The economic implications of outmigration to micro, small, and medium enterprises in Naga City
Keywords:
Economics, Outmigration, MSMEs, Financial Performance, Mixed-Methods, Naga City
Abstract
This research examined the economic implications of outmigration on micro, small, and medium enterprises (MSMEs) in Naga City, an issue that significantly affected local economies. It identified the challenges faced by MSMEs in the aspect of workforce, consumer demand, and supply chains linked to outmigration. The study then evaluated how these challenges influenced key financial metrics, including sales generation, expense control, and profitability. Through data collected from surveys and interviews with 60 MSME owners and managers across three barangays, this research offered insights into the operational and financial strain caused by outmigration. A mixed-method approach, with a descriptive correlational design, was applied to analyze the relationships between these challenges and MSME financial performance. Findings revealed that outmigration diminished labor availability, lowered demand for local products, and disrupted supply chains, thereby affecting profitability and competitiveness. In response, the proposed ABANTE Program, aimed at promoting digital adaptation, workforce upskilling, and e-commerce expansion, was recommended to enhance MSME resilience. By addressing outmigration’s economic implications, the study contributed new knowledge on outmigration’s impact on MSMEs and suggested actionable support for sustainable development.
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References
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Nguyen et al. (2019). International Migration: Major Challenges and Analysis of Human Resource Management for Supply Chains. International Journal of Supply Chain Management, 8(6):565-577.
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Sriram, R.R. (2021). Analyzing the Brain Drain Effect in Developing Countries: A Higher Education Perspective. retrieved from. https://osf.io/preprints/psyarxiv/3tg6a
Suguna, M., et al. (2022). Factors affecting repurposing operations in Micro Small and Medium Enterprises during Covid-19 emergency. Operations Management Research, 15(3-4), 1181-1197. Retrieved from: https://doi.org/10.1007/s12063-022-00253-z
Tadeo J., Mendoza X., Tabor, F, Dumagat S., & Pamintuan R., (2023). Understanding economic contributions of MSMEs among Philippine Regions. Journal of Management, Economics, and Industrial Organization, 7(3), 1-15. Retrieved from: https://jomeino.com/sites/default/files/paper_attachment/Understanding%20economic%20contributions%2 0of%20MSMEs%20among%20Philippine%20Regions.pdf
Tao, H., Sun, X., Liu, X., Tian, J., & Zhang, D. (2022). The impact of consumer purchase behavior changes on the business model design of consumer services companies over the course of COVID-19. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.818845
Team, CFI. (2024, August 12). Demographics. Corporate Finance Institute. Retrieved from: https://corporatefinanceinstitute.com/resources/economics/demographics/#:~:text=Demographics%20also%20affect%20other%20business,customers%2C%20sales%20will%20likely%20increase.
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,Investing%20in%20Employee%20Training%20and%20Development,EQ%20side%20of%20their%20emp loyees
Weyers, R. (2024, April 29). The skilled labor shortage: causes, costs & COVID-19. Conger Industries Inc. - Wisconsin’s Material Handling Experts. https://www.conger.com/skilled-labor-shortage/
Behera, M., Mishra, S., & Behera, A. R. (2021). The COVID-19-Led Reverse Migration on labour Supply in Rural Economy: Challenges, Opportunities and Road Ahead in Odisha. The Indian Economic Journal, 69(3), 392– 409 https://doi.org/10.1177/00194662211013216
Belyakov S. et al. (2020). Changing consumer behavior and marketing trends, changes after the covid-19 pandemic. Journal of Computing and Information Technology, 25(3):363-373. doi: 10.15350/2409-7616.2020.3.32
Bruhati. (2023, May 19). How to adapt to changes in customer expectations and preferences. https://www.linkedin.com/pulse/how-adapt-changes-customer-expectations-preferences-bruhati/
Bruno J., WPTV., (2023, September 22). Immigration leaders concerned about worker shortages, produce supply due to new Florida immigration law. Retrieved from: https://www.wptv.com/news/local-news/investigations/immigration-leaders-concerned-about-worker- shortages-produce-supply-due-to-new-florida-immigration-law
Chakraborty & Garg. (2019). Fiscal Pressure of Migration and Horizontal Fiscal Inequality: Evidence from Indian Experience. International Migration, 57(4):269-290. doi: 10.1111/IMIG.12536
CJPI. (2024, July 17). How adapting to market shifts Can Help your business thrive | CJPI. https://www.cjpi.com/insights/how-adapting-to-market-shifts-can-help-your-business-thrive/
Denrell J., Powell T., Oxford Academic. (2016, March 07). Dynamic Capability as a Theory of Competitive Advantage: Contributions and Scope Conditions. Retrieved from: https://academic.oup.com/edited-volume/34748/chapter abstract/296594805?redirectedFrom=fulltext Department of Trade and Industry. (2024). List of Micro, Small and Medium Sized Enterprises in Naga City, Bicol.
