The Crucial Role of MSMEs in Job Creation, Economic Growth, and Improving Lives

June 2025

By Qamar Saleem, Global Head, SME Finance Forum, in commemoration of International MSME Day. 

Micro, Small, and Medium Enterprises (MSMEs) are more than just business entities — they are the beating heart of economies all over the world. From family-run shops to high-growth entities, MSMEs account for over 90% of all firms and 70% of global employment. Their impact is profound, not only in driving economic growth but also in transforming lives and strengthening communities. 

June 27th marks International MSME Day, which spotlights the vital contributions of these enterprises. But at the SME Finance Forum, this recognition isn’t limited to a single day. Supporting MSMEs and financial service providers is our daily mission — our raison d’être. Our members and affiliates work year-round on various activities across our learn-link-lead pillars to ensure that small businesses have the tools, skills, financing, and networks they need to thrive. 

MSMEs are engines of job creation, especially in emerging markets where they also provide employment to youth, women, and underserved populations. They foster innovation, build local economies, and adapt quickly to market shifts. Yet, despite their importance, MSMEs face persistent challenges — with access to finance being the primary impediment. In fact, 70% of MSMEs in emerging markets lack adequate financing, contributing to a global finance gap of $5.7 trillion, which balloons to nearly $8 trillion when informal enterprises are included. 

The SME Finance Forum brings together a diverse range of financial institutions, fintechs, development finance institutions, thought leaders, and policy advocates, to address this gap and ensure the whole ecosystem is learning from each other. There is no better place to see the power of this ecosystem at work than in our annual flagship event, the Global SME Finance Forum  

This year, the Global SME Finance Forum is organised in strategic partnership with GFTN and will focus on the theme, “Building Resilience and Creating Opportunities for Growth.” This theme is anchored in the inclusive finance and job creation priorities of the World Bank Group, aligned with our members’ key focal areas, and the G20 Global Partnership for Financial Inclusion (GPFI) priorities. The Forum will be an official side event of South Africa G20 Presidency. The event will bring together policymakers, development finance institutions, and private sector leaders to create scalable, high-impact solutions that unlock the full potential of MSMEs in emerging markets.   

Taking place from 15 - 17 September in Johannesburg, South Africa, the Forum will underscore the urgent need for innovative technologies and strategies to support MSMEs around the world. Some of the key topics that will be discussed at this year’s Forum include improving market access, developing entrepreneurial skills, and access to funding and new financial instruments. It promises in-depth discussions that tackle these challenges head-on and explore actionable solutions for sustainable growth. We would also recognize global leaders in SME financial services through our 8th annual Global SME annual awards.  

We hope you will join us in celebrating MSMEs on this International MSME Day. We welcome leading MSME financial services and policy making stakeholders across to world to join our network and support our mission to accelerate access to finance, skills and markets for MSMEs worldwide. Together, let’s continue to champion their growth — not just today, but every day.