Adaptive Strategies of Micro-Enterprises in Balancing Profitability and Consumer Preference During High Inflation
DOI:
https://doi.org/10.5281/zenodo.19603481Keywords:
micro-enterprises, inflation, adaptive strategies, profitability, consumer preferenceAbstract
In periods of high inflation, micro-enterprises in Guiuan, Eastern Samar, adopt different strategies to maintain a balance between profitability and customer demand. A qualitative phenomenological study was conducted on ten micro-entrepreneurs within a variety of industries through in-depth interviews regarding the impact of inflation on their businesses. Micro-enterprises are experiencing considerable challenges from inflation such as increased operational costs and reduced customer spending while continuing to deal with supply chain disturbances. Specific strategies used by entrepreneurs included working closely with vendors to adjust inventory levels, raising prices minimally and maintaining low total costs, improving customer service, maintaining strict financial controls, and achieving product-sale focused selling strategies. Quality, trust building, and building long-term relationships with customers were also highlighted as being very important. The results of the study state that entrepreneurial mindset, resilience and the values of the community-based entrepreneur is critical to the sustainability of small businesses during periods of economic pressure.
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