By Hassan Arshad, Director Policy, Communications & Legal, foodpanda
MSME Day, also known as Micro, Small, and Medium-sized Enterprises (MSMEs) Day, is an annual observance held to raise awareness about the significant role that MSMEs play in the global economy and celebrate their contribution to achieving the Sustainable Development Goals (SDGs).
MSME Day helps draw attention to the financing needs of MSMEs and nurtures discussions on improving access to financing. It encourages financial institutions, governments and the corporate sector to develop novel financing mechanisms, such as microcredit programs, venture capital funds, loan guarantee schemes, discount coupons, and provision of a variety of services to address the financing gap faced by MSMEs. The day was designated by the United Nations General Assembly in April 2017 as part of its resolution to distinguish the importance of MSMEs in achieving SDGs, as they account for up to 90% of businesses, 60% to 70% of employment, and for half of global GDP.
MSMEs are crucial drivers of economic growth, employment generation, poverty alleviation, and innovation in Pakistan. Like any endeavour, they often face several challenges, such as limited access to finance, market barriers, and regulatory burdens. MSME Day aims to highlight these challenges, promote initiatives and policies, and encourage corporations to support their growth and development.
In today’s digital age, online presence is crucial for business scalability and growth. However, many MSMEs may not have the resources or expertise to carve a strong online presence. However, established marketplaces/platforms offer a ready-made outlet where MSMEs can showcase their products, prices, and promotions, enabling them to tap into the growing trend of online ordering without substantial investment. For instance, foodpanda has empowered various HomeChefs and home-based businesses largely run by women through partnering with them and providing them with an opportunity and space to market themselves on its tech platform and connect with its large customer network. In this way, the app has helped to raise visibility about the importance of MSMEs (in this case home based vendors) and their contributions to the economy. More importantly, the platform has created avenues for fostering entrepreneurship and encouraging different segments of the society to increase productivity and enhance financial independence – particularly for women.
Such programs increase visibility for MSMEs and can often lead to inclusive engagements with governments and financial institutions which work to the benefit of all stakeholders. They also open opportunities for policymakers to discuss, and advocate for, policies that promote the growth and sustainability of MSMEs. It has aided in bringing attention to the specific needs of such MSMEs, like improved access to affordable financing, simplified regulations, and business development services. Super apps also enable them to connect with potential partners, customers, investors, and mentors. Building networks and furthering collaborations can open up new business avenues, access to greater markets, and opportunities for knowledge-sharing.
Strong online platforms have also helped to streamline the ordering process for MSMEs by providing a user-friendly interface to manage orders efficiently. For example, foodpanda, and Daraz are among those platforms that help MSMEs receive, process, and fulfill orders seamlessly, saving time and effort in handling customer requests. It also takes care of logistics and delivery support which can be challenging for MSMEs to manage independently. By partnering with apps like Daraz and foodpanda, MSMEs can focus on preparing quality products, leaving the hassle-inducing delivery tasks to the online platform, without having to invest in additional resources.
It is important to note that these online platforms provide MSMEs with access to valuable data, business insights, and predictive analytics about their performance, customer preferences, and order trends. This information can help MSMEs make informed business decisions, optimize their offerings, and tailor their services to better meet customer demands.
It is a no-brainer that tech platforms have significantly empowered MSMEs with the right tools, greater outreach, and the immense support required to thrive in today’s competitive online and digital market and its important for Pakistan that this trend continues and their contribution continues to grow so MSMEs can positively contribute to the economic fiber of the country.
