Today is World MSME Day!
What are Micro-Small-Medium Enterprises?
Whether they are defined by the number of employees, annual turnover or growth trajectory, there is no doubt that MSMEs serve as major drivers of socioeconomic development and prosperity in emerging markets.
Most formal jobs are generated by MSMEs, which create 7 out of 10 jobs In emerging markets.
In Kenya and Tanzania more than 95% of businesses are MSMEs that generate up to 50% of GDP.
In honor of this UN recognized day, we’re thrilled to officially announce Pears Challenge VI, focusing on Digital Financial Inclusion in East Africa.
MSMEs are the backbone of East African economies, and this year’s Pears Challenge will seek to support Israeli entrepreneurs in producing financial inclusion enhancing FinTech solutions tailored for MSMEs needs.
Addressing MSMEs' unique challenges and improving their access to finance has the power to generate cumulative economic growth and impact individuals and supply chains. Here are a few examples of the need and opportunity:
41% of SMEs in LDCs report access to finance as a major constraint to their growth and development, by comparison to 30% in middle-income countries (MICs) and only 15% in high-income countries (HICs).
Africa presents a huge opportunity for FinTech by accounting for up to 70% of the global mobile money transactions' value
McKinsey estimates that Africa’s financial-services market could reach $230 B in revenues by 2025 whereas Fintechs in Kenya alone could generate $30 B.
If you are an entrepreneur looking to address global financial inclusion challenges and produce solutions for MSMEs in East Africa, we invite you to pre-register today here: https://www.pearsprogram.com/pears-challenge.
