October 01, 2024
Micros, Small, and Medium Enterprises (MSMEs) in the Philippines play a vital role in the economic growth of the country. Majority of MSMEs are located in the National Capital Region (NCR) and accounts for 99.6% of the business in the Philippines according to Philippine Statistics Authority (PSA). Most MSMEs are Family-owned (FO), run and managed by families and their members. Management competencies are vital for family owned MSMEs as managers need to be equipped with skills and capabilities and use these methods and innovations to be more efficient in the management of the business. These competencies support business survival as business strives to continually exist amidst challenges. The study aims to determine the vital role of management competencies on business continuity and survival as basis for business continuity planning model developed in this study. Furthermore, it aims to study the effect of management competencies: planning, task organization, leadership, creativity/innovation, and delegation on business continuity (internal candidates, retention, diversity, and team approach) in support to business survival and resilience among FO MSMEs. The study was conducted among owners/managers of FO MSMEs in the 16 cities in NCR. Stratified random sampling was used in selecting the respondents. The 384 FO MSMEs participated in the study while five (5) took part in the FGD. The results showed management competencies have a positive effect in business continuity among family owned MSMEs in NCR. The direct impact of management competencies affects the business continuity of the business and its survival. The MSMEs should conduct assessment on the competencies of current owners/ managers, as it is a vital factor in business continuity and survival and developing these competencies supports business capability to manage business challenges that also affects business continuity. KEYWORDS: MSMEs, Family-owned business, Management Competencies, Business Continuity