A roadmap to support MSMEs in the region in the post-pandemic era

On July 22, SELA will hold a high-level virtual event to analyse the challenges faced by MSMEs, the productive units that generate the largest number of jobs in Latin America and the Caribbean and represent the main source of income for households.

With the central objective of promoting the creation of a roadmap to guide regional efforts to encourage the recovery of micro, small and medium-sized enterprises (MSMEs) and promote synergy and cooperation among the various regional actors, the Permanent Secretariat of the Latin American and Caribbean Economic System (SELA) will hold a high-level virtual event on 22 July.

“We have focused our efforts on three fundamental axes in order to strengthen MSMEs: informality, which results in low levels of productivity and social inclusion; difficulties in accessing financing to obtain resources for their activities; and the digital transformation that makes them much more efficient,” said Ambassador Javier Paulinich, Permanent Secretary of SELA.

Paulinich informed that the event will be attended by high-level representatives of the member countries of the organization, as well as experts from international organizations such as CAF-development bank of Latin America, the Organization for Economic Cooperation and Development (OECD), and the International Labour Organization (ILO).

“Although MSMEs are a central component in the economic and social fabric of the region, because they constitute the vast majority of enterprises, generate the largest proportion of employment, and are the main source of income for households, their participation in international trade is very low, which makes it a priority for SELA and other regional organizations to strengthen their performance,” Paulinich said.

The Permanent Secretary explained that the objective is to seek to identify which are the industrial sectors with the greatest growth potential in each one of the countries, so that MSMEs can participate successfully. “We would be mistaken if we encourage or promote the creation of small and medium-sized enterprises in sectors where countries are not competitive because it would lead them to failure,” he said.

In the virtual event on July 22, the speakers will seek to provide answers to several questions about the reality of MSMEs. Among them: how to promote formalization; what are the latest trends for the creation and implementation of tools to support access to financing; what are the most successful international best practices to improve access to financing; what barriers prevent the digital transformation of MSMEs, and what actions can be taken to help them capitalize on the benefits of digital technologies.

Before the COVID-19 crisis, the economic performance of Latin American and Caribbean countries showed visible signs of slowing down, as a result of stagnant productivity levels, thus deteriorating competitiveness and an unstable international context.

With the emergence of the pandemic, these challenges have multiplied and the region is facing the worst crisis in its contemporary history, as shown by the figures of international organizations, which project a recovery below the world average in 2021 and warn about the threats of a new lost decade for Latin America and the Caribbean.

In their efforts to contain the immediate effects of the recession, the countries have combined economic and health actions by using their limited available resources. MSMEs expand the range of options for the workforce with lower levels of training and fewer opportunities, becoming an option to accelerate inter-generational mobility, reduce poverty and strengthen social cohesion.

NOTE: If you wish to participate in the Virtual Forum “A roadmap for the recovery of MSMEs in the post-pandemic era” on 22 July at 10:00 am, click on the following link and register: //bit.ly/3ulETuj