URU, Alm.del - 2019-20 - Bilag 175: Opfølgning på virtuel briefing den 14. maj 2020 ved UNDP’s regionale direktør for Afrika om den aktuelle situation og håndtering af COVID-19 i Afrika syd for Sahara

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Guidance note: High-impact MSME programmatic intervention options

–

last updated: 9 April 2020

COVID 19 - Guidance Note

High-impact MSME programmatic intervention options

Objective

To provide an overview of high-impact programmatic intervention options to support micro,

small and medium enterprises (MSMEs) prepare, respond and recover from COVID-19. The

interventions introduced here target stabilizing and sustaining livelihoods and employment, as

well as companies and social enterprises that directly contribute to fighting the Covid-19 crisis.

Interventions are framed around the three objectives of the UNDP response to COVID 19, which

aims to help countries to

prepare, respond

and

recover.

Tools and examples added:

here.

This Guidance Note complements Guidance Note #3: Overview of Assessment Tools for COVID-

19 impacts on value chains, SMEs and livelihoods. Based on results from the assessments,

intervention options described in this Guidance Note can be considered and adapted.

Intervention options

UNDP’s

overall approach to supporting MSMEs centers around 5 pillars:

Provide forward-looking market intelligence

Facilitate market access and build inclusive markets including with larger companies

Accelerate digital transformation

Deploy financing for MSMEs and local governments with UNCDF

Strengthen ecosystem for MSMEs to survive and grow.

Pillars can be pursued with national and local govts, directly with MSMEs, and with large

companies to better include and support MSMEs in their supply chain.

A range of intervention options for each pillar are mapped below:

URU, Alm.del - 2019-20 - Bilag 175: Opfølgning på virtuel briefing den 14. maj 2020 ved UNDP’s regionale direktør for Afrika om den aktuelle situation og håndtering af COVID-19 i Afrika syd for Sahara

Guidance note: High-impact MSME programmatic intervention options

–

last updated: 9 April 2020

Prepare

Intelligence/

Foresight

Respond

Recover

Tools

1. WhatsApp

Info Hub

2. Trade/market

intelligence

3. Megatrends

analysis

4. Aid for Trade

5. Supplier dev

programme

Online info systems/alerts

on COVID-19, including safety and hygiene standards and practices for employees

Info on support available

to MSMEs from public and private sources

Info on price/demand/supply fluctuations

and any restrictions on movement that may affect MSMEs

Trade intelligence

for market identification and adaptation

Market access

Transformation

Financing

Ecosystem

Govt interventions to stabilize supply chains,

incl. coordination to secure critical goods

Adapting logistics

through route and capacity optimization, pre-booking, new pathways, etc.

Online business matching

and govt-facilitated digital sales channels

Adapting national productive capacities

6. Digital MSME survey

Facilitating inclusive value chains

and supplier development

to invest in future markets

7.In Motion Toolkit +

digital plug-in

MSME survey

to assess impacts and plan support

8. SME Action platform

Business continuity planning

Accelerate MSMEs’ digital transformation,

incl. digital marketing/payments

9.Venture Accelerator

Re-skilling employees

for the future of work

10.Digital Innovation Lab

11.CBi funding facility

Support scale-up

of MSMEs responding to COVID-19

12.Biz for gender

Grants

for immediate cash injection

13.UNCDF SME grants,

Loans

at concessionary rates, directly and indirectly through guarantees

bridge loans and

guarantees

Temporary tax relief,

deferral of tax payments, tax cuts or new tax credits

14.UNCDF local govt

Export guarantees/insurance

for key production clusters

finance

Building inclusive business ecosystems

for MSMEs

15. Inclusive business

Easing customs regulations and tax regimes

for critical goods

ecosystem

Supportive rules, regulations and policy incentives

that protect jobs and facilitate development of new economic sectors

16. Inclusive local

that contribute to achieving SDGs and mitigating climate change impacts

development

Guidance note: High-impact MSME programmatic intervention options

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last updated: 9 April 2020

Tools

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Examples & Experts

1. WhatsApp Coronavirus Information Hub

In partnership with UNDP, UNICEF, and WHO, the

WhatsApp Coronavirus Information Hub

provides simple, actionable guidance for local governments, local businesses, health workers,

educators, and community leaders that rely on WhatsApp to communicate. Guidance for small

businesses include

how to use WhatsApp Business Tools

to run their businesses effectively.

