Political leadership, will, and an enabling environment are the core principles upon which financial and other support measures to enhance economic and private sector growth are founded. The channeling of more resources to better assist smaller nations in enhancing trade is crucial in furthering their sustainable development discourse. Furthermore, business legislative reforms, including those governing ‘ease of doing business’ and promotion of financial growth are essential ingredients for promoting private sector growth in SIDS. The economic empowerment of women, development of competition policy and State Owned Enterprise reforms are factors that enable economic and private sector growth in SIDS.
The use of electronic registration for businesses and the role of credit corporations and micro financing are synonymous with inclusive economic development in SIDS. Resources that are intended for projects that have social and environmental impacts are also avenues through which SIDS could focus their attention. Likewise the individual challenges and constraints of individual SIDS needs to be taken into account
Small and Medium Enterprises in SIDS have made an important contribution to economic development. However, the lack of business skills and access to finance has often lead to the failure of these small businesses. SIDS require assistance to transition from small businesses and from micro financing to commercial banking. On the issue of financial inclusion, the establishment of national finance inclusion task forces have allowed for lessons learned at the regional level and developing national strategies and initiatives that cater to national circumstances. The availability of new resources from SIDS development partners specifically targeted to enhancing the private sector in developing countries remains a high priority for SIDS. Likewise, the need for SIDS to strengthen their capacity to access these newly available resources is paramount.
SIDS need to develop bankable project proposals and will likewise require assistance on this issue. On the other hand the need for effective implementation of bankable projects is equally important. Standardisation of private sector practices can also contribute towards facilitating movement between markets and encourage trade and economic growth. Achieving value added chains and ensuring appropriate returns on investment need to be supported.
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