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Online platforms enhance entrepreneurship opportunities for vulnerable sectors—report

The government should pursue policies that reskill the workforce and enhance the digital skills of the population because online platforms can enhance livelihood and entrepreneurship opportunities, according to the Philippine Institute for Development Studies (PIDS) in a new policy note.

“Amid the ongoing pandemic brought by the coronavirus disease 2019, online platforms not only provide a supplementary income source for people but also improve the economic participation and empowerment of vulnerable sectors, such as women and homemakers,” the report, titled “Gender Perspectives in E-Livelihood and E-Entrepreneurship,” said.

The paper also found that online entrepreneurship provides a channel for unemployed individuals and those not in the labor force to find livelihood opportunities outside the formal labor market.

However, it also said only around one in 20 people, regardless of sex, engage in online selling, noting that a certain level of technical proficiency and digital skills is needed to engage in online entrepreneurship.

“Therefore, it is crucial to regularly measure and monitor the digital literacy skills of the population so that appropriate capacity development activities for the labor market can be implemented,” said report authors Aubrey D. Tabuga and Carlos C. Cabaero.

But while digital platforms facilitate e-livelihood and e-entrepreneurship by matching buyers and sellers of products and services, they cannot be harnessed effectively to address inequalities without a facilitative policy environment to narrow the digital divide, the paper added.

The socioeconomic policy think tank thus recommends that the government invest in the reskilling of older and less educated individuals, particularly those in the underserved and poorer segment of the population, on the practical applications of information and communications technology (ICT).

It is also important to enhance the general population’s knowledge and use of online platforms to improve people’s ability to reap the benefits of ICT equitably.

PIDS said data from the 2019 National ICT Household Survey (NICTHS), the country’s first household survey on ICT usage, showed that online platforms offer livelihood opportunities, especially for women who cannot participate in the economy otherwise.

“Therefore, current and future capacity development programs must focus on enhancing women’s and men’s life skills and work skills. However, gaining the proper digital skills may not be enough for women whose economic empowerment is likely not maximized because of their disproportionate share in unpaid care work.”

Apart from gender issues, various challenges—poverty, gaps in skills, and lack of access to technology, formal institutions, and infrastructure—limit a person’s ability to take advantage of online platforms for various welfare-enhancing activities. Digital platforms should promote social welfare, including access to social protection programs and livelihood opportunities, the paper said.

Moreover, apart from the lack of knowledge to effectively use online resources and ICT tools, the government must also address the challenges of access to technology and formal institutions, such as electronic banking and online government transactions.

“Finally, improving digital infrastructure, such as mobile internet connection across the country, is vital to allow greater ICT engagement among Filipinos—women and men alike—so that everyone is better equipped to benefit from the digital dividends,” the report said.

October 29, 2021