From the Mediterranean to Tunisia: MEDinCHAMBERS highlights the Evolving Needs of SMEs in the Textile, Clothing, Leather and Footwear Sector

SMEs in the Textile, Clothing, Leather and Footwear sector (TCLF) in Tunisia and across the Mediterranean are navigating a turning point, moving from traditional subcontracting models toward higher value-added activities, sustainability, and digital transformation. This article explores their evolving needs and how MEDinCHAMBERS supports this transition through cooperation and capacity-building.

Publication Date
27/04/2026
Reading Time
3 minutes

SMEs as the backbone of the Textile, Clothing, Leather and Footwear (TCLF) sector 

Small and Medium Enterprises (SMEs) are the backbone of the Textile, Clothing, Leather and Footwear (TCLF) sector worldwide. They represent the majority of firms across value chains, drive employment, and play a critical role in local economic development.  However, despite their importance, TCLF SMEs face increasing pressures that challenge their competitiveness and sustainability, particularly in transition economies such as Tunisia.

Understanding these needs — both at the global level and within the Tunisian context — it is essential to design effective support mechanisms. In this regard, the MEDinCHAMBERS project plays a strategic role in addressing structural and operational gaps while supporting SMEs’ adaptation to new market realities.

Key challenges for Textile, Clothing, Leather and Footwear SMEs: competitiveness, skills, innovation, and compliance

Across regions, TCLF SMEs operate in a highly competitive and rapidly evolving environment. Several common challenges stand out:  like competitiveness and market access, also globalization has intensified competition, especially from large-scale producers and low-cost manufacturing hubs.

Many SMEs struggle to access international markets due to limited marketing capabilities, lack of market intelligence, and difficulty complying with technical and sustainability standards required by global buyers.

Besides that, the sector is undergoing profound transformation driven by digitalization, automation, and changing consumer preferences. SMEs often face gaps in technical, managerial, and digital skills, limiting their ability to innovate, optimize production processes, or move up the value chain.

While innovation is crucial to remain competitive, SMEs often lack the financial resources or technical capacity to invest in new technologies, smart manufacturing, eco-design, or digital tools such as ERP systems and e-commerce platforms.

Moreover, environmental and social compliance is no longer optional. SMEs are increasingly expected to reduce their environmental footprint, improve working conditions, and ensure traceability across supply chains. However, translating these requirements into practical actions remains a major challenge due to limited awareness, expertise, and access to tailored support.

Tunisia focus: structural constraints and transformation pressures

In Tunisia, the Textile, Clothing, Leather and Footwear sector is a key pillar of the economy, particularly in terms of employment and exports. Nevertheless, Tunisian SMEs face additional constraints, such as dependence on Subcontracting Models. Many Tunisian TCLF SMEs remain dependent on low value-added subcontracting activities, especially in garment manufacturing. This limits profit margins, innovation capacity, and resilience to external shocks, including fluctuations in European demand.

Another specific constraint is that despite Tunisia’s geographic proximity to Europe and the Mediterranean, SMEs often struggle to integrate strategically into regional value chains, collaborate with foreign partners, or benefit from cross-border business opportunities. “For decades, Tunisia was known for its speed and proximity to Europe. However, in the current market, speed is no longer enough. FTTH has identified that the future lies in Value-Added Manufacturing.” (kohantextilejournal.com)

As well as the financial constraints which remain a major obstacle, particularly for investments in modernization, green transition, and digital solutions. In addition, support services are sometimes fragmented or not sufficiently adapted to the specific needs of TCLF SMEs.  Mr Ben Hadj Hassine in his article published in researchgate.net talked about the challenges of the digital transformation in the Tunisian textile industry being technical, economic, human or ethics and social responsibility issues.

Then there’s the increasing regulatory requirements related to sustainability, quality, and social standards that pose significant challenges. SMEs need guidance to understand, adopt, and comply with evolving frameworks such as circular economy principles and responsible production.

How MEDinCHAMBERS supports competitiveness, sustainability, and cooperation

The MEDinCHAMBERS project is fully aligned with these challenges and positions itself as a bridge between SMEs, chambers of commerce, and regional ecosystems across the Mediterranean.  MEDinCHAMBERS works to reinforce the role of chambers of commerce and business support organizations as key intermediaries. By enhancing their capacity to deliver tailored services, the project ensures that SMEs receive relevant, sector-specific, and accessible support. Thereby directly contributing to the strengthening of SME Competitiveness and Innovation

Through knowledge-sharing, capacity-building activities, and cross-border cooperation, the project helps SMEs improve their competitiveness, adopt innovation practices, and better respond to market demands.

MEDinCHAMBERS places strong emphasis on sustainability, helping SMEs understand environmental and social challenges and translate them into actionable strategies. This includes awareness-raising on green practices, circular economic approaches, and responsible value chains.

By fostering collaboration between Mediterranean chambers and stakeholders, MEDinCHAMBERS facilitates integration, learning, and business networking those are key elements for Tunisian and mediterranean SMEs seeking to diversify markets and strengthen regional positioning.

Textile, Clothing, Leather and Footwear SMEs, both globally and in Tunisia, are at a crossroads. To survive and grow, they must become more competitive, innovative, and sustainable, while navigating complex market and regulatory environments. Achieving this transformation requires coordinated support, strong intermediary institutions, and cross-border cooperation.

In this context, the MEDinCHAMBERS project represents a timely and strategic initiative, directly addressing SMEs’ needs by empowering chambers of commerce, strengthening regional cooperation, and supporting SMEs in their journey toward resilience and long-term competitiveness in the Mediterranean TCLF ecosystem.

 

Last Update

27/04/2026