Micro-small and medium-sized enterprises (MSMEs)

The transition to formal MSMEs will expand the economic base of Papua New Guinea (PNG).

The National Research Institute (NRI) Spotlight Volume 16, Issue 7 titled “Prospects and challenges of informal money lending in Papua New Guinea” by Joseph Kaile, Research Project Officer at PNGNRI identified challenges faced by informal finance operators and some initiatives that can be used to migrate the operators to MSMEs.

This is why the United Nations General Assembly has designated June 27 as “Micro, Small and Medium-sized Enterprises Day”.

“MSMEs account for 90 percent of businesses, 60 to 70 percent of employment and 50 percent of GDP worldwide,” said the UN.

“As the backbone of societies everywhere, they contribute to local and national economies and to sustaining livelihoods, in particular among the working poor, women, youth and groups in vulnerable situations.”