CRE@CTIVE in Palestine: how it can help MSMEs recover from covid-19


The spread of COVID-19 has led to unprecedented devastations in every corner of the world. Emerging nations, who have struggled to gain a strong foothold even before the pandemic are now facing compounded challenges to the economy. Palestine, which is already under dire conditions due to political instability, is currently trying to counteract the consequent economic downturn.


Notably, the hard-hitting impact of the pandemic has affected some industries more than others. While some industries were able to adapt, traditional markets have found it more challenging to keep up. In Palestine, the industrial sectors of leather & shoe (L&S) and textile and clothing (T&C) have incurred significant losses. At the height of the health crisis, 80% of L&S factories came to a complete halt, and production capacity in Gaza deteriorated from 70% to 30%.


Historically, the industrial sector has been a cornerstone of the Palestinian economy, contributing to approximately 13% of the national GDP, employing 22% of the total workforce, and amounting to 35% of total national exports. To cater to the shifting demand patterns amid the pandemic, 20% of industries in Palestine were able to transform their production lines to manufacture and sell personal protective equipment (PPE).


The fact that the Palestinian economy is dominated by micro, small and medium enterprises (MSMEs) has also exacerbated the economic downturn. Many of the MSMEs in the T&C and L&S sectors are home-based businesses passed down from parents and grandparents. Thus, to their owners and society, they hold a large sentimental value that needs to be maintained and preserved to save these sectors and bolster their resilience. 


Despite the challenging situation, the CRE@CTIVE project aims to positively impact and support the industry in its path to development by providing technical and financial support to the sectors through the creative labs, access to the CRE@CTIVE cross-border network and the subgrants. 


The CRE@TIVE laboratories will assist MSMEs in improving their corporate innovation capabilities by upgrading essential supply chain sectors such as management, design, and manufacturing methods.


Furthermore, the creative laboratories and seminars will enable owners and stakeholders to transfer knowledge to develop new business concepts.


CRE@CTIVE's call for subgrants is one way we aim to use to support the sectors on their route to recovery. Don't forget to check out the link and apply now!