The resilient family enterprise

A couple of months ago, there was a news article about a local family business that was struggling due to the coronavirus disease 2019 (Covid-19) pandemic. A popular snack brand, it was doing steadily well before the government instituted strict, expansive lockdowns in March to control the spread of the virus. With that came the shuttering of malls, a halt on public transportation, and a pause on most movement and economic activity. The family business immediately lost 70 percent of its revenue.

There was no question family businesses, many of which are small and medium enterprises, would be hard hit by this health crisis. A study by Asian Development Bank senior economist Shigehiro Shinozaki on micro, small and medium enterprises revealed that 70 percent of these businesses in the Philippines had to temporarily suspend their operations a month after the Covid-19 outbreak, and nearly 80 percent either had no cash and savings left or expected it to run out in a month. The study was done in May 2020.