p.xi). According to Caliso and Dano-Luna (2019), more
than half of new business in in the Philippines in 2017 were women. However, “women have
not fully benefited from the growth of MSMEs” (ADB 2014, p.xi).

ADB (2014) identified critical issues faced by women entrepreneurs to start, sustain, and/or
scale up: (1) women-led enterprises are still few and therefore, public policies and programs
have not explicitly promoted targeted support to them; and (2) women-led MSMEs are likely
to encounter multiple barriers such as unequal laws, inability to meet collateral requirements
due to their lack of property ownership, harassment at public offices, and insufficient business
knowledge, capacity, and financial literacy. These gender issues are often the result of a lack
of enabling rules and policies that should shield them from gender-unequal legal provisions on
property ownership, inadequate compliance with core labor standards and insufficient gender
equality policy within MSMEs, and the lack of women-targeted business development
services. While this reveals underlying gaps in opportunities between the sexes, the more
critical issue for women once already in business is how to stay in and scale up.

On a brighter note, UNCTAD (2017) mentioned that e-commerce provides women with new
business opportunities. Although the immediate benefits of digitalization may vary among
sectors and enterprises, adoption of digital solutions can help MSMEs in areas such as: (1)
managing transactions at a distance; (2) delivering goods efficiently; (3) facilitating access to
financial services; and (4) engaging with new and existing customers (Karr et.al. 2020).

Karr, et. Al. (2020) posit that promoting the digitalization of MSMEs can help address several
economic challenges posed by the COVID-19 crisis. However, the process of adopting new
digital approaches to selling does not come without risks. Despite the clear benefits, it is crucial
to recognize the complex challenges that digitalization presents, including: (1) cybersecurity
and data privacy concerns; (2) exposure to digital fraud; (3) online misinformation; (4)
asymmetric market power and platform dominance; and (5) persistent digital divide and
infrastructure-related issues.

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In addition, coupled with the advancement of digitalization due to the pandemic, Tabuga and
Cabaero (2021b) mentioned that the Fourth Industrial Revolution (FIRe) has ushered
remarkable progress in ICT and has opened more convenient ways for people to access
information, carry out transactions, and connect to the world. Digital platforms serve as
matchmakers for buyers and sellers of products and services hence facilitating e-commerce.
Moreover, digital platforms not only provide a supplementary income source for people but
also improve the economic participation and empowerment of vulnerable sectors, such as
women and homemakers.

The findings of the study by Tabuga and Cabaero (2021b) are as follows:
• Women are on par with, and in some areas in the Philippines, even outpace men in
using ICTs. For example, more women than men use cellular phones (81 percent versus
77 percent) and transact business online (7 percent versus 6 percent). However, only
around 1 in 20 people, regardless of sex, engage in online selling, with males earning
more from it;
• Women are more likely than men to engage in online selling. Online sellers also tend
to be either married household heads, members of producers’ cooperatives, students,
self-employed, or unemployed; and
• Most online sellers are college graduates and are proficient in using computers.
Meanwhile, those not using ICT platforms cited lack of knowledge and access to the
internet and equipment as reasons for not engaging in online selling. Thus, it is crucial
to regularly measure digital skills across the population to develop tailor-made
capacity-building interventions for the labor market.

On cross-border trade, the DTI – Export Marketing Bureau (EMB) (2018) published a
Philippine Export Guidebook (PEG) to assist interested Philippines MSMEs in realizing their
export-oriented aspirations. It identifies common concerns related to exporting and factors
impacting exports such as competitiveness, quality and value added of exports, exchange rate,
and economic growth of other countries. More importantly, the PEG enables MSMEs to self-
gauge their readiness level to export by addressing questions on registration and compliances,
production capacity, financial soundness, manpower, legal arrangements, and expansion
potential (DTI-EMB 2018). It also presents a ten-step export procedure flow chart that begins
at business basics (step 1) until customer servicing (step 10). Further, the PEG has useful
information on industry certifications, government programs, export clearance, export
documentation, and intellectual property.

Though MSMEs and e-commerce open opportunities for women and their livelihoods,
underlying gender issues – if left unaddressed – will continue to pervade their participation and
success in the digital economy. The MSME and E-Commerce chapters of RCEP already seek
to address, at least in principle, issues on the protection and promotion of MSMEs and
businesses using e-commerce. Thus, the authors sought to highlight the gender-based
constraints faced by WoMSMEs engaged in e-commerce, an aspect often overlooked in trade
policy.

2.4. Case Studies of WoMSMEs and E-Commerce Adoption: Developing Lessons and
Practices

This segment reviews cases and studies that have empirically examined the impact of
e-commerce adoption of WoMSMEs in Asia and the Pacific and Africa.

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 2.4.1. Cases in the Asia and the Pacific

Various studies have empirically examined the impact of e-commerce adoption on WoMSMEs.
A study entitled E-commerce adoption in ASEAN: who and where? analyzed multi-source data
from 5870 individuals in six countries in 2017. According to Ayob (2021, p.1), “the results
reveal that e-commerce adoption is more prevalent among female, younger, more educated,
employed, and higher income users. Also, the adoption of e-commerce is found to be stronger
in societies that exhibit high individualism, low masculinity, and low uncertainty avoidance.
The study concludes that e-commerce adoption is not only explained by individual
characteristics and formal institutions, but also by country-level variables and national culture.”

Likewise, a study in Indonesia assessed the benefits of e-commerce adoption by Indonesian

women entrepreneurs in 2013. With 179 individual survey respondents, the analyses show that
women entrepreneurs in both urban and rural areas experience the same benefits of e-
commerce. These are increased new markets/customers, improved marketing, improved
competitiveness, increased sales, and improved customer service. However, they had differing
views on the impact of e-commerce on internal efficiency and cost of business operation, with
rural women entrepreneurs rating these two variables significantly lower than the urban women
business owners. The authors attribute this difference in the simple structure and operations of
businesses in rural areas. The finding of the study show that e-commerce has leveled the
playing field for women entrepreneurs through convenient access to a greater market and
improved business competitiveness. It has also enabled home-based working, provided cost-
efficient means of running a business for female entrepreneurs, particularly in the urban areas.
The study concludes with a call to promote the use of e-commerce among women-owned
MSMEs (Kartiwi and Gunawan 2013).

Goswami and Dutta’s (2016, p.442) study on E-Commerce Adoption by Women Entrepreneurs
in India: An Application of the UTAUT Model “investigates the relationship between the
moderators (like age, experience and voluntariness) and the determinants that affect the
acceptance and usage of e-commerce technology amongst the women entrepreneurs in West
Bengal, India by implementing Unified Theory of Acceptance and Use of Technology
(UTAUT).” It also explains the extent of variation in the behavioral intention of these women
to adopt e-commerce. The results of this study show that three constructs, namely, performance
expectancy, effort expectancy and social influence significantly affect the behavioral intention
of women entrepreneurs in India to use e-commerce. “Experience and voluntariness to use are
the moderators significantly correlated with effort expectancy, facilitating conditions and
social influence. Moreover, the study reveals that facilitating conditions and the behavioral
intention positively influence their usage behavior” (Gosmawi and Dutta, p.440).

2.4.2. African Continental Free Trade Area (AfCFTA) and WoMSMEs in E-Commerce

A study in Africa by Cuts International entitled Mainstreaming Gender in Key E-Commerce

Policy Areas: Possible Lessons for AfCFTA “examines opportunities that e-commerce growth
can bring to support women economic and social empowerment in Africa. E-commerce
potential to promote trade, integration and development in Africa, is increasingly getting
recognized. African Governments have been active in developing strategies and policies to
harness this potential but at the same time, challenges faced by women entrepreneurs are multi-
layered and formidable” (Ismail et al. p.3). These layers are as follows: “(1) the challenges that
are common to the traditional brick and mortar businesses also, particularly for MSMEs in

14
developing and least-developed countries; (2) on top of that would be a layer specific to e-
commerce in Africa, mainly due to the comparatively lower levels of internet penetration,
payment systems on the continent. Both these layers affect women disproportionately due to
their lower levels of financial independence/inclusion, skills set, and business experience; and
(3) a final layer of challenges for African women e-entrepreneurs can be ascribed to the specific
nature of e-commerce that requires certain specific skills, internet savviness, and adequate
privacy protection, to name a few” (Ismail et al. 2020, p.24).

Given these layers of challenges, “the main aim is to reveal how mainstreaming gender lens
into key ecommerce related policies can contribute to eliminating barriers to the establishment
and growth of women-led digital businesses across the continent” (Ismail et al. 2020, p.3).
Gender mainstreaming is a strategy that the Fourth World Conference on Women, held at
Beijing in 1995, called for and was later interpreted in 1997 by the ECOSOC Agreed
conclusions 1997/2 as follows (Ismail et al. 2020, p.12):

“Mainstreaming a gender perspective is the process of assessing

the implications for women and men of any planned action,
including legislation, policies or programs, in any area and at all
levels. It is a strategy for making women’s as well as men’s
concerns and experiences an integral dimension in the design,
implementation, monitoring and evaluation of policies and
programs in all political, economic and societal spheres so that
women and men benefit equally and inequality is not perpetuated.
The ultimate goal is to achieve gender equality.”

According to Ismail et. Al. (2020), policy makers are need to ensure that the preparation and
development of e-commerce related strategies, legislations, policies and agreements are gender
responsive and ultimately raise the level of gender mainstreaming. The advancement of the
digital economy and e-commerce in the last decade brings new opportunities for women

According to OECD (2018), online-based jobs offer unique opportunities for women to access
new sectors, have flexible working hours and continue to provide the care needed for their
families. They also allow women to transcend constraints and risks of face-to-face interactions
(i.e. gender-based violence). Thus, momentum is created for adopting new transformative
norms, strategies and policies and encouraging the review and reform of existing ones. This is
an opportunity for leaders to review gender equality and empowerment strategies, adopt new
targeted gender policies and promote gender mainstreaming, at the continental, regional and
national levels.

Furthermore, Ismail et. Al. (2020, p.23) mentioned that “cross cutting gender-related barriers
to e-commerce include women’s digital access and use are interrelated and are often deeply
rooted in social and economic barriers that constrain women’s ability to benefit from accessing
and using digital technologies. While men also experience structural inequalities, such as those
in income, education and employment opportunities as well as social norms, on average,
women are likely to experience them more severely. A holistic approach is required if the
digital gender gap is to be effectively addressed. Improved gender-disaggregated data on
internet access and use is also critical for understanding and measuring the digital gender gap
and informing policy and strategies for addressing it.”

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Box 3. Recommendation for a Gender-Inclusive E-commerce Governance for RCEP

According to Thystrup (2020), e-commerce can be a driver for advancing gender-inclusivity

as an integral component of any post-COVID-19 recovery citing that online work and ICT-
enabled service exports can be particularly empowering for women expected to stay at home
and for women who lack professional networks and resources relative to men.

Thystrup (2020) suggests a multi-level and gender-inclusive e-commerce governance

framework for improving policymaking and rules to overcome barriers for women’s
participation in e-commerce. This requires engagement with the key policy challenges facing
women from the domestic policy level and upwards, with a specific focus on the regional
level.

Gender mainstreaming efforts anchored in international organizations will help move the
trade and gender agenda forward and promote reading gender equality into the rule-based
trading system. Specifically, gender equality would be incorporated into the regulatory space
of e-commerce talks by incorporating gender-inclusive language into the provisions,
establishing an enabling environment for e-commerce, and also into disciplines on
transparency, non-discrimination, market access, predictability of the regulatory
environment, capacity building, and cooperation (Thystrup 2020).

Injecting gender equality into the modalities of e-commerce and the regulatory space of e-
commerce chapters is particularly promising for overcoming the gender digital divide in e-
commerce exports. Incorporating gender equality into the elements for establishing an
enabling environment for e-commerce could, in particular, foster agency and economic
opportunity because these elements include rights, effective redress, protection from
discrimination, transparency, and cooperation, which link to the key challenges’ women face
in access to digital infrastructure and access to resources (Thystrup 2020).

Policymakers should pay close attention to the language used because different language can
produce different results. They also should accelerate efforts to address the key gender
challenges, focus on establishing an enabling environment for e-commerce and secure access
to finance, plan for the long-term improvement of IT skills, and design labor market policies
around teleworking and flexible hours of online work. Gender-inclusive governance can foster
more agency and economic empowerment, make gender-inclusive e-commerce a vehicle for
the post-COVID-19 recovery, and ensure a positive effect on the gender gap as part of that
recovery (Thystrup 2020).

