Financial problems faced by micro, small and medium enterprises in the small island states: a case study of the manufacturing sector of the Fiji Islands

Author： Naidu Suwastika

Publisher： Inderscience Publishers

ISSN： 1756-0047

Source： International Journal of Business Excellence, Vol.6, Iss.1, 2013-11, pp. : 1-21

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Abstract

Under the current paradigm in small business finance research, the micro, small and medium enterprises (MSMEs) play a pivotal role in generating employment, contributing to GDP, earning foreign exchange and contributing to revenues and taxes for the government. The aftermath of the global financial crisis has been very adverse for the Pacific Island economies. The Pacific Island economies do not have the resources to cushion the impact of the financial crisis. Hence, the government of many of the Pacific Island countries are looking at the MSMEs to provide sustainable development for the growth of the Pacific Island economies. The financial problems faced by the MSMEs are universal and the Fiji Islands are not an exception to this. In this light, this paper will investigate the financial problems faced by the MSMEs in the manufacturing sector of the Fiji Islands. This research will further demonstrate the severity of the impact of the financial obstacles on the growth and survival of the MSMEs. The paper will also provide policy directions for the government policy makers.