Supporting small businesses for big impact

Micro, Small, and Medium Enterprises (MSMEs) play a critical role in developing economies, making up a large majority of firms, contributing up to around 40 percent of gross domestic product, and providing a large share of jobs. In emerging markets, most formal jobs are generated by MSMEs, which create 7 out of 10 jobs. However, access to finance is a key constraint to MSME growth.

To drive MSME growth, job creation, and economic development, we must adopt a holistic approach. This includes not only closing funding gaps, but also tailoring support to the needs of smaller firms, leveraging technology, improving data collection and interpretation, and combining advisory and lending services to clients to increase the contribution that MSMEs can make to the economy, including underserved segments such as women-owned MSMEs. Advisory and Policy Support for SME finance mainly includes diagnostics, implementation support, global advocacy and knowledge sharing of good practice.