As World Micro, Small, and Medium Enterprises (MSME) Day approaches on June 27, the global spotlight turns to MSMEs and their critical role as engines of economic growth and innovation. This year’s theme, “Enhancing the Role of Micro Small and Medium-sized Enterprises as Drivers of Sustainable Growth and Innovation,” comes at a pivotal moment in the global economy.
Around the world, MSMEs are the backbone of local economies. They create jobs, generate income, and offer opportunities—especially for women, young people, and underserved communities. Their size gives them the flexibility to adapt quickly and respond to local needs, making them vital for building strong, inclusive, and sustainable societies. However many MSMEs are struggling, and access to finance remains a major hurdle. Poor infrastructure and limited legal protections can also hold back growth.
The Global Innovation Index (GII) highlights the importance of building strong foundations that allow micro-, small and medium-sized enterprises to flourish and grow. Key indicators such as the ease of starting a business, access to credit, ICT infrastructure, and innovation linkages are critical for MSMEs to grow, adapt, and compete in today’s rapidly evolving economy.
Measures like simplified registration processes, reduced bureaucracy, and supportive regulations encourage more entrepreneurs to enter the formal economy. Access to credit enables MSMEs to invest in new ideas, upgrade their operations, and sustain economic shocks. Reliable ICT infrastructure connects small businesses to digital tools, markets, and customers, opening doors to e-commerce, remote work, and online services. Strong innovation linkages—such as partnerships with research institutions, universities, and larger firms—help MSMEs move up the value chain, adopt new technologies, and co-create solutions.
Countries that perform well in these areas not only tend to have more dynamic and competitive MSME sectors—they also build more inclusive, innovative, and resilient economies overall. By using the GII as a roadmap, policymakers can identify gaps and target the reforms and investments that will make a real difference on the ground for small businesses.
MSMEs have huge potential to drive innovation and sustainable growth—if we give them the right tools. On this MSME Day, let’s commit to helping small businesses not just survive, but lead the way toward a more inclusive and sustainable future.
To learn more about the Global Innovation Index, visit www.wipo.int/en/web/global-innovation-index.