Source: Thystrup (2020)

Moreover, the IFC (2021, pg. 2) underscores that “the rapid digital transformation underway
in Africa has the potential to have an equally transformative impact on women entrepreneurs.
Although Africa boasts a higher incidence of women entrepreneurs compared to men, women-
owned (WO) businesses across the continent tend to be smaller, have lower average sales, and
have fewer employees. The exponential growth of e-commerce in Africa presents an
opportunity to close gender gaps by opening more markets to WO enterprises. Between 2014
and 2020, the number of online shoppers in the region grew annually by an average of 18
percent, compared to the global average of 12 percent. Similar trends could bring the value of

16
the sector from 20 USD billion in 2020 to 84 USD billion by 2030 – a milestone which may
have already been accelerated by the high demand for online shopping catalyzed by the
COVID-19 pandemic. Yet, advances in disruptive technologies do not always translate into
advances in gender equality, and to date, there is limited research that has investigated women’s
participation or their success on e-commerce platforms.”

This emerging body of research has motivated the authors to adapt such holistic research
frameworks to the Philippine context. Moreover, it is worth noting that none of these studies
have looked at e-commerce adoption among WoMSMEs in relation to cross-border trade. This
study proves to be novel in this regard.

3. Conceptual and Operational Frameworks

In developing the study’s conceptual framework, the authors used two reference documents
namely, The Impact of E-commerce Adoption on MSMEs Performance and Financial
Inclusion (FI) in Indonesia by Wirdiyanti (2019), and the Women-Owned Businesses in Cross-
Border E-Commerce: A Diagnostic Toolkit” 8 developed by the US-Support for Economic
Growth in Asia (US-SEGA) for the Asia-Pacific Economic Cooperation (APEC) in 2020.
Wirdiyanti’s study explores the impact of e-commerce adoption on MSMEs’ performance, and
the Diagnostic Toolkit focuses on women-owned businesses in cross-border e-commerce.
These frameworks will be operationalized to serve as basis for the development of the study’s
framework, survey questionnaire, and analysis.

3.1. The Impact of E-commerce Adoption on MSMEs Performance and Financial

Inclusion (FI) in Indonesia

Building on a resource-based view and transaction cost approach to firm behavior, Wirdiyanti
(2019) argues that e-commerce adoption has impacted MSMEs’ performance in terms of sales
growth, cost efficiency, improved service processes, and product quality. Further, he identified
online advertising, customer awareness, brand recognition, and exposure to product as
marketing variables being affected positively by e-commerce adoption. Wirdiyanti (2019) then
derived price changes (competitive advantage), transaction speed (process enhancement),
customer satisfaction, number of online customers (customer base), and sales growth as
performance indicators by referencing transaction cost theory. From these perspectives, he
posits that the use of e-commerce in marketing such as online advertising, customer awareness,
brand recognition, exposure positively influences MSMEs performance in e-commerce.

To operationalize this framework, Wirdiyanti (2019) defines the variables of his study as
follows: “performance” is determined through an examination of the firm’s financial reports
and statements. “E-commerce effect on marketing” relates to the social processes involved in
the creation, offering, and exchange of products of value through online advertising, customer
awareness, brand recognition, and exposure to product. “Financial Inclusion” is defined as
access to financial products and services.

To test the statistical significance of the effect of these variables on MSMEs’ performance,
Wirdiyanti (2019) employed a control group of MSMEs who sell their products and services
traditionally (non-adopters) and a treatment group of e-commerce adopters. Dependent

8
https://www.nathaninc.com/wp-content/uploads/2020/10/Women-owned-Businesses-in-Cross-Border-E-
Commerce-Toolkit-FINAL-12.8.pdf

17
variables consisting of “sales growth,” “customer base,” “customer satisfaction,” “process
enhancement,” and “comparative advantage” were subsequently regressed individually.

Wirdiyanti’s (2019) study provides valuable insights into e-commerce adoption and MSMEs.
First, the study suggests that the adoption of e-commerce positively influences MSMEs’
growth. Second, the findings have implications on development policy, particularly the
proposal for government to support e-commerce among MSMEs to increase the financial
inclusion index.

Figure 1. E-Commerce Effect on Marketing and MSME Performance

Source: Adapted from Wirdiyanti (2019)

3.2. Women-Owned Businesses in Cross-Border E-Commerce

In lieu of examining the relationship between the impact of e-commerce adoption on financial
inclusion, the authors used “Women-Owned Businesses in Cross-Border E-Commerce: A
Diagnostic Toolkit” 9 as a reference document. “The objective of this toolkit is to help the
APEC community gain a better understanding of the challenges to competitiveness and growth
for women-owned e-commerce businesses when trading within economies and across borders
and assess their own support for these businesses” (Aidis et al. 2020, p.2).

According to Aidis Et. Al. (2020, p. 10) “across APEC, WoMSMEs find it more difficult to
access these opportunities due to lack of training, financing, and business networks, as
elaborated in this toolkit. Even when women engage in cross-border e-commerce, they are
limited in their global reach. One reason for the limited global reach of WoMSMEs is that they
tend to be smaller and grow more slowly than their male counterparts. This presents a problem
because smaller firms find the challenge of selling overseas more daunting.”

Furthermore, Aidis et.al. (2020) mentioned that by 2022, 20 percent of all e-commerce will be
comprised of cross-border activity and WoMSMEs face a greater number of enabling
environment challenges when establishing their businesses, as well as a range of cross-border
e-commerce challenges. These challenges include: (1) access to finance and capital, (2) access
to networks, (3) access to sales opportunities, and (4) legal and social barriers. "In addition,
there are e-commerce-specific challenges that women-owned MSMEs face greater hurdles in
overcoming. These include issues pertaining to trade finance, digital literacy and e-payments,
understanding e-commerce and digital trade regulations and logistics, discrimination on online
9
https://www.nathaninc.com/wp-content/uploads/2020/10/Women-owned-Businesses-in-Cross-Border-E-
Commerce-Toolkit-FINAL-12.8.pdf

18
platforms, online safety and security, and networks, representation, and visibility” (Aidis et.al.
2020, p. 2). Figure 2 visualizes the convergence of the three key concepts of the Diagnostic
toolkit.

Figure 2. Key Concepts of the Diagnostic Toolkit

Government
Programs of
Cross-border
APEC
e-commerce
Member
Economies

Gender

Source: collated by the authors

3.3. Operationalization of Impact of E-commerce Adoption on MSMEs and Women-

Owned Businesses in Cross-Border Frameworks

In essence, this study combines Figure 1 and Figure 2, resulting in a framework that not only
reflects the relationship of e-commerce adoption and performance, but also the propensity of
Philippine women-led MSMEs to engage in cross-border e-commerce through RCEP.

To achieve the intended objectives, the modified framework omits several variables from
Wirdiytanti’s (2019) study such as marketing effect, and a few control variables (i.e., duration,
revenue), and competitive advantage. Instead, the framework adds a gender dimension, a cross-
border trade perspective, and awareness level of WoMSMEs of government programs on e-
commerce and MSMEs.

Figure 3 identifies seven variables which relate to demography and organizational factors
specifically: (1) age; (2) educational attainment; (3) asset size; (4) gender; (5) human resources;
(6) ICT capacity and skills; and (vii) access to financial resources. The authors posit that these
factors influence the e-commerce adoption of women-led MSMEs in Metro Manila. Table 3
contains the variables and their operational definition.

19
Figure 3. E-Commerce Adoption Impact on Performance of WoMSMEs and on Their
Propensity to Engage in Cross-Border E-Commerce Trade through RCEP

Studies by Morrison (2003), Kartiwi (2006), Rahayu and Day (2015), and Franco and Matos
(2015) illustrate that MSMEs owners play a leading and decisive role in the process of e-
commerce adoption. In addition, Scupola (2003) found that organizational factor such as
human, business, and technical resources are vital in e-commerce adoption by MSMEs. Similar
results can be observed in the studies of Molla and Licker (2005), Aghaunor and Fotoh (2006),
and Al-Bakri and Katsioloudes (2015).

Table 1. Operationalization of the Variables Affecting E-commerce Adoption of WoMSMEs

Operational Definition
Factor/Variable
Age calculated through determining the number of years between
birth date and a specific point in time, which is the date of survey
Educational Attainment pertains to the highest level of education completed by an
individual
Asset Size is the total amount of assets such as cash, marketable securities,
inventory, fixed and intangible assets, account receivables, and
others owned by the business owner/manager
Gender socially-constructed trait of women, men, girls and boys; for this
study, all respondents are women
Human Resources pertains to the number of employees in a firm
refers to the use of technologies such as internet connection,
ICT Capacity and Skills desktop and/or laptops, and mobile devices, as well as the ability
of employee/s to operate such technologies to conduct
transactions with customers
Access to is the ability of women-led MSMEs to access loans and other types
Financial Resources of financial support provided by government, other businesses,
relatives and friends and/or from personal savings
Source: collated by the authors

20
Consequently, these variables contribute to the adoption of e-commerce by WoMSMEs, which
can be defined as the “selling and/or purchasing of products or services over electronic
systems such as Internet Protocol-based networks and other computer networks” (PSA no
date). Quimba and Calizo (2019) cited three categories based on the level of e-commerce
adoption by firms, particularly, non-adopters, initial adopters, and institutional adopters. This
study zooms in on institutional adopters as it covers businesses engaged in business to
consumer, business to business, and business to government transactions, occur over e-
commerce and other digital platforms (e.g., social media sites, messaging applications), and
use both online and offline means of payment and delivery.

The focus then turns to the impact of e-commerce adoption on the perceptions of WoMSMES
on their performance and experiences. The operationalization of the latter variable is attained
through examining WoMSMEs’ satisfaction on the effect of e-commerce adoption on sales
growth, customer base, customer satisfaction, and process enhancement (see Table 2). Several
studies underscore that e-commerce adoption has favorably impacted MSMEs globally in terms
of cost efficiency, product quality, sales growth, and improved service processes (Daniel &
Grimshaw, 2002; Santarelli & D'altri, 2003; Love & Irani, 2004). E-commerce can likewise
integrate processes and activities seamlessly and enhance the accuracy of projections.

Table 2. Operationalization of the Performance Areas

Operational Definition
Performance Area
Sales Growth is an enterprise’s net sales growth from one fiscal period to
another; can be determined by increase in average size of
transactions, frequency of transaction per customer, and prices of
products
Customer Base refers to a group of customers who regularly purchases products
or services from an enterprise; can be determined by age group,
gender types, income group of customers, and geographical reach
of business
Customer Satisfaction is the level of satisfaction expressed by customers of a business;
can be determined by volume of good and bad reviews received,
referrals, and complaints
Process enhancement pertains to the improvement of work operations and processes
caused by e-commerce adoption; can be determined by size of
personnel, quicker turnaround time, and faster delivery period
from seller’s location to customer’s address
Source: collated by the authors

Moreover, it attempts to examine the effect of e-commerce adoption and awareness of

WoMSMES concerning government policies and programs on MSMEs and e-commerce
(including RCEP), on the propensity of WoMSMEs to participate in cross-border e-commerce
trade through RCEP. Recognizing their direct relevance to the subjects of this study, the
provisions under Chapters 12 and 14 of RCEP are cited as potential benefits for export- or
import-oriented WoMSMEs. In addition to gauging their likelihood to engage in cross-border
e-commerce under RCEP, the authors, likewise, seek to determine which specific provisions
contained within these chapters appeal or motivate WoMSMEs to engage in international trade.

21
4. Methodology

The authors made use of both firsthand and secondary data. The firsthand data gathered for this
study covers the 486 respondents of a pilot survey administered from 28 September to 12
October 2021. Due to lack of sex-disaggregated data on MSMEs engaged in e-commerce from
official sources, limited financial and human resources, time constraints, and mobility
restrictions at the time of data gathering, the authors have selected the respondents based on a
homogenous purposive (non-probability) sampling technique. The respondents were identified
based on the following pre-defined eligibility criteria:

1. Female business owner or manager as defined by the ADB;

2. Asset size of no more than Php 100 million and no more than 199 employees;
3. Located in Metro Manila; and
4. Engaged in “e-commerce” as defined by the OECD and DTI.

For the secondary data, the authors cited other related studies, government documents, news
articles, and reports from various organizations and institutions.

The overall research design employed both qualitative and quantitative methods to collect,
describe, and analyze data. The first method aims to ascertain the extent of the issue by
highlighting the “qualities of entities and on processes and meanings that are not
experimentally examined or measured (if measured at all) in terms of quantity, amount,
intensity, or frequency” (Denzin and Lincoln 2000, p.8). Hence, this study gathered and
characterized non-numerical data such as nature of and motivations for e-commerce adoption
and experiences of WoMSMEs in Metro Manila (McIntyre 2005; Creswell 2009).

