Enhancing national capacities for unleashing full potentials of micro-, small- and medium-enterprises (MSMEs) in achieving sustainable development goals in developing countries

The project aims to enhance and strengthen knowledge, policy development and national capacities of developing countries and countries with economies in transition to improve their policies and programmes supporting the growth of micro-, small-, and medium-enterprises (MSMEs) in order to promote productive activities, job creation, income generation and entrepreneurship especially among socially disadvantaged groups including women, youth, and to effectively contribute to the achievement of the sustainable development goals (SDGs). The project activities focus on developing policy and program options to build capacities and promote MSMEs in developing countries, to develop global and regional networks for enhancing collaboration and partnerships, to exchange experiences and lessons learned, including through HLPF.
Sustainable development requires growth of economic activities, production of goods and services, creation of employment opportunities, revenue growth and infrastructure development without compromising environmental and social integrity. In this regard, the role of the private sector, in particular, of MSMEs cannot be overemphasized. Micro-, small- and medium-enterprises are present in almost every country of the world. Their role is even more vital in the developing countries. Formal SMEs contribute up to 45 percent of total employment and up to 33 percent of national income (GDP) in emerging economies. These numbers are significantly higher when micro enterprises and informal SMEs are included. MSMEs often involve people with little or no financial resources who also face tremendous barriers to access the conventional financial institutions for start-up businesses due to their poverty and lack of collateral assets. In addition, MSMEs are constrained by lack of capacity and knowledge on launching businesses, market access and other resources. Furthermore, many developing countries have not been able to fully tap the potentials of MSMEs due to weak policy, institutional and support mechanisms. MSMEs can be a powerful vehicle to improve economic and social conditions of individuals, communities and society. Accordingly, the 2030 Agenda for sustainable development has specific targets regarding MSMEs under Goal 8 but the significance of and support for MSMEs have been mentioned in many other Goals and Targets.
Add core problems/issues: lack of access to financial resources, credit, business operation capacities, market analysis skills and management skills. Lack of regional and global initiatives to strengthen the capacities of government agencies and financial sectors to provide necessary policy and operation support to the MSMEs.
Who are the key beneficiaries? The public sector agencies, in particular the ministries/agencies of planning and economic development, as well as the business association in support of MSMEs, and private sector, including the financial sector and trade associations, will be the main beneficiaries of the project. It is expected that the eventual beneficiaries of the project will be the MSME entrepreneurs including women and youth.
What/whose capacities will be strengthened by this project? Government ministries/agencies, business associations in support of MSMEs, MSME entrepreneurs, credit agencies and other lending institutions for MSMEs.
Main entities involved? DSD together with DPAD, FfD, UNDP, UNIDO, UNCTAD, ADB, AFDB and WB and other UN system partners; WBCSD and other business groups and foundations in support of MSMEs, through collaboration in desk studies, assessments, workshops and when appropriate, advisory services.
What capacities to be enhanced? Planning, policy formulation, training, market analysis, access to credit, business plan development, business management, accounting, etc. Building global and regional networks of MSME practitioners, financial sector, IT sector and relevant government agencies.