UNCTAD releases report on Covid-19 pandemic impact on MSMEs; estimates 47% closures in India

New Delhi, Feb 18 (KNN) United Nations Conference on Trade and Development (UNCTAD) has released a report on Covid-19 pandemic impact on micro, small and medium sized enterprises (MSMEs) and has estimated that as many as 47 per cent of MSMEs were permanently and temporary closed in India.

The report provides a view of the current competition and market access challenges being faced MSMEs around the world as they seek to deal with the impact of the pandemic on their operations.

It focuses on the competition-related challenges caused by the pandemic, ability to access existing and new markets, regulatory responses to the situation that especially affect MSMEs, and related observable trends relevant to small and medium enterprises. It concludes with a few recommendations for future action by national governments and international organizations.

Various examples are provided from a wide range of different nations around the world, the principal focus is on developing countries and their MSME populations, as many MSMEs today are on the cusp of closure or have already been forced to exit.

UNCTAD has identified six principal trends that are common across most nations:

1.   Governments are placing a priority on propping up existing firms.

2.   Substantially more co-ordinated economic activity is being approved by competition authorities.

3.   Market access is being hindered by inter- and intra-national restrictions on the movement of people, goods and services.

4.   MSMEs are moving online and seeking to enhance their ability to access markets using digital technology.

5.   More competition authorities are working directly with MSME agencies and MSME associations.

6.   Informal sector MSMEs are increasingly being recognised as an important factor in both competition and market access policy considerations.

Some recommendations are made for future action by governments and agencies of individual member states, in some cases with the support of international organizations. These are a mixture of possible regulatory measures, greater engagement with MSME representative organisations, training and capacity-building activities, and other actions. Whilst some are focused on competition issues, steps are also suggested to improve the ability of MSMEs to access both international and domestic markets. (KNN Bureau)