Micro, Small, and Medium Enterprises (MSMEs) are considered to have an important role in driving the economy of countries in Southeast Asia. According to data from the Economic Research Institute for ASEAN and East Asia (ERIA), there are currently more than 70 million MSMEs in Southeast Asia employing more than 140 million people and representing 99 percent of all businesses in the region. However, Southeast Asia continues to face challenges in building a sustainable MSME ecosystem, particularly in helping small businesses navigate an evolving landscape.
In the Philippines, efforts to empower MSMEs that preserve traditional crafts are gaining momentum in Iloilo, a region renowned for its hand-loom weaving. Once a thriving industry in the late 18th century, it struggled due to a decline in skilled artisans. To sustain the craft, the Iloilo Provincial Government, through the Provincial Culture, Arts, History, and Tourism Office, has initiated programs like the Indigenous Fiber Fashion Fair. This event has since evolved into a partnership with ISAT-University’s Fashion Design and Merchandising program, offering a platform for emerging designers.
In 2024, six designers—John Patrick Tajo, Jeraldine Nofre, Donato Peniero, Wendy Tanaleon, Kim Ivan Delgra, and Jerico Labata—showcased modern interpretations of Ilonggo craftsmanship. Using locally hand-woven fabrics created by artisan weavers, their work highlights the power of intergenerational collaboration in sustaining traditional industries, supporting livelihoods, and strengthening the local economy.
Intergenerational empowerment to boost local businesses
The activity from the latest Siak sustainable business incubation, where local MSMEs are empowered with the necessary skill to scale up, images are taken from @skelas.siak on instagram
In Indonesia, intergenerational empowerment also exists to support local entrepreneurs. The Siak Sustainable Creative Center (Skelas) through its incubation program, Siak Sustainable Business Incubation (Kubisa), offers innovative and sustainable solutions in the Siak area, Riau, which is known to have great local economic potential, one of which is by building intergenerational collaboration.
Since its inception in 2023, the Kubisa program has involved young people from Skelas to support the development of MSMEs. The program trains business owners, who are often their seniors, on how to create designs with Canva, implement digital marketing strategies, and create product innovations that meet market needs. Kubisa also ensures that each product is tested in the laboratory to ensure its quality before being marketed.
One of those innovations is the sustainability aspect of the product. Skelas and Kubisa emphasize using locally grown products and working with local farmers to ensure that the products have a low environmental impact and empower the participants and the surrounding communities in Siak.
Enthusiasm for this program continues to increase. In 2024, the number of registrants has almost tripled, from 23 to 62 people. After going through the selection, 20 participants, consisting of 17 culinary entrepreneurs and 3 from the fashion sector, were selected. Six young participants were actively involved in this training, playing a major role in helping other participants understand the material more effectively.
“I feel helped by participating in the Kubisa program, through this program I not only get practical solutions to produce my creations but also assistance in marketing and packaging the products,” said Santi Lestari, owner of Dapur Mempura, one of the MSMEs that created the gluten-free Bolu Kemojo pre-mix flour and Kubisa participant of 2023.
Most of the participants have now used digital platforms to market their products, assisted by promotional materials they developed during the training. By combining the expertise of the younger generation in technology and the experience of the senior generation in management and business networks, MSMEs are able to overcome challenges such as digital transformation, market adaptation, and resource management.
Capacity and capital enhancement for business actors
In addition to increasing the capacity of business actors, Skelas also connects them with investors and governments at the local and regional level to support business development. One form of this collaboration is the implementation of Demo Day and business matching for MSME actors, especially in the fashion and culinary sectors.
Skelas also collaborates with the national charity platform, to provide funding of IDR 60 million to 12 selected Kubisa participants. This funding is used for training and developing their businesses, as well as several production tools that have been ordered. The selection process emphasizes participants who have incomes below IDR 5 million. With support from various government institutions and investors, the Kubisa program increasingly provides great opportunities for MSMEs to develop and reach a larger scale.
“We are optimistic that the collaborations that have happened in Siak, either intergeneration or between the public and private sector, can become a catalyst for a broader restorative economy activity in the regions. By growing businesses that are based on local wisdom, we can be assured that we are making an impact not only in the economy but also in the environment sectors,” said Cerli Febri, from Skelas
