EMPRETEC Global Summit 2021
Excellencies,
Empretec Directors and Participants,
Ladies and Gentlemen,
A warm welcome to the 7th edition of the Empretec Global Summit of the United Nations Conference on Trade and Development. We are here today to raise awareness and share good practices on the important role of entrepreneurship and micro, small and medium size enterprises (MSMEs) for a post-COVID-19 recovery.
Given that we are more than one year on from the start of the pandemic, we can assess what factors have helped certain MSMEs survive, and even thrive; what lessons have been learnt; and what else can be done to facilitate their green, inclusive, and resilient recovery.
As we all know, MSMEs constitute the backbone of the global economy, accounting for two-thirds of employment globally, and between 80 to 90 per cent of employment in low-income countries.
At the same time, they have been disproportionately affected by the pandemic.
MSMEs are overrepresented in non-essential services sectors which have been significantly impacted by the confinement measures. This led to sharp declines in revenue, and in many cases to permanent closures. Entrepreneurs and MSMEs are critical for the recovery. They can provide timely solutions to new economic, social and environmental challenges, due to their innovative and opportunity-seeking nature. Their smaller size allows them to be flexible and adapt to new environments and emerging needs of societies.
Therefore, policy makers need to adapt policies and institutions to support and enable MSMEs’ emergence, expansion and greater contribution to sustainable development. These should also be aligned with the priorities of the post-COVID-19 social and economic recovery.
Short-term support measures such as relieving tax burdens on MSMEs, extending debt finance, and employment support are certainly needed and should be continued. Yet at the same time, it is important to invest in long-term structural policies, such as digital and financial inclusion, as well as entrepreneurial skills capacity development.
Ladies and gentlemen,
For decades, UNCTAD has been a strong advocate for enterprise development and promoting entrepreneurship, especially for vulnerable groups such as women, youth, migrants and refugees or informal workers. Our leading role in this area has been specifically recognized and highlighted in the latest Resolution of the UN General Assembly on “Entrepreneurship for Sustainable Development” of 2020.
The Resolution reiterated the positive contribution entrepreneurship can make to socio-economic development and environmental sustainability. It highlights that entrepreneurship is more critical than ever for the economic recovery from the pandemic. It also makes specific reference to the Empretec programme as a means to promote a behaviour-based methodology for entrepreneurship promotion and entrepreneurial skills development.
The flexibility of the Empretec programme is also of great value. UNCTAD quickly adapted the programme to the changing environment under COVID. It continued to support the Empretec centers and their networks of entrepreneurs through online and offline innovative tools and resources to build resilience and recovery.
This Empretec Global Summit is special because it happens at a critical moment and presents much needed opportunities. It raises awareness on good practices implemented by key institutions, as well as entrepreneurs themselves, and will inspire inclusive and sustainable actions for the recovery.
Developing an entrepreneurial mindset and behaviours is at the heart of the Empretec methodology. Since its inception in 1988, the Empretec programme, and its 40 national Empretec centers have helped thousands of entrepreneurs build successful and profitable businesses, generate new jobs and improve the quality of lives. I would argue that the programme can be a game changer.
Today we will hear inspiring success stories on how Empretec helped entrepreneurs on different fronts, for instance: to identify opportunities in high-risk and fast-changing environments of COVID 19; maintain motivation and self-confidence in these difficult times; quickly adapt their business models to the « new normal »; and deliver viable and timely solutions responding to urgent societal needs.
Thank you and I wish you an excellent Summit!