MSME Growth

An almost universal issue for micro enterprises is short-term cash flow restrictions and the lack of access to financial capital. The liquidity shortage in the short term may leave businesses unable to pay their employees and suppliers or cover their operating expenses, as well as forward-plan and realise scale in the medium to long term. While global MSME credit gaps range from $1.2 trillion for formal MSMEs to $6 trillion for informal MSMEs, the current credit gap for global MSMEs is estimated at $1.2 trillion for formal MSMEs, and $6 trillion for informal MSMEs. Almost 70% of micro and small enterprises (MSMEs) in emerging markets do not have access to credit. Formal and informal micro- and small- and medium-sized businesses are generally perceived by commercial financial institutions as high-risk borrowers, which results in higher fees and interest costs for those institutions. A great deal of effort has recently been put into subsidising grant programmes, discounted fees, and loan guarantees in order to reduce the gap between countries. Ensuring small business owners only take on an acceptable amount of risk and avoiding bad debts is important for well-managed risk strategies. Interest in venture capital and other innovative and alternative financing for micro-enterprises remains high.

Entrepreneurs and micro- and small- and medium-sized enterprises (MSMEs) endure disproportionate asymmetric information, like a lack of market information. Many entrepreneurs and micro-enterprises face difficulties finding the support they need to grow their business management, marketing, record-keeping, financial and strategic planning, and to better compete in the market. R&D and innovation in promoting productivity could potentially further limit the appreciation of MSME entrepreneurs on the value of research and development (R&D). This would have a major impact on the global supply chain for small and medium-sized enterprises (SMEs).

Many MSMEs can only afford to maintain a basic level of infrastructure, and this is crucial to their operations. Internet access, road networks, ports and airports, water supply, and electricity supply are important to helping companies get established and enabling microenterprises to expand. It is vital for micro- and small- and medium-sized enterprises (MSMEs) to have access to digital resources and technologies, such as computers and the internet, in order to close knowledge, capacity, and financial gaps.

A significant opportunity to lessen global poverty and inequality is fostering the capacities of women entrepreneurs and business owners. A new study from UN Women projects that if women have equal access to entrepreneurship, the global economy could grow by as much as $28 trillion by 2025.

Female MSME entrepreneurs, especially women from poor rural communities, frequently have more trouble in growing their business because they do not have land deeds or collateral they can use to access traditional financial services. Despite this, the WEDP-funded project in Ethiopia saw a 99.6% repayment rate. According to an IFC study, women business owners in South Africa pay back their loans more frequently than men do.

A similarly high repayment rate was found by other international organisations, including the United Nations Entity for Gender Equality and the Empowerment of Women, in regard to women entrepreneurs all over the world. International organisations have put significant effort into helping women to become entrepreneurs or owners of micro-small- and medium-sized-enterprises (MSMEs).

The framework of integrative trade is based on investments, business relationships, and partnerships to help firms grow profitably by exchanging different types of goods, information, services, and services connected to goods.

• International Business Development
• International Business Operations and Planning
• Intercultural Aspects of Integrative Trade
• Political and Policy Environment
• International Risk Management
• International Investment
• International Trade and Supply Chain Finance
• Global Value and Supply Chain Management
• International Trade Law
• International Trade Compliance

By integrating digital technology into business operations, you can alter how a company functions and provides value to customers. Each business has its own unique characteristics, and that means that every business needs to have a custom digital transformation strategy tailored to fit the business and the needs.

Digital Transformation

• Empowered employees
• Engaged customers
• Transformed products
• Optimised operations

Highlighted below are some of the core benefits that digital transformation brings for small and medium organisations:

• Increased savings and efficiencies
• Improved customer experience
• Increase competitiveness, agility & innovation
• Data-driven insights