The Micro, Small, and Medium Business Council has reported ongoing challenges faced by MSMEs, emphasizing that these enterprises continue to struggle under numerous structural barriers. These difficulties include limited access to finance, inadequate business data, unregulated operating conditions, and stringent regulatory requirements, all of which significantly hinder growth.
Chair of the Council, Watisoni Nata, pointed out that legal barriers such as high compliance costs and complex procedures, in addition to rigid labor laws and unclear policies, deter smaller businesses from formalizing. To combat these challenges, Nata has urged the adoption of a tiered proportional compliance model, which would allow smaller enterprises to fulfill their obligations while still maintaining robust protections for workers.
Nata further elaborated on this proposed model, recommending that compliance requirements be aligned with the definitions outlined in the MSME Fiji Policy Framework. For instance, businesses classified as medium enterprises would operate with revenues between $300,000 and $1.25 million, while any income above this threshold would categorize them as large corporations. This approach aims to ensure compliance obligations correspond proportionally to the size and capacity of the business while securing core protections for employees.
In seeking clearer guidelines, Nata mentioned that the current MSME Fiji Policy Framework lacks specifications regarding employee numbers, which further complicates compliance. Committee member Semi Koroilavesau has expressed intentions to engage with the relevant authorities to advocate for the council’s submission and recommendations, aiming to shed light on these pressing issues.
The Council highlights the vital role MSMEs play in Fiji’s economy, representing approximately 80% of registered businesses and contributing over 18% to the nation’s GDP. Despite this significant economic contribution, the Council stresses the urgency of providing greater support structures to facilitate their growth and stability.
Nata’s concerns resonate with broader discussions reflected in the National Development Plan for 2025-2029 and Vision 2050, which identify the growth and support of MSMEs as crucial to enhancing the country’s economic landscape. By working towards alleviating the burdens faced by these enterprises and implementing a more supportive regulatory environment, there is a hopeful outlook for the future, potentially fostering an ecosystem where MSMEs can thrive and significantly contribute to Fiji’s economic development.