In the global economy’s fast-moving engine, one force consistently delivers outsized impact—yet rarely gets the spotlight: Micro-, Small, and Medium-sized Enterprises (MSMEs).

These nimble businesses are far more than supporting actors, they are frontline drivers of innovation, inclusion, and resilience. Representing 90 per cent of all businesses, creating up to 70 per cent of jobs, and generating half of the world’s GDP1, MSMEs are the backbone of communities and economies alike.

Recognizing their outsized role, June 27 was designated as “Micro-, Small and Medium-sized Enterprises Day” to honour their contributions to the Sustainable Development Goals (SDGs). From empowering women and youth to weathering economic shocks with grit and adaptability, MSMEs are not just contributing to development—they are redefining it.

With the Fourth International Conference on Financing for Development (FfD4) in Sevilla on the horizon, it is an important moment to highlight the role of MSMEs as engines of inclusive growth. This urgency was echoed in the Pact for the Future, which was designed to accelerate SDG progress. Supporting MSMEs goes together with delivering on its bold commitments—whether on financing for development, boosting innovation, or expanding opportunities for all.

On the front lines of this work are UN Teams in over 130 countries, led by Resident Coordinators, turning global ambition into local action. From policy advice to capacity-building, they’re working with governments and local partners to ensure MSMEs take their rightful place as the powerhouses of development.

Here are five ways UN Country Teams are empowering MSMEs to build a more inclusive, resilient, and sustainable future:

1) Opening digital doors for small businesses

Around the world, many small businesses are still cut off from the digital economy—but that’s changing. UNCTs are helping local entrepreneurs embrace digital tools and e-commerce so they can modernize, reach new customers, and stay competitive in a fast-moving global market. This transformation includes improving internet access, providing training, and creating the rules that make online business safe and effective. For example, in the Philippines, the UN established two digital training centres and provided satellite-based internet connectivity to MSMEs in Pampanga and Cotabato City, leading to 3,197 companies adopting digitalization or digital innovations in their business operations.

2) Unlocking the capital that fuels growth

Access to finance is often the biggest barrier standing between a good idea and a thriving business. The UN development system in countries is coming together to tackle this challenge head-on, by mobilizing new types of funding, opening doors to loans and grants, and connecting entrepreneurs with investors. This shift from aid to investment is giving small businesses the boost they need to grow and create jobs. In Tanzania, UN-enhanced frameworks like the SDG Investor Map and Integrated National Financing Framework contributed to a 91.6 per cent increase in registered investment projects, creating 226,585 new jobs.

3. Expanding markets

Even the most innovative small businesses can struggle to scale without access to reliable markets. That’s why UNCTs are helping MSMEs improve product quality, meet international standards, and tap into wider supply chains—so they can compete and thrive, both at home and abroad. For example, in Ukraine, UN-supported business development programmes expanded network membership to 24,000 entities, with 93 per cent of women-led SMEs accessing support services, laying the foundation for long-term competitiveness.

4. Boosting opportunities where they matter most

Small businesses are often the lifeline of rural communities—especially for women and youth. UN agencies, under the leadership of the RCs, are investing in these enterprises as engines of local prosperity, helping them grow in sectors like agriculture and green innovation. These efforts don’t just build businesses—they build resilience, self-reliance, and long-term opportunity. In 2024, the UN’s interventions significantly boosted economic opportunities for MSMEs across Jordan, with a strong emphasis on inclusivity and sustainability. Nearly 1,500 loans, totaling almost USD 7 million, were disbursed under the Rural Finance Component, with the majority benefiting women and youth. These loans enabled the expansion of livestock, horticultural, and agricultural projects, directly improving livelihoods and fostering economic resilience in rural communities.

5. Making innovation inclusive

Persons with disabilities are creators, innovators, and entrepreneurs whose contributions are too often overlooked. Through inclusive enterprise initiatives UN efforts are breaking down barriers and expanding access to skills, technologies, and markets for persons with disabilities. In Trinidad and Tobago, one notable initiative is the expansion of learning opportunities at the National Centre for Persons with Disabilities (NCPD) to include 3D printing, climate-smart agriculture and videography/ photography. With these new resources, students have designed and printed their own tools – now available through their online store, grown their own food to support the organization, and begun offering videography and photography services to interested clients.

To read more about the work of the UN’s efforts to support MSMEs read the Annual Results Reports from the Philippines, Tanzania, Ukraine, Jordan, and Trinidad and Tobago.