Micro-, Small and Medium-sized Enterprises (MSMEs) are crucial in achieving the Sustainable Development Goals (SDGs). In recognizing their importance, the United Nations General Assembly adopted resolution 71/279 in April 2017, which designated 27 June as “Micro-, Small and Medium-sized Enterprises Day”. Funded by the 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Fund, the programme ‘Enhancing National Capacities for Unleashing Full Potentials of MSMEs in Achieving the SDGs in Developing Countries’ was launched in May 2017 to address this important development topic.
The programme aims to facilitate policy development and strengthen national capacities of developing countries to improve MSME-supporting policies and to promote job creation, income generation and entrepreneurship, especially among women and youth. The programme covers nine pilot countries: Brazil, Cambodia, Fiji, Kenya, Laos, Sri Lanka, Tanzania, the Gambia and the Philippines. Through successful implementation in the past years, the programme has reached significant results, including supporting the formulation of national MSME development policies in Cambodia, Kenya, Sri Lanka, the Gambia and the Philippines. It has also contributed to the Secretary-General’s report ‘Entrepreneurship for Sustainable Development’ (A/75/257) and built capacities of policymakers on strengthening MSMEs in achieving the SDGs in developing countries. The programme leveraged additional funding from the Development Account and the Regular Programme of Technical Cooperation (RPTC), in addition to ad-hoc resources from countries.
This section includes reports the programme has delivered, including global reports covering topics such as contributions of Micro-, Small and Medium-sized Enterprises (MSMEs) to the Sustainable Development Goals (SDGs), youth entrepreneurship and the analysis on roles of MSMEs for the SDGs elaborated in the 2020 Voluntary National Reviews (VNRs). The section also includes national reports and publications customized to specific issues related to MSME growth in pilot countries, including MSME formalization, MSME resilience to the COVID-19 pandemic and the mainstreaming of MSMEs in regional market integration.
Micro-, Small and Medium-sized Enterprises (MSMEs) and their role in achieving the Sustainable Development Goals (SDGs)
Background: This report aims to demonstrate the relevance, roles and contributions of Micro-, Small and Medium-sized Enterprises (MSMEs) to the seventeen Sustainable Development Goals (SDGs). It examines the roles of MSMEs in each of the SDGs, as well as MSMEs in economic activities related to creating employment, incomes and livelihood opportunities, particularly for the poor and marginalized groups. Through detailed analysis, the report establishes linkages between MSMEs and their contributions to all seventeen goals.
Exploring Youth Entrepreneurship
Background: This report explores aspects of youth entrepreneurship as a mechanism to achieve the Sustainable Development Goals. It sets out the position and challenges of youth in Cambodia, Lao PDR, the Philippines, the Gambia, and Fiji, and investigates the dynamics of youth entrepreneurship through an overview of key debates, including the importance of context and the role of the informal economy. The report presents good practices to promote youth entrepreneurship as a way to maintain global employment rates and provide sustained livelihood opportunities to vulnerable groups.
Improving MSME Formalization through the Cooperative Enterprise Model
MSME formalization requires a multifaceted and multi-stakeholder approach. To support formalization, government departments need to establish policies and create distinct regulatory bodies. Through creation of linkages – such as knowledge and excellence hubs - governments could enable already formalized entities to mentor informal MSMEs, supporting their preparations for the transition to formalization. The cooperative business model can be emulated within the context of MSME formalization. Cooperatives are people-centred businesses entities that are value- and principle- driven with focuses on local communities. As such, cooperatives can serve both as a stimulus and a catalyst for engagement in the formalization process, and as a means of eliminating the many existing barriers to the successful completion of the formalization process.
Supporting Micro-, Small and Medium-sized Enterprises (MSMEs) to Achieve the Sustainable Development Goals (SDGs) in Cambodia through Streamlining Business Registration Policies
Background: Micro-, Small and Medium-sized Enterprises (MSMEs) are the backbone of the Cambodian economy, comprising more than 90 percent of enterprises in the country. In 2018, MSMEs provided over 70 percent of employment opportunities and more than half of the annual Gross Domestic Product (GDP). The upgrading and modernizing of MSMEs has become a strategic priority in the Cambodian Industrial Development Plan (IDP) 2015-2025. This report includes policy guidance for simplified MSME formalization and a comparative study of MSME formalization policies in four countries, namely Singapore, Malaysia, Thailand and Myanmar. This report is a joint effort by the Division for Sustainable Development Goals in the Department of Economic and Social Affairs of the United Nations (DSDG/DESA) and the Ministry of Industry and Handicraft (MIH), the Royal Government of Cambodia.
Impact Assessment of the Covid-19 pandemic on MSMEs in The Gambia
Background: A total of 500 MSME entrepreneurs were interviewed in the assessment, encompassing second-hand clothing dealers, poultry farmers, horticulture farmers and fish sellers. The assessment found that most entrepreneurs reported that the virus has led to a reduction in their earnings (62.0 %) and the proportion was highest for Horticulture Farmers (67.9%) followed by fish sellers (60.7%). The assessment also found that the pandemic has led to high indebtedness as reported by 11.6% of the respondents. To compensate loss of revenues, MSME entrepreneurs reported diverse mitigating measures, including starting other business, carrying out additional paid employment and borrowing from families and friends. Less than a quarter of interviewed entrepreneurs expressed their receipt of government support. Cash and food donations are identified as means they have to resort for the survival of their families.
This section provides links to online resources on critical topics related to Micro-, Small and Medium-sized Enterprise (MSME) growth, including access to finance, formalization, resilience to the COVID-19 pandemic and MSME for green growth.
Access to Finance
- ILO Recommendation: Transition from the Informal to Formal Economy Recommendations
- Legislative guidelines on key principles of a business registry, UNCITRAL
MSME Resilience to the COVID-19 pandemic
MSME for Green Growth
Policy Implementation Forum: Supporting Micro Small and Medium Size Enterprises (MSMEs) in The Post COVID-19 Pandemic Era-Promoting MSME Formalization
DSDG/DESA and the Ministry of Trade, Industry, Regional Integration and Employment (MoTIE) of The Gambia and the UNDP will organize a policy workshop…
The Impact of the COVID-19 Pandemic on Micro-, Small, and Medium-sized Enterprises (MSMEs) in the Creative Industry Sector in the Philippines
This webinar will be jointly organized by DESA/DSDG together with the Department of Trade and Industry (DTI), the Philippines at 08:00-09:00am 23…
Global Symposium on the Role of Micro-, Small- and Medium- Enterprises (MSMEs) in the achievement of the Sustainable Development Goals (SDGs)Thu 07 - Fri 08 Jun 2018
The overall objective of this symposium is to inform 2018 High-Level Political Forum (HLPF) on Su