Small Business Resilience

Overview

UNDP and Generali are working together to help SMEs unlock their financial resilience in the face of growing risks.
Between 80 and 95 percent of the world’s micro-, small and medium-sized enterprises are in developing countries, where they contribute up to 55 percent of GDP and 70 percent of employment. As hazards and risks increase, climate change is threatening that essential role.
Through digital tools, research and the development of innovative insurance solutions, Generali and UNDP are pioneering new ways to support SMEs. The collaboration is facilitating global dialogue and collaboration between SMEs, policymakers, SME associations, institutional representatives and industry leaders to shape environments where SMEs can thrive, securing livelihoods and driving economic growth.

Digital tools, research and product innovation

A new approach

Fewer than 5% of MSMEs in the ASEAN region have any form of insurance. To help increase protection for these critical businesses, UNDP and Generali proposed a new approach to determining MSMEs’ risks and specific needs by segmenting priority value chains and developing holistic solutions that include both risk transfer and risk mitigation tools.

SME Loss Prevention Framework

Generali and UNDP’s SME Loss Prevention Framework is an innovative digital tool that leverages data to help small businesses better prepare themselves to meet climate and weather-related risks. The first version of this free online tool helps Malaysian SMEs protect against flood risk. A mobile app is being developed, and the tool will be replicated for use in other countries in Asia.

SME Insurance Innovation Challenge

Generali and UNDP launched an Insurance Innovation Challenge calling for solutions tailored to meet the growing risks faced by SMEs in Malaysia. The solutions were required to introduce new business models and digital technologies, protecting businesses from risks, enabling their stability and growth while breaking new ground in the realm of insurance.

“Promoting the financial resilience and sustainability of SMEs means supporting sustainable development and reducing the protection gap. Public-private partnerships and the direct involvement of SMEs themselves are critical to achieving this, and contribute to a more inclusive and greener future, for people and planet.”

Lucia Silva, Chief Sustainability Officer, Generali Group