Introduction
The Blue Economy is considered an economic model focusing on the sustainable use of marine and coastal resources. It includes sectors such as marine fisheries, aquaculture, maritime tourism, offshore renewable energy, and maritime transport. Small and Medium Enterprises (SMEs) play a vital role in this sector, contributing to job creation and fostering local economic growth. However, these projects face challenges related to financing, technology, and competitiveness.
In this context, major investments act as a key enabling factor for these projects. We summarize these factors as follows:
- Enhancing Access to Finance and Expansion
SMEs in the Blue Economy often struggle to obtain the necessary funding to expand the scope of their business. However, major investments contribute to providing essential capital through mechanisms such as blended finance, which combines public and private funding to reduce risks and boost investor confidence. For example, the government of the Maldives launched the "Transforming Blue Economy MSMEs through Blended Finance" initiative, which aims to support Micro, Small, and Medium Enterprises in fields such as sustainable fishing and marine technology through partnerships with local and international financial institutions.
- Technology Transfer and Fostering Innovation
Major investments contribute to introducing modern and advanced technologies to SMEs, enhancing their ability to innovate and improve their production efficiency. For example, in the state of Odisha, India, the government launched the "Odisha Marine Technology Research and Innovation Corridor" initiative, aimed at supporting startups in the field of marine technology by providing an advanced research environment and facilitating access to global markets.
- Creating Jobs and Enhancing Community Development
Major investments in the Blue Economy contribute to creating new job opportunities, especially in coastal communities that depend heavily on marine activities. By supporting SMEs, economic and social development is bolstered in these regions. For instance, in Seychelles, a study showed that supporting entrepreneurship in the Blue Economy can contribute to improving livelihoods and reducing poverty in coastal communities.
- Improving Competitiveness and Access to Global Markets
Through technical and financial support, SMEs become more capable of improving the quality of their products and services, which enhances their competitiveness in local and international markets. For example, in Indonesia, a blue economic model was developed that integrates the sustainable use of marine resources with the circular economy, helping SMEs improve their sustainability and increase their competitiveness.
- Addressing Future Challenges and Opportunities
Despite the numerous benefits of major investments, SMEs face challenges regarding access to finance, a lack of technical skills, and the ability to adapt to environmental changes. To overcome these challenges, it is essential to adopt encouraging policies, provide training programs, and foster cooperation between the public and private sectors.
Conclusion
Major investments in the Blue Economy play a pivotal role in supporting the growth and sustainability of SMEs by providing financing, transferring technology, creating job opportunities, and improving competitiveness. By adopting supportive policies and enhancing cooperation between various stakeholders, sustainable economic development can be achieved that benefits coastal communities and the national economy.
References
- United Nations Development Programme (UNDP). (n.d.). Transforming Blue Economy MSMEs through Blended Finance in Maldives. Retrieved from https://www.undp.org/maldives/projects/transforming-blue-economy-msmes-through-blended-finance
- Times of India. (2023). State launches initiative to boost marine biotech research & innovation in blue economy. Retrieved from https://timesofindia.indiatimes.com/city/bhubaneswar/state-launches-initiative-to-boost-marine-biotech-research-innovation-blue-economy/articleshow/123264930.cms
- Govan, H., & Smajgl, A. (2021). Supporting blue economy entrepreneurship: Enhancing livelihoods and reducing poverty in coastal communities in Seychelles. Maritime Studies, 20(3), 225-240. https://doi.org/10.1080/19480881.2021.1969516
- Nurrochmat, D. R., & Irawan, R. B. (2022). Circular Economy and Sustainable Development in Indonesia’s Blue Economy Sector. Proceedings, 83(1), 16. https://doi.org/10.3390/proceedings2022083016
