The COVID-19 crisis has brought into sharp focus the need to build resilient, sustainable and inclusive ecosystems for MSMEs with technology and digitalisation taking the centre stage. It has long been proven that technology enables innovation being created and deployed in a rapid growth whereby technology can improve ways of running business making it faster, safer and scalable.

Talent or skills mismatch is one of the main challenges faced by MSMEs. Empirical evidence showed that employees are not well-matched with their current jobs and this situation is exacerbated by the COVID-19, whereby jobs are at the greatest risk in MSMEs. The process of developing human capital and entrepreneurship therefore requires creating the necessary environments in which employees can learn better and apply innovative ideas, acquire new competencies, develop skills, behaviours and attitudes.

Border closure, travel bans, and quarantines have significantly affected spending in vulnerable sectors where the presence of MSMEs are prevalent. Cash flow emerged as the key challenge during the pandemic, followed by reduced in demand and supply chain disruption. Timely, sufficient and innovative access to financing is crucial for the survival of MSMEs during this challenging period.

With the "new normal" comes a new way to market to customers and sourcing from suppliers. Diversifying one’s suppliers and buyers, including through participation in international trade, enable businesses to fall back on alternative channels while networking with industry players in the business ecosystem bolster ability to cope in crisis situations. Pivoting market access strategy by improving online presence, networking virtually and leveraging on social media may help keep business thriving during trying times.

The COVID-19 crisis has clearly demonstrated today’s enormous and almost totally new regulatory challenges. It has made clear that a comprehensive regulatory overhaul must be undertaken to prepare for an uncertain future. Adapting tested, decades-old regulatory tools to these new challenges by making them more flexible, modern, and innovative, with an effective communication strategy to business community may facilitate the adherence to rules and regulations while helping MSMEs navigate the unprecedented complexity of reopening an economy that is dependent on public health in a cost-efficient manner.

An efficient infrastructure support including technical infrastructure, trade clearance and facilitation system are also important to MSMEs and entrepreneurs as it affects the cost of doing business. More importantly, it can be the catalyst to help MSMEs adapt to the changed business environment and build resilience with a view to transform economies effectively, improving connectivity and boosting business competitiveness especially for young entrepreneurs.