Micro, small, and medium enterprises (MSMEs) are currently encountering significant obstacles that hinder their growth and formalization. These challenges include high compliance costs, complicated regulations, and a lack of clear policies. Watisoni Nata, the Chair of the MSME Council, pointed out that these barriers discourage many small businesses from transitioning into the formal sector, ultimately slowing down economic progress.
To address these issues, Nata reported that the council is advocating for a tiered compliance model tailored to the size of the business. This model aims to ensure that compliance obligations are in proportion to a business’s size while still providing essential protections for workers. He stressed the need for clarity in the MSME Policy Framework, particularly regarding differentiating the types of enterprises based on employee count.
Nata emphasized that for micro enterprises, the focus should be on encouraging formalization with minimal compliance requirements, ensuring basic protections while keeping costs low. Small enterprises would experience a more gradual approach to compliance with simplified obligations aimed at promoting decent work practices. Medium and large enterprises would then adapt to more comprehensive compliance measures.
Committee member Semi Koroilavesau mentioned that authorities would be consulted to review the MSME Council’s recommendations. Both the council and the committee concur that simplifying regulations and implementing a tiered compliance model could significantly support the growth of MSMEs, safeguard workers’ rights, and strengthen the overall economy.
This initiative aligns with the ongoing discussions emphasized in the recent National Development Plan for 2025-2029 and Vision 2050, which see MSMEs as critical players in enhancing Fiji’s economic landscape. By mitigating the burdens faced by smaller enterprises and streamlining compliance processes, there is a hopeful outlook for the future of MSMEs in Fiji, fostering an environment where businesses can thrive and contribute effectively to economic growth.
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