Covid-19 affects SMEs

A United Nation (UN) survey covering 3,000 small to medium enterprises (SMEs) across all 89 districts of PNG’s 22 provinces last month shows that 75 per cent of them were adversely affected by the Covid-19.
According to UN resident coordinator Gianluca Rampolla, during the second SME breakfast on Friday, more than 82 per cent of firms that sourced their production materials locally experienced a halt in production.
Rampolla said the full UN socioeconomic impact assessment of the Covid-19, including survey results from 6,000 households and recommendations for Government, development partners and businesses, would be made available next month.
“It is, without a doubt, a very trying time as businesses struggle with the socioeconomic impact of the Covid-19, in PNG and all over the world,” he said.
“What the Covid-19 has also shown, globally, is that the hallmark of a vibrant and healthy economy should be one that can sustain and take care of the wellbeing of its citizens during times of an emergency.
“The solidarity that Papua New Guineans have displayed to each other is once again a beautiful story to tell the world.
“In Papua New Guinea, where the social structure is very much built on larger family relationships and cultural ties, the achievement of the sustainable development goals (SDGs) is strongly linked to micro, small and medium enterprises (MSMEs) that are responsive to the needs and demand of the people and communities.
“The private sector, especially MSMEs, is the vital driver of economic development and growth in PNG, contributing to the employment and income of thousands of persons across this beautiful country.
“MSMEs provide essential goods and services and contribute to the productivity and economy-wide efficiency of the country with their innovations, ideas, and skills.
“A diversified economic base has a significant impact on economic output, productivity, and growth.
“Several countries have had a sustained transition in their economies due to their Government’s focus and support to the MSME sector.
“As a result, millions have been lifted out of poverty as economies have grown.”
Rampolla acknowledge the Government’s vision on economic diversification in PNG and efforts to promote an enabling environment for MSMEs and a growth that was more inclusive and equitable.
“The UN supports the strategic direction taken by the Government through the 2016-2030 SME policy and the SME master plan.”