Economic Growth

Driving Global Growth Through The Power of Small Business

This article is part of: World Economic Forum Annual Meeting

• SMEs fuel the world’s economy, creating most jobs and contributing half of global GDP. Their impact is anything but small.
• Small businesses don’t lack ambition: what they need is more capital and access to digital skills.
• Strong public-private collaboration is key to delivering financial education, acceptance of digital payments, and increased access to capital. It’s time to think big.

The power of small #business in driving global #growth

The estimated 400 million small and medium-sized enterprises (SMEs) worldwide account for approximately 90% of all businesses, 70% of employees and 50% of global GDP.

While these businesses may be small, their impact is anything but. Particularly in emerging markets, where millions of new jobs created every year are filled largely by these SMEs. Yet, about 20% of small businesses fail in their first year and only about 50% make it five years.

This is largely due to a lack of access to digital payments and capital. For example, SMEs lag larger firms in adopting digital payments, especially in middle-income countries, as the chart below shows.

Share of total sales received via digital payment.

The World Bank Group estimates a $5.7 trillion financing gap for SMEs across 119 emerging and developing economies. Providing SMEs with capital to invest in affordable and user-friendly digital technologies is essential for unlocking growth and building resilience to economic shocks.

Public-private partnerships can help SMEs expand their skills, digital payments and improve access to capital

Small and medium-sized enterprises (SMEs) are the unsung heroes of the global economy, quietly powering communities, creating jobs, and fueling innovation in ways that often go unnoticed until they’re gone. With around 400 million SMEs worldwide representing about 90% of all businesses, 70% of employment, and roughly 50% of global GDP, their collective impact is massive. These aren’t just numbers—they’re neighbourhood shops, tech startups, family-run farms, and emerging ventures turning local ideas into real livelihoods.

In places like Sub-Saharan Africa, where the pressure to generate millions of new jobs annually is intense (with estimates calling for 25 million new positions each year until 2050 to match population growth), SMEs step up as resilient engines of opportunity, especially for young people and women seeking to build financial security.

Yet, the road isn’t easy. Many ambitious entrepreneurs face steep hurdles: about 20% of small businesses don’t survive their first year, and only around 50% make it to five years. Recent shocks—from pandemics to inflation and supply disruptions—have amplified these risks, but the core issue often boils down to limited access to the digital economy. Without digital tools, skills, and capital, SMEs risk falling behind in a world where digital platforms are expected to drive over 70% of new economic value in the coming decade.

The good news? SMEs don’t lack ambition—they need targeted support to unlock their potential. Key areas include:

1. Building foundational skills through financial education and training. Many adults struggle with basic financial literacy (only about one in three can answer simple questions correctly, per global studies). Practical programs on budgeting, credit, and business management make a huge difference, helping owners confidently adopt new technologies. Initiatives like free online platforms have already reached millions, empowering entrepreneurs to make smarter decisions.

2. Accelerating digital payment adoption. SMEs often trail larger companies in using digital payments, with gaps exceeding 12 percentage points in middle-income countries. Shifting from cash to secure digital options opens broader markets, boosts transaction safety, and builds customer trust—turning local operations into global players.

3. Bridging the massive financing gap. The World Bank highlights a staggering $5.7 trillion shortfall in SME funding across emerging economies. Access to affordable capital lets businesses invest in tools like e-commerce, AI, or inventory systems, driving growth and resilience.

Public-private partnerships are proving transformative here. Collaborations between governments, organisations, and companies provide training, networks, mentorship, and funding. For instance, targeted investments have supported millions of SMEs, created jobs, and helped startups secure follow-on capital through accelerators and demo days.

The takeaway is clear: SMEs aren’t “small” in influence—they’re essential for inclusive, resilient growth. By prioritising collaboration to expand skills training, digital access, and capital, we can help these entrepreneurs thrive. In doing so, we don’t just support individual businesses; we build stronger communities, more dynamic economies, and a future where ambition meets opportunity for everyone.

If you’re running or supporting a small business, the momentum is on your side—embrace digital tools, seek out partnerships, and think boldly. The global economy needs what you bring to the table. What’s one step you’re taking this year to level up? Let’s keep the conversation going.