The last method stresses the objective measurements and numerical analysis of data collected
through polls, questionnaires or surveys which may focus on gathering numerical data and
generalizing it across groups of people (Babbie 2010). Responses from survey participants are
solicited through an online questionnaire containing queries concerning business profile, nature
of and rationale for e-commerce adoption, and awareness of RCEP and government programs
on MSMEs and e-commerce. The data will be measured to determine the relationships between
three sets of distinct yet interrelated variables, namely: (1) demographic and organizational
factors and e-commerce adoption of WoMSMEs; (2) e-commerce adoption and its impact on
the performance of WoMSMEs based on their perceptions; and (3) awareness of government
policies/programs, including RCEP, and its effect on the propensity of WoMSMEs to engage
in cross-border e-commerce trade through RCEP. The succeeding sub-sections elaborate on
the research procedure and instrumentation.

4.1. Data Collection Methods

The authors collected both primary and secondary data by administering a pilot survey
involving 486 women-led MSMEs (WoMSMEs) operating in Metro Manila, and by reviewing
related literature on key RCEP chapters, Philippine MSME laws and policies, e-commerce
related challenges and opportunities encountered by WoMSMEs, and case studies of e-
commerce adoption in Africa and Asia and the Pacific. Secondary sources such as books,
journals, official government reports and press releases, news clippings, reports by
international organizations, and previous studies on MSMEs and e-commerce were perused
and analyzed to validate the primary data.

22
Due to mobility restrictions caused by the COVID-19 pandemic, the authors posted the call for
participants to the study through various social media platforms 10 and was circulated in several
groups and circles with MSME members, with the help of DTI 11 and other individuals 12. From
28 September – 12 October 2021, two enumerators 13 were contracted to identify possible
respondents, disseminate the online questionnaire form over the internet, and manage the
database. Aside from the eligibility criteria, the authors also surveyed WoMSMEs that did not
have a DTI registration nor a physical store at the time of data collection. All responses were
registered in electronic form.

The survey questionnaire was disseminated through an online platform, Google Forms, and
contained five major sections, namely: (1) Business and Leader Profile; (2) E-Commerce
Adoption Process; (3) Perceptions on the Impact of E-Commerce Adoption on Business
Performance; (4) Propensity to Engage in Cross-Border Trade through RCEP; and (5)
Awareness of Government Programs on MSMEs and E-Commerce.

Questions for sections 1, 3, and 4 were crafted based on the framework developed from a
combination of Wirdiyanti’s (2019) framework and the Diagnostic Toolkit (2020) developed
by the US-Support for Economic Growth in Asia for APEC. The questionnaire is devised as
follows:

Part 1 aimed to elicit information regarding the business owners and the nature of their
operations and transactions. Parts 2 and 3 draw from Widrayanti’s framework as illustrated in
the previous chapter (Figure 1: E-commerce effect on Marketing and MSME Performance),
Specifically, Part 2 inquired about the motivations and challenges (e.g., human resources, ICT
skills and equipment) concerning their e-commerce adoption. Part III focused on the
perceptions of WoMSMEs, specifically satisfaction level, on the impact of e-commerce
adoption on their performance in several areas such as sales growth, customer base, customer
satisfaction, and process enhance, which was measured through a five-point Likert scale. On
the other hand, Part 4 adapted questions from the Diagnostic Toolkit to gauge the propensity
of WoMSMEs to engage in cross-border e-commerce trade through RCEP by drawing
qualitative responses, while Part 5 attempted to characterize the level of awareness among
WoMSMEs on government programs concerning MSMEs and e-commerce. Responses to the
survey questions may either be optional or required, depending on the significance of inquiry.

Together, these primary and secondary sources of data fill the gaps identified in this study. The
first research objective, which is to survey the current domestic policy environment covering
WoMSMEs and e-commerce, is addressed through a review of related literature and a desk
review of government policies and programs. Part 2 of the questionnaire corresponds with the
second aim of this study, which is to describe the motivations of WoMSMEs in adopting e-
commerce. Parts 3 and 4 of the survey contribute to the twin objectives of examining the impact
of e-commerce adoption on performance and their propensity for cross-border e-commerce.
Finally, questions under Part V seek to gauge the awareness levels of WoMSMEs relative to
RCEP and other government programs on MSMEs and e-commerce.

The content validity of the survey questionnaire was tested via furnishing a working draft to
subject matter experts and several WoMSMEs. Valuable inputs were then received and
10
Public posts: Instagram, Twitter, Facebook, and LinkedIn; Messaging: Viber, Instagram, and Facebook
Messenger
11
DTI National Capital Region and DTI Bureau of Small and Medium Enterprises Development
12
Dr. Elaine Borazon, Assistant Professor, National Sun Yat-Sen University
13
Ms. Rose Marie Villanueva and Ms. Candace Noreen Bagalawis, students of De La Salle University, Manila

23
incorporated to improve the language and content, and limit the scope of the questionnaire. To
measure the internal consistency reliability of Part 4, the responses were processed and
produced a Cronbach’s alpha of 0.94 (Excellent).

4.2. Validity and Reliability of Data Instrument

The survey initially received a total of 554 responses but was trimmed to 486 due to the deletion
of incomplete answers, duplicate entries, and entries submitted by male-led MSMEs. The
tabulated data were scrutinized to underline common themes and other patterns that describe
the e-commerce adoption of WoMSMEs in Metro Manila. Specific attributes as well as their
interconnections were likewise outlined to characterize the conditions that created them,
actions undertaken by actors, and the outcomes of those actions.

A synthesis was then formed to elucidate a better understanding of the profile of WoMSMEs
and motivations for e-commerce adoption. Another synthesis was also developed to shed light
on the impacts of e-commerce adoption on the performance of WoMSMEs according to their
perception. In addition, the section on data analysis features discussions on the propensity of
WoMSMEs to engage in cross-border e-commerce trade through RCEP and on awareness of
Philippine government programs concerning MSMEs and e-commerce.

5. Data Results and Analysis

In addition to the secondary data which were presented on the earlier chapters, the authors will
present the data and analyze the primary data obtained through an electronic survey of 486
respondents. This chapter is divided into five (5) parts: (1) the WoMSMEs profiles; (2) their
experiences in e-commerce adoption; (3) their perceptions of the impacts of e-commerce
adoption; (4) their awareness on RCEP, and propensity for cross-border e-commerce; and (5)
their general views on government programs affecting WoMSMEs.

5.1. Profile of the Surveyed WoMSMEs

This part discusses the profile of the WoMSMEs e-commerce adopters. It will show their
classifications, location, motivations, and business types. This section aims to highlight the
WoMSMEs types in Metro Manila.
As discussed previously, the Philippine definition of MSMEs follows these criteria:
(1) number of employees/staff: micro, 1 to 9 employees; small, 10 to 99 employees;
medium, 100 to 199 employees; and large, 200 and over employees; and
(2) range of asset sizes: micro, not more than PHP 3 million; small, PHP 3–15 million;
medium PHP 15–100 million, and large PHP101million and up.
Figure 4 shows that around 97 percent of respondents belonged to the micro classification. On
the survey, respondents were asked if they have enough employees to help them, 69.3 percent
said yes, 26.7 percent no, and 3.9 percent answered not familiar. Most responded “yes” because
they handle all business processes and transactions alone given the modest size of their
business. For those who answered “no”, either they needed more staff to help out or encounter
other human resource-related challenges such as communication, misunderstanding, and the
COVID-19 restrictions and protocols.

24
Figure 4. Classifications of WoMSMEs

500
400
300
200
100
0
Micro Small Medium
Employees 473 12 1
Asset 475 9 2

Employees Asset

Source: survey conducted by the authors

Furthermore, the authors also asked the respondents about their employee/s’ ICT skills. 51
percent said that they have adequate ICT knowledge to run e-commerce businesses; 5 percent
said that they have inadequate ICT skills; 7 percent mentioned they need training; and 37
percent answered not applicable (since they do not have employees).

Moreover, Quimba and Calizo (2019) mentioned earlier that most businesses who participate
in e-commerce are located in the megacities. Thus, the authors focused on the National Capital
Region. Admittedly, there was still a disparity in the reach of WoMSMEs within Metro Manila.
Most of these businesses who participated in this survey are located in Quezon City, Manila,
Paranaque, Pasig, and Las Pinas. Very few WoMSMEs were reached in the cities of Navotas,
Pateros (municipality), San Juan, and Malabon. It cannot be determined if data gathered on the
location of WoMSMEs relates to the quality of ICT infrastructure in these areas or, merely, a
limitation in data gathering (Figure 5).

Figure 5. Location of WoMSMEs in Metro Manila

10
5 16 10 Caloocan
41 Las Piñas
6
26
Makati
110 15
Malabon
72 Mandaluyong
2
51 Manila
28
Marikina
57
15 Muntinlupa
1 21

Source: survey conducted by the authors

WoMSMEs were asked if they have stable internet connection to support their online
transactions: 93.8 percent answered yes; and 6.17 percent answered no. The authors noted that
the electronic survey had greater reach among WoMSMEs in bigger cities vis-à-vis the smaller
cities and municipalities within Metro Manila. Survey dissemination and data gathering were

25
conducted through popular e-commerce channels, social media, digital platforms, referrals, and
enumerations.

Figure 6. Age and Figure 7. Educational Attainment of WoMSMEs Owners/Managers

Age Educational Attainment

51 17 Post-
18-25 4
21 Baccalaureate
24 34
26-35 Degree/s
40
36-45 Primary
134
68 46-55
56-65 Secondary
324 297
65 and up
Younger than 18
Tertiary

Source: survey conducted by the authors

Consistent with the policy note of Tabuga and Cabaero (2021b) which concluded that those
who finished only basic education (up to Grade 12) are less likely to engage in online selling
than those who completed at least a college degree, it also emerged from this survey (Figures
6 and 7) that the owners and managers of these MSMEs have college degrees (61 percent) and
fairly young (66.67 percent are aged 18-25). Data on digital literacy skills of certain segments
of the population are also valuable for the development and implementation of proper
interventions. There is also a correlation between educational attainment and tech savviness.
There is also evidence that lack of literacy, skills, and resources mainly hinder women
entrepreneurs from capitalizing on e-commerce adoption and its potential as an engine for their
internationalization

Another type of information the authors have endeavored to gather is the kind of services and/or
products they offer. Based on Figure 8 generated from a Wordcloud 14, the leading types of
products and services offered by the WoMSMEs are the following: food, clothing, jewelry, and
beauty products. This validates the study of Tabuga and Cabaero (2021a) who found that the
top products sold by women are: clothing, footwear, sporting goods, or accessories; cosmetics
and fragrances; food, groceries, alcohol or tobacco; and consumer electronics and accessories.

14
https://www.wordclouds.com/

26
Figure 8. Type of Products and Services

Source: survey conducted by the authors

Moreover, Figure 9 supports the conclusion of Tabuga and Cabaero (2021a) that female e-
commerce entrepreneurs use social media sites more than e-commerce applications. On this
survey, the top digital platforms which are most used by the WoMSMEs in their business
transactions are: (1) Messaging applications and (2) Courier services, and (3) Other Social
Media Accounts.

Figure 9. E-Commerce Platform Usage

OTHER E-COMMERCE APP 13

349
COURIERS 350
428
FINANCIAL TECHNOLOGY (FINTECH) 290
58
OWN WEBSITE 44
8
FOODPANDA 21
25
CAROUSELL 59
305
INSTAGRAM 288
241
LAZADA 74
0 50 100 150 200 250 300 350 400 450

Source: survey conducted by the authors

The WoMSMEs were also asked about the specific digital platforms used within the value
chains of their businesses, 88.06 percent respondents mentioned that they use messaging
applications (attached to social networking sites); 72 percent said they use online based couriers
such as Lalamove, Grab Delivery, Ninja Van, and others; 71.8 percent said they use the main
pages of social media sites for promotions and to grow popularity; 59.67 percent answered they
use financial technology (fintech) applications such as GCash, Mobile Banking, Shopee Pay,
etcetera for payments and banking; and 11.93 percent answered they use video conferencing
platforms such as Zoom, Skype, and others to connect with clients.

27
These WoMSMEs were also asked about the type of devices they use for their e-commerce
transactions: 96.7 percent mentioned that they use their mobile phones; 70.57 percent use their
laptops; 23.66 percent use their desktop computers; and 21.81 percent use their tablets.
Moreover, WoMSMEs’ transactions are mostly Business-to-Consumer (B2C) (98.35 percent);
only 24.28 percent cater to other businesses; and only 3.7 percent transact with the government.
Given that they are micro and relatively new businesses (see figure 10), there is potential to
widen their market and accommodate to other clients such as governments, and other
businesses come opportunities for growth especially by RCEP.

Figure 10. Timeline of WoMSMEs Establishment

250
212

200

150
150

100

51
50
22 26
7 7 10

0
1990-19992 2000-2009 2010-2016 2017 2018 2019 2020 2021

Source: survey conducted by the authors

In terms of e-commerce adoption, it appears that most of these women only established their
businesses at the height of the COVID-19 pandemic (2020, 43.62 percent; 2021, 30.86
percent). The pandemic registered the highest among other reasons for adopting e-commerce
(Figure 11).

