ILO calls for stronger support for MSMEs to drive job creation and decent work

The International Labour Organization (ILO) has called for stronger policies and partnerships to support micro, small and medium-sized enterprises (MSMEs), highlighting their critical role in creating jobs, driving innovation and supporting inclusive economic growth.

ILO Director-General Gilbert F. Houngbo said MSMEs account for more than 90% of businesses worldwide and generate two out of every three jobs, making them central to economies and communities.

Houngbo said entrepreneurs, employers and workers in MSMEs are facing a challenging environment marked by economic uncertainty, geopolitical tensions, climate-related shocks, persistent inequalities and tighter financial conditions. Businesses are also having to adapt to rapid technological, digital and green transitions.

At the same time, he said new technologies, digital tools and innovation could help MSMEs improve productivity, resilience and competitiveness, expand access to markets and create new opportunities for growth.

However, access to these opportunities remains uneven. MSMEs in developing countries and rural areas, as well as businesses led by women and young entrepreneurs, face a greater risk of being left behind without appropriate support.

The ILO is therefore calling for an enabling environment that promotes entrepreneurship, investment, innovation and sustainable enterprise growth. This includes stronger institutions and policies, access to finance, infrastructure and markets, as well as a skilled workforce capable of supporting digital and green transformation.

Houngbo also stressed that enterprise growth must go hand in hand with decent work. Safe and healthy workplaces, respect for labour rights, social protection and strong social dialogue are essential to building resilient and sustainable businesses.

The ILO chief urged governments, employers’ and workers’ organisations, financial institutions, development partners and the private sector to strengthen collaboration to help MSMEs overcome barriers to growth.

Priority areas include expanding access to affordable finance, strengthening digital infrastructure and skills, supporting business formalisation, encouraging innovation and reducing unnecessary barriers to business development.

Houngbo said stronger MSMEs can contribute to more resilient, inclusive and sustainable economies by creating decent jobs and supporting shared prosperity.