Linking Fiscal Strategies to Resilience, Innovation, and Global Competitiveness in Micro, Small, and Medium-Sized Enterprises (MSMEs)

Purpose: This qualitative analysis, based on limited published sources and brief interviews, discusses how effective government policies, budgetary allocations, and strategic fiscal measures can significantly enhance the resilience of micro, small, and medium-sized enterprises (MSMEs) in developing countries. Focusing on targeted budgetary support and interconnected resource allocation can empower MSMEs to adopt advanced technologies and overcome the challenges posed by Industry 5.0. This, in turn, will equip them to thrive in an increasingly competitive global environment. Design/methodology/approach: The study was developed by applying a thematic analysis (TA) to a limited sample. Seven secondary published interviews of industry leaders and seven first-hand interviews based on a brief one-to-one call with leaders of early-stage MSMEs have been conducted to collect the data. This reflexive TA approach followed the six-phase framework and enabled the systematic generation of themes that captured recurring patterns across the qualitative evidence. Findings: The analysis reaffirmed prior scholarship by highlighting the significant role of government fiscal strategies in strengthening MSMEs’ resilience, fostering technological innovation, and advancing global competitiveness. Themes emerging from this reflexive TA indicated that targeted budgetary measures such as improved credit access, investment in digital infrastructure, and workforce upskilling act as critical enablers for MSMEs to navigate the challenges of Industry 5.0. The findings further proposed a suggestive conceptual framework, still exploratory in nature, showing how fiscal policies work in an interconnected manner, collectively supporting the global competitiveness of MSMEs in developing economies. Research limitations/implications: The framework proposed in this study is based on a small qualitative dataset, which limits its generalizability and has not undergone empirical testing. The study did not advance any empirically testable hypotheses or propositions from this framework, which further constrains the broader applicability of the findings. It offers policy-relevant insights by outlining how MSMEs could enhance resilience and global competitiveness, drawing on both the current findings and prior studies in the field. Originality/value of paper: This study synthesizes industry insights and policy analysis to demonstrate how government actions influence MSMEs in developing countries. Existing literature has emphasized that global competitiveness among MSMEs is closely tied to innovation and technological adoption. Building on this foundation, our reflexive TA extends prior insights and proposes a suggestive conceptual framework. Given the limited dataset and the constraints on generalizability, this framework should be regarded as exploratory rather than definitive. Our findings advance understanding by highlighting how fiscal strategies may shape resilience, innovation, and competitiveness in MSMEs.