Though the most cited reason is the pandemic (77.9 percent), most WoMSMEs also engaged
in e-commerce for higher profit (59.46 percent), ease in communication (58 percent), wider
customer reach (51.85 percent), growing popularity of e-commerce platforms (52.67 percent),
and to improve speed of transactions (38.89 percent). The authors seek to gain insight into the
actual experiences of these WoMSMEs on their adoption of e-commerce.

28
Figure 11. Reasons for E-Commerce Adoption

OTHERS 13
IMPROVE THE BUSINESS IMAGE 165
EASIER COMMUNICATION WITH THE CLIENTS 283
IMPROVE THE SPEED OF TRANSACTIONS 189
WIDER COSTUMER REACH 252
HUMAN RESOURCE 36
REDUCE MARKETING COSTS 119
REDUCE OPERATIONAL COSTS 160
GROWING POPULARITY OF THE E-COMMERCE 256
FOR HIGHER INCOME/PROFIT 289
THE PANDEMIC 379

0 50 100 150 200 250 300 350 400

Source: survey conducted by the authors

5.2. Experiences of WoMSMEs in E-Commerce Adoption

E-commerce has provided women with new business opportunities especially during the
COVID-19 pandemic. E-commerce can help WoMSMEs in areas such as: (1) managing
transactions at a distance; (2) delivering goods efficiently; (3) facilitating access to financial
services; and (4) engaging with new and existing customers (Karr et.al. 2020). On this section,
the authors corroborate the experiences of WoMSMEs with the findings of Karr et.al. (2020).

According to Figure 12, WoMSMEs cited that their biggest gain in adopting the e-commerce
are: growing business/product popularity (72.8 percent); more profit (67.49 percent); and
easier communication with clients (66.87 percent). However, human resource and
improvement of business image are the least cited. The next figures and tables will present
more specific experiences of WoMSMEs in relation to e-commerce adoption.

When it comes to their online marketing strategy, only 39.71 percent said that e-commerce
reduced their marketing costs. What exactly are the online marketing strategies of these
WoMSMEs?

29
Figure 12. Biggest Gain in E-Commerce Adoption

OTHERS 3
IMPROVED THE BUSINESS IMAGE 181
EASIER COMMUNICATION WITH THE CLIENTS 325
IMPROVED SPEED OF TRANSACTIONS 253
WIDER COSTUMER REACH 275
HUMAN RESOURCE 67
REDUCED MARKETING COSTS 193
REDUCED OPERATIONAL COSTS 244
GROWING BUSINESS/PRODUCT POPULARITY 354
MORE PROFIT 328

0 50 100 150 200 250 300 350 400

Source: survey conducted by the authors

According to Figure 13, 95.67 percent of WoMSMEs said that they are using public posts; 44.4
percent pay for online boosting; 40 percent utilize personal messages: and 26.95 percent pay
for advertisements. Online boosting and advertisement are very popular nowadays due to their
cost effectiveness and wide reach, especially through online influencers. Some respondents
cited that they tap influencers to promote their products on social media platforms.

Figure 14 reflects that 75 percent of WoMSMEs prefer the use of electronic payment. It is a
great indicator that micro and small businesses are receptive to the use of financial technology.
20 percent still use cash on delivery method, and 5 percent prefer both.

Figure 13. Online Marketing Strategy and Figure 14. Payment Transaction Preference

Marketing Strategies Payment Transaction

Preference
OTHERS 6

COMMERCIALS 5 5%
Both
ONLINE BOOSTING 216 20%

PAID ADVERTISING 131 Cash on

Delivery
PERSONAL MESSAGE 195
Electronic
PUBLIC POSTS 465 75% Payment

0 100 200 300 400 500

Source: survey conducted by the authors

In relation to their openness to financial technologies and other digital platforms, the authors
also asked WoMSMEs (Figure 15) about their biggest personal safety and cybersecurity
concerns during online transactions.

30
Figure 15. Preferred Application for Online Payment Transactions

Source: survey conducted by the authors

As mentioned earlier, one of the risks of engaging in e-commerce concern cybersecurity

(Figure 16). The most cited issues of WoMSMEs are fake accounts and bogus buyers (64
percent); copying and using their advertising materials (27.37 percent); price scraping of the
competitors (17.28 percent); and copying of their personal data information (14.6 percent).

Figure 16. Cybersecurity Issues of WoMSMEs

OTHERS 3
SEND MALICIOUS MESSAGES OR/AND POST 10
E-SKIMMING 16
BULLYING, DEATH THREATS, AND OTHER THREATS 18
USING YOUR IDENTITY FALSELY 40
HACKING OF ACCOUNTS 45
ONLINE FRAUD 56
COPYING OF PERSONAL DATA INFORMATION 71
NONE 74
PRICE SCRAPING BY COMPETITORS 84
COPYING OF ADVERTISMENT PHOTOS 133
FAKE ACCOUNTS/BOGUS BUYERS 311
0 50 100 150 200 250 300 350

Source: survey conducted by the authors

Despite the cited cybersecurity issues on Figure 17, 57 percent of these WoMSMEs still feel
safe and 17 percent very safe using online platforms for transactions. Moreover, 25 percent feel
neutral, 7 percent unsafe, none answered very unsafe (Figure 16). Perceptions of safety and
security are important considerations for e-commerce adoption, especially since this has been
identified as a barrier for WoMSMEs’ digitalization.

31
Figure 17. Safety in Using Online Platforms for Transactions

Feeling of Safety in DIgital Transactions

0 7

84
120

Very Unsafe
Unsafe
Neutral
Safe
Very Safe
274

Source: survey conducted by the authors

Moreover, Table 3 reflects that most women engaged in e-commerce never experienced gender
related issues in transactions. 90.5 percent never experienced gender-based harassment and
discrimination; while 96.71 percent have never been cyberbullied. However, some participants
who answered yes cited that they experienced gender-based harassment while engaging in
e-commerce such as unwanted sexual attention on messages, their posts, and during client
meet-ups, and among others. Some also were catcalled and being contacted through their
personal numbers (not business related) by their couriers and customers.

Table 3. Gender-based Cybersecurity Experiences of WoMSMEs

Question Yes No
Do you experience gender-based harassment in e-commerce 17 469
platform/s?
Do you experience gender-based cyberbullying in e-commerce 16 470
platform/s?
Do you experience gender-based discrimination in e-commerce 17 469
platform/s?
Source: survey conducted by the authors

Lastly, MSMEs were the worst hit by the economic crisis caused by the pandemic. Though
most of these WoMSMEs were only established recently, most of them have expressed need
for financial assistance to sustain their businesses. WoMSMEs were asked if they think the
government gives enough information on financial aids, loans, e-banking and e-payment
assistance for their businesses, majority said no (56.58 percent) and are not familiar (15.02
percent).

On Figure 18, 64 percent WoMSMEs cited that they tapped their personal savings for financial
assistance; 54.53 percent asked from their families; 13.37 percent turned to their friends; 10.7
percent took a loan from banks; and only 7 percent had access to government loans and

32
assistance. The role of the government to WoMSMEs will further be discussed on the last part
of this chapter.

Figure 18. Sources of Financial Assistance

Sources of Financial Aid for Business

NOT NEEDED 39
OTHERS 4
MOBILE LOAN APPLICATION 5
LENDING 6
MICROFINANCE 16
PERSONAL SAVINGS 315
FRIENDS 65
FAMILY 265
BANK 52
GOVERNMENT LOAN/ASSISTANCE 34

0 50 100 150 200 250 300 350

Source: survey conducted by the authors

The next discussion will focus on the perceptions of WoMSMEs on the impact of e-commerce
adoption.

5.3. Perceptions on the Impacts of E-commerce Adoption by WoMSMEs

This part of the discussion will present the perception of WoMSMEs on the impact of e-
commerce adoption by measuring their satisfaction levels. According to Wirdiyanti (2019), e-
commerce adoption impacted MSMEs globally in terms of sales growth, cost efficiency,
improved service processes, and product quality. Focusing on e-commerce effect on marketing,
indicators such as online advertising, customer awareness, brand recognition, and exposure to
product. From transaction cost theory, derive price changes (competitive advantage),
transaction speed (process enhancement), customer satisfaction number of online customers
(customer base), and sales growth as performance variables.

Assessing the relevance of the variables cited by Wirdiyanti (2019), the authors have focused
on the select variables below: sales growth, customer base, customer satisfaction, and process
enhancement of the WoMSMEs in Metro Manila.

Figures 19 to 22 show that the overall perceptions on the impacts of e-commerce adoption by
WoMSMEs are satisfied and very satisfied:
• under sales growth, most WoMSMEs responded they are satisfied with their sales
growth (42.37 percent); average size if transactions (42.8 percent); percent responded
they are satisfied with their frequency of transactions per customer (33.6 percent); and
current prices of their products (43.2 percent);
• under customer base, most WoMSMEs responded they are very satisfied with their
growth (40.95 percent); expansion by age (40.74 percent); expansion by gender (42.18

33
 percent); expansion by income group (38.89 percent); and expansion by geographical
reach (45.68 percent);
• under customer satisfaction, most WoMSMEs responded they are very satisfied with
their customer satisfaction (52.67 percent); volume of good review/s received (57
percent); volume of referral/s received (52.26 percent); volume of bad review/s
received (32.51 percent); and volume of complaint/s received (32.72 percent); and
• under process enhancement, most WoMSMEs responded they are satisfied with their
work processes and operations (41.36 percent), and turnaround time (40.33 percent);
and very satisfied with their size of human resource (34.36 percent), turnaround time
(40.33 percent), and delivery period of products to their customers (43.21 percent).

Figure 19. Sales Growth

SALES GROWTH
Extremely Dissatisfied Dissatisfied Neutral Satisfied Extremely Satisfied

C U R R E N T P R I C E S O F Y O U R P R O D U C T S 116 93 210 166

F R E Q U E N C Y O F T R A N S A C T I O N S 618 100 212 150

A V E R A G E S I Z E O F T R A N S A C T I O N S 410 108 208 156

S A L E S G R O W T H 23 88 206 187

Source: survey conducted by the authors

Figure 20. Customer Base

CUSTOMER BASE
Extremely Dissatisfied Dissatisfied Neutral Satisfied Extremely Satisfied
E X P A N S I O N B Y G E O G R A P H I C A L R E A C H 316 77 168 222

E X P A N S I O N B Y I N C O M E G R O U P 28 93 194 189

E X P A N S I O N B Y G E N D E R 16 106 168 205

E X P A N S I O N B Y A G E 213 88 185 198

G R O W T H 415 85 183 199

Source: survey conducted by the authors

34
Figure 21. Customer Satisfaction

CUSTOMER SATISFACTION
Extremely Dissatisfied Dissatisfied Neutral Satisfied Extremely Satisfied

V O L U M E O F C O M P L A I N T / S R E C E I V E D 16 38 152 121 159

VOLUME OF BAD REVIEW/S RECEIVED 21 28 155 124 158

V O L U M E O F R E F E R R A L / S R E C E I V E D 27 69 163 245

V O L U M E O F G O O D R E V I E W / S R E C E I V E D 14 58 146 277

C U S T O M E R S A T I S F A C T I O N 12 46 181 256

Source: survey conducted by the authors

Figure 22. Process Enhancement

PROCESS ENHANCEMENT
Extremely Dissatisfied Dissatisfied Neutral Satisfied Extremely Satisfied

D E L I V E R Y O F P R O D U C T S 26 83 185 210

T U R N A R O U N D T I M E 15 88 196 196

S I Z E O F Y O U R H U M A N R E S O U R C E 1020 137 152 167

W O R K P R O C E S S E S A N D O P E R A T I O N S 15 92 201 187

Source: survey conducted by the authors

5.4. Awareness on RCEP, and Cross-border Transactions Experiences and

Aspirations

RCEP takes into consideration changing and emerging trade realities, including the age of e-
commerce, the potential of MSMEs, and the deepening regional value chain, and the
complexity of market competition (ASEAN 2020). Chapters 12 and 14 of the RCEP recognize:
(1) the importance of electronic commerce in fostering economic growth and opportunities in
the regions; and (2) the contributions of MSMEs to economic growth, employment, and
innovation, respectively. Together, these emerging trade areas enable businesses to take
advantage of the increasing globalization and creation of new supply chain linkages.

