Optimizing Small To Medium Enterprises Performance With Technological Innovations: Strategies Learned In The New Normal

Abstract

Small to Medium Enterprises (SBs) make up 95% of global for-profit organizations and provide over 50% of jobs, especially for individuals with lower educational qualifications. During the pandemic, 75% of SBs faced closure, but those that survived used five key technological innovations to stay competitive. This study investigates the use of these innovations among SBs in Metro Manila and their relationship to business performance in the new normal of 2024. A survey based on the Implementation-Process Assessment Questionnaire (IPAQ) was distributed to 150 small businesses. The results revealed that 31% of respondents have operated for 1-5 years, and 43% have 2-5 employees. The majority (46%) conduct business both online and onsite, with 37% providing services. Businesses that used more technology showed a small positive relationship (0.22) with performance. The implementation of multiple technologies improved performance by 46%, supporting SMEs in expanding both physically and digitally, and enhancing product offerings with third-party technology integration.