The Importance of Small Firms for Employment

Small businesses in low and middle-income countries serve as vital sources of employment, contributing to about 90% of all jobs, as highlighted by various studies. These firms often struggle to grow due to their limited market reach, which inhibits their ability to invest in modern technology and skills necessary for expansion. By unlocking the full potential of these small enterprises, a significant boost in job creation and economic development could be achieved. Enhancing the productivity and scalability of these firms is therefore central to addressing pressing development challenges.