Beyond the storefront: 3 Iloilo entrepreneurs on what digitalization really takes

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Yet a strong product and meaningful local ties may face barriers to participating in the digital economy. Moving online can involve learning how to manage an online storefront, finding reliable logistics and securing the time or capital needed to sustain growth.

Take, for example, the experiences of three Iloilo City-based entrepreneurs Paul Kaldi Coffee founder Paul Dayanan, Modern Ilongga founder Maggerose Carado and Iloilo Capiz Shell Flowers and Antiques owner Janice Saladan.

Established in 2021 by Paul Dayanan to help coffee farmers recover from the pandemic, Paul Kaldi Coffee today supplies 15 independent cafes and several well-known brands across Iloilo.

“All our beans are locally sourced in the Philippines,” Dayanan shared. “The company sources not just from farms in Iloilo and as far as Batangas, Davao del Sur and Sultan Kudarat.

As a former IT graduate, Dayanan embraces digital tools to improve his business, utilizing a digital point-of-sale (POS) system to track Paul Kaldi’s cash flow, transactions and inventory.

“Digitalization is very important when it comes to growth for startups like us,” he notes.

But digital tools do not address every challenge that comes with growth. One of Dayanan’s concerns is finding a reliable partner that can ship Paul Kaldi coffee beans nationwide at rates that work for a growing business.

Modern Ilongga, meanwhile, is a social enterprise that transforms traditional hablon textiles into contemporary wear.    

Carado explained that, with access to more capital, she could hire dedicated staff to manage an online shop. At present, she handles most of Modern Ilongga’s operations, from creative direction to supply chain, while continuing to rely mainly on social media for sales and transactions.

Businesses like Carado’s Modern Ilongga have also been a lifeline for many rural weavers, helping sustain the livelihoods of seven weaving communities in the towns of Oton and Miagao in Iloilo province, as well as in neighboring Antique. Depending on order volume, one weaver can earn between P2,000 to P4,000 a week.

At Iloilo Capiz Shell Flowers and Antiques, owner Saladan illustrates what wider digital reach can make possible.

Saladan began selling wearable accessories made from capiz shell flowers on Shopee about two years ago. Around 70% of the business’s sales now come from these accessories, which are sold through Shopee and at trade fairs.

“Malaking tulong po talaga ang Shopee kasi ang dami-daming umu-order kahit saang part ng Philippines. Talagang passive income po ang Shopee (shop) namin (Shopee has really been a big help because there are so many orders coming in from all over the Philippines. Our Shopee shop has become an additional source of income),” she explained.

The wider reach has allowed Saladan to continue working with local communities, including fishermen, single mothers, senior citizens and persons deprived of liberty, who help source materials and create her products.

Taken together, the three different businesses reflect different ways MSMEs can approach digitalization.

The three stories point to a wider question facing regional MSMEs: how can an online channel complement a business’s existing operations and sales channels?    

Some MSMEs may have built their businesses through physical stores, trade fairs, or social media, while still exploring how e-commerce can help them reach customers beyond their immediate communities. For these entrepreneurs, the question is not only how to get online, but how an online channel fits into their existing operations and growth plans.

“Technology can be transformative when it brings opportunities within reach of more businesses. At Shopee, we see e-commerce as a way to connect Filipino entrepreneurs with a wider community of buyers and sellers,” Jack Ng, head of Commercial at Shopee Philippines, said.

“Through Tatak Pinoy, we want to bring that opportunity closer to regional MSMEs, particularly in areas where access to digital training may be more limited, and create a space for them to learn more about how online selling works,” Ng continued.

Shopee Philippines saw these differences in readiness firsthand through the Shopee Tatak Pinoy MSME Roadshow, organized with local governments across the country. After engaging more than 1,200 entrepreneurs across 20 cities and municipalities, Shopee found that simply onboarding businesses onto a digital marketplace was not enough.

Some entrepreneurs still needed help opening and managing an online store, while others needed support in logistics, financing and sustaining growth after onboarding.

These insights shaped the direction of Shopee’s Tatak Pinoy program as it entered its second year. Building on practical seller education offered during the Roadshow’s first year, Shopee is continuing its grassroots approach with more targeted learning support and stronger follow-up for MSMEs at different stages of digital readiness.

The next phase was launched in Iloilo City last July, when the Roadshow was held alongside the first-ever Iloilo City MSME Summit. The event marked the culmination of the Roadshow’s first year, welcomed nearly 200 Ilonggo MSMEs, and began a sustained partnership between Shopee and the city.

Dayanan, Carado and Saladan were among the entrepreneurs who took part.

"Iloilo City itself has a strong foundation for helping small businesses. We are happy to partner with the LGU and Mayor Raisa Treñas, and to continue the conversation beyond the Roadshow as local MSMEs consider how digital tools may fit into their businesses," Ng said.

Under the partnership, MSMEs will receive quarterly coaching integrated into the Iloilo City government’s SIGE Asenso Program. Eligible graduates who begin selling on Shopee will also receive six months of onboarding support.

Through the training, MSMEs learn about tools and services available on Shopee and within its broader ecosystem. It also covers some of the practical considerations involved in running and growing an online business, including storefront management, fulfillment and logistics and access to financing options.

For these entrepreneurs, their plans for growth extend beyond their own sales.

Dayanan dreams of opening a flagship café that will house the company’s beans, roastery, merchandise and more.

Carado, meanwhile, is developing a textile recovery project that would collect discarded fabrics from the city’s flour mills, which would be shreded and spun into new threads. Weavers could use the repurposed thread to make new textiles or pieces of clothing, creating a more circular business model.

Saladan’s wider customer base allows her to continue working with local communities to source materials and create her products.

The ambitions of these entrepreneurs are different, but they share a common thread: digital tools and access to wider markets can be useful when they fit the realities of a business and the community it supports. And the possibilities extend beyond the storefront to the businesses and communities built around Filipino-made products. — WITH REPORTS FROM EUDEN VALDEZ

Editor’s Note: This #BrandSpace story is created with Shopee. It is produced by the Advertising Content Team that is independent from our Editorial Newsroom. 

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