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Author(s): Shahnaz Radjy

Enabling resilient MSMEs for a resilient nation: Initiatives from Indonesia and Mexico

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We have heard time and again that small businesses are the backbone of most economies, and that their ability to anticipate and prepare for disasters, as well as their capacity to immediately recover after a disruption, are strong indicators for community if not national resilience. Today, on World Micro-, Small, and Medium Enterprise or MSME Day, we wanted to celebrate not just these businesses but also some of our partners - in Indonesia and Mexico - who are working tirelessly to support them.

The business neighborhood resilience framework

In Indonesia, the chamber of commerce and industry, KADIN, a CBi Member Network, developed a unique Business Neighborhood Resilience Framework (BNRF) in partnership with Miyamoto International, the National Disaster Management Agency (BNPB), and World Vision International.* The focus is on preparedness, maintaining operations in times of crisis, and recovering post-disaster.

Initial consultations across five regions brought to light two main challenges:

  • Getting the language right, so it's accurate but not overly technical or complicated
  • Developing materials that are relevant across business sizes and industries

After socializing the framework in collaboration with three of KADIN's sectors - Social and Disaster Management, Women's Empowerment, and MSME Development, KADIN ran a trial workshop with 10 small businesses. The objective was to train participants on identifying business risks related to disasters and dealing with crises through proper disaster management tools. By identifying risks and gaps, participating entrepreneurs can invest in the resilience of their business.

The resilience route

Building on the "Resilience in a Box" platform developed by the UPS Foundation, ARISE Mexico and the Centro Nacional de Apoyo para Contingencias Epidemiologicas y Desastres (CENACED), a CBi Member Network, are launching a "Resilience Route" to provide step by step support to 200 MSMEs. The project focuses on preparedness and risk mitigation, and is split up into three phases and five practical workshops that will be offered in collaboration with the Mexico City boroughs.

The goal is for participating businesses to learn how to:

  • Identify risks
  • Analyze the impact of potential disruptions
  • Develop a disaster preparedness and mitigation plan
  • Put together a Business Continuity Plan
  • Understand how to maintain operations in crisis

The key takeaway from these two initiatives are that there is no one-size-fits-all approach to enabling resilience. While some elements will remain consistent across the board, what's important is to co-create solutions with local businesses so that they are tailored to their needs.

That's what localization is all about: Finding the right partners and listening to the people on the ground to make sure they get the support they need. As we have seen in Peru, the domino effect is huge: individuals learning about resilience won't just make their businesses resilient, but will take their learnings home to their families and communities, too.

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Country and region Mexico Indonesia

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