Business and private sector development is a key way to lift household incomes, alleviate poverty, lift income security and improve wellbeing. However, business growth and development does not necessarily occur spontaneously. In some cases external market assistance and intervention is needed to lift firm performance and growth. This is particularly true for small and isolated economies as is the case with Samoa. There are a number of development programmes being delivered in Samoa. This research focuses on two programmes:
- Private Sector Support Facility (PSSF), and
- Small Business Enterprise Centre (SBEC).
The focus of this report is on the economic and social impacts of the PSSF. We provide recommendations about the PSSF and a way forward.
The Samoan economy is concentrated in small and micro businesses, with most business consisting of less than 5 employees. Firms are mostly set up to trade with local households and other domestic firms. The PSSF is grant funding that aims to assist firms seeking to lift business performance. PSSF’s overall objectives is to assist the development of Samoa through:
- Increasing private sector employment and skills development,
- Growing trade and exports,
- Increasing the size and number of private sector businesses, and
- Increasing business investment and innovation.
This research is part of the ongoing drive to improve the efficiency and effectiveness of how these funds are applied. This is done by understanding the economic and social impacts of the PSSF. The PSSF has reasonable coverage and have assisted a number of firms in recent years. Over the past two years, the PSSF has provided assistance to over 275 private sector organisations, generating economic and social effects.