Background of the study

Micro-Small Medium Enterprises (MSME’s) implenting discounts for the

Persons With Disability (PWDs) and Senior Citizens demonstrate a careful

balance between financial sustainability and legal compliance. These businesses

face both opportunities and challenges as the Senior Citizen Act mandates

discounts for senior citizens in various establishments, including MSMEs. On the

one hand, they can boost sales and client acquisition by making things more

affordable. However, they can reduce profit margins, particularly in smaller

enterprises with limited resources. Inabangan (2019) concluded in her study that

discounts on food, medicine, and transportation considerably reduce the

economic burden of Filipino older individuals, which enterprises firmly adhere to

through regulated discounts on goods and services.

Since the government mandated Micro-Small Medium Enterprises

(MSME’s) to give discounts to Senior Citizens and Persons With Disability

(PWDs), problems may arose. Smaller businesses may find it time-consuming

and administratively burdensome to determine eligibility and verify credentials.

Also the biggest disadvantage of mandatory discounts is that it makes it harder

for Micro-Small Medium Enterprises (MSME’s) to grow. With lower margins, they

may not be able to take on new projects, increase their workforce, or invest in

new equipment. According to Tecson (2022), many business and entrepreneur in

the country today are still in the recovery stage because of the pandemic.
 Therefore, a Comprehensive Analysis on the Impacts of Mandatory

Discounts for Senior Citizens and Persons With Disability (PWDs) on Business

Sustainability of Micro-Small Medium Enterprises (MSME’s) in Batasan Hills,

Quezon City will be thoroughly conducted to find out the factors that contributes

for Micro-Small Medium Enterprises (MSME’s) to whether they will implement the

mandated discounts for Senior Citizens and Persons With Disability (PWDs) and

how it can affect their business sustainability. And also the researchers would like

to observe the possible impact of the mandated discounts for the Senior Citizens

and Persons With Disability (PWDs) of how it can affect their social welfare in the

society. The researchers would also like to find out how Micro-Small Medium

Enterprises (MSME’s) can maintain their financial standing and how can it be

improved if the discount for the Senior Citizens and Persons With Disability

(PWDs) are being put into effect.

References:

Inabangan, April Kyle, et al. Evaluation of the Philippine Expanded Senior

Citizens Act (RA 9994) on Mandated Privileges for the Elderly. Feb. 2019,
https://www.researchgate.net/publication/331166618_Evaluation_of_the_Philippi

ne_Expanded_Senior_Citizens_Act_RA_9994_on_Mandated_Privileges_for_the

_Elderly.

Tecson, Karina and Garcia-Vigonte, Florinda, The Role of Philippine Government

to Micro, Small, and Medium-Size Enterprises (MSMEs) after the COVID-19

Pandemic (May 23, 2022). Available at

SSRN: https://ssrn.com/abstract=4117490 or http://dx.doi.org/10.2139/

ssrn.4117490