The Micro, Small, and Medium Business Council has highlighted the persistent challenges faced by MSMEs in Fiji, underscoring their struggle against several structural barriers that impede their growth. Key issues identified include limited access to finance, insufficient business data, unregulated operating conditions, and stringent regulatory requirements that collectively stifle progress.
Watisoni Nata, the Chair of the Council, pointed to legal obstacles such as high compliance costs and complicated procedures, alongside restrictive labor laws and ambiguous policies, which discourage smaller businesses from formalizing their operations. In response to these challenges, Nata has called for the implementation of a tiered proportional compliance model. This model would allow smaller enterprises to meet their obligations while still protecting worker rights.
Nata explained that this proposed model should align compliance requirements with definitions established in the MSME Fiji Policy Framework. For example, businesses deemed medium enterprises would have revenues between $300,000 and $1.25 million, whereas any income exceeding this would classify them as large corporations. The intent is to ensure that compliance obligations match the size and capacity of the business without compromising essential employee protections.
He also noted a significant gap in the current MSME Fiji Policy Framework, which lacks clarity regarding employee numbers, further complicating compliance. Committee member Semi Koroilavesau has expressed a commitment to connect with relevant authorities to promote the Council’s recommendations and address these critical issues.
The Council emphasizes the essential role MSMEs play in Fiji’s economy, accounting for nearly 80% of registered businesses and contributing over 18% to the national GDP. Despite this substantial impact, there is a pressing need for enhanced support structures to ensure their growth and stability.
Nata’s concerns echo larger strategies outlined in the National Development Plan for 2025-2029 and Vision 2050, which recognize the growth and support of MSMEs as vital to improving the nation’s economic landscape. By actively working to alleviate the burdens faced by these enterprises and fostering a more supportive regulatory framework, there remains a positive outlook for these businesses, paving the way for future prosperity and a stronger contribution to Fiji’s economic development.