Overall income made by small and medium sized enterprises (SMEs) across Asia has shrunk to 50%, Li Yong, director general of the United Nations Industrial Development Organization (UNIDO) has recently revealed.
Li and the UNIDO attributed the downward trend to the Covid-19 pandemic, as well as the preventive measures and travel restrictions that came with the disease.
He pointed out that although SMEs are the pillar supporting most developing countries and emerging economies, the pandemic has struck worldwide SMEs so hard that many of them have been or are now facing developmental difficulties.
According to the global entity, enabling these enterprises to acquire technologies and funds is the key to pacing up economic revivals. However, banks cannot take extra risks while public finance sees smaller spaces. The government should make way for innovative finances for SMEs.
Li stressed that technical resources have an important role in economic revivals and the future development of production units. This reality is even more obvious to developing countries.
He added that through sharing and strengthening of knowledges, improving completion and capacity to withstand risks, as well as introducing digital technologies in production, industry should provide chances for a better future. AL
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