Micro, small, and medium-sized enterprises (MSMEs) are the backbone of the global economy, driving innovation, job creation, and economic growth.
The MSME finance gap now stands at $5.7 trillion – a number that swells to $8 trillion when informal enterprises are included – of which women-owned businesses account for approximately 34%. An uncertain global economic outlook and lenders’ heightened risk aversion has further constrained access to finance for small businesses.
The World Bank Group is doing more to support MSMEs as job creators. IFC continues support to MSMEs through financial institutions but is also prioritizing investments in non-traditional platforms—such as digital lenders and agribusiness cooperatives—and supporting technologies that facilitate access to finance and digitalization. IFC is also building capabilities to invest directly in medium-and high-growth enterprises, complementing its traditional support for SMEs.
MSMEs make up over 90% of all firms and account, on average, for 70% of total employment and 50% of GDP worldwide.