2. Trade & market intelligence

UNDP works with the International Trade Center to provide trade intelligence for market

identification, including Covid-19 temporary export/import bans. Existing free of charge tools for

trade intelligence and in-house training capacity are already in place:

trade map, market access

map

(ITC). Trade and market intelligence will be crucial not only to deal with supply side

constraints such as logistical barriers, but also ensuring that national productive capacities can

be reactive to changes in global value chains (whether demand or supply side).



Contact: Daniele Gelz ([email protected])

3. Megatrends Analysis

Covid-19 will accelerate productive capacities changes which already started before the

pandemic. Drivers of these megatrends include population changes, environmental degradation,

technology, changing values as well as power shifts. Consumption patterns tend to become more

personalized. Covid-19 is likely to increase transformation especially around technology and the

digitalization of services within economies.



Examples: Megatrends identified prior to Covid-19 included smart cities and homes,

personalization, health and well-being, localized consumption, sharing economy,

connected consumers, circularity, premiumization

. Covid-19 will likely accelerate these

megatrends. Preparing producers in developing economies to meet emerging demands

both of consumers and within the global supply chain is critical to support recovery and

transformation.



Contact: Sahba Sobhani ([email protected])

4. Aid for Trade Initiative

Aid for Trade

is bilateral official development assistance provided to developing countries to

address trade and supply-side related challenges. Between 2006 and 2017, US$ 410 billion have

been disbursed as aid for trade to developing countries.

The UN Development System

encourages and supports countries to upscale their Aid for Trade to meet the Covid-19 challenges,

Aid for Trade in Central Asia (2019), Green products

Aid for Trade at a Glance 2019.

Guidance note: High-impact MSME programmatic intervention options

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last updated: 9 April 2020

particularly to mitigate the income loss in developing countries which is expected to exceed

US$ 220 billion.



Contact: Luisa Bernal ([email protected])

5. Supplier Development Programme

The Supplier Development Programme seeks to implement systems that

opti ize suppliers’

development in productive value chains. The objective is to boost the economy by reinforcing

the competitive capacities of strategic sectors. The programme aims to strengthen value chain

coordination so that large enterprises

–

referred

to as tra k e terprises de a di g goods a d

services

–

integrate MSMEs into strategic relationships that allow them to become suppliers. The

progra

e’s adaptatio i Afri a through the

Agribusiness Supplier Development Programme

fo uses o the agri ultural se tor a d supports s allholder far ers’ li kages ith arkets.



Training manual:

http://www.undp.org/content/dam/undp/library/corporate/Partnerships/Private%20Se

ctor/ASDP%20Africa%20Training%20Manual_English_Low%20Res.pdf



Concept and templates:

https://www.undp.org/content/undp/en/home/librarypage/poverty-

reduction/private_sector/african-agribusiness-development-programme-toolkit.html



Examples:

Angola (horticulture), DRC (maize), Kenya (passion fruit, banana), Nigeria (rice,

cassava)



Contact: Tomas Sales ([email protected])

6. Digital MSME survey

The digital MSME survey can be deployed to assess impacts of the COVID-19 crisis on micro, small

and medium-sized enterprises to propose comprehensive actions aimed at improving their

economic situation and situation in the market. The survey collects information digitally, using

Mi rosoft’s data olle tio a d data isualizatio platfor Po er BI

. It is offered as a module

in the Household Building and Damage Assessment (HBDA) Tool and questions/answer choices

can be customized to each country context by the CO. The output is a dashboard of collected

data mapped and aggregated by region, sector, size of business or other characteristics. The

dashboards and reports will inform the support measures required.



