Micro-, Small and Medium-sized Enterprises Day: Our Efforts in Energising Economies

One example of an MSME is Asa Mart, a small store in Phnom Penh, Cambodia, selling fruits, vegetables, groceries and drinks. This store relied primarily on walk-in customers for business before the COVID-19 pandemic. During the pandemic, however, walk-ins became less common. As business suffered, Asa Mart's owner, Mrs. Soung Chanthou, faced pressures to adapt to a changing world. With help from our COVID-19 response programme, Mrs. Chanthou was able to reorganise the way she conducted business entirely—she gained a new understanding of business practices,such a sound financial management and online marketing. These changes allowed her to substantially increase her customer base and begin to pay herself a salary. Mrs. Chanthou's story is just one example of how an array of programmes in place to support Micro-, Small and Medium- Sized Enterprises (MSMEs) and local economic growth can impact the lives of small business owners.

This year's World Micro-, Small and Medium-sized Enterprises (MSMEs) Day has been assigned a critically important theme: the ties between MSMEs and the United Nations Sustainable Development Goals (SDGs). As we approach 2030—the expected deadline to achieve these goals—we can see that progress is lagging. Around the world, human rights violations, environmental crises and political conflicts continue to impact the daily lives of millions. To achieve these goals and the breadth of social improvements that will come with them, we must empower economic activity and particularly that of small businesses, which account for 90% of all businesses, 70% of employment and 50% of the GDP worldwide. Supporting these small businesses, which in turn stimulate and drive economic and social growth, is critical. Specifically, our support of MSMEs will help make global progress towards Goal 8 of the SDGs, which is to promote inclusive and sustainable economic growth, employment, and decent work for all. We have continuously worked with MSMEs, recognising that they have the power to transform economies through equitable growth when given adequate support. 

Individuals and communities play a critical role in the development of the economy. In places where access to formal job markets is limited, MSMEs allow owners and employees to drive their own social and economic progress, which in turn helps to uplift their communities as a whole. Because cultural sensitivity and sustainability are critically important to our organisation, our work around MSMEs takes many forms, adapting to the specific needs and circumstances of each country and community where we operate. This past year, we have worked on numerous projects across the globe with these goals in mind.  

In Armenia, we have supported over 100 small businesses over the past decade, primarily in the agricultural, textile, hospitality and food processing sectors.

One such business is the Mets & More bakery, which not only sells a wide variety of baked goods, including traditional bread from Nagorno Karabakh. Mets & More employs displaced and vulnerable families and donates proceeds to future development programmes in the city of Metsamor. The Mets and More bakery provides immediate relief to refugees. However, it also has long-term goals including the construction of their building, vocational training courses and brand awareness. 

In a similar vein to Mets & More, Anahit, a former physics teacher from Ukraine, learned new skills and found stable employment through baking. Zarine, a displaced mother of three, was able to keep traditions alive and support her family. Anahit, Zarine and countless others in strained social and financial situations are why we continue to support MSMEs like Mets and More and why our efforts are so important.  

In Ethiopia, the Leather Initiative for Sustainable Employment Creation (LISEC) project helps  entrepreneurs like Yetimwork and Tewabe, expand their businesses and obtain consistent incomes.

LISEC in Ethiopia is a three-year programme funded by the EU, which involves training in financial management, waste reduction and customer handling—all precious skills enabling businesses to run more efficiently and profitably. Yetimwork runs the Bilisuma Leather Products Workshop, which produces a variety of leather products and employs over 60 individuals, a majority of whom are women. With help from the LISEC programme, she was able to expand her business and attract new customers. Tewabe, another participant in the LISEC program, started as a shoe shiner but was able to acquire a new set of techniques and skills, which allowed him to venture into the production of leather goods and expand his business.  

The scope of our work with MSMEs and entrepreneurs like Yetimwork and Tewabe is vast because we know how essential MSMEs are. In addition to those mentioned above, we also manage projects in Georgia and Iraq and elsewhere. We have had great success in transforming the lives of the owners and employees of MSMEs over the past year.

Beyond its immediate impacts on the lives of business owners, our work with MSMEs drives economic growth, social mobility and gender equality goals. As small and often family-owned businesses, women frequently run MSMEs. Our work has helped these women gain financial literacy skills that allow them to take on more substantial responsibilities and create long-term career opportunities. Looking forward, we will continue to join communities across the world in recognising the fundamental importance of MSMEs, in support of a more equitable, more sustainable future.