The International Labour Organisation (ILO) has called for stronger support for micro, small and medium-sized enterprises (MSMEs), saying the survival and growth of the ecosystem are critical to protecting jobs, expanding decent work opportunities and building more resilient and inclusive economies.

ILO Director-General Gilbert Houngbo said governments, employers’ and workers’ organisations, financial institutions, development partners and the private sector must work together to create an enabling environment that allows small businesses to flourish.

According to him, MSMEs account for more than 90 per cent of businesses worldwide and provide two out of every three jobs, making them the backbone of economies and a major driver of innovation, entrepreneurship, local economic development and social progress.

Despite their enormous contribution, Houngbo warned that small businesses are operating in an increasingly difficult environment, confronting economic uncertainty, geopolitical tensions, climate-related shocks, persistent inequalities and tighter financial conditions.

He noted that many enterprises are also under pressure to adapt to rapid digital, technological and green transitions, requiring investments that remain beyond the reach of many small businesses, particularly in developing countries.

While describing the challenges as significant, the ILO chief said they also present opportunities if governments and stakeholders put the right policies and support systems in place.

He explained that digital technologies and innovation can improve productivity, strengthen resilience, expand market access and enhance the competitiveness of MSMEs, but warned that many enterprises—especially those in rural communities and those led by women and young entrepreneurs—could be left behind without targeted interventions.

The Director-General stressed that enterprise success8 cannot be separated from decent work, insisting that sustainable businesses require safe and healthy workplaces, respect for labour rights, adequate social protection and effective social dialogue.

“Decent work is not only a social objective—it is also a foundation for enterprise resilience, productivity and long-term success,” he said.

Houngbo said creating the right environment for MSMEs requires sound policies and regulations, effective institutions, improved access to finance, quality infrastructure, stronger market linkages and investment in skills development to help enterprises embrace digital and green transformation.

He called for renewed collaboration among governments, employers’ and workers’ organisations, financial institutions and development partners to remove unnecessary barriers to business growth, promote innovation, encourage formalisation and expand affordable financing for small businesses.

According to him, such collective efforts will enable MSMEs to participate more effectively in domestic and global markets while creating sustainable employment opportunities.

Reaffirming the ILO’s commitment to inclusive and sustainable development, Houngbo said strengthening MSMEs remains central to achieving shared prosperity and improving livelihoods across the world.

He added that when MSMEs thrive, they create decent jobs, strengthen communities and contribute to resilient economies capable of delivering long-term social and economic progress.