Given these, the authors asked the WoMSMEs to gauge their awareness of RCEP and its
chapters on MSMEs and E-Commerce; and whether they had engaged in or aspire to engage
in cross-border e-commerce. Figure 23 suggests that majority of WoMSMEs were not aware
about RCEP (90 percent) and its chapters on MSMEs (89.1 percent) and E-Commerce (89.1

35
percent) prior to this survey. Notably, the text of the RCEP agreement was only publicly
available upon the conclusion of negotiations in November 2020, after eight years of
confidential talks. Hence, this may explain the low level of awareness among WoMSMEs
concerning RCEP and the cited chapters.

Figure 23. Awareness of WoMSMEs on RCEP and its Chapters

Yes No

RCEP CHAPTER ON E-COMMERCE 53 434

RCEP CHAPTER ON MSMES 53 434

DEFINITION AND CONTENT OF RCEP 45 445

Source: survey conducted by the authors

Figure 24 highlights that while majority also have not undertaken any cross-border
transactions (71 percent), it is affirming that majority of the WoMSMEs are willing to or
interested (52.47 percent) to engage in cross-border trade through RCEP if implemented. The
authors included brief descriptions of RCEP and its relevant chapters on the survey.

Moreover, since majority of them are open to cross-border e-commerce, the authors asked
which RCEP countries would they be willing to engage with through exports/imports: 25
percent answered other ASEAN countries; 16 percent said South Korea; 14 percent selected
Japan; 11 percent said China; 10 percent answered Australia; 7 percent said New Zealand; and
17 percent selected none of the above.

Figure 24. WoMSMEs and Cross-Border Transactions

Yes No Not Sure

ARE YOU WILLING/INTERESTED TO ENGAGE IN

CROSS-BORDER TRADE THROUGH RCEP IF 255 195 38
IMPLEMENTED IN 2022?

DO YOU HAVE PRIOR CROSS-BORDER

TRANSACTION/S?
143 344 0

Source: survey conducted by the authors

Figure 25 shows the perceptions of WoMSMEs on the possible benefits of the MSME chapter
of RCEP. A total of 50.21 percent of WoMSMEs were of the view that the MSME chapter

36
provision stating that “the government will provide more information on trade and investment-
related laws and regulations for export-oriented MSMEs” would benefit them the most. 45.27
percent answered “the government will enhance access to business-related information that
may be useful to export-oriented MSMEs” would benefit their business, and 43.62 answered
“enhanced entrepreneurial programs for MSMEs.”

Figure 25. Perceptions on the Benefits of RCEP for MSMEs Chapter

Good regulatory practices and policies towards the…

180
Promote awareness, understanding, and effective use…
180
Encourage innovation and use of technology.
171
Enhanced entrepreneurial programs for MSMEs.
212
Promote the use of e-commerce among MSMEs.
193
Promote and facilitate international partnerships…
171
More transparent trade rules and regulations for cross-…
191
Enhance access to business-related information that…
220
Provide more information on trade and investment-…

0 244
50
100
150
200
250

Source: survey conducted by the authors

Figure 26 shows the perceptions of WoMSMEs on the advantages of engaging in cross-border

trade through the RCEP chapter on e-commerce. 52.67 percent responded that “electronic
business transaction documents will be accepted in online cross-border transactions” is an
important advantage of RCEP. 52.06 percent answered “customers of online businesses will
be protected from fraudulent or misleading practices”, and 46.91 percent answered “online
personal information of users of e-commerce will be protected.”

Figure 26. Perceptions on the Benefits of RCEP for E-Commerce Cross-Border Trade

Cross-border transfer of information by electronic… 142

195
No customs duties will be imposed on electronic… 148
145
E-commerce users will be able to control receipt of… 161
228
Customers of online businesses will be protected from…
253
143
Electronic business transaction documents will be…
256
0 50 100 150 200 250 300

Source: survey conducted by the authors

37
These results are promising. However, there is a need to further educate WoMSMEs on the
possible benefits and disadvantages if the Philippines will ratify and implement RCEP. With
this, the results on the general views of WoMSMEs on the government will be presented.

5.5. General Views on the Role of the Government to WoMSMEs

Lastly, the authors surveyed WoMSMEs on their general perceptions of the role of the
government in their businesses.

Figure 27 shows WoMSMEs’ lack of awareness on government programs. Majority of

WoMSMEs are not familiar (43.42 percent) and do not think (36.63 percent) the government
communicates its programs to the business sector. Furthermore, below are the results on the
more specific questions. 91.15 percent answered that they do not know any government
programs which help businesses with e-commerce adoption; 96.1 percent answered that they
do not know any government programs to support women-led MSMEs and their expansion;
96.1 percent answered that they are not aware of any steps of the government to simplify and
automate customs procedures; 51.65 percent answered that they are not aware of any
government programs targeted towards WoMSMEs to help them access the global digital
economy while 45.07 percent are not familiar; and 96.3 percent answered that they are not
familiar with any government programs for WoMSMEs.

Figure 27. General Perceptions of WoMSMEs on the Role of Government

Aware Not Aware Not Familiar

G O V E R N M E N T P R O G R A M S F O R W O M S M E S 19 468 0
G O V E R N M E N T P R O G R A M S O N G L O B A L D I G I T A L … 16 250 221
G O V E R N M E N T P R O G R A M S O N S I M P L I F I C A T I O N … 16 236 200
G O V E R N M E N T P R O G R A M S O N E - C O M M E R C E … 19 468 0
GOVERNMENT PROGRAMS ON FOR MSMES 43 444 0
INFORMATION DISSEMINATION PROGRAMS FOR… 96 178 213

Source: survey conducted by the authors

Figure 28 shows that 93.21 percent of the WoMSMEs have never asked and never received
any help from the government.

Figure 28. Government Assistance

Yes No

HAVE YOU EVER RECEIVED ANY HELP FROM THE

GOVERNMENT WITH REGARD TO YOUR BUSINESS?
32 455

HAVE YOU EVER ASKED THE GOVERNMENT FOR

HELP WITH REGARD TO YOUR BUSINESS?
33 454

Source: survey conducted by the authors

38
The robustness of the data gathered from this survey provides a wealth of information on the
state of e-commerce adoption by WoMSMEs in Metro Manila, its impact on their performance,
and implications for the government’s policies and programs for WoMSMEs, including the
forthcoming implementation of RCEP.

6. Conclusions, Policy Recommendations, and Summary

This portion synthesizes the key sections of the paper, outlines policy options and
considerations for the Philippine government, and provides a summary of the study.

6.1. Conclusions

The Philippine government has undoubtedly championed the cause of internationalizing

MSMEs both in the national agenda and in various international fora. Within APEC, it has
recognized the promotion of a trading environment conducive to the development and
participation of MSMEs. In ASEAN, the Philippines has called on Leaders to include MSMEs
among the priority agenda.

At the domestic level, a handful of frameworks such as the PDP, MSME Development Plan,
i3 Strategy, and PECR acknowledge the vital role of digital trade and e-commerce in fostering
high-value added, competitive, and sustainable sectors and in generating employment for
aspiring small-scale enterprises. Several laws such as the E-Commerce Act, Ease of Doing
Business Act, National Payment Systems Act, Innovative Startup Law, and Data Privacy Act,
among others, likewise portray a robust and responsive policy architecture encompassing
MSMEs and e-commerce. Nevertheless, both the literature review and findings of the study
underline two critical issues: low e-commerce adoption among Philippine firms before the
coronavirus disease (COVID-19) pandemic; and gender-based constraints faced by
women-led MSMEs in e-commerce.

Notably, the Philippine government is confronted with two external developments – COVID-
19 pandemic and the signing of the RCEP agreement – that present both opportunities and risks
to WoMSMEs. Data from the survey validate the observation that the COVID-19 pandemic
has accelerated e-commerce adoption among WoMSMEs. Majority of surveyed
WoMSMEs established their businesses in 2020 and 2021, and mostly on social media sites
(Facebook, Instagram) and e-commerce platforms (Shopee, Lazada). These e-commerce
adopters are fairly young (18-25 years old), have college degrees, and believe they have
adequate ICT knowledge to run an e-commerce business. They also cited higher profit; ease in
communication; growing popularity of e-commerce platforms; and wider customer reach as
their motivations for e-commerce adoption.

In addition, the study finds that WoMSMEs are of the view that e-commerce adoption has
substantially enhanced their performance. It has improved their businesses in terms of
growing business/product popularity; more profit; and easier communication with clients.
Moreover, the overall satisfaction of the WoMSMEs on their key-performance indicators are
promising. Majority are satisfied on their sales growth, and extremely satisfied on their
customer base and satisfaction, process enhancement.

Against the backdrop of the COVID-19 pandemic, the case for fast-tracking RCEP’s full
implementation in the region has grown stronger than ever. However, the results show that
almost all WoMSMEs in Metro Manila were not aware of RCEP and its chapters on

39
MSMEs and E-commerce before they encountered the survey questionnaire. It also revealed
that 70 percent of respondents have never had any experience in cross-border trade
(CBT). Favorably, after reading the short descriptions of RCEP and its relevant chapters within
the questionnaire, WoMSMEs manifested strong interest to engage in cross-border trade
under RCEP if implemented in 2022.

Given this interest, WoMSMEs identified the following provisions under the MSME chapter
as the most significant to their businesses: more information on trade and investment-related
laws and regulations for export-oriented MSMEs; enhanced access to business-related
information that may be useful to export-oriented MSMEs; and enhanced entrepreneurial
programs for MSMEs. As regards the provisions under the E-commerce chapter, they identified
the following as the most significant to them: acceptance of electronic business transaction
documents in online cross-border transactions; protection of customers of online businesses
from fraudulent or misleading practices; and protection of online personal information of users
of e-commerce.

Furthermore, these WoMSMEs’ preferred export/import markets within RCEP are ASEAN
countries, South Korea, and Japan. This is likely due to the proximity of these countries to
the Philippines and the types of products they are selling. As cited by multiple respondents who
engage in CBT, the merchandise and cosmetics that they sell are imported from South Korea
and Japan. Thus, more information dissemination on the process, benefits and assistance to
concerning CBT may push WoMSMEs to capitalize on the preferences afforded by RCEP.

Regarding level of awareness, two interrelated findings have emerged from this study,
WoMSMEs generally lack awareness of the government programs on MSMEs and e-
commerce, and most are not registered with DTI and Securities and Exchange
Commission (SEC). The latter is perhaps one of the reasons why they are not aware of any
government programs which may benefit them. 51 percent do not have DTI registration, while
76 percent are not SEC-registered. Further, majority of WoMSMEs are not familiar with any
government programs relating to them. Over 90 percent said that they do not know any
government programs which help businesses adopt e-commerce nor those targeted towards
WoMSMEs to help them access the global digital economy.

Furthermore, they cited that lack of education on the benefits and taxation, difficulty to contact
the government agencies, overwhelming number of requirements, and the actual duration of
application time and days to process the applications as some of the reasons for their
apprehensions to register. They also express their desire for government to provide more
capacity building and training for them, more user-friendly digital platforms where they can
obtain information on the programs, and access to financial assistance.

Aidis et.al. (2020) estimates that 20 percent of all e-commerce will be comprised of cross-
border activity by 2022. The authors share the optimism of DTI that RCEP will not only
facilitate the recovery efforts in the Philippines but will also pave the way for the
internationalization and deeper participation of MSMEs into global value chains. As this study
has revealed, a high propensity for cross-border e-commerce—fostered by an enabling policy
environment that supports e-commerce adoption and growth—will potentially heighten the
participation in regional trade and the global value chain.

40
6.2. Policy Recommendations and Suggestions for Further Studies

For the consideration and review of concerned government agencies, the authors recommend
the following policy options and considerations:

• Disaggregate data on WoMSMEs. “Gender-specific data in participation in cross-border

e-commerce are still nascent and the collection of gender-disaggregated data is critical for
targeting support to overcome the hurdles women-owned businesses face” (Aidis et al.
2020, p.11). This will help in identifying specific challenges and barriers to e-commerce
adoption as well as possible policy interventions. By making available an accessible
government-managed database, think-tanks, academe, and private organizations may play
a vital role in undertaking future research on emerging issue-areas such as cybersecurity,
data privacy, cross-border flows of data, and e-commerce and taxation.

• Invest in further research focused on USAID and APEC’s Women-Owned Businesses

in Cross-Border E-Commerce: A Diagnostic Toolkit. The authors partly used some
aspects of this material. Moreover, as the Philippines is part of the APEC, this toolkit may
be useful to consider especially to better survey the policy environment of the country for
the CBT of WoMSMEs. The goal of this diagnostic toolkit is “to help the APEC community
gain a better understanding of the challenges to competitiveness and growth for women-
owned e-commerce businesses when trading within economies and across borders and
assess their own support for these businesses” (Aidis et al. 2020, p.2). This survey may also
be undertaken as a regional initiative to gauge the region’s business climate and inform
regional strategies to foster WoMSMEs competitiveness globally. Research using this
toolkit may be further expanded to include intersectional analyses targeting the status,
opportunities, and challenges faced by different subgroups of women entrepreneurs,
including women with disabilities, women from indigenous groups, and so on.

