Wednesday, February 1, 2023

2023 promises to be a challenging year for businesses

Every generation needs a revolution - an entrepreneurial revolution









Difficult 2023 IMF

Its going to be challenging year 2023 for businesses. On the micro level, many businesses closed shop:   food outlet serving Ramen, coffee shops milk tea shops (hole in the wall type)  two big restaurants, bike shops   Many buko vendors and fruit vendors along Manila East road   



At the Macro level, there seems to be huge growth of 7.6% in 2022, but after discounting the inflation rate of 4%, we are left with nominal 3.6% not something to crow about   And if we compare the numbers to pre pandemic numbers, we were at the same level     Many big establishments are permanently closing   Even our airlines are heavily indebted  and could face financial downfall 
A slower growth, if any is expected in 2023   

A building supplier who went into airport business whose plant is nearby is reported to have difficulty meeting its payroll

The inflation, the high interest rate at US which drives down the Peso value vs the dollar, the high energy costs, the Ukaraine war, the China covid wildfire spread do not mean well for Philippine economy..

WE MUST WORK HARDER BE MORE INNOVATIVE BE MORE entrepreneurial    The telecon, the energy food too  travel sectors seem robust and steady.   Tourism,..?    The glamping bike tourism is on the way down.  Many sites priced themselves out of the market   We must engage in cost reduction, protecting our liquidity, focussing on sales and collection

We must be open to new opportunities,  and seek and screen them   All ready there are two projects that I must evaluate.  And trips to the provinces are plenty.  We are sewing one up and in the contract signing stage.  

Next week I will have a meeting with Puerto Princesa business men and we wil discuss possible projects

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