Small and medium enterprises (SME’s) are key to sustainable development and inclusive growth.
In OECD countries, SME’s are the main source of employment, accounting for approximately 60% of all jobs in manufacturing and 75% in services. However SME’s faces many challenges and are disproportionately affected by regulatory uncertainty, complexity and inconsistencies.
- Regulatory and tax compliance generate higher costs compared to larger businesses.
- Many SME’s growth are restricted by access to affordable finance.
- Global value chains and digitalisation brings better opportunities for SME’s to participate in the global economy, however participation of SME’s remain uneven when compared to bigger businesses.
Enabling SME’s to innovate and scale up is essential to foster more inclusive and sustainable growth globally.