• Conduct a nationwide survey on WoMSMEs and their e-commerce adoption and

propensity to engage in e-commerce CBT through RCEP. Expanding the geographic
scope to include other regions in the survey may effectively provide a better understanding
of the experiences and impacts of e-commerce adoption on the business and performance
of WoMSMEs. The survey may likewise include questions on factors to be considered to
gauge the readiness of WoMSMEs in CBT through RCEP. The PEG published by DTI-
EMB (2018) may serve as a reference document in formulating questions relating to
registration and compliances, production capacity, financial soundness, manpower, legal
arrangements, and expansion potential. This may substantially contribute to the formulation
of future national development plans encompassing e-commerce and MSMEs and national
strategies on advancing internationalization efforts through CBT participation via free trade
agreements such as RCEP.

• Raise the level of awareness among WoMSMEs on RCEP and relevant government
programs. This may be addressed through the inclusion of targeted information drives,
awareness-raising activities, and capacity building programs for WoMSMEs in the
implementation plans of development blueprints or strategies, RCEP, as well as other future
free trade agreements. Emphasis may also be placed on RCEP-related rules and regulations,
primarily Chapters 12 (Electronic Commerce) and 14 (Small and Medium Enterprises),
which may support WoMSMEs. Chapter 12 contains provisions on paperless trading,
electronic authentication and e-signature, location of computing facilities, cross-border
transfer of information by electronic means, and online consumer and online personal

41
 information protection, while Chapter 14 includes articles on information sharing and better
market access and GVC participation by SMEs through collaboration among businesses.
Critical would be the next administration’s express recognition of WoMSMEs’ significance
in the Philippine Development Plan beyond 2022 through concrete action plans and
frameworks. Concerned government agencies such as DTI and DICT may consider using
social media platforms to disseminate relevant and simplified information concerning
RCEP, as well as opportunities and accompanying risks, and develop an online information
hub for MSMEs who wish to participate in CBT.

• Strengthen government programs to promote e-commerce adoption among

WoMSMEs, which may support their internationalization efforts. Results show that
the adoption of e-commerce has been hastened by the COVID-19 pandemic, and that
women-led MSMEs perceive the former development as a boon to their business, especially
in terms of sales growth, customer base, customer satisfaction, and process enhancement.
E-commerce adopters are fairly young (18-25 years old), have college degrees, and have
adequate ICT knowledge to run an e-commerce business. With regard to the anticipated
entry-into-force of RCEP, the Interim RCEP Joint Committee may consider incorporating
gender quotas within the logical framework for the Work Program of Chapter 15
(Economic and Technical Cooperation). This policy measure will ensure the targeted
participation of WoMSMEs in awareness seminars, technical consultations, and other
technical assistance activities. DTI, through the E-Commerce Promotion Council, may
hence launch programs and initiatives seeking to promote higher uptake of e-commerce
among the following cohorts: (1) below 18 years old and older than 25 years old; (2)
individuals and women leaders in MSMEs with primary and secondary schooling; and (3)
WoMSMEs with insufficient ICT skills. The role of the private sector will be paramount in
realizing this undertaking. Further, the National Development Council and the Philippine
Innovative Startup Fund may serve as financing mechanisms to catalyze investments in e-
commerce innovation and to support the internationalization aspirations of WoMSMEs.

42
Box 4. Key Components of a User-friendly Government Website for WoMSME Exporters

According to the second framework the authors used for this study, the following are the key
components of a user-friendly government website for WoMSMEs exporters:
• Critical information about key needs of small businesses highlighted clearly;
• Information regularly updated (bi-weekly or monthly);
• Links to relevant government agencies, export related certifications, and small
business workshops and trainings;
• Success stories updated yearly;
• One or two larger images per page;
• Diversity of individuals shown in images in terms of different ages, ethnic and racial
backgrounds, and gender;
• Separate section with information for e-commerce trade including clear explanation
of e-commerce and digital trade issues related to e-payment services, various platform
options, tax implications of selling online in global markets, and product specific tariff
and customs information from major global markets presented clearly;
• Separate section on “How to export” which includes checklists or quizzes (such as
Austrade’s International Readiness Indicator or Canada’s “Are You Ready to Export?”
quiz);
• Clear information about options for shipping and logistics services; and
• Information about how to use customs brokers.

For the case of the Philippines, these key components may also be reflected to the official
social media sites of the concerned agencies since the study results presented that WoMSMEs
in the Philippines are avid social media users in e-commerce.

Source: Aidis et al. (2020, p.15)

6.3. Summary

RCEP, the mega-FTA, considered the largest free trade deal in the world is envisioned to boost
the recovery efforts of its signatory countries as they grapple with the economic fallout of the
COVID-19 pandemic. RCEP includes chapters dedicated to E-commerce (Chapter 12) and
MSMEs (Chapter 14). As an ex-ante study for RCEP’s effectivity early next year, this study
surveyed a total of 488 WoMSMEs in Metro Manila on the impacts of e-commerce adoption
on their performance; awareness and perceptions of government efforts towards their
internationalization; and their propensity to engage in e-commerce CBT under RCEP.

WoMSMEs showed to benefit substantially from e-commerce and cross-border trade.

However, certain constraints—inherent to MSMEs and to women—continue to hinder them
from capitalizing on their gains. The implications for trade policy with specific regard to
women and e-commerce are, thus, important given the growing female share in the MSME
sector in the Philippines, and the crucial role they play in the Philippines’ efforts to recover
from the crisis through the RCEP.

43
Figure 29. Operational Framework of WoMSMEs Study

Source: collated by the authors

Most of the WoMSMEs participated on this study are fairly young (ages 18-25); have tertiary
level educational attainment and adequate ICT skills; classified as micro with asset size
between P6,000-P20,000 and have no employees; and who mostly tap their personal saving
when needing financial aid for their businesses. Given these inputs, these WoMSMEs generally
perceived to have positive effects on their e-commerce adoption.

Furthermore, these WoMSMEs are extremely satisfied on their performances in e-commerce

adoption. However, government must strengthen its programs to support WoMSMEs’
participation in CBT through RCEP. Ultimately, this study hopes to contribute to the Philippine
ratification of RCEP and highlight the importance of keeping track of this sector.

44
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45
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Morrison, A. (2003). SME management and leadership development: Market reorientation.
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March 2021

49
Annex: Women-led Micro, Small, and Medium Enterprises (WoMSMEs) in
Metro Manila Using E-Commerce Questionnaire
Are you a woman entrepreneur running an online business? If yes, we kindly ask for your kind
cooperation to answer our survey questionnaire for our study entitled “E-Commerce Adoption and
its Impact on the Performance of Women-led MSMEs in Metro Manila: An Ex-Ante Study for the
Regional Comprehensive Economic Partnership (RCEP) Agreement”.

Our study aims to understand women-led micro, small and medium enterprises' (WoMSMEs)
motivations for electronic commerce adoption, aspirations for cross-border
transactions/expansions, and perceptions of government efforts and policies supporting them. We
further seek to generate policy recommendations which will foster the potentials of WoMSMEs for
recovery and expansion amid the pandemic through RCEP.

It will take you approximately 15-20 minutes to complete the survey. As an incentive for
participating, 30 respondents will be given P100.00 each, 15 will be given P200.00 each, 4 will be
given P500.00 each, and 1 will be given P2,000 (via GCash). We will get in touch with you for the
zoom link of the virtual raffle on 12 October 2021 (Thursday) so please answer this questionnaire
before then.

Thank you so much and we wish your business prosperity.

Best regards,

Jill Bacasmas, Philippine Competition Commission

Jean Carlos, Philippine Institute for Development Studies
Jovito Katigbak, Foreign Service Institute

---------------------------------------------------------------

Isa ka bang babae na nagpapatakbo ng isang online na negosyo? Kung oo, hinihiling namin ang iyong
kooperasyon upang sagutin ang aming survey questionnaire para sa aming pag-aaral na
pinamagatang "E-Commerce Adoption at ang Epekto neto sa mga Maliliit na Negosyo ng mga
Kababaihan sa Metro Manila: Isang Ex-Ante Study para sa Regional Comprehensive Economic
Partnership (RCEP) ”.

Nilalayon namin na maunawaan ang mga pagganyak WoMSMEs para sa pag-aampon ng

elektronikong komersyo, mga hangarin para sa mga transaksyong cross-border / pagpapalawak, at
pananaw sa mga pagsisikap at patakaran ng gobyerno na sumusuporta sa kanila. Lalo naming
hinahangad na makabuo ng mga rekomendasyon sa patakaran na magsusulong sa mga potensyal
ng WoMSMEs para sa paggaling at pagpapalawak sa gitna ng pandemya sa pamamagitan ng RCEP.

Aabutin ka ng humigit-kumulang 15-20 minuto upang makumpleto ang survey. Bilang insentibo para
sa paglahok, 30 na respondente ang bibigyan ng P100.00 bawat isa, 15 ang bibigyan ng P200.00
bawat isa, 4 ang bibigyan ng P500.00 bawat isa, at ang 1 ay bibigyan ng P2,000 (sa pamamagitan ng
GCash). Makikipag-ugnay kami sa iyo para sa link ng zoom ng virtual raffle sa 12 Oktubre 2021
(Huwebes) kaya't mangyaring sagutin ang talatanungan na ito bago matapos.

50
 Maraming salamat at nais namin ang iyong kasaganaan sa negosyo.

* Required
Skip to question 1Skip to question 1

During this survey, we will ask you to provide some personal data (optional) which may
directly or indirectly identify you as an individual or your business. Rest assured that
the information you will be providing will be kept strictly confidential and anonymous
and will only be used for this research.

With this, we would like you to express your consent for the authors, Ms. Jill Bacasmas,
Ms. Jean Clarisse Carlos, and Mr. Jovito Katigbak, to collect, record, organize, update or
modify, retrieve, consult, use, consolidate, block, erase or destruct the data you would
be providing.

We also like to inform you that you have the right to be informed, object to processing,
access and rectify, suspend or withdraw your data, and be indemnified in case of
damages pursuant to the provisions of the Republic Act No. 10173 of the Philippines,
Data Privacy Act of 2012 and its corresponding Implementing Rules and Regulations.

By signing this form, you confirm your voluntary participation in this research and give
the authors the explicit consent to collect and process your data, and personal and
business information. And that you understand that you can withdraw from this
research at any time:

Confidentiality ---------------------------------------------------------------
and Use of Sa survey na ito, hihilingin namin sa iyo na magbigay ng ilang personal na data (opsyonal)
Data na maaaring direkta o hindi direktang kilalanin ka bilang isang indibidwal o ang iyong
negosyo. Makatiyak ka na ang impormasyong ibibigay mo ay mapanatiling confidential
at gagamitin lamang para sa pananaliksik na ito.

Sa pamamagitan nito, nais naming kunin ang iyong pahintulot para sa mga mananaliksik
na sina Ms. Jill Bacasmas, Ms. Jean Clarisse Carlos, at Mr. Jovito Katigbak, upang
mangolekta, magtala, magayos, mag-update o magbago, kunin, kumunsulta, gamitin,
pagsamahin , harangan, burahin o sirain ang data na ibibigay mo.

Nais din naming ipagbigay-alam sa iyo na may karapatan kang ipagbigay-alam, tumutol
sa pagproseso, ma-access at maitama, suspindihin o bawiin ang iyong data, at mabigyan
ng bayad sa kaso ng mga pinsala na alinsunod sa mga probisyon ng Batas Republika Blg.
10173 ng Pilipinas sa Pagkapribado ng Data ng 2012 at ang mga kaukulang
Pagpapatupad ng Mga Batas at Regulasyon.

Sa pamamagitan ng pag-sign sa form na ito, kinukumpirma mo ang iyong kusang

paglahok sa pananaliksik na ito at binibigyan ang mga mananaliksik ng tahasang
pahintulot na kolektahin at iproseso ang iyong data, at personal at impormasyon ng
negosyo at naiintindihan mo na maaari kang umalis mula sa pananaliksik na ito sa
anumang oras.

51
1. Name: Last, First, Middle Initial *

Business and Owner and/or Manager Profile

2. Business name (Pangalan ng negosyo):

3. Name of business owner/manager (Pangalan ng nagmamay-ari o nagpapatakbo ng

negosyo):

4. Sex (Kasarian) Please proceed with the survey only if your response is "Female"
(Magpatuloy lamang sa survey kung Babae ang iyong sagot).

* Mark only one oval.

Female (Babae)

Male (Lalaki)

5. What is your role in the business? Select the most applicable. (Ano ang papel mo sa
negosyo? Piliin ang pinakaangkop). * Mark only one oval.

