Experts discuss issues
FIJI hosted its inaugural micro, small and medium enterprise (MSME) conference in Suva last week with leaders and players from this sector converging to discuss challenges and opportunities prevailing in this sector.
This historic event provided a platform for players and stakeholders in the MSME ecosystem to exchange information, ideas, and access assistance to excel in this growing sector of the local economy.
The conference — attended by MSME operators and experts, academics and government officials - acknowledged the challenges faced in this sector was not new, and it continued the call for action to address common challenges that could propel MSME growth.
Here are some of the issues that were raised on day two of the conference, focusing on MSMEs and co-operatives.
Communication and connectivity
A conference delegate who is a small business owner in a maritime island said it was difficult to do business on the island because of poor connectivity.
The delegate said on his island, he could only access one mobile service provider and at that on a sunny day. Connections are lost on a rainy day.
Business dealings and digital applications for other services like opening a bank account can be futile when the network is down.
SOLE Ltd founder Semi Tukana said communication was a major problem for MSMEs in Fiji, a reason why the institution was introducing satellite communications.
“We are proposing the use of Starlink kits for our co-operatives in villages throughout Fiji,” Mr Tukana said, noting there are more than 600 villages they intended to help with satellite kits.
He added they were also developing a sub-system within SOLE to help with point of sale, logistics for goods distribution and collection, and an automated supply chain for all co-operatives.
Access to capital, financial services and markets
Access to capital, banking and financial management services, and markets are not new challenges for MSMEs, particularly in rural areas.
Waibau Women’s Group Cooperative Ltd company secretary Michael Makasiale said access to capital was a common challenge for rural co-ops in that financial institutions were hesitant to provide loans, particularly startups.
Another challenge, he said was market access and competition.
“Accessing markets and competing against established businesses is a big challenge.”
He said it was also a struggle for rural co-ops to open a bank account, and called on relevant organisations to assist small businesses with that.
Inclusivity
The conference noted the need to include women and people with disability in small businesses. Women in Business president Dr Nur Bano Ali said women needed to be promoted to the highest level in business.
She said Fiji can produce women leaders in business and they needed to be supported, particularly in terms of accessing finance.
She said financial institutions in Fiji were not conducive to women lending.
Tetra Tech International director Inclusion, Justice and Transformation Georgina Naigulevu said persons with disability also want to thrive in MSMEs and needed to be empowered through incubators and accelerator programs.
Human capital
MSME champion developer and Regional Director of Asia Programs and Partnership Corporation Tom Sebastain said there had been mass migrations pre- and post-COVID with people moving to greener pastures.
He said between 5000 to 16,000 Fijians were moving outside our borders that meant a drain in talents.
“We’re all in agreement that talent development and talent retention are needed as we move along,” Mr Sebastain said.
He said almost 25 per cent of the population were between 15–30 year olds and they need to be empowered to enter the workforce better prepared, able to be innovative and to create more employment.
He said a simple solution was to create more job opportunities and wage opportunities, and to help skill them.
“We need to invest in talent development, it is not just only lifesustaining talent development, but you also need to give access to technology solutions that can be used across all sectors.”
Education
Mr Sebastain said young children must be inspired to develop a business mind-set.
To do that, he suggested a review of the education curriculum in Fiji that can develop and enhance critical entrepreneurial thinking.
He said there was also access to information and expert entrepreneurs today who can provide support.
The conference echoed the sentiment calling for an overhaul of Fiji’s education system, and challenged education players of the major role they play in the MSME sector.
The two-day conference was facilitated by Business Assistance Fiji and its partners, Women in Business (WIB), Fiji Chamber of Commerce & Industry (FCCI), Fiji Institute of Chartered Accountants (FICA), MTCSME representative, SPBD, and Young Entrepreneur Council.
According to BAF (Business Assistance Fiji), a conference communique is being prepared to be submitted to the Ministry of Trade, Co-operatives, Small and Medium Enterprises and Communications and other stakeholders.
It is understood the ministry is also working closely with consultants on the development of Fiji’s first MSME Strategic Plan.
We need to invest in talent development, it is not just only lifesustaining talent development, but you also need to give access to technology solutions that can be used across all sectors
– Tom Sebastain