As sustainability becomes a defining factor in consumer choices, small businesses have a growing opportunity to lead the shift toward a greener economy. According to the PwC 2024 Voice of the Consumer Survey, 85% of consumers feel the impact of climate change daily. They are also willing to pay nearly 10% more for sustainably sourced products.
However, embracing sustainability is easier said than done for Micro, Small and Medium Enterprises (MSMEs). Limited access to funding, knowledge, and green technology often makes the transition difficult. This is especially true when they compete against larger businesses with more resources.
The Department of Trade and Industry (DTI) recently signed a Memorandum of Understanding (MoU) with the Global Reporting Initiative (GRI). The MoU will help local MSMEs adopt and report on sustainability best practices. As a result, Filipino MSMEs will gain access to training on sustainability reporting, supply chain management, and green procurement. This equips them to meet regional expectations.
MSMEs make up the majority of firms in the ASEAN region. They contribute 85% to employment, nearly 45% to GDP, and 18% to national exports. As sustainability becomes central to regional growth strategies, MSMEs face increasing pressure to integrate sustainable practices into how they operate and grow.
A Regional Case from Indonesia
A regional case from Indonesia shows how targeted support can help MSMEs rise to the challenge. In Riau province, the Sentra Kreatif Lestari Siak (SKELAS) helps businesses thrive. It launched the Siak Sustainable Business Incubation Program (KUBISA), which supports 26 MSMEs. The program helps them develop creative business solutions that improve the local economy while preserving nature.
Success Stories from the SKELAS Program
Dapur Mempura and Pinaloka are clear examples of the incubation program’s success. The program offers business mentoring, access to markets, and product development. Both have grown into innovative and sustainable businesses.
Santi Lestari founded Dapur Mempura during the pandemic. The business revives the traditional Malay sponge cake bolu Komojo using healthier, local ingredients like rice bran and mocaf. For Santi, it is also a personal mission. “It is becoming increasingly difficult for mothers to meet the needs of children who require special attention to food, such as my son who suffers from ADHD. We want to bring back the nostalgic taste of bolu Komojo that we used to enjoy as children, but with a healthier alternative for Indonesian families.”
Beyond offering a healthier snack, Dapur Mempura revives local food heritage through demos for Penkabaru students. It also supports farmers in Bunga Raya Village by turning discarded rice bran into a valuable baking ingredient.
Meanwhile, Pinaloka, a women’s business group in Siak, turns the region’s crown pineapples into jams, syrups, and pastries. At the same time, it tackles peatland degradation, which often leads to devastating forest fires. “Empty peatlands are often overgrown with bushes that become fire hotspots due to their fibrous roots and thin leaves. To overcome this, we planted crown pineapples on the land to maintain soil moisture and intercropped them with other vegetation,” explained Wulan Suci Ningrum, a Pinaloka representative.
Their model directly supports 33 farmers across four villages. The goal was to involve 100 by the end of 2024. This approach blends agroforestry and livelihood generation. Philippine regions vulnerable to land degradation and food insecurity could adapt it.
Synergy between Business, Culture, and Environmental Conservation
The collaboration between Dapur Mempura and Pinaloka also shows how MSMEs can scale impact together. Inspired by a shared mission, they developed a new product: pineapple tarts, a staple snack across Southeast Asia. “This collaboration started with Pinaloka’s desire to present more diverse pineapple products. We started brainstorming interesting ideas until we came up with pineapple tart, and after some trial and error, we finally managed to combine the sweet taste of pineapple with the crunchy and savory skin,” said Santi. The tarts have already been showcased at a national event hosted by Bank Indonesia.
Cerli Febri of Skelas emphasized the power of these partnerships. “We always support MSMEs to continue to innovate products and further collaborate with the community to answer environmental challenges around them. By creating added value from local ingredients, we encourage them to create a business model that can involve the growth of other MSMEs.”
For the Philippines, stories like these are more than inspirational. They are instructional. With the right policy, mentorship, and training support, Filipino MSMEs can play a critical role in building a sustainable future. Programs like the DTI and GRI training on sustainability reporting and green procurement are key steps. They help local enterprises align with both regional goals and global market expectations.
From coastal barangays to upland farming towns, MSMEs have the potential to create value. That value comes not just from what they sell, but from how they grow, who they empower, and what they protect.
