BLP Resources

BLP Case Study: Accelerating growth of small and remote businesses led by women in Samoa        

 

Small businesses are often referred to as the backbone of entire economies; this is particularly true for the rural island of Savai’i in Western Samoa. Savai’i is a tropical island located in the South Pacific, blessed with natural resources, stunning sandy beaches, and a strong sense of community. Like in many places in the Pacific Islands, Savai’i’s economy is primarily driven by small businesses, many of which are managed by women.

Savai’i has faced significant challenges since the COVID-19 pandemic, which exacerbated historical barriers to its economic growth, including geographical isolation, a small population, and low levels of literacy and access to finance. Nevertheless, the business community in Savai’i has developed local strategies to accelerate their recovery and thrive. New business tactics include diversification, expanding exports, and improving access to capital and business advisory services. Strategic partnerships with local private sector organisations and Business Link Pacific have supported these new approaches.

BLP has worked in Samoa since 2019, enabling a network of 17 advisory firms to support small and medium-sized businesses through advisory services valued at NZ$1M, of which 40% was invested directly by local business owners and the New Zealand government, subsidised 60% through BLP.

In addition, from 2021 to 2024, BLP provided 105 grants valued at NZ$1M to Samoa. 85% of grant recipients have reported to BLP that they are in a better position to access finance after receiving a grant and receiving support for their business planning. Businesses in Samoa have reported to BLP 76 new loans, totalling NZ$8.07M in new investment since 2019.

This case study examines and summarises the lessons learned by BLP while collaborating with private sector organisations in Savai’i to accelerate the growth of remote, female-led businesses. The partners involved include business associations and organisations representing small businesses. These collaborations have been facilitated by BLP’s in-country partner, the Samoa Chamber of Commerce and Industry.  Key learnings include the following:

• Working with a coordinated network of private sector organisations that extend to the most remote areas of the country is paramount to reach underserved businesses, often led by women and youth.
• One-on-one, tailored support is more effective than one-to-many training when providing business advisory support to remote businesses.
• Access to information in local languages is key to enabling remote businesses to access available support and financial services.
• Improving business operations and planning contributes to loan readiness amongst small businesses.
• Business grants can enhance a small business’s access to formal finance by enabling cash flow and loan security.

Access the full case study here: BLP Case Study: Accelerating growth of small and remote businesses led by women in Samoa        

---

Access to finance and the impact of COVID-19 Report and resources 2022

Despite the global pandemic remaining a challenge for businesses across the Pacific Islands, new findings from BLP’s Pacific Island Financial Survey indicate some signs of stabilisation and improvement for small to medium-sized enterprises.

The data collected in the 2022 Financial Survey highlight that there has been a 46% reduction in the number of businesses reporting a decline in turnover (46% in 2022 Vs 86.3% in 2021) and a 43% reduction in businesses reporting a decline in profit (49% in 2022 vs 86.6% in 2021).

Most businesses surveyed (61%) also reported no change in employment numbers over the past 12 months, indicating some stabilisation in a very difficult business environment. 

While profit is still lower than before COVID-19, profitability seems to be increasing. Some of the reasons given for the increase in profit include a general increase in business (64.7%), new investment (33.8%), a direct or indirect result of COVID (27.9%), and the introduction of new technologies (26.4%). 

According to 50% of SMEs surveyed, they have seen improvement in their service or product offering in the last 12 months due to being able to offer new services and products to meet new market needs. Improvements reported included improved customer services, new technology, import substitution, improved visibility, and product quality. 

Support from Pacific Island governments continues to play a critical role in the recovery process, with 47.3% of businesses that are currently seeking finance reporting they are seeking government support. 69.4 % reported seekinging grants, 36%bank loans and 46.9%of respondents reported seeking financial support through BLP.

The percentage of SMEs who said they had sought finance over the past 12 months increased from 34% in the 2021 survey to 41% in 2022.

One message from the SME sector remains loud and clear; the need for financial and business support is huge with a wide range of finance options being sought by SMEs.

Download the full Covid Report 2022 here: Access to Finance and the Impact of COVID-19 Report 2022 public access.

Covid Report. Infographic #1: Financial Services/ Download a PDF version to share with your networks

Covid Report. Infographic #2: Business Impact / Download a PDF version to share with your networks\

Covid Report. Infographic #3: Service Needs / Download a PDF version to share with your networks

Covid Report. Infographic #4: Tech Trends / Download a PDF version to share with your networks

Covid Report. Infographic #5: Human Resources / Download a PDF version to share with your networks   

Covid Report. Infographic #6: COVID Impact/ Download a PDF version to share with your networks   

Covid Report. Infographic #7: COVID Response/ Download a PDF version to share with your networks   

Access to finance and the impact of COVID-19 Report and resources 2021  

In May and June 2021, BLP surveyed over 500 small business owners across 13 Pacific Island Countries. We wanted to hear from SMEs the extent of the impact of COVID-19 on their business, to identify what support is currently available and to learn the strategies that SMEs have employed to survive.

Our full report for 2021 has more details and interesting insights from the Pacific Islands Financial Survey.

Download the full Covid Report 2021 here: Access to Finance and the Impact of COVID-19 Report 2021 public access

Covid Report. Infographic #1: Financial Services/ Download a JPG version to share with your networks

Covid Report. Infographic #2: Business Impact / Download a JPG version to share with your networks

Covid Report. Infographic #3: Assistance / Download a JPG version to share with your networks

Covid Report. Infographic #4: Tech Use / Download a JPG version to share with your networks

Covid Report. Infographic #4: Tech Use / Download a JPG version to share with your networks

Covid Report. Infographic #5: Human Resources / Download a JPG version to share with your networks   

COVID-19 Resources for businesses

You can download below our series “Don’t Panic! Infographics” filled with helpful tips and advice to consider when thinking about business continuity – all of which can be implemented with the help of a local business advisor.

• Connect with a BLP approved business advisor by searching through our database for an advisor that suits your needs.

Don’t Panic! Infographic #1: Planning & Clients / Download a JPG version to share with your networks.

Don’t Panic! Infographic #2: Operations & Finances /Download a JPG version to share with your networks.

Don’t Panic! Infographic #3: Communication & People / Download a JPG version to share with your networks.

 

 Access to finance and the impact of COVID-19 Report and resources 2020

In mid-2020, BLP surveyed 361 small and medium-sized businesses across 8 Pacific Islands to understand COVID-19’s impact on this sector and to identify the services that SMEs regard as solutions to overcome the current crisis.

Download the full Covid Report 2020 here: Download the full report here

Covid Report. Infographic #1: Full Report / Download the full report here

Covid Report. Infographic #2: Finance services / Download a JPG version to share with your networks

Covid Report. Infographic #3: Impact / Download a JPG version to share with your networks

Covid Report. Infographic #4: Strategies to cope / Download a JPG version to share with your networks

Covid Report. Infographic #5: Tech usage / Download a JPG version to share with your networks