Empowering MSMEs for Sustainable Economic Growth: Insights from UNESCAP APSDF 2025

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of our economies, driving growth, innovation, and job creation. Their role is pivotal in achieving Sustainable Development Goal 8 (SDG 8), which focuses on promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. During my panel speech at the UNESCAP Asia-Pacific Sustainable Development Forum (APSDF) 2025, we delved into the critical contributions of MSMEs to this goal.

1. Competitive Nature of MSMEs: MSMEs thrive in highly competitive environments, pushing them to be more efficient and innovative. Unlike larger corporations, MSMEs often operate with limited resources, compelling them to optimize operations and find creative solutions to stay ahead. This agility allows them to quickly adapt to market changes and consumer demands, fostering a dynamic and resilient economy.

2. Enhancing Economic Efficiency: The competitive pressure on MSMEs leads to better resource allocation and cost management, enhancing overall economic efficiency. By offering high-quality products and services at competitive prices, MSMEs contribute to a more efficient and productive economy. This aligns with SDG 8's target of achieving higher levels of economic productivity through diversification, technological upgrading, and innovation.

3. Driving Innovation: Competition drives MSMEs to continuously innovate. They invest in research and development (R&D) to create new products, services, and processes that set them apart from competitors. This innovation not only fuels economic growth but also supports SDG 8 by promoting development-oriented policies that encourage productive activities, decent job creation, and entrepreneurship.

4. Supporting Inclusive Growth: MSMEs are crucial for inclusive growth, providing employment opportunities to diverse groups, including women, youth, and marginalized communities. Due to economic necessity, MSMEs are often more inclusive and accommodating in their hiring practices. They offer flexible employment arrangements, which can be particularly beneficial for individuals who may not fit into the traditional employment model. This inclusivity ensures that MSMEs remain viable and continue to contribute to economic development, supporting SDG 8's targets of full and productive employment and decent work for all, and promoting youth employment, education, and training.

Conclusion: In summary, the competitive nature of MSMEs makes them essential for achieving SDG 8. By driving economic efficiency, fostering innovation, and supporting inclusive growth, MSMEs significantly contribute to sustained, inclusive, and sustainable economic growth. It is imperative for policymakers, NGOs, and large corporations to support and invest in MSMEs. This support is crucial for creating a more prosperous and equitable future in line with the goals of SDG 8.