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MSMEs MSMEs

workshops, networking and coaching to explore and identify “The local small businesses and the local entrepreneurs
potential business ideas. They then move on to the “Green are not going to come and go, they’re here and they’re here
Haos” where ideas are assessed for their viability by testing because people have created them so that they can afford to
them in the market. Finally, in the ‘Market Haos’ entrepre- educate their own children or develop their own communi-
neurs are actively supported to develop their business. ties, or whatever. So I think for me, that’s where the support
Breadfruit Consulting’s Chris Elphick says the idea behind needs to be.”
Bisnis Nakamal was to create something that wasn’t donor Elphick continues “I’ve never been convinced that govern-
reliant, and provided a place to meet and talk. Mentoring ment is the right agency to be supporting small businesses.
will be delivered by local businesspeople, who have proven Government should be creating an environment in which small
experience in the commercial world, and are continuing to business can operate. So maybe that’s looking at things like
develop their coaching and training skills. helpful taxation and other helpful issues [but] when it comes
Elphick says he sees a lot of well-intentioned donor- driven down to running these, people have got to be allowed to do it
projects around the Pacific, noting “one of the problems I see themselves.”
with all of that is dependency, people become dependent on Amongst the programs V-Lab has offered, and Breadfruit
handouts really, money from elsewhere. There are endless Consulting has supported, is Yumi Growem Vanuatu, which is
programs created that provide free development for business- currently working with 33 people who have all returned from
people. Personally, I’m not sure it’s a good idea. I think if we seasonal work programs in New Zealand and Australia over the
want a sustainable economy and especially a small business last few years, and are now establishing their own businesses.
economy, you cannot depend on handouts, no matter how These ventures range from farming to sewing, construction
well meaning they are, from donors. to commercial cleaning, and Elphick says their founders have
“It’s a little bit like starting up your own business and you benefitted from overseas exposure.
can’t do it until you borrow lots of money. So you start out “We’re trying to build on the work ethic they come back
straight away in debt. That’s not a smart way to start your with…What we’re seeing is networking, people doing work
small business. with each other. And again, that’s the idea of having a …
“It’s got to be focused on sustainability and resilience and neutral space. It’s not an educational establishment, it’s not
that’s going to come from within.” a government building, it’s not a Chamber of Commerce. It’s
Elphick chooses to focus on supporting local entrepreneurs very friendly and relaxed.”
and small businesses because “they’re always going to be
underpinning the economy. editor@islandsbusiness.com

FIJI’S SHOT IN THE ARM FOR MSMES

The Fiji government’s latest budget included a F$200 ing their businesses safely and sustainably while eliminating
million (US$94 million) financial package for MSMEs to the need to invest in websites and dedicated online pay-
be rolled out by the Reserve Bank of Fiji and commercial ment gateways for validating payments.”
banks. Fiji’s Minister for Commerce and Trade, Faiyaz Koya
The Fiji Development Bank’s new CEO, Saud Minam says recently told parliament that a survey of over 2200 MSMEs
the package is a much-needed boost to FDB’s efforts. during the second wave of the pandemic had revealed that
“Under this initiative when businesses take a loan from 74% of them have either permanently or temporarily closed
FDB, ranging between $10,000 and $100,000, they will not or are now operating on reduced hours.
be repaying anything to the Bank for two years – it will be The survey further found that 77% of them suffered more
an interest-only loan for that period that the Government than a 50% decline in revenue, and 90% said they were un-
will pay on behalf of the business,” he explained. able to diversify their services or products. Furthermore,
“From the third year, after two full years of cushioned 21% requested relief or deferment of credit and rent
recovery, the businesses can start repaying their loan,” obligations.
Minam continued. “It is a shot in the arm for our MSMEs, Other agencies have also lent their support to Fiji’s MSME
an important sector that supports close to 60% of Fijians in sector. A consortium including the United Nations, govern-
job, and our agriculture customers.” ment and business bodies has partnered to design, print
Through government, MSMEs have also been offered sub- and deliver tailored COVID-Safe signage packs to MSMEs,
sidies to list and sell their products on the VitiKart platform including those in the informal sector.
operated by Vodafone Fiji. The F$1.15 million Vitikart Sub- Australia’s Minister for International Development and
sidy Scheme will wholly-subsidise the monthly subscription the Pacific, Zed Seselja also recently announced that the
fees of eligible MSMEs registered on VitiKart from August country has allocated A$490,800 (US$351,300)to an initia-
2021 to 31 July 2023. tive to help 400 women-led micro and small businesses
Reserve Bank of Fiji Governor, Ariff Ali, emphasised the “have access to a tailored digital mobile phone payment
importance of Fiji’s MSME sector in providing jobs and system, and the relevant training and financial literacy
income to Fijians in the current COVID environment, adding skills to implement this technology for their business.” The
“Leveraging e-commerce marketplaces such as VitiKart initiative is a partnership with Mastercard, Fintech Pacific
provides a timely opportunity for MSMEs to continue operat- and ygap.

Islands Business, August 2021 35