This archive report was first published on 1 July 2020.
June 27, 2020, marked the annual Micro, Small and Medium-sized Enterprises (MSME) Day, a day set aside by the UN General Assembly to recognize the need to improve small business development.
However, the COVID-19 pandemic cast a shadow over the celebrations, with many events being low-key or cancelled altogether.
According to a recent study by TechnoServe, the pandemic has had a devastating impact on MSMEs across the continent, with 27% of businesses closing temporarily and 1.8% permanently.
The study also revealed that duka, a critical segment of the MSMEs sector, experienced a 41% decrease in daily revenues by the end of May, with 23% of businesses suspending their employees and 28% at risk of closing down.
Despite the gloomy outlook, the situation presents a great opportunity for corporations to innovate and support these critical businesses, which form the backbone of emerging economies.
As Mr. Martin Mugambi, CEO of Citibank N.A. Kenya and head of its East Africa Cluster, noted, 'Since you cannot treat a new ailment with old remedies; this is where necessity becomes the mother of invention and corporate bodies put their best innovative foot forward.'
With government aid trickling in or not available at all, MSMEs are looking up to their corporate partners as the 'big brother' to give them a helping hand.
As the world moves to a new normal, it is becoming apparent that the pandemic is a call to rapidly shift business models to deliver help and support that will ensure retailers make it out alive.
Mr. Mugambi added, 'Unlike previous years, when occasions like the Micro, Small and Medium-sized Enterprises Day was marked with celebrations and gatherings, the Covid-19 pandemic is a stark reminder that we should not always take things for granted.'
It is time for corporate bodies to take the lead in developing innovative ways through which our business models can withstand and outlive the pandemic.
