This research examined the economic implications of outmigration on micro, small, and medium enterprises (MSMEs) in Naga City, an issue that significantly affected local economies. It identified the challenges faced by MSMEs in the aspect of workforce, consumer demand, and supply chains linked to outmigration. The study then evaluated how these challenges influenced key financial metrics, including sales generation, expense control, and profitability. Through data collected from surveys and interviews with 60 MSME owners and managers across three barangays, this research offered insights into the operational and financial strain caused by outmigration. A mixed-method approach, with a descriptive correlational design, was applied to analyze the relationships between these challenges and MSME financial performance. Findings revealed that outmigration diminished labor availability, lowered demand for local products, and disrupted supply chains, thereby affecting profitability and competitiveness. In response, the proposed ABANTE Program, aimed at promoting digital adaptation, workforce upskilling, and e-commerce expansion, was recommended to enhance MSME resilience. By addressing outmigration’s economic implications, the study contributed new knowledge on outmigration’s impact on MSMEs and suggested actionable support for sustainable development.