File Photo

The Micro, Small, and Medium Business Council says that MSMEs are still struggling.

It says structural barriers, including limited access to finance, insufficient business data, informal operating conditions, and regulatory requirements, continue to constrain MSME growth.

Chair Watisoni Nata says legal barriers like high compliance costs, complex procedures, rigid labor laws, and unclear policies discourage small businesses from formalizing.

He adds the council is proposing a tiered proportional compliance model that would allow smaller businesses to meet their obligations effectively while still ensuring strong worker protections.

Watisoni Nata says the Council recommends a tiered compliance approach aligned with the MSME Fiji Policy Framework definition rather than a fixed threshold for defining an MSME.

“And then if you’re medium enterprise, it’s between 300 and 1.25 million. Above that, then you’re deemed to be a large corporation. Now, this approach ensures obligations are proportionate to business size and capacity while maintaining core protections for employees.”

Nata further says that the MSME Fiji Policy Framework does not specify the number of employees, and the council is seeking clearer jurisdiction for the policy.

Committee member Semi Koroilavesau says they will engage with the relevant authorities on these issues and also support the submission made by the council.

“We intend to call the Ministry for Trade and Commerce just to check with them. So maybe this will highlight the issues and also support your submission this morning in respect to the details that you have given us.”

The council says that MSMEs play a vital role in the country’s economy, making up nearly 80% of registered businesses and contributing over 18%

of the nation’s GDP, but emphasizes that greater support is needed to help them grow and thrive.

Stream the best of Fiji on VITI+. Anytime. Anywhere.