Small Businesses at the Forefront of Global Trade and Economic Growth

Strategic Insights -

Small businesses are the backbone of most economies, representing 90% of businesses and two-thirds of jobs worldwide. Despite their significant contribution to economic growth, these enterprises often face challenges such as limited access to finance, inadequate digital literacy, and difficulties in making the green transition. On UN Micro-, Small and Medium-sized Enterprises (MSME) Day, the International Trade Centre (ITC) highlights the importance of prioritizing the specific needs and innovations of small businesses in national trade policies.

Key Takeaways:

  • The term MSME is a relatively new concept in the trade policy space, evolving from "small exporter" to "small business" to "SME" to the more inclusive concept of "MSMEs".
  • MSMEs are crucial for global trade, with over 90% of businesses and two-thirds of jobs worldwide represented by these enterprises.
  • Small businesses face significant challenges, including lack of access to affordable finance, limited digital literacy, and difficulties in making the green transition.
  • The ITC partnered with the World Trade Organization's Informal Working Group of Micro, Small and Medium-Sized Enterprises to host the Small Business Champions Award Ceremony.
  • The 2025 award winners are SilaiWali from India and NetZero Pallets from Viet Nam, who each received $4,000 in prize money and tailored training and mentoring opportunities.
  • The first-ever Global Small and Medium-sized Enterprises (SME) Ministerial Meeting will take place in Johannesburg on 22-24 July, co-hosted by the South African Department of Small Business Development and ITC.
  • The Ministerial will focus on "Navigating New Business Frontiers" and will result in recommendations that will feed into upcoming high-level global economic forums.

Statistics:

  • 90% of businesses worldwide are represented by small businesses (ITC).
  • Two-thirds of jobs worldwide belong to small businesses (ITC).
  • Over $4,000 was awarded to each of the 2025 Small Business Champions Award Ceremony winners.
  • The Small Business Champions Award Ceremony was launched in 2021 and is hosted by the ITC in partnership with the World Trade Organization's Informal Working Group of Micro, Small and Medium-Sized Enterprises.

Sources:

  • International Trade Centre (ITC) press release.
  • International Trade Centre (ITC) video on the evolution of the term MSME.