![[ANALYSIS] How to support microenterprises, informal sector hit by coronavirus](https://i.headtopics.com/images/2020/4/28/rapplerdotcom/analysis-how-to-support-microenterprises-informal-sector-hit-by-coronavirus-1255059439801053186.webp)
'We may already be seeing the positive effects of the quarantine in terms of containing COVID-19. However, its negative economic impact is undeniable.' iSpeak COVID19PH
Since the enhanced community quarantine was imposed in Metro Manila on March 15, Social Enterprise Development Partnerships, Incorporated has conducted weekly rapid community assessment research with its members. SEDPI is a group of social enterprises that provides capacity building and social investments to development organizations and directly to microenterprises .
Majority of microenterprises reported that their livelihood weakened. Of these MEs, 59% and 31% reported significant and severe weakening of livelihoods, resepectively. Relief goods received were composed of rice, canned goods, and soap, enough to last only for 1 to 2 days. Most of the respondents expressed that the P5,000 cash assistance will not be enough to cover their daily needs in the next two months.The government needs to hasten release of cash assistance and relief goods to microenterprises and the informal sector. These will alleviate their burden and enable them to survive the quarantine.
Government should provide cash assistance to restart livelihoods, coursed through microfinance institutions to eliminate the dole-out mentality. The cash assistance should be given as 0% loans. MFIs are well positioned to provide this intervention since they would need to support the rebooting of the livelihoods of their client base.Repayment rates in MFIs are expected to hit as low as 20% given the magnitude of MEs negatively affected, which would lead to liquidity problems.
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