Micro businesses suffer most during coronavirus pandemic, says United Nations

The United Nations (UN) has affirmed that Micro Small and Medium Size Enterprises (MSME’s) in private sectors have suffered the most  negative effects during the coronavirus crisis.

Penpushing reports that, the United Nations (UN) Secretary General, Antonio Guterres made this known in a statement issued by Edward Kallon, the United Nations Resident Humanitarian Coordinator.

The world body pointed out that, the most hit were those businesses led by women, youth, minorities and migrants, adding that, women-owned businesses are 27% more likely not to survive the pandemic.

Penpushing further reports that, the statement assured that, the coronavirus recovery efforts are an opportunity to build back better by prioritizing sustainability, resilience and inclusiveness.

The statement said, the United Nations(UN) General Assembly, in its 2017 resolution A/RES/71/279, declared June 27th the Micro, Small and Medium-Sized Enterprises Day, adding that,the resolution was introduced in order to recognise the pivotal importance of micro, small and medium-sized enterprises (MSMEs) in achieving the 2030 agenda and the Sustainable Development Goals.

Penpushing also reports that, the statement noted that, environmental sustainability cannot be achieved without Micro, Small and Medium-Sized Enterprises (MSMEs).

‘Furthermore, MSMEs account for 90% of businesses, 60-70% of employment, and 50% of GDP worldwide. They are the backbone of our economies. MSME prosperity is global prosperity’.

‘This is equally true for Nigeria where MSMEs are the main engine of economic growth. Nigeria has more than 37 million MSMEs and they account for 84% of the total employment in the country, as well as 48.5% of GDP. These companies create jobs that give hope to our most vulnerable communities’.

Penpushing reports that, the statement stated that, almost 18 months after the onset of the coronavirus crisis, most countries are still grappling with the pandemic and its severe health and socio-economic impacts.

‘The crisis has further sparked a digital transformation as many consumers were forced to move their activities online during lockdowns. Many smaller businesses have struggled to keep up with the pace of change’.

Penpushing further reports that, the United Nations (UN) explained that, the coronavirus recovery efforts are an opportunity to build back better by prioritizing sustainability, resilience and inclusiveness.

The Secretary General called on need to turn the recovery into a real opportunity to do things right for the future, adding that the  United Nations system has a number of initiatives that are supporting Nigerian Micro, Small and Medium-Sized Enterprises (MSMEs).through this challenging time.

‘First, the United Nations Development Programme (UNDP) has cushioned the effects of COVID-19 impacts through its cash transfer and cash for work interventions targeted at the youth-run MSMEs in selected vulnerable communities. By providing support to MSMEs, the initiative helps improve food security and social cohesion among the most vulnerable households across Nigeria’.

‘Second, the Spotlight Initiative’s Livelihood Support project provides livelihood and economic empowerment to survivors of sexual and gender-based violence. The project aims to build awareness and create business innovations that accelerates women’s livelihood pathways and have a real impact on the quality of life for women, girls, families, and communities. This is accomplished through financing, cash transfers, business training and mentorship, and capacity building. When women are economically empowered, they are able to protect themselves from violence’.

‘Third, the UN’s One Basket Fund is providing business continuity support to 5,000 Informal Businesses and 4,500 MSMEs across seven states and eleven hotspot communities impacted by COVID-19. Over 1,700 of the 9,500 MSMEs and informal businesses have received $100 across the seven states, with women accounting for more than 45% of the beneficiaries’.

‘Fourth, the Japan Grant is providing support to MSMEs, youth-led start-ups and growing business in Lagos and Kano States respectively, with each beneficiary receiving the sum of USD 300. 630 MSMEs in Kano State and 2,069 MSMEs/Start-ups in Lagos State will benefit from the intervention’.

‘Finally, the UN is hosting a virtual event on Monday 28th June at 1pm for MSMEs as part of MSME Day 2021 and is titled “MSMEs: Key to an inclusive and sustainable recovery.”

‘The event will focus on placing MSMEs at the centre of resilient, inclusive and sustainable recovery and growth. It will feature small business entrepreneurs, including women and youth led firms and “ecopreneurs” alongside global leaders to address barriers, showcase best practices and identify big ideas with MSMEs at the centre of achieving the SDGs’.

Penpushing also reports that, the statement said ,on this Micro, Small and Medium-Sized Enterprises (MSMEs) Day 2021, the United Nations stands in solidarity with all Nigeria’s micro, small and medium-sized enterprises and is ready to support them their efforts to recover in a sustainable, resilient and inclusive manner, stressing that, it is time to build back better and leave no one behind.

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