ILO research explores private sector perspectives on business resilience in small island developing states

BANGKOK (ILO News) - The International Labour Organization (ILO) has launched a pivotal study on business resilience in Small Island Developing States (SIDS) across the Pacific and Caribbean, aiming to take stock of good practices, new initiatives and innovative approaches while improving understanding of the risks faced by the private sector. 

The research was unveiled on 24 October 2024, in collaboration with the Samoa Chamber of Commerce and Industry (SCCI) during the Commonwealth Business Forum (CBF), held in Apia, Samoa under the theme “One Resilient Common Future: Transforming Our Common Wealth.” The CBF is designed to provide a space for high-level dialogue between businesses and Government leaders from the 56 Commonwealth nations and immediately precedes the Commonwealth Heads of Government Meeting (CHOGM). The 2024 focus of the CBF on resiliency highlighted the urgency of action and call for stronger government-private sector collaboration amidst rising global challenges.

A roundtable discussion on business resilience provided the opportunity for representatives of employer and business membership organizations (EBMO) in ILO Member States across the Pacific, Australia and New Zealand to provide national context to the ILO’s findings and put forward recommendations for collaboration and partnership to fortify resilience. 

Discussions centered on key questions such as how businesses could effectively cope with adversity, withstand various crises and adapt to disruptions caused by economic, social, political, health and environmental challenges. Emphasis was placed on developing a cohesive strategy between Commonwealth governments and the private sector to mitigate these risks.

The roundtable discussion recognized that prioritizing business resilience could create a multiplier effect that would safeguard jobs, enhance economic stability, boost social cohesion and support a green and just transition. However, attendees noted significant obstacles to business resilience, including barriers to accessing finance, regulatory issues, and the high costs of implementing risk management strategies, which can hinder the private sector’s ability to adapt to new challenges.

Environmental hazards and climate change emerged as key focus areas for policy initiatives and investments in resilience, aligning with global trends. However, some stakeholders expressed concerns that concentrating predominantly on these areas could expose businesses to risks from other domains, such as cybersecurity, political instability and supply chain disruptions. The need to adopt a broad definition of business resilience was emphasized to ensure a balanced approach that addresses the full spectrum of risks.

Speaking at the event, Heidi Cooper, CEO of Business Chamber Queensland, underscored the role of membership-based organizations in promoting a favorable environment for resilience, noting that such organizations represent businesses of all sizes and sectors. Meanwhile, Himen Chandra, Board Member of the Fiji Commerce and Employers Federation (FCEF), highlighted the multidimensional nature of resilience, pointing out that climate risks are just one piece of a complex landscape of challenges. 

Other EBMOs shared insights into additional challenges, including civil unrest, skill shortages, and evolving industrial relations policies, urging stakeholders to consider these when planning for resilience.

Wade Bromley, Senior Specialist for Employers' Activities at the ILO Regional Office for Asia and the Pacific said, “Small Island Developing States face unique vulnerabilities. Our research underscores the critical need for resilience strategies that protect jobs, foster economic stability and enable a just transition. With the vast majority of development assistance and support for business resilience currently tied to natural disaster response and climate change, private sector appeals for support to address other risks need to be taken seriously. Ongoing social dialogue and collaboration between governments and the private sector is essential to creating a robust, adaptable foundation for economic resilience.” 

Following the event, the ILO will provide technical support to national EBMOs in the Pacific, as well as the Pacific Island Private Sector Organization (PIPSO), to formulate policies and recommendations aimed at enhancing business resilience. Building on the research findings and insights from the roundtable, the ILO has planned a follow-up event for 2025 to further exchange knowledge and strategies for resilience among SIDS in the Pacific and Caribbean, aiming to foster a stronger, more adaptable business environment across these vulnerable regions.