Providing finance to the bottom of the pyramid (en)
International Trade Centre’s flagship report, Small and Medium-Sized Enterprises Outlook (SMECO) 2019 was formally launched at the World Trade Organisation coinciding with the Micro, Small and Medium-Sized Enterprises Day (MSME) on June 27, 2019.
The third edition of the report, emphasizes the need of annually investing $1 trillion to unlock the development power of small businesses.
Ms Arancha Gonzales, Executive Director ITC inviting attendees for giving SMECO a detailed read, pointed out that collective action was needed to link the offer of investment with the demand for it. The trade policy community had a crucial role in investment facilitation for MSMEs and an improvement in conditions could ensure that finance reached the bottom of the pyramid, she added.
Speaking about impact investing for micro, small and medium-sized enterprises participants agreed that SMEs contribute to the SDGs through the employment opportunities they generate, the business practices they choose to adopt, the sectors in which they operate and the impact they have on the broader economy.
Therefore, it was necessary to create an enabling environment for MSMEs around the world so that they could use their potential to contribute to the achievement of SDGs
Representatives from trade and finance organizations in Senegal, Ghana, India and Tajikistan participated in discussions exploring themes of impact investing for MSMEs and the highlights of SMECO.
Presenting the main findings of this year’s SMECO, Ms Marion Jansen Chief Economist and Director Division of Market Development at ITC said delivering growth, development, job creation and stability in emerging economies could become a reality by connecting MSMEs with investors.
In addition to MSME day events in Nairobi, Mumbai, New York, Lyon and Offenburg, the occasion provided an opportunity to reflect on ways of supporting MSMEs to become engines of inclusive growth.