Recovery, Renewal, Resilience

Many local/town centre businesses will be micro- and small-medium enterprises (MSMEs) that have been severely impacted by the pandemic and lack internal resources to support recovery. In Pakistan, MSMEs contribute 40% to GDP and are critical to the economy, as they are in many other countries. In developing support strategies for local businesses and MSMEs, it is important to recognise that the pandemic has changed working practices and locations, and how we shop and entertain ourselves. Small businesses may not have the resources to access the type of data that can inform them on these potential changes to consumer habits, which in turn could impact trade levels as restrictions ease and these businesses re-open. Local governments can support them by facilitating access to this information. Consider:

• Build capacity of local government staff to undertake local economic assessments and develop small town regeneration and renewal plans (e.g. train staff to conduct economic impact assessments to identify businesses that may struggle post-lockdown and strategies that will support local economy recovery)
• Engage with local businesses, MSMEs and organisations that represent them (e.g.FSB UK) to draw on their perspectives and expertise when developing recovery and renewal plans
• Identify what has gone well in previous phases of re-opening, what could be improved and the support needs of these businesses (e.g. management of queues/health and safety measures to mitigate and contain the virus)
• Provide support grants to MSMEs for business regeneration or local marketing strategies to promote local businesses
• Conduct local and regional consumer habit surveys, in partnership with neighbouring local authorities, to identify the expectations of local consumers, and their potentially changed habits
• Communicate findings rapidly to local businesses so that they are informed and can prepare/pivot their businesses appropriately
• Develop an evidence-based local economic strategy that recognises changed consumer habits and demands, in partnership with local businesses
• Provide guidance to local businesses on how to adapt and where new business opportunities may lie (renewal)
• Signpost local businesses, particularly MSMEs, to training for digital skills and to advice on finance/investment in new technologies
• Develop a mechanism whereby local government can share lessons and knowledge between each other easily to learn from each other (e.g. collaborative 'light touch' impact assessments as described in Briefing A)

The SDGs, represent the world's agreed economic, social, and environmental targets for 2030, and can act as a common scorecard to ensure there are objective standards for assessing progress. Localising the ambition of the SDGs to develop local economic development strategies can help integrate social and environmental standards within local economic agendas, reduce disparities between regions, generate local business opportunities and jobs, and aim to include all marginalized communities. Consider how the SDG framework can support inclusive and diversified economic growth:

• Integrate SDG targets into on-going budget reviews process, thereby improving resource allocation and performance evaluation
• Examine the link between ongoing public policies, the SDG targets and budget expenditures
• Analyse the official indicators related to budget-planning instruments
• Partner with the private sector to launch impact investment initiatives that address the SDGs, recovery and renewal from COVID-19 and sustainable economic renewal