Digitalize your Business – closing the digital divide for MSMEs (ILO)
6 Dec 2023 14:00h - 15:00h UTC
Knowledge Graph of Debate
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Gemunu Wijesena
The Bringing Back Jobs Safely Under the COVID-19 Crisis Project was initiated in early 2022 with the aim of supporting micro, small, and medium enterprises in the Philippines amidst the pandemic. As part of the project, 200 trainers were specially trained to assist in the digitalization efforts of 20,000 entrepreneurs. This project was crucial in helping entrepreneurs adapt to the challenges posed by the COVID-19 crisis and ensuring their continued economic growth.
One notable aspect observed during the project was the variation in digital maturity across different regions in the Philippines. While some areas demonstrated advanced digitalisation, others were still in the early stages of adopting digital technologies for their businesses. This highlights the need for tailored approaches and support in regions where digitalisation is less prevalent.
Entrepreneurs participating in the project expressed a strong need for more practical elements in their digital training. They emphasised the importance of learning through hands-on experience rather than theoretical knowledge alone. Additionally, the entrepreneurs also stressed the significance of low-cost or free applications that could be easily implemented in their businesses. These insights have highlighted the importance of incorporating practicality and accessibility into digital training programs for entrepreneurs.
Another significant finding was the need to combine the Digitalize Your Business package with business management knowledge for effective results. It was observed that the level of digital literacy among entrepreneurs varied, with some struggling due to a gap in either business knowledge or digital skills. Therefore, bridging this gap by integrating business management knowledge into digital training programs is crucial to ensure that entrepreneurs are equipped with the necessary expertise to make the most of digital technologies.
Furthermore, it was discovered that digitalisation challenges in different countries differed significantly. For example, in some Pacific Island countries, the absence of digital banking systems and reliance on cash transactions posed unique challenges to digitisation efforts. This serves as a reminder that digital solutions need to be tailored to the specific circumstances and needs of each country or region.
The project also affirmed the importance of supporting the digitisation of micro, small, and medium-sized enterprises. The choice of the Pacific Islands and the Philippines as pilot locations for the project was based on their different levels of digital maturity. Five training workshops have already been completed, and two more are planned, indicating the ongoing commitment to supporting and promoting the digitisation of these enterprises.
One challenge identified during the project was the struggle faced by entrepreneurs in attracting traffic and increasing online sales. Digital marketing and strategies for online sales were found to be areas where entrepreneurs required additional support. Complementary material focusing on operating business Facebook pages and utilising influencers was designed specifically for digitally struggling entrepreneurs.
The duration of training varied based on the participants’ needs, with flexibility to adjust the training approach according to their digital literacy and understanding. For example, for the DYB integrated S-I-Y-B training, the duration could range from nine hours for online delivery to 40 hours for face-to-face sessions. This adaptability is crucial in catering to the diverse requirements of the participants and ensuring the effectiveness of the training programs.
In conclusion, the Bringing Back Jobs Safely Under the COVID-19 Crisis Project in the Philippines has underscored the importance of supporting micro, small, and medium enterprises through digitisation efforts. The project has highlighted the need for region-specific approaches, practical training elements, and the combination of business management knowledge with digital skills. Additionally, it has shed light on the diverse challenges faced in different countries and the necessity of tailoring digital solutions accordingly. By understanding these insights, stakeholders can better support entrepreneurs in their digital transformation journey and contribute to their long-term success.
Elisa Mandelli
The International Labour Organization (ILO) has developed the ‘Digitalize Your Business’ tool to assist Micro, Small, and Medium Enterprises (MSMEs) in responding to the emerging opportunities and challenges in the digital economy. This tool was developed based on the ILO’s Star and Improve Your Business program. Its main aim is to help enterprises use digital solutions to improve their internal and external business operations.
Digitalization offers a pathway for business growth and inclusion, helping businesses to reach new markets, expand their client base, and have more stable flows of income. During the pandemic, it was observed that enterprises with some form of digital capacity performed better. Digitalization can also help in accessing market information, which is often a challenge for MSMEs.
However, it is important for MSMEs to approach digitalization as a gradual process, considering the costs associated with digital transformation. Entrepreneurs need to make strategic decisions about what makes sense for their businesses and adds value to them. Adapting digital tools to a specific context and target group is crucial for successful implementation.
In the Philippines, the ILO’s project focuses on micro, small, and medium enterprises, except for the Metro Manila region where digitalization is already adopted. The objective of the project is to train 200 trainers who will support the digitalization of 20,000 micro, small, and medium entrepreneurs. This initiative aims to bring back jobs safely under the COVID-19 crisis and started in early 2022.
The digital maturity level in the Philippines varies across different areas. The market assessment conducted in the country has categorized the market into three segments: digitally savvy, digitally ready but lacking awareness and knowledge, and non-users or digitally poor. This highlights the need for tailored strategies and support in different regions.
To enhance the effectiveness of the ‘Digitalize Your Business’ package, it is recommended to combine and deliver it together with business management knowledge in training programs. Entrepreneurs who have been trained in the ‘Digitalize Your Business’ tool often require more practical elements than theories. They also often need to start with no cost or low-cost applications and online marketplaces before directly investing in their own websites.