Prototype MSME survey:

https://ee.humanitarianresponse.info/x/#aEwEM9Bh



Guidance on MSME assessment:

Link here

(click GN3)



Contact: Luca Renda ([email protected]), Yuko Hirose ([email protected])

7. IN MOTION Toolkit with Digital Transformation plug-in

Based on the results of the MSME Survey, the IN MOTION Toolkit can be used to support MSMEs

to respond and recover from the crisis. The Toolkit is available on the

Crisis Response Portal

(click

UNDP, as of 30 March 2020.

Guidance note: High-impact MSME programmatic intervention options

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last updated: 9 April 2020

Programme Tools



click En Marcha/In Motion Toolkit box for full list of resources in English,

Spanish and French, Webinar recordings:

English

French

Spanish).

As a plug-in to the IN

MOTION Toolkit, Ecuador CO is developing a

digital transformation module

that supports MSMEs

to adapt their business operations and business model to COVID-19.



Example: Ecuador CO is preparing for pilot in mid-April



Contact: Carlo Ruiz ([email protected]), Carla Gomez ([email protected])

8. SME Action Platform

Business Call to Action supports companies implementing innovative business solutions to

reduce poverty in all its dimensions. The initiative is developing, in partnership with Istanbul

International Center for Private Sector Development (IICPSD), a

SME Action Platform

that works

as a one-stop shop for SMEs to overcome the challenges brought by the COVID-19 pandemic.

Features of the platform includes free access, open source, multilingual, easy–to–use in web and

mobile phone, interface that allows users to find content, online training, videos, webinars,

mentoring and online collaboration. Contents provide actionable toolkits that emphasize

collaborative technology tools and support on digital transformation, partnership with

corporations and business schools to leverage their resources, and materials from advertising

companies for digital marketing.



Contact: Luciana Trindade de Aguiar ([email protected])

9. Venture Accelerator

UNDP is running

impact venture accelerators (IVA)

in several countries for both growing and

established companies, originally built to support and scale effective private sector-originated

solutions to SDGs, which have been quite effective and operative in addressing COVID-19

immediate challenges. UNDP IVA format combines business acceleration programs with robust

dedicated efforts for impact scaling and measurement and management, which will be now

adjusted to boost the effectiveness of addressing COVID-19 in the short, mid and long term, in

the context of the SDGs. Combined business and impact acceleration programs will be entirely

virtual and include promotion to relevant governments and other stakeholders.



Examples: Healthcare Solutions Challenge (e.g., medical supplies, equipment, services,

infodemics and e-health)



Contact: Artak Melkonyan ([email protected]), Stine Junge

([email protected])

10. UNCDF Digital Innovation Lab

UNCDF with its strong digital team, is running innovations labs in several countries, mostly LDCs,

to support digital transformation of MSMEs in the areas of business processes, alternate markets,

digitizing value chains, digital solutions for real economy enterprises, and overall for achievement

of SDGs. UNCDF’s pri ate se tor part ers are prese tly ha gi g their usi ess odels usi g

digital infrastructure to sustain themselves and address service needs during COVID-19 crisi.s

Guidance note: High-impact MSME programmatic intervention options

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last updated: 9 April 2020



Indonesia Microenterprise Fintech Innovation Challenge Winners:

https://medium.com/pulse-lab-jakarta/winners-of-the-microenterprise-fintech-

innovation-challenge-fund-prepare-to-pilot-their-ideas-23dc8f39f243



Women MSME Fintech Fund Winners:

https://spark.adobe.com/page/nRfb6azvvA968/



FinLab:

https://www.uncdf.org/finlab



Gig Economy Challenge:

https://www.uncdf.org/article/5438/gig-economy-challenge



Nepal AgriTECH Innovation Challenge:

https://www.uncdf.org/finlab/nepal-agritech-

challenge



Startup innovation challenge in Uganda:

https://www.uncdf.org/article/5052/uncdf-

and-startup-uganda-launch-initiative-to-spur-innovation-in-uganda



Contact: Francois Coupienne ([email protected])

11. CBi Funding Facility and Guidance

The UNDP and OCHA-led

Connecting Business Initiative

(CBi) supports business networks to

engage in disaster preparedness, response and recovery efforts in a coordinated manner

together with the UN and the governments. In 2019 CBi supported business networks in 19

locations, who collectively responded to a total of 31 disasters, some of which were health

related. Since the launch of CBi in 2016, CBi networks have supported MSMEs through business

continuity trainings as well as recovery support after disasters. They have also worked with

partners on impact and needs assessments of the MSMEs and engaged in national dialogue to

represent the voice of the private sector collectively. CBi provides technical assistance to business

networks as well as the UN system, it has developed guidance on how enterprises can support

the COVID-19 response and also made available 60,000 USD per country proposal between these

business networks and the UN system.