https://foi.gov.ph/requests/list-of-micro-small-and-medium-sized-enterprises-in-naga-city-bicol/ Dungerwal, P. (2022b, April 1). How supply chain affects the profitability of a company?
https://www.linkedin.com/pulse/how-supply-chain-affects-profitability-company-poonam-dungerwal/ Dunkelberg, W. (2021, July 26). Small business labor shortage. Forbes.
https://www.forbes.com/sites/williamdunkelberg/2021/07/26/small-business-labor-shortage/
Elbashbishy & El-adaway. (2024). Assessing The Impact Of Skilled Labor Shortages On Project Cost Performance.
Missouri University of Science and Technology. https://scholarsmine.mst.edu/cgi/viewcontent.cgi?article=3745&context=civarc_enveng_facwork
European Parliament. (2020, January 7). Exploring migration causes: why people migrate | Topics. Retrieved from: https://www.europarl.europa.eu/topics/en/article/20200624STO81906/exploring-migration-causes-why- people- migrate#:~:text=Demographic%20change%20determines%20how%20people,policies%20in%20the%20des tination%20countries
Evansluong Q. et al. (2019). Migrant Entrepreneurship Beyond Place and Space: A Call to Explore the Roles of Family Across Borders and Contexts. Journal of Enterprising Communities: People and Places in The Global Economy.
George N., Linkedin. (2016, June 6). Small Business Demographics of India - Why its Rusty. Retrieved from: https://www.linkedin.com/pulse/look-small-business-side-india-nidhin-jacob-george
Gu, Y., & Ayala-García, J. (2022). Emigration and Tax Revenue (No. 312). Banco de la Republica de Colombia. https://repositorio.banrep.gov.co/bitstream/handle/20.500.12134/10461/DTSERU_312.pdf
Gupta, A., & Singh, R.K. (2022). Managing Resilience of micro, small, medium enterprises (MSMEs) during Covid- 19: Analysis of barriers. Retrieved from: https://www.emerald.com/insight/content/doi/10.1108/BIJ-11-2021-0700/full/html
Hartt, M. (2020). Shifting perceptions in shrinking cities: The influence of governance, time and geography on local (in)action. International Planning Studies, 25(2):150-165. doi: 10.1080/13563475.2018.1540296
Keopasith T., & Neng S. (2020). The Effects of rural-urban migration on the economic status of rural residents: Empirical evidence from the Borikhan District, Lao PDR. International Journal of Research in Business and Social Science (2147-4478), 9(6), 154K-160. Retrieved from: https://doi.org/10.20525/ijrbs.v9i6.887
Koczan et al. (2021). The Impact of International Migration on Inclusive Growth: A Review. https://www.elibrary.imf.org/view/journals/001/2021/088/article-A001-en.xml"
Lumibao N., Bangko Sentral ng Pilipinas. (2023, May 8). The Impact of Migration in the Philippines: What About Those Left Behind? Retrieved from; https://www.bsp.gov.ph/Pages/MediaAndResearch/PublicationsAndReports/Discussion%20Papers/DP2023 01.pdf
Michaels G., 15Five. (2023, August 16). What is brain drain? Retrieved from: https://www.15five.com/blog/what- is-brain- drain/#:~:text=Brain%20drain%20happens%20when%20large,performance%2C%20and%20destroy%20e mployee%20morale.
