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An Encourangemnet For SMEs To Reach Net-Zero Goals | |
| Sumita Pawar |
According to the report, small and medium enterprises (SMEs) in the GCC region have suffered from the fallout of the COVID-19 pandemic and the subsequent global economic downturn.
Now is the time to give entrepreneurs the tools they need to make their businesses successful, especially in the context of net zero and other socioeconomic goals for the country as a whole.A truly inclusive economy will support the growth of small businesses and empower them to make valuable contributions, according to the report.
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According to a report published by the International Monetary Fund in December 2019 (titled Enhancing the Role of SMEs in the Arab World: Some Key Considerations), SMEs in the Gulf countries at the time accounted for 15–30 percent of their national GDPs, which was behind the global average of 40 percent in emerging economies.
Small businesses were also among the first to face the detrimental impacts of challenges arising from the pandemic and subsequent lockdowns.
Even though we've done a lot as a region to boost our economies, the report says that small business owners need to be given more power so they can reach their full potential, both in terms of output and in helping our countries become more stable.
Governments across the region have launched a series of initiatives towards sustainability and made progress, most notably in the area of renewable energy. Although we must move forward, the contribution of both corporations and SMEs is crucial.
The Organization for Economic Co-operation and Development (OECD) published a paper in November 2021 that stressed the importance of small businesses as drivers of socio-economic change, their impact on the carbon footprint, and the challenges they face with environmental degradation.
The paper also pointed out how SMEs are led by entrepreneurs who are innovative and forward-thinking in their overall approach to business, which means they have great potential to make an impact in the realm of sustainability, added the report.
Given the tradition of entrepreneurship in the Gulf region, it is no surprise that we have a wealth of ideas with profit-making potential. And while business infrastructure has improved over time, more collaborative strategies from within the private sector can engage owners of small businesses and set them up for success, the report comments.
Commenting on one way to fill this gap is for small businesses to actively work on job creation with greening goals in mind, the report added, Companies can harness fresh young talent through internship programs that focus on greening and innovation.
Also, SMEs can work with educational institutions to engage students and encourage an early and continued interest in sustainability in the context of lifestyles and business.
While it is encouraging to know that myriad efforts are under way across the GCC region within the realm of sustainability, there are still ways to go in order to meet net zero emissions.
"As mentioned earlier, we are still dealing with the fallout from economic setbacks, but the region has come out strong, with both the public and private sectors remaining focused on recovery," said the report.
Because the modern world is getting more complicated, it takes more than one way to bring people into the economy and help it grow.The GCC countries have a series of strengths, from dedicated governments to innovative entrepreneurs and bright young minds who are capable of leading the region towards a sustainable future.
Proactively collaborating, focusing on greening business, developing innovative solutions, and strengthening small businesses will be the way forward to climate safety and ultimately net zero emissions, concluded the report.