Today we celebrate #MSME Day – a day to recognise the vital contribution of micro, small, and medium-sized enterprises to create jobs, drive #EconomicGrowth and empower women, youth and marginalized communities.
It’s also a day to promote the importance of focused initiatives, policies and programs to support MSMEs.
MSMEs and self-employed workers serve a core function in the development of economies. Globally, they represent about 90 percent of all businesses and account for over two-thirds of employment. When adequately supported, they can contribute to the structural transformation of economies and drive inclusive and sustained economic growth and jobs.
However, their limited resources and social or physical isolation can mean they struggle to access affordable finance and the right advisory support to grow and flourish. Marginalised populations including women, disabled and youth need focused help to overcome the numerous challenges that can stifle their business growth.
The role of Business Link Pacific
Since January 2017, the New Zealand Ministry of Foreign Affairs and Trade (MFAT) has funded Business Link Pacific (BLP) to
- Stimulate the growth of Pacific MSMEs by improving access to quality, local business advice and finance.
- Build the capacity of Business Advisory Service Providers and Financial Service Providers to deliver sustainable services for MSMEs.
- Focus investment in supporting business growth, innovation, climate resilience and social and environmental sustainability. BLP works toward increasing outreach of businesses led by women, youth, people with disabilities, indigenous people, community-based businesses and other hard-to-reach groups.
Operating in twelve Pacific countries, BLP works within each business community – Business Advisors, Financial Institutions and Private Sector Organisations to facilitate its services. Its primary services include the facilitation of the BLP Business Advisory Network; BLP Advisory Subsidies, BLP Business Grants and Concessionary Loans, as well as Diagnostic and Online Business Tools.
Snapshot of BLP results
Advisory Network Development:
To give MSMEs assurance that the business advisor they are using is of a high-quality standard, BLP has a competency framework and now has a network of 220 BLP competency approved business advisory service providers across the Pacific. To date, 1712 MSMEs have been connected to these advisors.
In BLP’s latest Pacific Business Survey, some top line results included:
- 98% of BLP-supported businesses who received Business Advisory Support (BAS) stated that the services had improved their business.
- 83% of businesses supported by BLP improved their business over the past 12 months, and 94% expected improvements to last. In contrast, 65% of those not supported by BLP said their business had improved over the past 12 months, and 87% expected improvements to last.
- 73% of BLP-supported businesses think their business is more resilient than it was a year ago, compared to 59% for those not supported by BLP.
- Businesses supported by BLP have experienced more employment growth than those not supported by BLP. 44% of BLP-supported businesses increased the number of people they employ over the last year, compared to 27% for those not supported by BLP. BLP-supported businesses added employees primarily through an overall increase in business and gaining a key contractor or customer.
Advisor: Nancy Matapuku, Accounting Made Easy, Cook Islands
Founded on the principle of giving confidence to small and medium sized businesses to succeed, Accounting Made Easy in the Cook Islands is certainly doing just that.
In 2022, Nancy became a BLP approved advisor with approved competencies in Accounting & Financial Management and Strategy and Business Planning. To be a BLP Advisor, advisors must pass a competency test in the field they specialise in.
“It is a high-quality vetting and rigorous testing process. It was good and for me as it verified in my mind the standard of my skill. It also allowed us to add a layer of quality assurance to the service we offer to our SMEs on Rarotonga.”
As a part of BLP Advisory Network, Accounting Made Easy can access BLP subsidies to help SMEs pay for advisory services. “We both gain. The BLP subsidy brings us SMEs that would not be able to afford our services normally and it helps the SMEs to more affordable advice to help grow. In the last two years we’ve helped around 45 businesses get access to the BLP subsidy.”
Financial Capacity Development:
Since 2017, BLP has supported Pacific MSME’s with the following outcomes:
- 8m NZD Adaption Grants (post COVID) and Support Grants dispersed
- 643 new loans have been facilitated with partner banks
- 2700 subsidies dispersed to connect businesses with advisors
This has driven growth in jobs and investment including:
- 1109 new jobs created (42% women)
- 2m NZD invested in advisory services
- 50 M NZD on reported new investment
- 336 new investments
Small business owner: Graydon Puinam, Gray Café Trading, Papua New Guinea
A fledgling coffee, ginger, and turmeric enterprise, Gray Café Trading who was facing cash flow issues, has been given a lifeline to grow through a grant from BLP.
Four years ago, owner Graydon started experimenting with the processing of coffee beans purchased from farmers in the remote area of Gwirot village of Daga LLG, PNG.
This year he started his business Gray Café Trading but faced a major cash flow issue. “I must pay the farmers and then there is a quite a delay until I can get revenue for the finished product.”
Receiving a BLP grant, he was able to settle payments with 95 farmers and can now focus on the processing and selling of the coffee.
“There are no roads to Gwirot village where I buy my coffee fruit. To get the raw product to my processing facility in Alotau, I must employ local people to carry it for four days to bring it to the coast. Then we process and it goes by boat to Lae.
“I want to acknowledge BLP for selecting me and my business for the grant” says Graydon. “This is a boost to my future. As a grassroots business I am empowered for my future and my commitment is strong.”