Strengthening MSME Business Digitization and Product Promotion for Accelerating Progress towards Sustainable Development Goals in Sri Lanka

Background

Micro-, small and medium-sized enterprises (MSMEs) provide significant contributions to economic growth in Sri Lanka. Employing over a quarter of Sri Lanka’s labour force, they are crucial for employment and economic recovery. Nonetheless, MSMEs are among the worst hit by the socioeconomic crisis and impact of the Covid-19 pandemic and natural disasters, especially MSMEs in the country’s informal economy. In the meantime, the Covid-19 pandemic has catalyzed the adoption of digital business models by MSME entrepreneurs, as a means to survive and recover from associated socioeconomic uncertainties. Amid the boom of business digitization within the MSME sector in Sri Lanka, disparities are appearing, especially between urban and rural areas and by gender. Women MSMEs in rural areas tend to possess less knowledge of how to run an online business and to apply digital marketing models for high-value opportunities. Likewise, they are less connected with the digital infrastructure and logistics systems. Considering the significant roles of women and youth-owned MSMEs in reducing poverty and inequalities, such disparities could also hamper the full potential of MSMEs in accelerating progress towards Sustainable Development Goals in Sri Lanka.

With this backdrop, this national capacity building workshop aims to strengthen capacities of MSME entrepreneurs and policymakers to elevate inclusive digital connectivity among MSMEs in Sri Lanka. The workshop is organized in response to the request to DSDG/DESA from the Ministry of Industries, Sri Lanka for capacity building support in these areas. It will strengthen and facilitate the uptake of business digitization skills to address the digital divide and unleash the full potential of MSMEs in accelerating progress towards SDGs. The workshop is closely aligned with the 1,000 youth entrepreneur programme, which is a flagship MSME capacity building programme led by the Ministry of Industries. The workshop has supported elevating capacities and entrepreneurship among women and youth entrepreneurs to expedite sustainable recovery and development in the country. Sri Lanka is a pilot country under the UNDESA project on “Strengthening national capacities for enhancing MSME resilience and building forward better to accelerate the implementation of the 2030 Agenda in developing countries” that is funded by the United Nations Peace and Development Fund (PDF).