SME

SMEs and SDGs: challenges and opportunities

Development Matters Policy, SDGs, SME , , , , ,

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By Dr Teodorina Lessidrenska, Consultant, World Bank

This blog is part of a special series exploring subjects at the core of the Human-Centred Business Model (HCBM). The HCMB seeks to develop an innovative – human-centred – business model
based on a common, holistic and integrated set of economic, social, environmental and ethical rights-based principles. Read more about the HCBM here, and check out an event about it here
The HCBM project originated in 2015 within the World Bank’s Global Forum on Law, Justice and Development and is now based at the OECD’s Development Centre.
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Women selling eggs in Kigali, Rwanda

Recent studies show that small and medium enterprises (SMEs) account for an overwhelming majority of private sector business and economic activity in both developed and developing countries. Given the role of micro-, small- and medium-sized enterprises (MSMEs)1 in the global economy, it is essential to understand their importance and potential contribution to the Sustainable Development Goals (SDGs)2. 

According to the World Bank3 and the OECD4, multiple reasons explain why MSME development is critical for achieving the SDGs:

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Jeunes : oser, innover, entreprendre !

Development Matters Africa, Français, Policy, SME, Youth , , , , , ,

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Par Awa Caba, Co-fondatrice, Sooretul 1

Pour en savoir plus sur ce sujet :
Le Forum mondial de l’OCDE sur le développement 2018
Cliquer ici pour vous inscrire

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Vendeurs de fruits à Thiès, Sénégal. Photo: shutterstock.com

Au Sénégal, les Petites et Moyennes Entreprises (PME) ou structures de production et transformation des produits agricoles se trouvent essentiellement dans la banlieue de la capitale (Guédiawaye à 15 km de Dakar) et dans les zones rurales autour de Kaolack, Ziguinchor, Kédougou, Thiès et Saint-Louis. Elles disposent de peu de moyens techniques et financiers pour se développer et commercialiser leurs produits. Leurs produits manquent notoirement de visibilité et de présence sur le marché local, dans les boutiques et les grandes surfaces.

La stratégie de pénétration du marché par ces structures s’effectue, en général, à travers la participation aux foires internationales. Ce sont malheureusement les seules occasions de vente à très grande échelle. Ce déficit des produits locaux sur le marché a plusieurs causes: peu de moyens mis en œuvre pour développer le secteur, des PME insuffisamment sensibilisées aux enjeux du packaging, et un manque de d’incitation au niveau politique pour favoriser la consommation de produits locaux.

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Three things we have learned about investing in African small businesses and in fragile countries

Development Matters Africa, SME ,

By Jean-Michel Severino, CEO of Investisseurs & Partenaires

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Africa’s small and medium businesses (SMEs) form what is often called the “missing middle” of African economies. The smaller the investment ticket is, the higher the transaction and monitoring costs are, reducing the net profitability for investors. In addition, the poorer and more fragile the country is,  the riskier the investments are. These are well-known facts amongst private equity professionals. Small businesses require small investments but also long gestation periods, as well as sizeable personalised financing and access to specific expertise and knowledge. Fragile countries require in-depth knowledge of the environment in all its dimensions to make wise choices. This is why so few investors are willing and able to finance small African businesses and invest in complex local situations. The choice of supporting these businesses and investing in fragile countries is primarily a choice of impact. It implies several adjustments to ensure the sustainability of the investment fund.

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