Pacific locks in first regional strategy to power small business growth

(Pacnews) The Pacific has moved to put small businesses at the centre of its economic future, launching a region-wide strategy aimed at breaking down barriers and driving growth across micro, small and medium-sized enterprises (MSMEs).

The Pacific Regional Private Sector Strategy 2025–2030 report sets out a coordinated plan to strengthen MSMEs by tackling long-standing constraints in six key areas — improving the business enabling environment, supporting growth and innovation, expanding access to finance, building resilience, promoting inclusive entrepreneurship, and enhancing regional dialogue.

At the heart of the strategy is a clear push to build a stronger, more adaptable private sector that can withstand shocks and take advantage of new opportunities in a rapidly changing global economy.

“The private sector remains the engine of economic growth in the Blue Pacific,” said Pacific Islands Forum Secretary General Baron Waqa.

“As we navigate an increasingly complex global economy, it is more critical than ever that we support and empower Pacific enterprises and businesses in Smaller Islands States to be at the forefront of transformation, innovation, and inclusive development.” 

According to the report, MSMEs are “widely recognised as the catalyst of Pacific economies,” playing a critical role in job creation, entrepreneurship and economic diversification. 

But despite their importance, many small businesses across the region face persistent challenges — from limited access to finance and complex regulations, to vulnerability to climate shocks and global disruptions.

The strategy responds directly to these challenges by focusing on practical reforms and targeted support aimed at unlocking the full potential of MSMEs.

It also recognises that a coordinated regional approach has been missing, despite ongoing national efforts.

“A coordinated regional approach is now essential to leverage the collective strengths of FICs, fostering regional economic integration through cross-border collaboration, facilitating shared resources, and sharing best practices to achieve common economic objectives across the Pacific region.” 

The plan is built around six priority pillars designed to remove barriers and accelerate business growth.

Improving the business environment is a key focus, with calls to simplify regulations, reduce bureaucracy and create more predictable policy settings for businesses.

Growth and innovation are also central, with the strategy pushing for stronger support systems, including business development services, digital tools and sector-specific innovation to help MSMEs expand and compete.

Access to finance remains a major hurdle across the region, with many small businesses unable to secure loans due to high collateral requirements and limited financial records. The strategy highlights the need for alternative financing models and improved financial inclusion.

Building resilience is another major pillar, reflecting the heavy toll of climate disasters and the COVID-19 pandemic on Pacific economies. The plan calls for better disaster preparedness, climate-smart practices and stronger risk management systems.

Inclusive entrepreneurship is also prioritised, ensuring that women, youth, rural communities and informal sector operators are not left behind.

Finally, the strategy emphasises the importance of regional dialogue, strengthening cooperation between governments, the private sector and development partners.

A strong focus of the strategy is ensuring that growth is inclusive and benefits all segments of society.

The plan highlights the need to support women-led and youth-led enterprises, as well as businesses in rural and informal settings, which often face greater barriers to growth.

The strategy will be rolled out over five years, with a focus on high-impact actions identified through extensive regional consultations.

Implementation will largely be driven through Regional Collective Actions (RCAs), bringing together governments, technical agencies, international organisations and development partners to deliver results.

The strategy is also designed to complement existing national private sector plans, ensuring alignment rather than duplication.

A mid-term review is built in to allow adjustments as new challenges and opportunities emerge.