Mondan A. & Kshatriya G. (2012). Migration, Basic Concepts, Measurements and Consequences. Retrieved from: https://ebooks.inflibnet.ac.in/antp12/chapter/migration-basic-concepts-measurements-and consequences/#:~:text=His%20theory%20is%20the%20combination,effects%20are%20caused%20by%20 migration.
Munro A., Britannica. (2024, January 26). Dependency Theory. Retrieved from: https://www.britannica.com/topic/dependency-theory
Nguyen et al. (2019). International Migration: Major Challenges and Analysis of Human Resource Management for Supply Chains. International Journal of Supply Chain Management, 8(6):565-577.
Philippine Statistics Authority. (2019). 2018 National Migration Survey. Retrieved from: https://library.psa.gov.ph/cgi-bin/koha/opac-detail.pl?biblionumber=15627
Raia, M. (2019, October 4). When People Leave: Do You Have a Succession Plan? Integrify. Retrieved from: https://www.integrify.com/blog/posts/succession-planning/
Ross S., Investopedia. (2023, September 17). What Is the Human Capital Theory and How Is It Used? Retrieved from: https://www.investopedia.com/ask/answers/032715/what-human-capital-and-how-it-used.asp
Sharma S. et al. (2022). An Inventory Control Model for Deteriorating Items Under Demand Dependent Production with Time and Stock Dependent Demand. International journal of operations and quantitative management, 27(4):321-321. doi: 10.46970/2021.27.4.2
Siegel, M. (2022). Effects of Migration on Labour Markets in Countries of Origin [Video]. Youtube. Retrieved February 25, 2024, from. https://www.youtube.com/watch?v=wgkaQW3zbmQ
Sriram, R.R. (2021). Analyzing the Brain Drain Effect in Developing Countries: A Higher Education Perspective. retrieved from. https://osf.io/preprints/psyarxiv/3tg6a
Suguna, M., et al. (2022). Factors affecting repurposing operations in Micro Small and Medium Enterprises during Covid-19 emergency. Operations Management Research, 15(3-4), 1181-1197. Retrieved from: https://doi.org/10.1007/s12063-022-00253-z
Tadeo J., Mendoza X., Tabor, F, Dumagat S., & Pamintuan R., (2023). Understanding economic contributions of MSMEs among Philippine Regions. Journal of Management, Economics, and Industrial Organization, 7(3), 1-15. Retrieved from: https://jomeino.com/sites/default/files/paper_attachment/Understanding%20economic%20contributions%2 0of%20MSMEs%20among%20Philippine%20Regions.pdf
Tao, H., Sun, X., Liu, X., Tian, J., & Zhang, D. (2022). The impact of consumer purchase behavior changes on the business model design of consumer services companies over the course of COVID-19. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.818845
Team, CFI. (2024, August 12). Demographics. Corporate Finance Institute. Retrieved from: https://corporatefinanceinstitute.com/resources/economics/demographics/#:~:text=Demographics%20also%20affect%20other%20business,customers%2C%20sales%20will%20likely%20increase.
Tobias, S. (2024, July 22). Overcome Labour Shortages with Skilled Employee Investment. The Site Shed. https://www.thesiteshed.com/412-how-to-overcome-labour-shortages-with-skilled-employee- investment/#:~:text=and%20leveraging%20technology.-
,Investing%20in%20Employee%20Training%20and%20Development,EQ%20side%20of%20their%20emp loyees
Weyers, R. (2024, April 29). The skilled labor shortage: causes, costs & COVID-19. Conger Industries Inc. - Wisconsin’s Material Handling Experts. https://www.conger.com/skilled-labor-shortage/
Published
2024-12-12
How to Cite
Mae I., A., Benedict D., B., Elmar P., C., Jarold P., J., Nico A., O., Francis B., T., & Simon E., E. (2024). The economic implications of outmigration to micro, small, and medium enterprises in Naga City. GPH-International Journal of Business Management, 7(11), 01-26. https://doi.org/10.5281/zenodo.14419225
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