For many Filipino business owners, 2024 and 2025 have been years of unprecedented strain. Rising costs, thin margins, and operational hurdles have made survival a daily challenge, particularly for small and medium enterprises (MSMEs).
“Sobrang hirap ng 2025, to be honest. Nahihirapan ako sa suppliers, tapos hirap din paikot ng pera. Everyone’s struggling. Sobrang kakaiba nitong taon na to,” said Tiffany, a retail business owner, reflecting the hardships faced by MSMEs across the country.
Businesses Under Pressure
The challenges extended beyond small businesses. The manufacturing sector contracted, with S&P Global reporting a Philippine manufacturing PMI of 47.4 in November 2025, signaling declines in output, new orders, exports, and employment. Typhoons Kalmaegi and Fung-Wong further disrupted operations, while inefficiencies in infrastructure spending limited the reach of government projects.
At the same time, broader economic indicators painted a worrying picture. Unemployment surged, with the PSA reporting 2.54 million Filipinos jobless in October 2025, up from 1.96 million in September, raising the rate to 5 percent. The peso weakened against the dollar, further raising costs for imports and putting additional pressure on businesses reliant on foreign inputs. Foreign direct investment slowed, reflecting cautious investor sentiment amid concerns over systemic inefficiencies and corruption.
Corruption Wipes Out Billions
Even large companies struggled to secure government contracts. President Ferdinand Marcos Jr. revealed that only 15 contractors received 20 percent of nearly 10,000 flood control projects worth P545 billion since 2022, showing how opportunities were concentrated among a few firms. Now that these projects are under investigation, the business sector faces added uncertainty and strain, compounding the challenges companies of all sizes are already grappling with.
Makati Business Club chairman Edgar Chua summarized the frustration: “Hindi patas ang laro (The game is rigged).” He added, “Ang concern kasi ng investing public, ‘Teka muna ‘yung kumpanya ko na nag-invest ako parang lumiit ‘yung merkado sa kumpanya ko.’” Rampant favoritism and corruption wiped out P1.7 trillion in market value of publicly listed companies in just three weeks, despite rising corporate earnings.
Chua emphasized the need for systemic reforms: “If MSMEs are expected to uphold public good, then public policy should also uphold MSMEs,” highlighting the importance of stronger laws, anti-corruption measures, and support for businesses of all sizes.
A System in Turmoil
From struggling MSMEs to large companies losing market opportunities, the past two years have exposed vulnerabilities across the Philippine business landscape. Rising operational challenges, concentrated government contracts, systemic inefficiencies, weak investor confidence, and currency pressures collectively signal a business environment under severe stress.
Under the Marcos administration, these pressures have left entrepreneurs navigating a landscape where resilience is as critical as reform, and where opportunities often hinge on connections rather than competence.
