Independent Dialogue
Geographical focus:
Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Spain, Sweden, Switzerland, United Kingdom of Great Britain and Northern Ireland
Major focus
How to boost the role of SMEs in providing good food for all? Small and Medium-sized Enterprises (SMEs) are vital to our food economies. Each country is different, but SMEs are often over 90% of businesses in the agri-food sector, creating half the economic value, providing more than half the sector’s jobs, and handling more than half the food consumed. Their tenacity and agility sustain food supplies and access through the COVID pandemic. What pathways will enhance the contribution of SMEs to the food system? Wasa�ri here offers six promising pathways to boost the impact of food SMEs. Whi
... Read morech are most important in your context? What is missing? What actions will advance them? How are they interdependent? 1. Elevate the Voice of SMEs Food entrepreneurs are incredibly diverse. Hence, collectively they neither easily in�uence nor hear the policy decisions that determine their future. Policymakers are often simply unaware of this quiet majority and are instead swayed by more powerful voices that are easier to engage. Positive examples exist of institutions and processes that elevate the voice of SMEs. The best of these also manage to amplify more marginalised entrepreneurs such as women, youth and indigenous people. Replicating these efforts around the world will ensure our food systems are designed and managed in ways that realise the positive contribution of SMEs. 2. Reduce the Cost of Doing Business In emerging economies, many basic challenges undermine the commercial viability of food SMEs, for example poor roads, intermittent power, red tape, corruption, unpredictable trade policy, and internet access. Wherever these improve, SMEs grow and proliferate. Access to �nance also improves as lenders and investors have more con�dence. Cross-sector collaboration can strengthen this basic enabling environment, reducing the risks and costs of doing business in the agri-food sector, and accelerating the “quiet revolution” through which SMEs are already transforming food systems. 3. Reward Positive Outcomes Our food systems are currently designed to reward the mass production of cheap calories. Different incentives are needed for markets to produce food that is more sustainable, nourishing and equitable. From impact investing to carbon credits, from product certi�cation to sugar taxes, there are diverse mechanisms to reward positive outcomes and disincentivise negative ones. These must be designed and scaled in ways that work for SMEs, rather than adding complexity and cost. 4. Target Support at Food SMEs Well-resourced business development support for SMEs is a proven driver of inclusive economic growth. Targeting such support at food SMEs offers additional bene�ts, due to the importance of the sector to public goods such as health, the environment, and livelihoods. Youth, women and other groups face additional barriers to starting and growing a business. Support to them unlocks fresh entrepreneurial energy into the sector and addresses equity gaps. 5. Democratise the Digital Food Revolution COVID has accelerated a long-term trend towards digitisation of the food system. Whether it is digital farming, block chain for supply chain management, or virtual marketplaces, the food system is undergoing a tech revolution. The vast �ows of data could serve the common good or entrench control within a few powerful actors. By design and policy, the data services and digital markets must be accessible to SMEs. This could unlock myriad innovations from payment for ecosystem services, to direct farm-to-consumer sales. 6. Make Good Food Matter For decades, the food system has been valued for its e�ciency in feeding billions of additional mouths. This era witnessed the rise of industrial agriculture. The Summit marks an in�ection point. Food systems must now also be valued for nourishing people, regenerating nature, improving equity and resilience to shocks. In this new paradigm, SMEs are in a stronger position with their closer, more nuanced relationships with communities and landscapes. Read less
Action Track(s): 1, 2, 3, 4, 5
Keywords: Environment and Climate, Finance, Innovation, Policy, Women & Youth Empowerment