OAS Emphasizes Support for Micro, Small and Medium-Sized Enterprises (MSMEs) for Inclusive Development

"The word of our time is inclusion - economic inclusion, inclusion with opportunities" declared Minister of Economy, Industry and Commerce of Costa Rica, Mayi Antillón, as she addressed member states on August 27, 2013 at a substantive dialogue of the Inter-American Council for Integral Development (CIDI) on the issue of small business. The Minister shared the experience of her country in developing innovative and successful programs to strengthen Micro, Small and Medium-sized Enterprises (MSMEs), stressing the importance of meeting the needs of different regions within each country and of offering greater opportunities for women in the pursuit of a more inclusive society.

Micro, small and medium-sized enterprises (MSMEs) represent more than 95% of businesses in the Hemisphere, employ more than 65% of employees, and account for 30% of GDP (Latin Economic Outlook 2013). This means that most citizens derive their income and livelihood from small businesses and that their journey to prosperity relies largely on the capacity of these businesses to compete and grow.

Given their role and contribution in fostering job creation, poverty reduction and social inclusion, MSMEs represent a priority sector for the OAS-SEDI, particularly through the work undertaken by the Department of Economic and Social Development (DESD). This is evidenced by recent efforts to convene and promote policy dialogue; support technical cooperation, and coordinate actions targeted to this important but often vulnerable sector of the economy.

During the meeting, CIDI Chair, Ambassador Nestor Mendez, Permanent Representative of Belize to the OAS, noted that the dialogue ensured a “more effective linkage of policy dialogue with OAS efforts, "highlighting the need for the OAS to “continue to promote the sustainable growth of this important sector of our economies".

It is in this spirit that member states will take the discussion to a higher level in November, when they convene at the Third Inter-American Dialogue of High-Level MSME Authorities on "Public Policies to Promote Competitiveness, Innovation and Internationalization of MSMEs". The meeting is being coordinated by OAS-SEDI and will be held in Brasilia from November 11-12, 2013, with the collaboration of the newly created Ministry of Micro and Small Enterprises and the Brazilian Service of Support for Micro and Small Enterprises (SEBRAE) and with the financial support from the Government of Canada. The high-level meeting builds on the OAS’ unique convening power as a hemispheric political forum. Previous meetings (Mexico City, 2010 and New Orleans, 2012) have facilitated the exchange of experiences, led to the adoption of policies to promote the competitiveness of MSMEs and informed actions at the programmatic level.

Complementing and responding to this high-level policy dialogue is the technical cooperation work undertaken by OAS-SEDI in this area, particularly as it works with governments in strengthening their institutional capacity to assist MSMEs. To this end, work underway includes horizontal cooperation, online training, train-the-trainer initiatives and collaboration networks in areas as diverse as competitiveness, tourism, and the implementation of CSR principles by SMEs.

An exemplary project - born in fact from a call made by Caribbean countries for horizontal cooperation at a high-level policy dialogue - is the Caribbean Small Business Development Centre (SBDC) project, which is adapting the successful US Small Business Development Center (SBDC) model in five countries in the Caribbean - Barbados, Belize, Dominica, Jamaica and Saint Lucia, following similar processes in Central America and Mexico.

In support of national entities that assist MSMEs in the Caribbean, a series of Certificate Training courses for future SBDC counselors and directors is being conducted in each country to transfer knowledge and train professionals on how to operate an SBDC. Participating Government representatives from SME support institutions have underscored the relevance of the project:

 - At the Dominica training, Alexander Stephenson, Executive Director of the Employment and Small Business Support Agency noted that “instead of reinventing the wheel, at the employment and small business agency we felt that it is absolutely necessary to adapt to something that has been proven to be successful and very flexible.” (Local press article available here).

- For his part, Donville Inniss, Minister of Industry, International Business, Commerce and Small Business Development of Barbados highlighted the approach, stating that “what is required is more effective business development services which looks at the entire business and seeks to guide it along the path to success which involves good human resource management, strategic planning, financial administration and wise product development.” (Local press article available here).

- The first SBDC pilot center was successfully launched in Belize on October 31, 2012. The organization leading the project in Belize, BELTRAIDE (Belize Trade and Investment Development Services) notes that “the Government of Belize is willing and committed to support the development of the MSME sector. Given the importance of this sector, SBDCBelize will facilitate the process of addressing and assisting the MSMEs with the many challenges they face.” (Article available here).

The newly created network of Caribbean SBDC programs will eventually be linked with each other to leverage expertise and infrastructure and to connect local clients with international trade opportunities. The OAS-SEDI project is being undertaken in partnership with the Caribbean Export Development Agency, the University of Texas at San Antonio, and with funding from the U.S. Government through the U.S. Mission to the OAS.

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