The Academy equips MSMEs with skills and strategies to help expand their sales volume and market reachJakarta (ANTARA) - The significant and far-reaching impact of the COVID-19 pandemic has severely affected ASEAN citizens and businesses, particularly MSMEs.
Millions of small business owners across Southeast Asia have struggled to stay afloat in the past two years as operations grinded to a halt due to pandemic measures.
The severity of the crisis has put our MSMEs in a completely uncharted territory. The Asian Development Bank reported that up to 70 percent of the MSMEs in the region had suspended activities during this period.
MSMEs are the backbone of ASEAN’s economy; they make up more than 97 percent of the business establishments in the ASEAN, and are significant provider for employment. Our infinite task is to assist our MSMEs to keep them inspired and uplifted during this unprecedented crisis.
Vibrant, thriving, and competitive MSMEs are fundamental for the region’s continued economic growth and development.
Indeed, this global health pandemic has been challenging. Yet, MSMEs in the ASEAN region have demonstrated incredible resilience throughout and continue to inspire the region to build back better.
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Their creativity and determination have enabled them to maintain revenue generation during difficult circumstances and tap into new opportunities as the economy gradually recovers.
For instance, Huong Giang sells clothes in front of the Thai Nguyen University of Education. During the COVID-19 pandemic, the shop recorded a significant decline in sales, as she lost her main customers following the school's closure to contain the spread of the virus.
To keep the business running, Huong Giang pivoted to digital by selling her products online through Facebook as taught in her Go-Digital ASEAN training course.
Her effort yielded positive results. Her sales have returned to normal while also adding a significant number of new customers, who were connected through her social media account to buy her products.
As in the case of Huong Giang, many leveraged on digital technologies to keep their businesses running and even reported growth in sales as they receive a significant number of new customers, who were able to access their products and services online.
The pandemic has certainly propelled ASEAN’s transition to a digital economy and society. By the end of 2021, the region recorded an increase of 62 percent in the e-commerce gross merchandise value.
A staggering 60 million people in Southeast Asia turned digital for the first time – an unprecedented growth compared to 100 million new internet users accumulated in the five preceding years and solidifies ASEAN’s position as the leading internet market in the world.
Our flourishing digital market has also attracted global tech capitals to invest in the region. Oftentimes, MSMEs are an indispensable part of these companies’ business.
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However, Amazon Web Services reported that 90 percent of MSMEs in Southeast Asia recognize the need to upgrade their digital skills.
Google also highlighted that in order for the regional digital economy to thrive, a collaborative ecosystem among communities as well as the public and private sectors is essential.
To this end, the ASEAN is determined to work with our partners to capacitate our MSMEs in navigating the digital era.
ASEAN has been taking concrete steps to ensure that digital transformation is inclusive and beneficial for all. The Bandar Seri Begawan Roadmap, adopted last year, outlines the initiative to provide relevant skills for MSMEs to embrace the new normal, remain competitive, and come prepared for future crises.
ASEAN SME Academy
With a shared vision and mission to support the growth and expansion of our MSMEs to thrive and further contribute to the region’s prosperity, the ASEAN has brought together support from the US-ASEAN Business Council (US-ABC) and the US Government to launch the ASEAN SME Academy (the Academy) back in 2016.
The Academy offers entrepreneurial education programs to help MSMEs elevate their businesses.
The platform has put together online courses from large multinational corporations, such as Microsoft, Google, Amazon, Visa and Mastercard, on topics ranging from finance, operations, marketing, and logistics to digital tools.
The course is free for MSMEs to access and has garnered 465,000 visits as well as 10,000 users across the ASEAN to date.
The Academy equips MSMEs with skills and strategies to help expand their sales volume and market reach.
An example of this success is Yulia Prayanti, a 26-year-old user of the Academy and entrepreneur from Lombok in Indonesia.
She expanded her snack business beyond her hometown after learning how to use social media as a means to sell her products through the Academy.
Orders are now received from places as far as Sumbawa, Kalimantan, and Central Java.
The pandemic makes the Academy much more relevant for the MSMEs today and it gives us the stimulus to continue doing even better.
The partnership is committed to upgrading the Academy to reach a wider audience through a redesigned platform that is learner-friendly, content-rich, and inclusive.
As a result, the revamped platform, ASEAN SME Academy 2.0, was launched on April 8, 2022, with a view to become a one-stop online platform in Southeast Asia for MSMEs-related ideas and resources.
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The revamped platform is now mobile-friendly, light on bandwidth requirements, and making learning possible anytime and anywhere even in the remote areas.
With this upgrade, the platform also offers multi-lingual support in Indonesian, Thai, and Vietnamese and the opportunity to receive globally recognized certification that will help them stay relevant and competitive in the job market.
As digitalization transforms every aspect of business and society, it is key for MSMEs in the ASEAN to leverage on this technology and optimize their business growth.
Participating in the digital economy is now imperative for MSMEs not only to survive the crisis from the pandemic but also to seize new opportunities.
The ASEAN Academy 2.0 is a great example of an ASEAN initiative that directly supports the up-skilling of our workforce and empowers businesses in navigating opportunities in a post-pandemic world. (INE)
*) Lim Jock Hoi is the Secretary General of Association of Southeast Asian Nations (ASEAN)
*)The views and opinions expressed on this page are those of the author and do not necessarily reflect the official policy or position of the ANTARA News Agency
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