Policy And Data Support To Enhance MSME’s Role As Growth Driver: ADB Report

New Delhi, Oct 25 (KNN) The role of micro, small and medium enterprises (MSMEs) as drivers of growth in the economy will a boost through policy and data support, according to Asia Small and Medium-sized Enterprise Monitor 2023.

Published by the Asian Development Bank, the report states that the MSME sector played a vital role in the recovery of the economies of Asia and the Pacific region. 

According to the report, initiatives such as “the formalization of small businesses, reskilling, and upskilling of workers, along with the integration of digital tools and technology, economic diversification, and increasing access to new and innovative financing can create a fertile environment” for these businesses to contribute to sustainable growth. 

“Job creation is a critical challenge for Asia and the Pacific,” said ADB Chief Economist Albert Park. 

“In the Pacific, remittances sent by emigrants to advanced economies can support small businesses and create employment opportunities for women and younger workers. Tourism and agribusiness—where MSMEs actively participate—drive Pacific economies. Their sustainable growth helps strengthen MSME dynamism and raises national productivity,” added Park. 

According to the ADB’s data from 24 emerging economies from 2022, MSMEs constituted 96.6 per cent of all enterprises, 55.8 per cent of the workforce, and 28 per cent of the economic output on average of all the countries. 

(KNN Bureau)