MSMEs key to job opportunities, economic growth — ILO chief

…calls for immediate global action

The International Labour Organisation (ILO) Director-General, Gilbert Houngbo, has called for urgent, coordinated global efforts to empower Micro, Small and Medium Enterprises (MSMEs), which he described as not just engines of growth, job opportunities, and a “catalysts for social justice.”

“Micro, Small and Medium-sized Enterprises play a crucial role in creating jobs and advancing social justice,” Houngbo declared in a message that marked both celebration and a clarion call. “By generating employment for nearly 2.3 billion people, particularly for women, for youth, and marginalised communities often excluded from formal economic structures, MSMEs are crucial in advancing inclusive growth, productive employment and decent work.”

Despite their indispensable role, MSMEs around the world continue to struggle against systemic barriers. According to Houngbo, access to financing remains one of the most stubborn challenges, with over half of MSMEs’ financing requests unmet globally, compared to just 7% for larger enterprises. In emerging economies, the situation is even more severe: a staggering 70% of MSMEs are unable to secure affordable financing, choking their growth and innovation potential.

The challenges don’t stop there. The ILO chief warned that the digital divide, a shortage of skilled workers, and poor working conditions are compounding the struggles of MSMEs, feeding into a yawning productivity gap. “These factors contribute to a productivity gap of nearly 70% compared to large firms,” he said, stressing that these vulnerabilities often become fatal in times of economic crisis.

Yet, Houngbo insists, it doesn’t have to be this way.

“At the ILO, we believe that MSMEs are crucial for social justice. Their competitiveness and sustainability must go hand in hand with decent work and respect for fundamental principles and rights at work,” he said.

In that spirit, the ILO is pushing for more inclusive and enabling environments for MSMEs through a range of bold strategies. Houngbo emphasised the need for stronger social dialogue to shape inclusive MSME policies, support for formalising informal enterprises, and investments that expand access to skills, innovation, and digital tools. He also urged financing models that prioritise underserved groups, especially businesses led by women, youth, and marginalised populations.

“On this MSME Day, let’s commit to bold, coordinated action that places MSMEs at the heart of development financing,” Houngbo urged. “Together, we can unlock their full potential to drive productive employment opportunities and inclusive growth, reduce inequalities, and shape a better future for all.”

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