Investing in the Future of Women-Led Microenterprises in the FSM

This story was originally published by UNDP Pacific on their website.

A local artisan from the atoll of Kapingamarangi in the Pohrakiet Village in Pohnpei, Maylin pulls the delicate strands of pandanus leaf through her fingers, tightening the weave with practised ease. Nearby, Rosemina sits on a wooden stool, trimming the edges of a woven necklace. At her feet, a tangle of cassette tape ribbon glints in the sunlight, carefully repurposed and woven into the intricate design, adding both strength and sheen.

“This business was passed on to us by our grandparents,” she says. “We weave because there are limited opportunities for us to work in the city.”

In the Pacific, accessories are not simply adornments. They are declarations. Each piece, whether a woven garland, shell necklace, or floral earpicks, carries deep cultural meaning. They mark milestones, convey respect, and celebrate belonging. To wear one is to be seen, recognised, and connected. And to make one is to keep a heritage alive.

These traditions, passed down through generations, form the foundation of identity for many women in the Federated States of Micronesia (FSM). But beyond symbolism, they also carry the quiet potential of economic empowerment, especially for outer island communities who rarely find formal employment given the scarce opportunities. Here, craftsmanship is not just culture, it’s currency.

Across FSM, women-led microenterprises form the quiet backbone of local economies. These businesses are often informal, low-capital, and deeply rooted in cultural practice. Woven crafts, shell ornaments, and coconut-based products carry not only commercial value, but intergenerational knowledge. They are symbols of dignity and continuity. But they are also vulnerable, lacking formal support, market access, and the tools needed to grow or adapt.

Many of these artisans do not identify as entrepreneurs. They are mothers, aunties, and elders who see their work as a family tradition, not a business strategy. But as the climate shifts and traditional livelihoods are disrupted, these crafts have become both creative expression and survival mechanism. The pandemic has only accelerated this need, with local tourism and external markets shrinking, forcing a reimagining of value chains.

Recognising this, UNDP Pacific Office in the FSM has been working with local cooperatives and community organisations to support women’s livelihoods through advocacy and storytelling. Last year, women artisans from Kapingamarangi collaborated with UNDP to co-design a collection of handmade accessories, crafted from pandanus, recycled cassette tape, and traditional motifs. These pieces aren’t just decorative; they serve as cultural ambassadors. The idea is to use them as thoughtful tokens during missions and events, offering something tangible that reflects the unique identity of each Pacific Island and celebrates local craftsmanship.

Yet the potential goes far beyond small commissions or booths at cultural fairs.

If supported with the right mix of investment and policy, these microenterprises can become engines of inclusive growth. They just need bridges, between tradition and innovation, between island markets and global platforms, between sustainability and scale.

For starters, reliable access to raw materials. Climate change has made pandanus trees more vulnerable, while imported weaving supplies are often too expensive. Logistics and transport remain a challenge in reaching new markets, especially from remote outer islands. There’s also a gap in digital skills. Many women lack the tools to sell online or navigate e-commerce platforms. And while their products are eco-conscious, the story of their sustainability is not always packaged in a way that speaks to environmentally driven consumers.

What these businesses need is not just funding, but systems: consistent supply chains and market platforms, legal and technical advice, financing options, mentorship, and community-based incubation hubs. This is where development partners, governments, and private sector actors can come in, not to extract value, but to unlock it.

Because here’s the truth: when you invest in a woman’s business in FSM, you’re investing in a classroom, a clinic, a future scholarship. You’re investing in cultural preservation, in climate resilience, in community cohesion. You’re investing in a model of growth that doesn’t erase identity but uplifts it.

In the skilled hands of women across the islands, every weave tells a story: of heritage, survival, and quiet resistance.

This Micro, Small, and Medium-sized Enterprises Day (MSME) Day, we celebrate not just small businesses, but the big stories they carry.