Three ways data is helping Belizean businesses recover from COVID-19

By Anila Qehaja and Amilin Mendez

UNDP surveyed businesses in Belize through a digital, nationwide socio-economic impact assessment. Photo: BELTRAIDE

Micro, Small and Medium-sized Enterprises (MSMEs) play an essential role in the Belizean economy. They account for 90% of all businesses and provide 50% of all employment in the country.

The global pandemic has exacerbated many of the underlying constraints that MSMEs face on access to finance, export readiness, diversification and more recently, digitalization. However, a UNDP socio-economic impact assessment — a survey methodology implemented in more than 50 countries to measure the impact of crises — has provided valuable information to help the affected MSMEs recover from this challenging time.

The successful implementation of the MSME Strategy is a critical step in Belize’s sustainable development agenda. Photo: BELTRAIDE

Starting with clear socio-economic data

Decision-makers need reliable data now more than ever as the pandemic continues to have devastating effects on health, economic and environmental systems.

UNDP surveyed businesses through a digital, nationwide socio-economic impact assessment to get a clear snapshot of how MSMEs were affected by the ongoing health crisis and how they were coping with this new reality. The survey considered marginalized groups, like informal merchants, youth and indigenous communities.

Out of the surveyed businesses:

• 44% experienced a revenue decrease of more than 50%.
• 45% started using digital platforms more (Facebook, Instagram, etc.).
• Only 27% of businesses received pandemic-related MSME support — with men receiving significantly higher support than women. 43% that didn’t receive support weren’t aware it was available.

The data collected now serves as a key guiding tool to support affected Belizean businesses nationwide in three main ways:

1. National strategy to support MSMEs

Foundational to the design of Belize’s national MSME Strategy for 2022–2025, data coming out of the socio-economic impact assessment provided key insights that informed six priority areas to help MSMEs see success despite COVID-19 challenges:

1. Improving access to markets
2. Enhancing capabilities and innovation
3. Facilitating access to finance
4. Developing conducive business environment
5. Ensuring coherence and effective coordination
6. Setting up required institutional and governance frameworks

With MSMEs representing the primary source of net job creation and the driving force of innovation in the private sector, the importance of the national MSME Strategy cannot be understated. Considering MSME’s key role in achieving 8 out of 17 Sustainable Development Goals (SDGs), the successful implementation of the Strategy is a critical step in Belize’s sustainable development agenda.

The national MSME Roadshow 2022 is an ongoing country-wide campaign geared toward supporting the MSME sector through the pandemic. Photo: BELTRAIDE

2. National MSME Roadshow

The national MSME Roadshow 2022 is an ongoing country-wide campaign geared toward supporting the MSME sector through the pandemic. The Roadshow aims to register informal businesses — a crucial goal in a country where the informal economy represents 46% of all economic activity, second only to Haiti in the Caribbean region.

The roadshow is also identifying MSMEs for a national MSME Directory, funded by UNDP, to create public awareness, promote national businesses, and provide an online platform where Belizean products can be displayed and purchased.

3. Digital transformation and capacity building

Based on the identified need for increased digital literacy, almost 300 MSMEs received training on topics like technology, digital marketing, and content development. Women and youth represented 90% of learners who received training in nine locations across the country.

Data also inspired the creation of the Virtual Knowledge Center (VKC) which features digitized learning materials to guide MSMEs in using technology to respond to changes in the business environment. Developed by BELTRAIDE — the national trade and investment promotion agency — the VKC also houses the National MSME Directory, the Export Catalog, the Belize Investment Portfolio, and opportunities for jobseekers, investors, and exporters.

Almost 300 MSMEs received training on topics like technology, digital marketing, and content development. Photo: BELTRAIDE

Lastly, six Digital Connect Centers were created to bridge the digital divide in the country. In addition to providing safe spaces, computers, and reliable internet, the strategically located centers also host business development programs, digital literacy training, and digital bootcamps for Belizean youth in six communities.

Numbers have important stories to tell — but are we listening closely? The country of Belize sure is. Data uncovered the challenges and enabled the design of measures to help Belizean MSMEs recover from the impact of the pandemic. These personalized measures are the result of data-driven decision-making to support a vulnerable sector, making good on UNDP’s global commitment to leave no one behind.