Unlocking the potential of SMEs for the SDGs

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By Lamia Kamal-Chaoui, Director, Centre for Entrepreneurship, SMEs and Local Development


Learn more about this timely topic at the upcoming
Global Forum on Development on 5 April 2017
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SMEs-Dev-MattersA universal definition of small – and medium-sized enterprises (SMEs) does not exist. What is generally undisputed, however, is the fact that the overwhelming majority of private-sector businesses in the world are SMEs and that SMEs account for a very large share of world economic activity in both developed and developing countries.

Look at the data. In the OECD countries where SME definitions are comparable, the contribution of SMEs to national employment ranges between 53% in the United Kingdom to 86% in Greece. The contribution of SMEs to national value-added 1 is between 38% in Mexico and 75% in Estonia. The SME share of economic activity is typically larger in OECD economies than in emerging-market economies, reflecting a mix of stronger SME productivity levels in the former and higher rates of economic informality in the latter. In emerging-market economies, SMEs are responsible for up to 45% of jobs and up to 33% of national GDP. These numbers are significantly higher when informal businesses, which are often more than half of the total enterprise population, are included in the count. Some estimates suggest that when the informal sector is included, SMEs in emerging-market economies account for 90% of total employment.
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Encouraging entrepreneurship in Africa is vital to achieving the Global Goals

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By Dr. Amy Jadesimi, CEO, LADOL



Learn more about this timely topic at the upcoming

Global Forum on Development on 5 April 2017
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Amy-JadesimiNext week, the OECD Global Forum on Development will convene in Paris to discuss the critical role the private sector must play in achieving the 17 Sustainable Development Goals (SDGs or Global Goals). Private sector funding, innovation, entrepreneurship and sustainable business models can rapidly reorient the global economy towards achieving prosperity through business models that align with the goals.

Here’s what we know: At least USD 12 trillion could be added to the global economy by 2030 if the private sector embraces sustainable business models in the1 four key development areas of energy and materials, health and well-being, food and agriculture, and cities. Embracing sustainable business models in other sectors will push this figure even higher. This level of private sector engagement could create 380 million new jobs, primarily in low income, high growth countries.
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Tackling crop losses at the root means sharing knowledge

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By Dr Ulrich Kuhlmann, Executive Director Global Operations, CABI


Learn more about this timely topic at the upcoming
Global Forum on Development on 5 April 2017
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ACABIll farmers are affected by pests and diseases attacking their crops, but smallholder farmers and their dependents in low- and middle-income countries are disproportionately affected. To put it in perspective, there are about 500 million smallholder farmers worldwide who feed about 70% of the world’s population. When you cultivate less than a hectare (2.5 acres) of land and rely on your crops for both sustenance and income, fighting pests can become a battle for life and death. International trade and climate change are exacerbating the problem by altering and accelerating the spread of crop pests.

Occasionally, when a particularly destructive pest surfaces, it can make headline news. Last year it was reported that the tomato leaf miner moth (tuta absoluta) was wreaking havoc across Africa, causing USD 5 million of damage in Nigeria alone and driving up the price of tomatoes, a food staple. Earlier this year, the fall armyworm made the news for devastating maize crops from Ghana to South Africa. But for smallholder farmers the battle against pests is a daily struggle, not an intermittent occurrence.

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How we all benefit when women have access to finance

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By Mary Ellen Iskenderian, President and CEO, Women’s World Banking


Learn more about this timely topic at the upcoming
Global Forum on Development on 5 April 2017.
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shutterstock_453468400The International Finance Corporation estimates that approximately 65% of women-led small and medium enterprises (SMEs) in developing economies are either unserved or underserved financially 1. For a women entrepreneur, this means the odds are already stacked against the growth potential of her business. Giving women access to credit and other financial tools will not only help those businesses, it will also help us achieve critical Sustainable Development Goals (SDGs).

This gap in access to capital for women-led SMEs exists despite significant contributions by these businesses to gross domestic product and employment. Women-owned businesses account for approximately 40% of the world’s 340 million informal micro, small and medium enterprises and one-third of the 40 million formal SMEs 2. A projected 112 million female business owners also employ at least one other person in their business 3.

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The SDGs, Domestic Resource Mobilisation and the Poor

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By Nora Lustig, Samuel Z. Stone Professor of Latin American Economics, Director of the Commitment to Equity Institute at Tulane University, nonresident senior fellow of the Center for Global Development and the Inter-American Dialogue, and non-resident senior research fellow at UNU-WIDER 1


Learn more about this timely topic at the upcoming
Global Forum on Development on 5 April 2017.
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E_SDG goals_icons-individual-rgb-01Countries around the world committed to the Sustainable Development Goals (SDGs).  However, achieving some of the SDGs could happen at the expense of the overarching goal of reducing poverty, at least in the short-run.2  One key factor to achieving the SDGs will be the availability of fiscal resources to deliver the floors in social protection, social services and infrastructure embedded in the SDGs. A significant portion of these resources is expected to come from taxes in developing countries themselves, complemented by transfers from the countries that are better off.3 In developing countries, however, raising additional taxes domestically for infrastructure, protecting the environment and social services may leave a significant portion of the poor with less cash to buy food and other essential goods.  Continue reading

Blended Finance: Critical steps to ensure success of the Sustainable Development Goals

By Chris Clubb, Managing Director, New Products and Knowledge, Convergence

blended-investmentThe facts are known. Official Development Assistance (ODA) from member countries of the OECD’s Development Assistance Committee (DAC) will not grow at the rate necessary to fully deliver on the Sustainable Development Goals (SDGs). Blended finance, defined as the strategic use of official (public) funds to mobilise private sector investment for emerging and frontier economies [1] , is recognised as an important tool within the development toolbox to mobilise new capital sources to achieve the SDGs. Through blended finance, public funds can target a risk that the private sector is unwilling or unable to take. It also can be used to improve the risk-return profile of an investment to an acceptable level for the private sector. What all this does is attract much-needed private sector investment and know-how to projects.
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Walking the SDG talk: Are we ready to change the way we do development?

By Doug Frantz, Deputy Secretary General, OECD

 

E_SDG_goals_icons-individual-rgb-17.pngThose most in need don’t care about the labels their countries are given: be it low – or middle – income, fragile or emerging, donor darling or orphan. What they care about is peace and security, having opportunities to do decent work, and providing their children with a better future.

Nearly 1.1 billion people have escaped extreme poverty since 1990. But for the 800 million people still living in poverty – half of them under the age of 18 – conditions are frighteningly unchanged. They have no water, sanitation or electricity. Often, because they lack services and income, they depend on informal or illicit resources to protect themselves from hunger, sickness or violence.
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