Examples:

Philippines network

providing

cash vouchers to urban poor

CBi Member

Networks response to COVID-19

Emergency page on COVID-19, UN Business Guide on

COVID-19

Tools for SME resilience



Contact: Karen Smith ([email protected]), Tiina Turunen ([email protected]),

Tiina Mylly ([email protected])

12. Business for gender equality platform

This platform includes close 1,000 companies UNDP has already certified with its Gender Equality

Seal for Private Sector, reaching more than 2 million workers. The Platform is responding to the

COVID-19 crisis with a focus on protecting workers, protecting supply chains and on identifying

and sharing solutions. It is also creating a pooled fund to channel private sector contributions

towards gender equality in four lines: 1) COVID-19 Fund for MSMEs and Women-Owned Business

Liquidity, 2) COVID-19 Fund for MSMEs and Women-Owned Business Digitisation, 3) COVID-19

Fund for Resilient Health Systems and Social Services for Women, and 4) COVID-19 Gender-Lens

Investing Fund (for funding commercial solutions to COVID-19).



Contact: Diana Gutierrez ([email protected])

Guidance note: High-impact MSME programmatic intervention options

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last updated: 9 April 2020

13. Grants, bridge loans and guarantees for MSMEs

In partnership with UNCDF, UNDP can offer immediate cash injection to MSMEs in the form of

grants or loans at concessional rates. Improving cash flow of MSMEs is critical for MSMEs to

continue operating during crises. UNCDF has developed a fully online process to provide relief

grants to MSMEs within 14 days, which can be deployed at national level through the vast

network of UNDP county offices. Concessional loans can serve to bridge the liquidity crisis many

companies will face. Guarantees can be issued to banks to absorb some of the increased risks

faced by banks and indirectly soften the conditions for repayments to MSMEs. UNCDF has also

initiated setting up of MSME aggregator platforms (www.gemportal.co.zw) that brings investors

and capacity building services providers together at national level to address the emergent needs

of COVID-19 socio-economic fallout and to create future pipelines for inclusive economic growth.

Monitoring of financial flows, assessing risks and tracking impacts are all incorporated in one

platform.



Webinar:

Recording on Microsoft Teams



Contact: Henri Dommel ([email protected]), Ander Berlin

([email protected]), Peter Malika ([email protected]),

Luca Renda ([email protected]), Yuko Hirose ([email protected])

14. Local development finance

Local governments are in the frontline of the COVID-19 response. In partnership with UNCDF,

UNDP can support governments design and implement immediate solutions to help channel

necessary resources to support local government officials to meet the needs of the immediate

crisis, as well as strengthen their capacity to deliver services to their citizens afterwards.

Performance-based fiscal transfers to local governments are very effective in delivering targeted

resources at scale for specific purposes while enabling efficient delivery, cost-effective

procurement, and transparent reporting. This mechanism leverages local knowledge and

capacity and avoids costly parallel project structures.



Guidance:

Immediate Action: COVID-19 and Local Government Finance



Examples: Daily blog with examples from

Lao PDR

and

Bangladesh



Contact: David Jackson ([email protected]),

Luca Renda ([email protected]), Yuko Hirose ([email protected])

15. Inclusive business ecosystem approach

An inclusive business ecosystem refers to a network of interconnected, interdependent actors

whose actions make it possible for inclusive businesses to succeed and generate impact at

increasingly large scales. UNDP offers tools, templates and structures to support governments

and the private sector to cultivate an inclusive business ecosystem that supports MSMEs.