I own or co-own the business. (Ako ang nagmamay-ari o kasamang nagmamay-ari ng

negosyo.)

I make financial decisions for the business. (Gumagawa ako ng mga desisyong pinansyal
para sa negosyo.)

I make operational decisions for the business. (Gumagawa ako ng mga desisyon sa
pagpapatakbo ng negosyo.)

None of the above (Wala sa nabanggit)

52
6. Age (Edad) *

7. Educational attainment (Natapos na pag-aaral) *

Mark only one oval.

Primary (Paaralang Elementarya)

Secondary (Paaralang Sekundarya)

Vocational (Bokasyonal na Edukasyon at Pagsasanay)

Tertiary (Kolehiyo)

Post-Baccalaureate Degree/s (Abogasya, Masteral, Doktoral)

8. Contact details (Optional)

9. Date of business establishment (Petsa ng pagkakatatag ng negosyo) *

Example: January 7, 2019

53
10. Do you use e-commerce for your business? (Ikaw ba ay gumagamit ng e-commerce
para sa iyong negosyo?) * Mark only one oval.

Yes, I purchase goods/services for my business via the internet. (Oo, bumibili ako ng mga
produkto / serbisyo para sa aking negosyo gamit ang internet.)

Yes, I receive orders for goods/services for my business via the internet. (Oo, tumatanggap
ako ng mga order ng produkto / serbisyo para sa aking negosyo gamit ang internet.)

No, none of the above. (Hindi, wala sa mga nabanggit.)

11. Which of the following electronic systems or e-commerce platforms do you use (Anong
online o e-commerce platform ang iyong ginagamit)? Select all that apply (Piliin ang
lahat ng angkop). *

12. Estimated business asset worth (Tinantyang halaga ng kabuuang negosyo) *

Mark only one oval.

54
 less than P5,000

P6,000 - P20,000

P21,000 - P50,000

P51,000 - P100,000

P100,001 - P500,000

P500,001 - P1,000,000

P1,000,001 - P3,000,000

P3,000,001 - P10,000,000

P10,000,001 and up

Other:

13. Average or estimated monthly (net) income (Pangkaraniwang kita kada buwan) *

14. City/Municipality in Metro Manila where your e-commerce business is based (Lungsod
sa
Metro Manila kung saan nakabase ang iyong e-commerce business) *

Mark only one oval.

55
 Caloocan

Las Piñas

Makati

Malabon

Mandaluyong

Manila

Marikina

Muntinlupa

Navotas

Parañaque

Pasay

Pasig

Quezon City

San Juan

Taguig

Valenzuela

Pateros

15. Do you have a physical store (Mayroon ka bang pisikal na tindahan)? If you used to
have a physical store but already closed, kindly choose Other and indicate the date of
closure and reason (Kung ikaw ay nagkaroon ngunit nagsara na, piliin ang Other at ilista
ang petsa at dahilan ng pagkakasara). * Mark only one oval.

Yes

No

Other:

16. If answer to previous question is Yes and Other, please indicate location
(City/Municipality and Province) (Kung mayroon kang pisikal na tindahan, ilista ang
lokasyon nito).

56
17. If no, do you aspire to have a physical store (Kung ikaw ay walang piskal na tindahan,
nais mo bang magkaroon nito)? * Mark only one oval.

Yes

No

18. With whom do you usually transact business? (Kanino kayo madalas
nakikipagnegosyo?) *

19. Products/Services (Produkto o serbisyong ibinebenta) (example: food, clothing, travel

agency, jewelry, salon, and etc.) *

20. Is your business Department of Trade and Industry (DTI)-certified (Mayroon bang DTI
certification ang iyong negosyo)? * Mark only one oval.

Yes

No

I don't know

Currently processing application

Other:

21. Is your business registered at the Securities and Exchange Commission (SEC)
(Nakarehistro ba ang iyong negosyo sa

SEC)? * Mark only one oval.

57
 Yes

No

I don't know

Currently processing

application Other:

Motivation for e-Commerce Adoption

Dahilan sa paggamit ng e-commerce

22. What were your motivations for conducting business through e-commerce platforms
(Ano ang iyong dahilan sa paggamit ng e-commerce platforms para sa iyonh negosyo)?
Select all that apply (Piliin ang lahat ng angkop) *

Check all that apply.

The pandemic
For higher income/profit
Growing popularity of the e-commerce platforms
Reduce operational costs (like paying rent and other bills)
Reduce marketing costs (like banners, billboards, tarpaulin, etc)
Human resource (like improving the state of the employees, employees reduction/retention,
etc.)
Wider/extended costumer reach
Improve the speed of processing of orders and transactions
Easier communication with the clients
Improve the business image to wider
consumer Other:

23. What is your biggest challenge when it comes to e-commerce adoption (Ano ang
pangunahing hamon sa paggamit ng e-commerce platforms)? *

58
Human Resource
Yamang tao

24. How many staff/employees do you have (Gaano karami ang bilang ng iyong
empleyado)?
*

Mark only one oval.

None

1-5

6-10

11-20

21-30

31-40

41-50

51-100

101-200

200 and up

Other:

25. Do you have enough personnel/workers to operate your business (Mayroon ka bang
sapat na empleyado upang patakabuhin ng maayos ang iyong negosyo)? * Mark only
one oval.

59
 Yes

No

Not familiar

Other:

26. What is your biggest challenge when it comes to human resources (Ano ang
pangunahing hamon ukol sa yamang-tao o human resources)? *

Mode of Payments
Paraan ng pagbabayad

27. What mode of payment do you frequently use (Anong paraan ng pagbabayad ang
madalas mong gamitin)? If you answered Other, kindly specify what mode of payment
(Kung ang iyong sagot Other, ilista ang paraan ng pagbabayad) * Mark only one oval.

Cash on Delivery

Electronic Payment (e.g, GCash, Bank transfer, PayMaya,

etc.) Other:

28. If you answered Electronic Payment, kindly list the top three (3) most used application
(Kung ang iyong sagot ay Electronic Payment, ilista ang tatlong pangunahing
application na ginagamit)

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Access to Financial Resources
Kaalaman at kakayahanan sa pagkuha ng tulong pinansyal
29. In the duration of your e-commerce adoption, have you ever been in need of financial
aid? If yes, where do you consider getting the assistance from? (Kinailangan o
kinakailangan mo ba ng tulong pampinansyal sa iyong negosyo online? Kung oo, kanino
mo naisip humingi ng tulong) *

30. Where do you get the financial aid succesfully? (Kanino ka nakahiram ng pera
pangtulong sa negosyo?) *

31. Do you think the government gives enough information for MSMEs on financial aids,
loans, e-banking and e-payment assistance? (Sa iyong pananaw, ang gobyerno ba ay

61
 nagbibigay sapat kaalaman para sa maliliit na negosyo kung saan makakuha ng tulong
pampinansyal, loans, online banking at online payment?) * Mark only one oval.

Yes

No

Not familiar

32. What is your biggest challenge when it comes to finance (Ano ang pangunahing
pampinansynal na hamon ng iyong negosyo)? *

Information and Communications Technology (ICT)

Kaalaman at kakayahan sa paggamit ng teknolohiya

33. Other than the e-commerce platforms, what other applications do you use in your
business transactions? (Bukod sa e-commerce platforms, anong application ang iyong
ginagamit para sa transaksyong pang-negosyo) *

Check all that apply.

Videoconferencing (zoom, skype, etc)

Financial Technology (mobile/online banking, gcash, mobile loans, money transfer, etc.)
Messaging (facebook messenger, instagram, viber, etc)
Couriers (lalamove, grab delivery, toktok, etc)
Other Social Media Accounts ( twitter, facebook, instagram, tiktok,
etc) Other:

34. Do you have a stable internet connection for online business transactions (Mayroon ka
bang stable na internet connection para sa mga transaksyong pang-negosyo)? * Mark
only one oval.

Yes

No

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35. What kind of internet connection do you have (Anong uri ng internet connection ang
iyong gamit)? *

36. What type of device/s do you use in your online transactions (Anong uri ng device ang
iyong gamit sa mga transaksyong pang-negosyo)? *

37. How many devices do you use for your business (Gaano karaming device ang iyong
gamit para sa negsoyo)? * Mark only one oval.

More than 5

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38. Is/Are your staff also familiar with the use of ICT (e.g., mobile devices, e-mail, internet)
(Pamilyar ba ang iyong mga empleyado sa paggamit ng IC tulad ng mobile devices,
email, at internet)? * Mark only one oval.

Yes

No

Needs training

N/A

39. Do you have any online security issues? If yes, what are these? (Meron ka bang
naranasan o problemang nakaharap sa internet?) *

40. Do you feel safe in using online platforms for your business transactions? (Ikaw ba ay

panatag na gumamit ng online applications para sa iyong negosyo?) Mark only one oval.

1 2 3 4 5

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41. What is your biggest challenge when it comes to ICT (Ano ang pangunahing hamon sa
paggamit ng ICT)? *

Online Business Marketing

42. How do you advertise your products online (Paano mo inaanunsiyo ang iyong mga
produkto sa internet)? *

43. What is the most important lesson in online advertising (Ano ang pinakaimportanteng
natutunan mo tungkol sa pag-aadvertise ng produkto sa internet)? *

Gender-related Issues on E-commerce Platforms

Mga isyung may kaugnayan sa kasarian ukol sa paggamit ng e-commerce platforms

44. Do you experience gender-based discrimination in e-commerce platform/s (Ikaw ba ay

nakakaranas ng diskriminasyon batay sa iyong kasarian sa paggamit ng e-commerce
platforms)? *

Mark only one oval.

Yes

No

45. If yes, please specify (Kung Yes ang sagot, tukuyin ang iyong karanasan)

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46. Do you experience gender-based harassment in e-commerce platform/s (Ikaw ba ay
nakakaranas ng sexual harassment sa paggamit ng e-commerce platforms)? * Mark
only one oval.

Yes

No

47. If yes, please specify (Kung Yes ang sagot, tukuyin ang karanasan)

48. Do you experience gender-based cyberbullying in e-commerce platform/s (Ikaw ba ay

nakakaranas ng pang-aapi sa paggamit ng e-commerce platform batay sa iyong
kasarian)? *

Mark only one oval.

Yes

No

49. If yes, please specify (Kung Yes ang sagot, tukuyin ang karanasan)

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50. What is your biggest gain when it comes to e-commerce adoption (Ano ang
pinakamalaking pakinabang ng paggamit ng e-commerce)? Select all that apply (Piliin
ang lahat ng angkop) *

Check all that apply.

More profit
Growing business/product popularity
Reduced operational costs (like not paying rent and other bills)
Reduced marketing costs (like banners, billboards, tarpaulin, etc)
Human resource (like improving the state of the employees safety, employees
reduction/retention, etc.)
Wider/extended costumer reach
Improve the speed of processing of orders and transactions
Easier communication with the clients
Improve the business image to wider
consumer Other:

Sales Growth
Paglago ng benta

51. How satisfied or dissatisfied are you with sales growth because of e-commerce

adoption (Gaano ka katonento sa paglago ng benta dahil sa paggamit ng e-

commerce)? * Mark only one oval.

1 2 3 4 5

52. How satisfied or dissatisfied are you with the average size of your transactions because
of e-commerce adoption (Gaano ka kakontento sa karaniwang laki ng mga transakyon
dahil sa paggamit ng e-commerce)? * Mark only one oval.

1 2 3 4 5

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53. How satisfied or dissatisfied are you with the frequency of transactions per customer
because of e-commerce adoption (Gaano ka kakontento sa dalas ng transaksyon kada
kostumer dahil sa paggamit ng e-commerce)? *

Mark only one oval.

1 2 3 4 5

54. How satisfied or dissatisfied are you with the current prices of your products because
of e-commerce adoption (Gaano ka kakontento sa presyo ng iyong mga produkto dahil
sa paggamit ng e-commerce)? *

Mark only one oval.

1 2 3 4 5

Customer Base

55. How satisfied or dissatisfied are you with the growth of your customer base because
of e-commerce adoption (Gaano ka kakontento sa paglago ng iyong mga kustomer
dahil sa paggamit ng e-commerce)? *

Mark only one oval.

1 2 3 4 5

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56. How satisfied or dissatisfied are you with the expansion of age group of your customer
base because of e-commerce adoption (Gaano ka kakontento sa paglawak ng
karaniwang edad ng iyong mga kostumer dahil sa paggamit ng e-commerce)? * Mark
only one oval.

1 2 3 4 5

57. How satisfied or dissatisfied are you with the expansion of gender types of your
customer base because of e-commerce adoption (Gaano ka kakontento sa paglawak
ng uri ng kasarian ng iyong mga kostumer dahil sa paggamit ng e-commerce)? * Mark
only one oval.

