Debunking 5 Myths Holding SME Owners Back

One of the biggest hurdles new entrepreneurs face isn’t just the competition or the paperwork—it’s the overwhelming amount of false information and ineffective advice out there. From quick-fix “hacks” to misleading success stories, these myths can distract business owners from what really works.

At PayMongo, we believe that the best way to help new SMEs thrive is by equipping them with the right resources and practical knowledge. That’s why we’re breaking down some of the most common myths about running a business and showing you the proven practices that can set you up for real, lasting success.

Myth 1: “I need a big starting capital for my business to take off.”

The Truth: Growth doesn’t always start with a mountain of cash. Most Filipino SMEs expand by being smart with what they have—taking practical loans, boosting sales, and reinvesting profits. Tinapa is Life faced a sudden surge in demand but lacked enough capital to fulfill a large order. Using a PayMongo Capital loan, the business was able to purchase fresh fish and quickly meet the order in just three days. Flexible, automated repayments allowed the founder to focus on growth rather than repayment logistics.

PayMongo Product Synergy: Capital can help new businesses by providing fast access to loans so founders can seize growth opportunities. Repayments are automatic from incoming sales, relieving stress and enabling small businesses to unlock inventory, upgrade equipment, or fulfill large orders without delayed deposits or time-consuming paperwork.

Myth 2: “Build it and customers will come.”

The Truth: Simply opening shop isn’t enough. Growth comes from putting yourself out there and meeting your customers where they are. For example, Dear Manila, a lifestyle brand that grew through Instagram, uses influencers and social media campaigns to get noticed and drive real orders.

PayMongo Product Synergy: With Payment Links, you can turn social media posts or chat messages into instant sales. Just share a link, and your customers can pay with one click, making it easier to turn likes and follows into real purchases.

Myth 3: “I’ll have more flexible hours once I’m my own boss.”

The Truth: Running a business often means longer days, especially in the beginning. MaltMakers Craft Brewery in Taguig realized this early on, and only got breathing room after bringing in a virtual assistant to help with operations.

PayMongo Product Synergy: The PayMongo Wallet tracks all your money movement so you don’t spend more time disbursing payments or handling invoices.This tool lets you focus on growing your business instead of drowning in admin tasks.

Myth 4: “Small businesses can’t compete against larger companies.”

The Truth: Small doesn’t mean weak, it means nimble. SMEs win when they play local and personal. Blu Coffee in Davao built loyalty by offering personalized rewards and better customer care than big chains.

PayMongo Product Synergy: With PayMongo’s API, you can connect payments to loyalty programs or CRM apps. This makes it easy to reward regular customers instantly, giving you an edge in keeping them coming back.

Myth 5: “Technology and automation are only for big budgets.”

The Truth: Digital tools are no longer just for big corporations. Even small shops are automating sales and service. Kisina Shop in Davao uses chatbots to handle orders and questions, proving you don’t need a big budget to scale smarter.

PayMongo Product Synergy: PayMongo provides customized Pages that display all your products or services on one reusable page, allowing customers to shop, select, and pay in one transaction. No new links, no manual tracking.

Conclusion

These Filipino SMEs show us that success can happen by using the right strategies and the right tools. Leave behind the myths that hold you back from succeeding, and focus on actionable steps you can do to optimize how you run your business. PayMongo gives you the payment solutions to keep money flowing, simplify operations, and help your business thrive.

👉 Sign up for a free PayMongo account today and start building smarter.