by Marie Kauna – EMTV Online, Port Moresby
An recent study assessing 20 countries in developing parts of Asia, conducted by the Asia SME Finance Monitor 2014, has noted that SMEs (small to medium enterprises) make up on average 96 per cent of all registered firms.
These SMEs then employ 62 per cent of the labour force, with 42 per cent contributing to the economic output in the region.
According to Noritaka Akamatsu, Senior Advisor in Asian Development Bank’s (ADB) Sustainable Development and Climate Change Department, “Asia has millions of SMEs but a few of them are able to grow where they can innovative or be part of the global supply chain.”
Akamatsu says in order to boost SMEs in the region to become competitively innovative and even become part of the global supply chain, “they (SME) need more growth capital and opportunities access various financing channels.”
The call is on the government to help these SMEs to become more competitive and be able to participate in the global value chain.
According to an ADB report, Asia’s small-and medium sized enterprises need finance to help them grow into dynamic, internationally competitive companies.
With the current global economic slowdown, SME growth development is seen as a key to sustaining growth in the region.