The National Policy for Micro, Small and Medium Enterprises (MSMEs) is a multisectoral framework that updates the 2018 policy. Its purpose is to strengthen the development of MSMEs by addressing the full entrepreneurship ecosystem, including the business environment, support services, skills development, access to finance, market integration, infrastructure, and technology. Aligned with the vision of the Ministry of Commerce, Industry, and Trade, the policy seeks to foster a supportive environment for business growth and industrial development, contributing to broader economic progress. It also aims to ease the government’s burden in job creation and export growth by empowering the local private sector. A key priority is tackling the high level of informality among MSMEs, as bringing more enterprises into the formal economy is essential for increasing productivity, employment, and public revenue. To achieve its objectives, the MSME Policy 2023–2028 adopts a dual approach: improving the overall MSME ecosystem while also implementing targeted measures for different enterprise segments. In line with international best practices, it emphasizes strengthening business confidence, supporting enterprise growth, and enhancing sectoral competitiveness.
The MSME Policy seeks to strengthen the entrepreneurial ecosystem through coordinated actions addressing the main constraints affecting MSMEs. It is structured around 7 strategic pillars and pursues the following objectives (i) improve the business environment by reducing regulatory barriers and the cost of doing business; (ii) enhance business support systems, including the development and accreditation of consultants, mentors, coaches, and incubators; (iii) strengthen entrepreneurial skills and capabilities for starting, managing, and growing businesses; (iv) expand access to diverse financing options, such as equity, debt, and grants; (v) increase access to domestic and export markets, including the development of value chains; (vi) improve infrastructure and access to technologies, including standards and climate-smart solutions; (vii) promote an inclusive entrepreneurial culture, with a focus on youth, women, and persons with disabilities. The revised Policy consolidates the previous framework into the following 7 pillars aligned with the Balton Entrepreneurship Ecosystem Project (BEEP) (1) Business Enabling Environment, focused on simplifying regulations, lowering entry costs, and reducing informality; (2) Business Support, aimed at strengthening advisory services, mentorship networks, incubation models, and institutional linkages; (3) Human Capital and Management, addressing education, technical skills, and workforce readiness; (4) Finance, promoting access to a wide range of funding sources to support enterprise growth; (5) Markets and Value Chains, enhancing market access, trade facilitation, standards adoption, and MSME competitiveness; (6) Entrepreneurial Culture, encouraging values and attitudes that support entrepreneurship; (7) Infrastructure and Technology, improving access to digital tools, innovation, and enabling infrastructure for business development.
Annex A presents the MSME Action Plan 2023/24–2028/29, which aims to strengthen the competitiveness of the sector by fostering an entrepreneurial culture, building capacity, expanding opportunities, enhancing trade relations, reducing bureaucratic constraints, and improving access to finance through strategic partnerships. To support these goals, the Policy focuses on: (i) creating an enabling business environment by reducing regulatory and cost barriers; (ii) strengthening business support and monitoring systems; (iii) developing entrepreneurial skills and capabilities; (iv) expanding access to a range of financial resources; (v) increasing participation in domestic and export markets, including through value chain development; (vi) improving infrastructure and access to technology; and (vii) promoting inclusive entrepreneurship, particularly among youth, women, and persons with disabilities.