Economic resilience
IN the constantly evolving realm of worldwide economies, Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in promoting economic resilience and sustainability. These enterprises, commonly recognised as the foundation of any economy, make substantial contributions to job creation, innovation, and overall economic expansion. According to the viewpoint of the Fiji Commerce & Employers Federation (FCEF), nurturing a conducive atmosphere for MSMEs isn’t merely essential but a strategic necessity for constructing a resilient and flexible economy.
MSMEs: The pillars of economic resilience
In Fiji, MSMEs play a multi-layered role in the economic fabric of the nation. They constitute a significant portion of businesses and contribute substantially to job creation, income generation, and poverty alleviation. MSMEs are often agile and able to quickly adapt to changing market conditions, making them crucial for maintaining economic stability in times of uncertainty.
The COVID-19 pandemic is a testament to the vital role MSMEs play in economic resilience. As large corporations faced operational challenges and supply chain disruptions, MSMEs demonstrated their ability to pivot, innovate, and contribute to the nation’s overall recovery. They swiftly shifted production lines to manufacture essential goods, embraced digital platforms for sales and marketing, and demonstrated a high level of adaptability to the “new normal”.
Barriers to MSME growth
Despite their considerable potential, MSMEs frequently encounter substantial hurdles that impede their development and their capacity to contribute to economic resilience. Access to financing continues to be a significant challenge, as limited access to capital restricts their ability to grow, invest in technology, and recruit additional personnel.
From the standpoint of FCEF, the government and stakeholders in Fiji have taken measures to support and promote the expansion of MSMEs. The support offered by the Ministry of Trade, Cooperatives, Small and Medium Enterprises, and Communications has notably played a role in augmenting the growth prospects of these enterprises.
The importance of technology and innovation
In the current rapid-paced digital age, embracing technology and innovation is no longer merely a choice but a requirement for MSMEs. The FCEF promotes initiatives aimed at motivating MSMEs to embrace digital tools, e-commerce platforms, and inventive solutions that can improve their competitiveness and facilitate their access to broader markets. Through such endeavors, MSMEs can decrease operational expenses, broaden their clientele, and establish themselves as frontrunners in their respective sectors.
Building resilience through capacity building
Capacity building is a keystone of MSME development and economic resilience. The FCEF believes that offering training and mentorship programs tailored to the needs of SMEs can equip them with the skills and knowledge required to navigate complex business landscapes. These programs can cover a range of topics, including financial management, marketing strategies, supply chain optimisation, and digital literacy. FCEF in collaboration with the Australian Government-funded Market Development Facility (MDF), launched the “Fiji Enterprise Engine” or “FEE” program.
This groundbreaking initiative establishes the Pacific region’s first semi-commercial, private-sector-led Business Accelerator Program specifically designed for MSMEs.
FEE offers comprehensive training in essential areas such as Strategic Management, Human Resources Management, Accounting and Financial Management, and Marketing.
Additionally, participants benefit from personalised guidance provided by Local Business Coaches (LBCs) and various networking opportunities. The success of the FEE initiative effectively showcases how tailored support and services can fuel the rapid growth of small businesses in Fiji.
Similarly, the Young Entrepreneurs Council (YEC) and Women Entrepreneurs Business Council (WEBC) under the umbrella of FCEF serve as a platform for entrepreneurs and MSMEs to voice their concerns, access resources, and receive support to foster their growth and success.
Through the YEC, budding entrepreneurs and small business owners can network with peers, receive mentorship from experienced professionals, and gain access to training programs and funding opportunities.
The YEC also works closely with government agencies and private sector partners, to advocate for policies and initiatives that promote the growth and sustainability of MSMEs in Fiji.
By fostering an enabling environment for entrepreneurship and innovation, the YEC aims to unlock the full potential of Fiji’s MSME sector and drive economic development and prosperity for the nation as a whole.
WEBC has also experienced remarkable growth in both its membership and offerings, providing invaluable support and inclusive platforms for the development of women entrepreneurs.
Moreover, creating networking opportunities and platforms for knowledge exchange can foster collaboration among MSMEs, enabling them to learn from each other’s experiences and best practices.
MSMEs form the bedrock of economic resilience and advancement in Fiji. Their capacity to adjust, innovate, and foster employment opportunities while mitigating poverty renders them indispensable to the nation’s well-being.
The FCEF advocates for the support of MSMEs through tailored policies, improved access to financing, adoption of technology, and initiatives aimed at enhancing their capabilities. Such measures are deemed vital for constructing a resilient and enduring economy.
As Fiji faces various global and local challenges, nurturing a thriving MSME ecosystem is not just an option but a strategic imperative.
By recognising the value MSMEs bring to economic resilience and actively implementing measures to support their growth, Fiji can position itself as a dynamic and adaptable economy that thrives in the face of uncertainty.