Behind most large projects stands a network of small enterprises: the workshop that fabricates fittings, the local contractor, the caterer, the transport operator, the family-run supplier. Small and medium enterprises (SMEs) are where many people find work and where local economies take shape. Their resilience is closely tied to the resilience of the wider economy, and to how larger organisations choose to work with them.
Where small firms add value, and where they get stuck
The World Bank identifies SMEs as important contributors to employment and economic development, while noting that limited access to finance is one of the main constraints on their growth (World Bank, SME Finance). Finance is rarely the only barrier. Many small firms also struggle to build specialist skills, meet formal documentation and compliance requirements, or reach buyers beyond their immediate area.
These constraints reinforce one another. A business without a track record finds it hard to borrow; without working capital it cannot take on larger orders; without larger orders it cannot build a track record. Late payment from customers can tip an otherwise viable firm into difficulty.
Fair opportunity rather than dependency
Larger organisations can help break this cycle, but the design of the relationship matters. A partnership built on one dominant buyer, unclear terms or prices squeezed below cost may keep a small supplier busy without making it stronger. Fair commercial opportunity looks different: transparent selection criteria, realistic specifications, written agreements and payment on agreed terms.
The ILO's Global Commission on the Future of Work called for a human-centred agenda that invests in people's capabilities and in decent, sustainable work (ILO, 2019). For SME supply chains, that translates into practical questions. Are people working safely and on fair terms? Are suppliers given the information and feedback they need to improve? Is the relationship building capability over time, or simply absorbing capacity?
How Pusaka businesses engage with local enterprises
Across the Pusaka ecosystem, business units may work with local suppliers, contractors and commercial partners, subject to capability and compliance assessments. Pusaka Project Partner integrates planning, procurement, resource coordination and implementation oversight, which places supplier selection and coordination at the centre of its work. Artha Karya Studio's construction, renovation and fit-out work similarly depends on capable contractors and trades. Futura Foods distributes sorghum-based ingredients to F&B and HORECA businesses, a market in which many operators are themselves small enterprises.
Pandu Adya Consulting provides human resources solutions, certification and compliance support, and monitoring and evaluation: services relevant to growing businesses that need to meet the standards larger buyers ask for. Local business empowerment, decent work and workforce development all sit within the social pillar of the group's sustainability commitment.
Assessments cut both ways. They protect the buyer, but clear and consistent criteria also tell a small firm exactly what it needs to do to qualify.
Indicators that show whether a partnership is fair
Intentions are easy to state; what matters is whether small partners end up better off. Useful indicators include:
- Local supplier participation: the share of suppliers and contractors drawn from the local area, tracked over time.
- Payment timeliness: whether invoices are paid within agreed terms, since late payment hits small firms hardest.
- Supplier development outcomes: whether suppliers improve on quality, safety or compliance over successive engagements.
- Clarity of criteria: whether selection requirements are written down and shared before work is tendered.
- Workforce conditions: basic checks on safety and fair treatment in supplier operations.
A strong SME base is not created by a single contract. It grows when small firms can rely on clear terms and timely payment for long enough to invest in their people and equipment. The most telling sign of a fair partnership is a supplier that becomes capable of winning work from other buyers too.
