Enabling Micro-, Small and Medium-sized Enterprises to drive growth and innovation

UNAA
Jun 27
3 min read

27th June 2025

This year, Micro-, Small and Medium-sized Enterprises Day (27 June) comes at a time of shifts in global trade and just ahead of two major development conferences in Spain and Qatar. These enterprises are crucial for job creation and local development, especially for women and vulnerable groups. They face challenges such as limited financing and tough operating conditions. Climate change and supply chain disruptions worsen their struggles. Addressing the funding gap, supportive policies, skills training, and easier registration are vital for their success.

Micro-, Small and Medium-sized Enterprises are crucial for job creation and local development, especially for women and vulnerable groups.

MSME Day 2025 comes at a pivotal moment—just ahead of the Fourth International Conference on Financing for Development (FfD4) in Sevilla and the Second World Summit for Social Development in Doha—amid shifts in the global trading landscape. It offers a timely opportunity to spotlight the vital role of micro-, small and medium-sized enterprises (MSMEs) in driving inclusive growth and sustainable development, and to catalyze the finance, policy support, and enabling conditions they need to thrive.

2025 Theme: Enhancing the role of Micro-, Small and Medium-sized Enterprises (MSMEs) as drivers of Sustainable Growth and Innovation

Micro-, small and medium-sized enterprises are key sources of jobs, income, and local growth—especially for women, young people, and vulnerable groups. Their size and flexibility help build strong, fair, and sustainable communities.

However, many of these businesses face serious challenges. They often struggle to get loans, deal with poor infrastructure, and work under tough conditions. Many operate informally, which limits their access to funding, legal rights, and government support.

Today’s global challenges—like political tensions, climate change, and digital shifts—make it even harder for them to survive. Supply chain issues, higher costs, and uncertain markets have left many at risk. A huge global funding gap remains, despite clear opportunities to grow.

To help these businesses succeed, better policies and more accessible funding are crucial. Support for skills training, innovation, and fairer rules can also make a big difference. Since many operate outside the formal system, making it easier to register, access benefits, and follow labor laws will help create better jobs and stronger economies.

Did you know?

600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world.
In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs.
Access to finance is disproportionately difficult for smaller firms in the least developed countries (LDCs), with 41 percent of SMEs in LDCs reporting access to finance as a major constraint to their growth and development, by comparison to 30 percent in middle-income countries (MICs) and only 15 percent in high-income countries (HICs).

Background

MSMEs account for 90% of businesses, 60 to 70% of employment and 50% of GDP worldwide. As the backbone of societies everywhere they contribute to local and national economies and to sustaining livelihoods, in particular among the working poor, women, youth, and groups in vulnerable situations.

MSMEs hold the potential to transform economies, foster job creation, and promote equitable economic growth if given adequate support. MSMEs Day aims to highlight their pivotal role and explore opportunities for their further advancement.

The United Nations General Assembly designated 27 June as “Micro-, Small, and Medium-sized Enterprises Day” (A/RES/71/279) to raise awareness of the tremendous contributions of MSMEs to the achievement of the United Nations Sustainable Development Goals (SDGs).