How SMEs Can Survive the 2026 Energy Crisis

Last March 24, 2026, President Ferdinand Marcos declared that the Philippines is in a State of National Energy Emergency due to US-Israel-Iran conflict. Even before the President signed Executive Order 110, Filipinos have felt the effects of the conflict: rising fuel prices, inflation to potentially hit 4%, and warnings that our power grids are at risk as the country enters its dry or summer season. All of these will not just affect daily life but also businesses as it may make it even more difficult to operate. In fact, several commercial establishments have already announced that they are cutting operating hours to preserve cash flow in anticipation of rising electricity costs. Now more than ever, it is critical for businesses, especially SMEs, to prioritize resiliency and flexibility. Here are 4 tools to work on to help your business survive the current climate.

1. Prioritize Liquidity

Today, the cost of diesel and other costs may spike significantly in a single week. With that, it’s important to have flexibility of liquidity to maneuver quickly. You may have heard of the 13-week cash flow forecast, wherein you have a weekly projection of a company’s cash inflows and outflows for a quarter. This is a great tool for entrepreneurs to anticipate potential gaps whether it’s sudden high prices of imports, electricity, or other operational costs.

2. Be “Asset-Light”

Speaking of operational costs, it’s a great time to review fixed costs and see where we can “trim the fat” so to speak. Some examples include downsizing your office space and choosing a virtual office rather than managing your own office, outsourcing parts of manufacturing rather than maintaining equipment, and using pallet-based warehousing for those in retail.

3. Be Energy Efficient

If applicable, you may want to review GSIS’s Ginhawa Solar Energy Loan, or programs under DOST, which may give members financing options for solar panel installations or other renewable energy sources. The Net-Metering program also allows SMEs and homeowners to “sell” back unused electricity in exchange for Meralco credits.

4. Find Buffers Where You Can

Review where you can audit your supply chains such as switching to suppliers from ASEAN countries or from fellow local companies. If financially sound, having a buffer stock of important components or ingredients in manufacturing or retail can also help build insurance. However, it’s important to balance this with prioritizing liquidity.

Running a business in the Philippines has always been a challenge, but 2026 is raising the stakes. In today’s climate, the definition of a successful company is one that has a healthy bottom line and could adapt quickly. Being a lean company isn’t just a cost-cutting measure, rather, it’s insurance that your business will survive this and any other future crisis.

About the Author

Georgianna Carlos is a serial entrepreneur and one of the founders of Permitly.ph, a digital platform that simplifies business registration and compliance in the Philippines. Through her work, she has supported hundreds of entrepreneurs and freelancers in building legally sound businesses.