Supporting small businesses to achieve inclusive growth for all

Micro-, small and medium-sized enterprises (MSMEs) represent around 90 per cent of global businesses, over 60 per cent of employment and half of the gross domestic product (GDP) worldwide. As such, and in recognition of MSMEs’ contribution to inclusive growth, employment creation, poverty eradication and the empowerment of women, youth and groups in vulnerable situations, the United Nations General Assembly designated 27 June as Micro-, Small, and Medium-sized Enterprises (MSME) Day.

MSMEs are the economic lifeblood of communities in both developed and developing countries and play a crucial role in achieving the Sustainable Development Goals (SDGs). As we mark MSME Day 2023 however, the reality has hit that most of the SDGs are severely off track. This is not what countries aspired for when they committed to the 2030 Agenda for Sustainable Development in 2015.

Strengthening MSMEs is critical for building back better from the COVID-19 crisis and accelerating progress towards the SDGs. However, MSMEs continue to face multiple challenges, including rising inflation and interrupted supply chains. Urgent actions are needed to strengthen MSME resilience and promote their growth and formalization if they are to meaningfully contribute to achieving the SDGs. How is UN DESA addressing this issue?

UN DESA’s Division for Sustainable Development Goals (DSDG) is supporting the contribution of MSMEs to inclusive growth in five African and four Asian countries through two projects funded by the UN Peace and Development Fund and the Development Account. Capacity-building support targeting policymakers and MSME entrepreneurs is also provided through the Regular Programme of Technical Cooperation. Following a demand-driven approach, DSDG has delivered solutions that promote an enabling policy environment and build the resilience and capacities of MSMEs. In partnership with UN Resident Coordinator Offices and UN Country Teams, the DSDG has strengthened capacities of over 500 MSME entrepreneurs in areas of access to finance, business management and digital transformation. Over half of the beneficiaries are women- and youth-led enterprises.

Going forward, UN DESA will continue to partner with governments and stakeholders to promote entrepreneurship and build the capacities of policymakers and MSMEs, which will contribute to economic structural transformations, poverty eradication and employment creation.

Learn more about UN DESA’s MSME initiatives and projects here.

Photo: Ministry of Trade, Industry, Regional Integration and Employment (MOTIE), The Gambia.