1 2 3 4 5

58. How satisfied or dissatisfied are you with the expansion of the income group of your
customer base because of e-commerce adoption (Gaano ka kakontento sa paglawak
ng saklaw na pangkaraniwang kita ng iyong mga kostumer dahil sa paggamit ng
ecommerce)? *

Mark only one oval.

1 2 3 4 5

59. How satisfied or dissatisfied are you with the expansion of the geographical reach of
your business because of e-commerce adoption (Gaano ka kakontento sa paglawak ng

69
 mga sakop na lugar ng iyong negosyo dahil sa paggamit ng e-commerce)? * Mark only
one oval.

1 2 3 4 5

Customer Satisfaction

60. How satisfied or dissatisfied are you with customer satisfaction because of e-
commerce adoption (Gaano ka kakontento sa customer satisfaction dahil sa paggamit
ng ecommerce)? *

Mark only one oval.

1 2 3 4 5

61. How satisfied or dissatisfied are you with the volume of good review/s received
because of e-commerce adoption (Gaano ka kakontento sa bilang ng mga magandang
reviews sa iyong negosyo dahil sa paggamit ng e-commerce)? * Mark only one oval.

1 2 3 4 5

62. How satisfied or dissatisfied are you with the volume of referral/s received because of
ecommerce adoption (Gaano ka kakontento sa bilang ng mga referrals sa iyong
negosyo dahil sa paggamit ng e-commerce)? * Mark only one oval.

1 2 3 4 5

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63. How satisfied or dissatisfied are you with the volume of bad review/s received because
of e-commerce adoption (Gaano ka kakontento sa bilang ng mga di kanais-nais na
reviews sa iyong negosyo dahil sa paggamit ng e-commerce)? * Mark only one oval.

1 2 3 4 5

64. How satisfied or dissatisfied are you with the volume of complaint/s received because
of e-commerce adoption (Gaano ka kakontento sa bilang ng mga reklamo sa iyong
negosyo dahil sa paggamit ng e-commerce)? * Mark only one oval.

1 2 3 4 5

Process Enhancement
Pagpapaunlad ng mga proseso sa negosyo

65. How satisfied or dissatisfied are you with the work processes and operations because
of e-commerce adoption (Gaano ka kakontento sa mga gawaing trabaho at operasyon
ng iyong negosyo dahil sa paggamit ng e-commerce)? * Mark only one oval.

1 2 3 4 5

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66. How satisfied or dissatisfied are you with the size of your human resource/personnel
because of e-commerce adoption (Gaano ka kakontento sa laki ng iyong tauhan dahil
sa paggamit ng e-commerce)? *

Mark only one oval.

1 2 3 4 5

67. How satisfied or dissatisfied are you with your turnaround time because of e-
commerce adoption (Gaano ka kakontento sa bilis ng pagkompleto ng mga gawaing-
trabaho at ng pagtugon sa mga request dahil sa paggamit ng e-commerce)? * Mark only
one oval.

1 2 3 4 5

68. How satisfied or dissatisfied are you with the delivery period of product/s from your
warehouse to the customer’s address because of e-commerce adoption (Gaano ka
kakontento sa bilis ng pagpapadala ng produkto mula sa iyong warehouse patungo sa
address ng kostumer dahil sa paggamit ng e-commerce)? * Mark only one oval.

1 2 3 4 5

Extremely Dissatisfied Extremely Satisfied

The Regional Comprehensive Economic Partnership (RCEP), the world's largest free
trade agreement, was signed by 14 countries in the Asia-Pacific (ASEAN countries,
and Australia, China, Japan, Korea and New Zealand) in the hopes to help the region's
economy amid the coronavirus crisis.

Possibility ofTwo of the objectives of RCEP is to pave the way for the internationalization and deeperparticipation of
micro, small, and medium enterprises (MSMEs) into Global Value Chains,

Business and support the adoption of e-Commerce.

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 Expansion For example, Philippine businesses can source raw materials from China, and export the

Outside the finished product to Japan, South Korea, Australia or New Zealand with very low

Philippines transaction costs. There would also be only one set of simplified rules in trade will reduceadministrative

time transactions. through RCEP

Furthermore, RCEP aims to help MSMEs overcome obstacles in using electronic
commerce by encouraging the development of practices that enhance consumer
confidence, and targeting research, training, capacity building and technical
assistance for the business owners, managers, and staff, among others.

69. Prior to this survey, were you aware of RCEP (Pamilyar ka ba sa RCEP bago mabasa ang
survey na ito)? *

Check all that apply.

Yes
No

70. Do you have prior cross-border transaction/s (Ikaw ba ay naging kalahok sa mga
transaksyong pang-labas? *

Mark only one oval.

Yes

No

71. If yes, kindly select what kind (Kung Yes, piliin ang uri ng transaksyon) Select all that
apply (Piliin ang lahat ng angkop)

73
72. If yes, what is your biggest challenge in engaging in cross-border transactions (Kung Yes
ang sagot, ano ang pangunahing hamon sa pakikilahok sa mga transaksyong umaabot
sa labas ng Pilipinas)?

73. Prior to this survey, are you aware of the objectives of RCEP with regard to micro, small,
and medium-sized enterprises (MSMEs) (Pamiyar ka ba sa mga adhikain ng RCEP
patungkol sa mga MSMEs bago basahin ang survey na ito)? * Mark only one oval.

Yes

No

74. In your view, what would be the most significant benefit of RCEP for MSMSEs (Batay
sa iyong pananaw, ano ang pinakaimportanteng benepisyo ng RCEP para sa mga
MSMEs)? Select all that apply (Piliin ang lahat ng angkop)

Check all that apply.

The government will provide more information on trade and investment-related laws and
regulations for export-oriented MSMEs.
The government will enhance access to business-related information that may be useful to
export-oriented MSMEs.
More transparent trade rules and regulations for cross-border transactions.
The government will promote and facilitate international partnerships among businesses.
The government will promote the use of e-commerce among MSMEs.
Enhanced entrepreneurial programs for MSMEs.
The government will encourage innovation and use of technology.
The government will promote awareness, understanding, and effective use of intellectual
property systems.
Good regulatory practices and policies towards the development of MSMEs.

74
75. Prior to this survey, are you aware of the objectives of RCEP with regard to E-Commerce
(Pamilyar ka ba sa mga adhikain ng RCEP patungkol sa e-commerce bago basahin ang
survey na ito)? *

Mark only one oval.

Yes

No

76. In your view, what would be the most significant advantage in engaging in e-commerce
cross-border trade under RCEP (Batay sa iyong pananaw, ano ang pinakaimportanteng
kapakinabangan ng paggamit ng e-commerce upang makilahok sa transaksyong
panglabas, sa pamamagitan ng RCEP)? Select all that apply (Piliin ang lahat ng angkop)

Check all that apply.

Electronic business transaction documents will be accepted in online cross-border

transactions.
Electronic signatures be accepted in online cross-border transactions.
Customers of online businesses will be protected from fraudulent or misleading practices.
Online personal information of users of e-commerce will be protected.
E-commerce users will be able to control receipt of unsolicited electronic messages.
Unnecessary regulatory burden on electronic transactions of e-commerce users will be
reduced.
No customs duties will be imposed on electronic transmissions.
Enhanced cyber security
Cross-border transfer of information by electronic means for business purposes will be
facilitated

77. Are you willing/interested to engage in cross-border trade through RCEP if

implemented in 2022 (Interesado ka bang makilahok sa transaksyong panglabas sa
pamamagitan ng RCEP sa taong 2022)? * Mark only one oval.

Yes

No

Other:

75
78. Kindly specify why you answered Yes or No (Tukuyin ang dahilan ng sagot sa naunang
tanong) *

79. If YES, which country/ies is/are your preferred export destination/s (Kung ikaw ay
interesado, anong (mga) bansa ang pangunahing patutunguhan ng iyong mga
produkto)? Select all that apply (Piliin ang lahat ng angkop) *

Check all that apply.

ASEAN (Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore,

Thailand,
Vietnam)
Australia
China
Japan
New Zealand
South Korea
None of the above

80. Please specify why (Tukuying ang dahilan ng sagot sa naunang tanong) *

81. What other countries you wish to transact with which are not indicated above (Bukod
sa mga nasa listahan, anong mga bansa ang nais mong patunguhan ng iyong mga
produkto)? *

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Awareness of Government Policies
Kabatiran sa mga proyekto ng gobyerno

82. Do you think that the government communicates information about its programs to
the business sector (Sa iyong opinyon, ipinapabatid ba ng gobyerno ang mga
impormasyon ukol sa mga proyekto nito sa pribadong sektor)? * Mark only one oval.

Yes

No

Not familiar

83. Do you know any government programs to help businesses in their e-commerce
adoption efforts? (May alam ka bang mga programa ng gobyerno na nakakatulong sa
paggamit ng e-commerce)? * Mark only one oval.

Yes

No

84. If yes, kindly specify (Kung Yes ang sagot, tukuying ang (mga) programang alam)

85. Do you know government programs that support the expansion of export-oriented
women-owned and/or managed MSMEs (May alam ka bang programa ng gobyerno na
sumusuporta sa mga WoMSMEs na nakatutok sa pagbebenta sa ibang bansa)? * Mark
only one oval.

Yes

No

86. If yes, kindly specify (Kung Yes ang sagot, tukuyin ang programang alam)

77
87. What is your biggest challenge when it comes to availing of government services for
your online business (Ano ang pangunahing hamon tungkol sa paggamit ng
pampublikong service para sa iyong online business)? *

88. If Yes, kindly specify (Kung Yes ang sagot, tukuyin ang programang alam)

89. Are you aware of steps that the government has taken to simplify and automate
customs procedures (May alam ka bang mga hakbang ng gobyerno upang padaliin ang
mga customs procedures)?

Mark only one oval.

Yes

No

Not familiar

90. If yes, kindly specify (Kung Yes ang sagot, tukuyin ang mga alam na hakbang ng
gobyerno)

91. Are you aware of government programs targeted towards women-owned and/or
managed businesses to help them access the global digital economy (May alam ka bang
programa ng gobyerno na nakatuon sa pagtulong sa mga WoMSMEs sa kanilang
paglahok sa digital na ekonomiyang pangdaigdig)? * Mark only one oval.

78
 Yes

No

Not familiar

92. If yes, kindly specify (Kung Yes ang sagot, tukuyin ang programang alam)

93. In your opinion, what type of program or support should the government make
available to women-owned and/or managed MSMEs seeking to engage in cross-border
ecommerce trade (Sa iyong opinyon, anong uri ng programa o suporta ang dapat na
ibigay ng gobyerno sa mga WoMSMEs na may adhikaing makilahok sa transaksyong
panglabas sa pamamagitan ng e-commerce)?

94. Have you ever asked the government for help with regard to your business (Ikaw ba ay
humingi na ng tulog sa gobyerno para sa iyong negosyo)? * Mark only one oval.

Yes

No

79
95. Have you ever received any help from the government with regard to your business
(Ikaw ba ay nakatanggap na ng tulong mula sa gobyerno para sa iyong negosyo?) *
Mark only one oval.

Yes

No

96. Do you know any government programs targeting WoMSMEs (May alam ka bang mga
programa ng gobyerno para sa mga WoMSMEs)? * Mark only one oval.

Yes

No

97. What assistance do you wish to ask the government for your business? (Ano ang tulong
na nais mo hingin sa goyerno para sa iyong negosyo?) *

We are grateful that you have taken the time to respond to this survey. Your participation
in this research will allow us to contribute to the government's efforts to support
WoMSMEs' adoption of e-commerce and their aspirations for business expansion abroad.

It is our hope that conducting timely and relevant research such as this may lead to a
stronger evidence-based policymaking culture in the country, especially during an
economic recovery.

For query/ies and/or clarification/s, you may reach us at [email protected] or

Thank you [email protected].

for Nagpapasalamat kami sa oras niyo sa pagtugon sa survey na ito. Ang iyong pakikilahok sa participating!
pananaliksik na ito ay magpapahintulot sa amin na magbigay ng kontribusyon sa pagsisikap ng gobyerno na
suportahan ang pag-gamit ng e-commerce ng WoMSMEs at ang kanilang mga hangarin para sa pagpapalawak ng
negosyo sa ibang bansa.

Hangad naming makatulong sa pagpapalawig ng kulturang evidence-based policymaking

sa pamamagitan ng pagsasagawa ng natataong at mahalagang pananaliksik.

Kung mayroong tanong o klaripikasyon, mag-email lamang sa [email protected] o

[email protected].

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98. Please indicate your GCash number if you would like to participate in the raffle and get
a chance to win up to P2,000. (Ilagay ang iyong GCash number kung gusto niyong sumali
sa raffle at manalo ng hanggang P2,000)

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