In conclusion, the ‘Digitalize Your Business’ tool developed by the International Labour Organization aims to assist MSMEs in embracing digital solutions for improved business operations. Digitalization can offer opportunities for growth and inclusion but should be approached gradually, considering the costs and making strategic decisions. The ILO’s project in the Philippines aims to support the digitalization of MSMEs by training trainers and addressing the varying digital maturity levels. Combining business management knowledge with the ‘Digitalize Your Business’ package can further enhance its effectiveness in supporting MSMEs.
Audience
The analysis uncovers several key points relating to digital programs, SME support, and entrepreneurship. One significant finding is the role of Microsoft in establishing digital programs. The analysis states that Microsoft is involved in setting up these programs and collaborating with the European Bank for Reconstruction and Development (EBRD). The EBRD is actively seeking private sector cooperation to provide support for small and medium-sized enterprises (SMEs). The aim of this collaboration is to explore potential partnerships that can enable SMEs to thrive in the digital business landscape.
Another important point highlighted in the analysis is the necessity of regularly updating program content. A member of the audience, who works in the SME Finance and Development team, raises a question regarding strategies for keeping program content up to date. This indicates an acknowledgement of the importance of staying current and relevant in the fast-paced digital world. However, the analysis does not provide specific information on the efforts required for updating the content.
The adaptability of the Start and Improve Your Business model is also emphasized. This model relies on in-country trainers and master trainers to provide guidance and support to entrepreneurs. The model is designed to adapt to the specific needs and contexts of individual entrepreneurs, promoting flexibility and tailored support in different regions and markets. This adaptability allows entrepreneurs to receive relevant and practical guidance designed to help them succeed in their business ventures.
Additionally, the analysis mentions a query about the duration of a program from Sarah Carroll, an international e-commerce consultant. However, there are no further details provided regarding the specific program or the response to the query.
In summary, the analysis highlights Microsoft’s involvement in digital programs, the EBRD’s efforts to support SMEs through partnerships, the importance of regularly updating program content, and the adaptability of the Start and Improve Your Business model. Although the sentiment of the analysis is mostly neutral, except for the positive view of the adaptability of the Start and Improve Your Business model, the lack of specific evidence or details makes it difficult to draw definitive conclusions about the effectiveness or impact of these programs and initiatives.
Carlo Delu
The Women in Digital Business initiative, in collaboration with Microsoft Philanthropies, aims to promote women’s economic empowerment globally. The key goal of the program is to support women entrepreneurs in low and middle-income economies by providing them with essential digital skills training. This training is designed to help women entrepreneurs succeed in their businesses.
The program operates on a training of trainers model, where a selected group of lead trainers are trained to further train a larger number of trainers. The ultimate objective is to reach a minimum of 30,000 women entrepreneurs, with a total of at least 50,000 hours of learning and training.
To ensure that the program meets the specific needs of women entrepreneurs in different countries, a skills gap analysis approach has been adopted. By collaborating with Start and Improve Your Business trainers and Microsoft philanthropies’ partner agencies, the program identifies the lack of digital skills and the prevalent use of paper records among women entrepreneurs. This analysis helps tailor the program to address these needs.
Based on feedback obtained through the skills gap analysis, a tailored curriculum has been developed for women entrepreneurs. This curriculum covers basic digital literacy, a foundations program, and curated learning paths on a flexible learning management platform. The Women in Digital Business Network platform serves as an online learning management system, allowing women entrepreneurs to access materials, information, and develop their own action plans.
The program has a global impact and is currently implemented in multiple countries in the Global South, with operations conducted in English, French, and Spanish. The second-year plan includes expansion to more countries, delivering extensive training, and providing technical assistance for translation of training materials.
Microsoft plays a vital role in the initiative as a funding partner. In addition to financial resources, Microsoft also contributes to the development of materials and training tools. This partnership enables the program to integrate Microsoft’s content with the specific needs of women entrepreneurs in developing countries.
The program is committed to innovation and plans to integrate generative AI content in the coming year. This initiative aims to adapt AI technology for small-scale entrepreneurs in the developing world.
To ensure the program remains up to date, initial content is developed in-house and then crowdsourced with a network of trainers for updates. This strategy includes emerging technologies relevant to specific contexts, enhancing the program’s effectiveness.
The partnership with Microsoft is highly beneficial, providing financial resources and allowing the program to adapt to the needs of women entrepreneurs in developing countries. This collaboration highlights the importance of partnerships in achieving the program’s goals and promoting gender equality.
An essential aspect of the Women in Digital Business initiative is self-sustainability. The program aims for trainers to maintain a majority of the program, building local capacity and empowering trainers to continue the program without heavy reliance on external resources.
In conclusion, the Women in Digital Business initiative, in collaboration with Microsoft Philanthropies, is making significant efforts to promote women’s economic empowerment globally. With its focus on digital skills training, tailored curricula, and global reach, the program aims to position women entrepreneurs for success and reduce inequality. The program’s self-sustainability and partnership with Microsoft contribute to its ability to drive lasting impact and create meaningful change in the lives of women entrepreneurs.
Speakers
A
Audience
Speech speed
156 words per minute
Speech length
278 words
Speech time
107 secs
CD
Carlo Delu
Speech speed
172 words per minute
Speech length
2835 words
Speech time
989 secs
EM
Elisa Mandelli
Speech speed
163 words per minute
Speech length
2972 words
Speech time
1096 secs
GW
Gemunu Wijesena
Speech speed
139 words per minute
Speech length
3163 words
Speech time
1365 secs
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