Micro, small, and medium enterprises (MSMEs) in Malawi continue to face significant challenges despite the various solutions attempted by entrepreneurs, due to the country's developing nature and unstable economy. However, MSMEs play a crucial role in achieving the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). These businesses are essential in reducing poverty levels by creating jobs and contributing to economic growth, particularly for women, youth, and groups in vulnerable situations. Additionally, MSMEs are responsible for the majority of the world's food production and play a critical role in closing the gender gap.
Sustainable Development Goal Number 8 emphasizes the importance of promoting sustained, inclusive, and sustainable economic growth, as well as full and productive employment and decent work for all. This has led to an increase in the number of people venturing into MSMEs such as grocery shops, barbershops, restaurants, and Agro-business centers. These businesses not only sustain the well-being of entrepreneurs but also enhance the country's economy through taxes and levies.
Research conducted by The Malawi Investment and Trade Centre (MITC) has revealed that MSMEs face numerous challenges, including a lack of access to finance, access to land, high business operating costs, and low production capacities. In addition, a newspaper report suggests that youth and women in the country face insurmountable problems accessing the flagship countrywide loan scheme from the country's micro-finance firm, the National Economic Empowerment Funds (NEEF), due to cumbersome procedures.
Furthermore, natural disasters such as cyclones and floods that demolish infrastructure and agricultural land are also significant drawbacks to entrepreneurs. This is because inputs and raw materials will be in higher demand, causing the prices of goods, commodities, and services to rise, resulting in a loss of customers.
Governments have taken steps to assist MSMEs by offering incentives, favorable tax treatment, and better access to loans to help them stay in business.
