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Alibaba.com notes that MSMEs are the “backbone of the post-pandemic economy”

Alibaba presented its financial statements


To mark MSME Day 2022, Alibaba.com and the AliResearch Institute, the research arm of the Alibaba Group, released the report “Challenges, Responses and Transformation of MSMEs in the Post-Pandemic Era”.

The report examines how micro, small and medium-sized enterprises (MSMEs) fared during the pandemic in a multifocal way to offer a better understanding of the measures companies took to survive.

This research report was led and written by Professor Gan Li, an economist at Texas A&M University, and his academic research team, based on the main findings of a quantitative survey of MSMEs conducted by Alibaba.com and AliResearch, as well as in studies carried out through a wide variety of relevant public and academic information sources.

The United Nations General Assembly designated June 27 as the Day of Micro, Small and Medium Enterprises in order to raise awareness of the contribution of small businesses to sustainable, inclusive and resilient economic growth, shared prosperity and to decent work for all.

One of the most significant observations from the Alibaba.com report is that MSMEs are not only the backbone of the post-pandemic economic recovery, they are also a key driver for a more inclusive and diverse economy.

According to the report, MSMEs represent 90% of companies, 60-70% of employment and 50% of GDP worldwide. In the United States, 28% of small businesses are owned by minorities and 33% are owned by women.

The research also found that, of all MSMEs, the pandemic affected the smallest ones the most. This was to be expected, as many of the smaller businesses simply did not have the resources or infrastructure to withstand the blows of repeated closures, local restrictions, shortages, and other issues caused by the pandemic.

Less than a quarter of MSMEs escaped the negative effects of the pandemic: only 23.5% of them did not suffer a decrease in sales. Two-thirds of MiPymes suffered a 40% drop in their business. These statistics only begin to encompass the effects of the pandemic that has now been going on for more than two years.

“We have to recognize that MSMEs are not only key economic players, but their health and prosperity are also critical for a full and sustainable global economic recovery,” said Hongbin Gao, Vice President of Alibaba Group and Director of AliResearch Institute.

“Accordingly, we have published this report to help bring MSMEs back to center stage and facilitate broader and more practical discussions on supporting MSMEs and equipping them for greater economic impact”

Digital transformation has proven to be a lifesaver for many MSMEs during the pandemic, reducing their costs, providing timely information, streamlining workflows and expanding into new markets. Although e-commerce was already very popular in retail, the pandemic has accelerated its adoption in wholesale and manufacturing industries.

The research revealed that the MSME survival rate is 7 percentage points higher in regions with the highest e-commerce penetration than in those with the lowest. Furthermore, the economic downturn was less severe in regions with higher e-commerce penetration rates.

Andrew Zheng, Vice President of Alibaba.com, stated: “The pandemic has changed global trade forever. It cannot be denied that companies and individuals have suffered enormously.

“However, the creativity and ingenuity that MSMEs have put in place to overcome the many obstacles created by the pandemic is nothing short of impressive. E-commerce may have served as a coping mechanism throughout the pandemic, but going forward it will continue to be a valuable tool for global trade,” he added.

“Social selling, live trading, virtual trade shows, and RFQ marketplaces allow sellers to be creative in how they reach their audience and make it easy for them to connect with their ideal customers.”

He concluded by saying that “through digitization, MSMEs can also easily access information related to Internet traffic, demand forecasting and other key analyzes that allow them to make better decisions for their businesses.”

The report is available in several languages ​​and can be downloaded from the following link: http://seller.alibaba.com/pages/msme22





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Written by Editor TLN

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