Training manual:

http://www.undp.org/content/dam/undp/library/corporate/Partnerships/Private%20Se

ctor/IBE/IBE-TrainingHandbook-ENG.pdf

Guidance note: High-impact MSME programmatic intervention options

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last updated: 9 April 2020



Concept and templates:

Link here



Examples: IBEI on Tourism in Uganda, IBEI on Mobile Money in Lesotho



Contact: Tomas Sales ([email protected])

16. Inclusive and Equitable Local Development (IELD)

UNCDF/UNDP/UN Women developed as part of the Inclusive and Equitable Local Development

(IELD) global program a package for gender-responsive local economic development, also valid

for economic recovery, with a set of tools to be implemented jointly or independently. They focus

on public and private partnerships, multi-stakeholder platforms, and put SMEs at the center.



Tools:

1) Women´s economic empowerment index (WEEI): helps evaluate the extent to which

business and public investment projects are gender-responsive and helps ensure that

COVID-19 economic recovery does not leave anyone behind. It can also be adapted to

other relevant social groups and be used by financial and public institutions.

2) Gender-responsive local economic assessment tool (LEA): maps existing bottlenecks

for women´s economic empowerment, with a focus on entrepreneurs and SMEs, and

helps develop local development or recovery plans that benefit both women and men.

3) Course on gender-responsive local economic development: The course can be

conducted in person and online and helps governmental officials understand the

gender issues to consider when planning for economic development or recovery.



Contact: Aroa Santiago ([email protected]), Samina Anwar

([email protected]).

Design principles

Plan for recovery from the on-set.

While most efforts during a crisis tend to focus on immediate

response, planning for recovery from the on-set determines whether impacts are sustainable.

Seeki g out opportu ities to uild a k etter y ide tifyi g for ard-looking

changes to

economic systems, including shifts that mitigate climate change impacts, will strengthen the

resilience of economies, enterprises and communities to not only overcome the current crisis but

withstand future shocks, protecting livelihoods over the long-term.



Tools to help: Megatrends analysis, Aid for Trade initiative, IN MOTION Toolkit

Strengthen the ecosystem, not only individual firms.

When designing interventions, it is vital to

consider the business ecosystem

4,5

. Factors within the business ecosystems are inter-dependent.

Linkages/dependencies need to be factored into interventions and interventions should seek to

build the ecosystem of support available to MSMEs vs. targeted support to individual firms. This

The IBEI tool to identify gaps in the business ecosystem support and to engage relevant ecosystem stakeholders can be shared by Tomas Sales

([email protected])

A business ecosystem refers to a community of interconnected, interdependent players whose actions determine whether or not an

enterprise’s

usi ess odel ill su eed.

Guidance note: High-impact MSME programmatic intervention options

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last updated: 9 April 2020

also includes pursuing an integrated approach targeting micro, meso and macro levels to ensure

effective response and sustainable recovery.



Tools to help: Inclusive business ecosystem, UNCDF local dev finance, IELD

Inclusive design and implementation that leaves no one behind.

Practitioners should ensure

that design and participant selection for interventions are inclusive, with particular attention to

gender, risks of exasperating gender-based violence, as well as vulnerable groups that may not

be covered in national support systems such as refugees. For more information on designing

gender responsive interventions for COVID, please consult

Gender for COVID-19 resources.



Tools to help: Digital MSME survey, UNCDF grants/loans,

Gender and recovery toolkit

(especially GN2 on economic recovery and livelihoods), Supplier Development Program

Support opportunities to achieve the SDGs.

Sustainability and circularity are cornerstones of

productive capacities of the future. Support Governments and producers to invest along these

principles, leveraging COVID-19 as an opportunity to accelerate SDG achievement for the future.

Prepare Governments and SMEs to identify opportunities of the future.



Tools to help: SME Action Platform, CBi facility, Venture Accelerator, Megatrends

To share additional tools and examples, please contact:

Recovery Solutions and Human Mobility Team, Crisis Bureau, UNDP.

Luca Renda

[email protected]

Yuko Hirose

[email protected]

Finance Sector Hub and Istanbul International Center for Private Sector for Development, UNDP.

Marcos Neto

[email protected]

Sahba Sobhani

[email protected]

UNCDF

Xavier Michon

[email protected]

Heewoong Kim

[email protected]