A women standing by a sewing machine in her embroidery workshop.

Micro, Small and Medium Enterprises

Ms. Aurica Cazacu working with a sewing machine in her embroidery workshop. The equipment was purchased through the Local Employment Partnership programme in Cahul District. The program is implemented by the ILO's Youth Employment Promotion Project. © Ion Buga / ILO

Micro, Small and Medium Enterprises (MSME) are central to the promotion of decent work, economic growth and social justice. Despite their significance, MSMEs face the triple challenge of low productivity, poor working conditions and high vulnerability to economic, political and environmental shocks. Women, young workers and entrepreneurs operating in the informal economy are particularly vulnerable, and face additional constraints.

To overcome these barriers, the ILO supports governments, workers’ and employers’ organizations to foster an enabling environment for sustainable enterprises, advance entrepreneurship, create better market access, enhance productivity and promote formalization and decent work, thereby unlocking the full potential of MSMEs as drivers of human-centred, green and resilient growth.

70%

MSMEs account for about 70 per cent of total employment worldwide

80%

A large share of 80 per cent MSMEs operate in informal economies

33%

MSMEs productivity is only one third of large firms

66%

In emerging markets, 66 percent of SMEs reported having already been affected by climate change

News and articles

Call for Proposals - Storytelling Consultant on Enterprise Formalization and Women’s Entrepreneurship Development
Call for Proposals - Storytelling Consultant on Enterprise Formalization and WED

Call for Proposals - Storytelling Consultant on Enterprise Formalization and Women’s Entrepreneurship Development

Prospects to achieve decent work in cocoa supply chain
The Director of ILO-Brussels addresses the World Cocoa Conference

Prospects to achieve decent work in cocoa supply chain

Key areas of work

Entrepreneurship promotion
Female workers in Tunisia are processing mandarins.

Entrepreneurship promotion

Productivity and working conditions
A woman at a sewing machine

Productivity and working conditions

Market Access
Two Tanzanian women smile at the camera, one holding a bag of mushroom

Market Access

Enterprises Formalization
Two African women entrepreneurs are discussing a document. A cloth stand is in the background.

Enterprises Formalization

Enabling Environment for Sustainable Enterprises
A human hand holding a green shoot, representing sustainability and enabling environment.

Enabling Environment for Sustainable Enterprises

Green and Resilient MSMEs
Farmer at work with his coworker (one of them on wheelchair) in a greenhouse

Green and Resilient MSMEs

Small matters

Why small matters
cover image for the report of Small matters

Why small matters

Small goes digital
cover image for the report of Small goes digital

Small goes digital

Publications

Insights into ILO Formalize Your Business in Côte d'Ivoire, The Gambia and Senegal

Insights into ILO Formalize Your Business in Côte d'Ivoire, The Gambia and Senegal

Productivity measurement and analysis: A guidance note

Productivity measurement and analysis: A guidance note

A 10-question pocket guide to making MSD work for you

A 10-question pocket guide to making MSD work for you

Global programmes

Productivity Ecosystems for Decent Work
A female worker is using tool to make wooden furniture

Productivity Ecosystems for Decent Work

Systems Change Initiative for productive employment
A group of women working in a paddy filed.

Systems Change Initiative for productive employment

ILO Director-General's message on MSMEs

Alt
ILO Director-General Gilbert F. Houngbo's statement reaffirms the ILO's commitment to supporting Micro-, Small, and Medium-sized Enterprises (MSMEs) and ensuring their resilience in the face of multiple crises, climate change, and economic uncertainties.