October 20, 2021
Introduction
During the COVID‐19 crisis many entrepreneurs have had to look for creative solutions to keep afloat. For many, the use of digital technologies has meant lower costs, greater access to markets, better coordination, higher integration and productivity gains. While many industries have suffered, some have experienced growth since the onset of COVID‐19 pandemic. Examples include enterprise technology services, home entertainment, telemedicine, medical equipment suppliers, e‐commerce retailing, e‐learning, cybersecurity, and sanitary product manufacturing, among others.
Both the efficiency gains from the acceleration in digitalisation and the shifts in the growth potential of industries have implications for policies to promote entrepreneurship and support MSMEs in developing countries.
Taking place in this context, the Ministerial Roundtable provided a forum for international experts and leading authorities from the public and private sectors to share experiences and to envisage strategies to deal with the effects of COVID‐19 crisis on MSMEs and the entrepreneurship sector.
Issues to be addressed:
- What policies can help MSMEs overcome the long term effects of the COVID-19 pandemic? What is the role of regional and international cooperation?
- What institutional changes are necessary to accommodate and improve on the innovations that occurred during the pandemic?
- How will COVID-19 reshape global supply chains, and what can entrepreneurs do to adapt? What policies can help improve market access (both domestic and international) for MSMEs?
- What will the increased use of digital communication technologies (zoom, social media, teleworking, etc.) mean for entrepreneurship skills development and promotion?
Session Highlights
In the session, experts shared practical experiences and discussed new policy initiatives that could help countries and micro small and medium‐sized enterprises (MSMEs) surmount the current crisis and lead them towards a long‐term green, inclusive and resilient recovery in support of the Sustainable Development Goals (SDGs). Moreover, the Ministerial Roundtable provided a forum for international experts and leading authorities from the public and private sectors to share experiences and to envisage strategies to deal with the effects of COVID‐19 crisis on MSMEs and the entrepreneurship sector.
The COVID-19 pandemic has created a negative impact on the global economy. Many sectors were negatively affected (such as tourism) which were mostly dominated by the MSMEs in developing countries and LDCs. During the COVID-19, the MSMEs were heavily impacted due to mobility restrictions and other policies, and they created challenges to MSMEs because it became difficult for MSMEs in distributing products. In developing countries and LDCs, the majority of MSMEs faced an increase in raw materials’ prices and it led to decrease in MSMEs revenue and an increase of unemployment. It has also been mentioned by the Panellists that developing countries and Least Developed Countries’ (LDCs’) GDP decreased since their countries were majorly composed of MSMEs and they play a crucial role regarding their growth.
To overcome the effects of COVID-19 pandemic, countries adopted several policies and strategies on business recovery and transformation of MSMEs. First, it is to increase business partnerships between small enterprises and large enterprises. According to the Panellists, developing countries and LDCs put in place MSMEs’ programs which prioritised MSMEs products in public procurement. Moreover, developing countries and LDCs’ governments decided to provide financial help for MSMEs who were in debt. Indeed, according to the Panellists, countries decided to either extend the date to repay the loan (6 months to one year) or to reduce the interest rate. It has also been stated that the countries are committed to accelerate the digital transformation because they believe that digital transformation will increase the competitiveness and it will contribute to the economic growth of the countries.
To help on that subject, governments of developing countries and LDCs decided to give loans to their citizens without asking for any deposit or a guarantee. Furthermore, the Panellists also stated that the governments decided to provide technical assistance in order to improve the quality of the MSMEs product. This assistance will help MSMEs to be more sustainable, avoid bankruptcy, will allow them to stay in the market, and promote competitiveness.
Finally, there have been discussions about the Empretec programme. It is a programme of UNCTAD for the promotion of entrepreneurship and MSMEs to facilitate sustainable development and inclusive growth. Moreover, it has been discussed about the Empretec Women in Business Award, created by UNCTAD in 2008, as an acknowledgment of the great achievements of women entrepreneurs trained by the Empretec programme. Moreover, it has been discussed about the difficulties (human rights violation, lack of finance, lack of time, etc.) that women have to face in certain countries which become an obstacle to create their own business. The Empretec programme helps women in improving their access to further training, widening their markets and resources and boosting their motivation to continue growing their enterprises.
Opening:
- Rebeca Grynspan, Secretary General, UNCTAD
On the panel were :
- E. Mr. Achille Bassilekin III, Ministre des Petites et Moyennes Entreprises de l’Economie Sociale et de l’Artisanat, Cameroon
- E. Mr. Lucas Palacios, Minister of Economy, Development, and Tourism, Chile
- E. Mr. Víctor -Ito- Bisonó Haza, Minister of Industry, Commerce and Micro, Small and Medium Enterprises, Dominican Republic
- E. Mr. Seedy Keita, Minister of Trade, Industry, Regional Integration and Employment, Gambia
- E. Mr. Roberto Antonio Malouf Morales, Minister of Economy, Guatemala
- E. Mr. Soomilduth Bholah, Minister of Industrial Development, SMEs and Cooperatives, Mauritius
- E. Mr. Carlos Alberto Fortes Mesquita, Minister of Industry and Trade, Mozambique
- E. Ms. Devika Vidot, Minister of Investment, Industry and Entrepreneurship, Seychelles
- E. Ms. Stella Tembisile Ndabeni-Abrahams, Minister of Small Business Development, Republic of South Africa
- David Bahati, Minister of State for Trade, Industry and Cooperatives, Uganda
- E. Mr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, United Arab Emirates
- E. Dr. Sithembiso G.G Nyoni, M.P, Minister of Women Affairs, Community, Small and Medium Enterprises Development, Zimbabwe
- E. Mr. Kitti Settha Pandita Cham Prasidh, Senior Minister, Minister of Industry, Science, Technology & Innovation, Cambodia
- Dorothy Ng’ambi Tembo, Deputy Executive Director, International Trade Centre
Moderator
- James Zhan, Director, UNCTAD