SERVE Program: Supporting MSMEs to overcome the Covid-19 Pandemic
Micro, Small and Medium Enterprises Developments (MSMEs) are the largest employers in any given private-sector economy and represent more than 90% of registered businesses in the world, 50% of employment and up to 40% of national income (GDP) in emerging economies. MSMEs are the building blocks of economies and are critical vehicle for achieving the 2030 Sustainable Development Goals (SDGs) agenda. However, the development and contribution of MSMEs has recently dropped/fallen short as it faces illiquid markets and difficulty in accessing sustainable finance. This is mainly attributed to the recent outbreak.
The program response is in line with protecting and creating jobs provided by MSMEs, the backbone of all economies, especially the developing economies of IsDB Member Countries. The average number of MSMEs per 1000 people in OIC MCs, i.e. 53.2, represents, that is more than double of the world average of 25.2 percent indicating the substantial footprint of this sector in MCs economies. Lockdowns that are taking place globally are putting an enormous strain on MSMEs. MSMEs in various sectors are forced to close their businesses during this period. Despite having no revenue, they still incur operating costs including rentals for their premises and salaries of their staff. The program will help provide MSMEs in IsDB Member Countries the much-needed liquidity to survive this difficult period.