Advanced International Journal for Research

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The Challenges Encountered by Micro, Small and Medium Enterprises (MSMEs) In Nabua Camarines Sur

Author(s) Prof. Maria Antonette Compuesto Bergado
Country Philippines
Abstract Business organizations operate in dynamic environments shaped by internal capabilities and external forces, requiring effective strategies to create value, respond to customer needs, and contribute to economic and social development. In the Philippines, Micro, Small, and Medium Enterprises (MSMEs) play a vital role in employment generation, innovation, and local economic growth, as recognized under Republic Act No. 9501 or the Magna Carta for MSMEs. Despite their importance, MSMEs continue to face constraints related to limited resources, market access, technology adoption, and competitive pressures. This study examined the business characteristics, operational strategies, and challenges of MSMEs in the municipality of Nabua, Camarines Sur, with the objective of generating inputs for improving operations and developing a practical guidebook for MSME owners.
Using a descriptive survey research design, data were gathered from registered MSMEs in Nabua through questionnaires and interviews with business owners or officers-in-charge. Purposive sampling was employed to ensure that respondents were directly involved in day-to-day operations. The study covered MSMEs across service, merchandising, and manufacturing sectors. Secondary data were obtained from official municipal records and relevant literature. Data were analyzed using descriptive statistics and chi-square tests to determine relationships between business characteristics and operational strategies.
Findings revealed that most MSMEs in Nabua are sole proprietorships, primarily engaged in merchandising, farm supply, and construction supply businesses. A large proportion have been operating for nine to ten years, employ six to ten workers, and require initial capital investments of ₱50,000 and above. In terms of operational strategies, marketing practices were the most strongly implemented, particularly retail selling, local market focus, competitive pricing, and the extensive use of social media for promotion. Product and competition strategies were moderately implemented, with emphasis on durability, trend alignment, and uniqueness. Statistical analysis showed significant relationships between business ownership, industry type, length of operation, and capital investment with operational strategies especially marketing while the number of employees showed no significant relationship.
MSMEs in Nabua face notable challenges, particularly the bargaining power of suppliers, rising raw material costs, rapid technological and market changes, and resource limitations in marketing. Based on these findings, the study concludes that while MSMEs exhibit adaptive operational strategies, there is a strong need for capacity-building interventions. The development of an operations strategy guidebook and the implementation of targeted training programs, supported by local government units and partner organizations, are recommended to enhance competitiveness, sustainability, and long-term growth of MSMEs in Nabua, Camarines Sur.
Keywords Challenges encountered, Micro, Small and Medium Enterprise (MSMEs)
Field Business Administration
Published In Volume 7, Issue 1, January-February 2026
Published On 2026-01-24
DOI https://doi.org/10.63363/aijfr.2026.v07i01.3000
Short DOI https://doi.org/hbmz2x
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