83% OF MSMES WOULD FORMALISE IF REGISTRATION WAS FREE

MBABANE – At least 83 per cent of MSMEs would formalise their operations if business registration was free and the benefits of formalisation were clearly communicated.

This is one of the findings of the latest Blended FinScope MSME Survey 2023 launched yesterday at Hilton Garden Inn in Mbabane, provide a comprehensive overview of Eswatini’s micro, small and medium enterprises MSME sector, its challenges and opportunities for growth.

The survey, conducted by FinMark Trust in collaboration with the Centre for Financial Inclusion (CFI), highlights the need for improved access to finance, regulatory support and enhanced business development services to drive sustainable economic growth.

The survey indicates that a significant proportion of MSMEs in Eswatini still operate informally, primarily out of necessity. High unemployment levels and limited job opportunities have pushed many individuals into self-employment as a means of survival.

 Key findings of the study reveal that:

• 83 83% per cent of MSME owners expressed willingness to formalise their businesses if registration was free and the benefits were made clear.

•      The majority of informal businesses cite high registration costs and complex procedures as deterrents.

•      Even among formally registered businesses, many struggle with compliance due to costly regulatory obligations.

• Access to finance remains a major constraint for MSMEs, despite improvements in financial inclusion over the past six years.

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