A recent survey has revealed that better access to finance is the one change that small businesses in Papua New Guinea (PNG) believe would most significantly boost their operations. The survey, titled the "MSME and Informal Sector Survey," gathered responses from over 2,621 business owners and managers across 21 provinces, making it one of the most extensive studies ever conducted in PNG’s small business sector.
The survey findings show that more than half (56 per cent) of the Micro, Small, and Medium Enterprises (MSMEs) surveyed have faced difficulties in securing loans. These challenges were highlighted as a significant obstacle to business operations, indicating a pressing need for improved financial access in the sector.
In addition to the challenges in obtaining finance, 60 per cent of the respondents expressed that better access to finance is one of the top three changes that could significantly unlock their growth potential. This strong consensus among business owners underscores the critical importance of financial support in fostering the growth of small businesses in PNG.
Another key finding from the survey is the need for improved access to management and financial skills training. Nearly 40 per cent of the surveyed businesses highlighted this as an area that requires attention, suggesting that equipping MSMEs with the necessary skills could further enhance their ability to thrive in the competitive market.
The survey was conducted by Australia to support the Government of Papua New Guinea in its efforts to develop policies that stimulate the growth of the MSME sector. This initiative is part of the broader #PNGAusPartnership, aimed at fostering economic growth and employment in PNG.
Australia's support in funding the survey exemplifies the ongoing collaboration between the two nations, with the results expected to inform future government actions and policies designed to support the MSME sector. The ultimate goal is to drive sustainable economic growth and create more employment opportunities in PNG.
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