Challenges and Strategies of Small-Scale Enterprises: Basis for Improvement

Small-scale enterprises (SSEs) play a crucial role in economic growth by generating employment opportunities. They also serve as hubs for innovation, developing new products and services that enhance market competitiveness. Additionally, SSEs make a significant contribution to the gross domestic product (GDP) of developing nations, strengthening overall economic stability. This study investigated the strategic responses of small-scale enterprises (SSEs) in Bacolod City to challenges such as supply chain disruptions, customer demand fluctuations, business operations, and financial stability. Using a mixed-methods approach, the research integrated quantitative and qualitative methodologies to analyze data from 124 registered and active SSEs in the central business district of Bacolod City. It explored how business model type, workforce size, and business tenure influence strategic decision-making among small-scale enterprises. Findings revealed that there are significant differences in strategies based on manpower size when grouped according to supply chain disruptions and financial stability. Additionally, a significant difference in strategies based on business model type was observed when grouped according to customer demand fluctuations. Business tenure also showed a significant difference in strategies when grouped according to business operations. Qualitative findings highlighted key adaptive strategies, including technology investment, enhanced customer service, and stronger supplier relationships. The study concludes that small-scale enterprises adjust their strategies based on business models and workforce dynamics. It recommends increased technology adoption, proactive customer engagement, product diversification, and regular strategic reviews to strengthen business resilience.