Western and Central Africa
Eastern and Southern Africa
Eastern Europe and Central Asia
SMEs constitute the overwhelming
majority of firms. Globally, SMEs make up over 95% of all firms, account for approximately 50% of
GDP and 65% of total employment, when both formal and informal SMEs are taken into account.
This amounts to between 420 million and 510 million SMEs, 310 million of which are in emerging markets.
SMEs also employ a large share of the most vulnerable sections of the workforce, namely less
experienced and less educated workers belonging to poorer households, women
and young people. While it is well known that larger firms are more productive and pay
higher wages than small firms, what is less well known is that the productivity gap between small
and large firms tends to be much more pronounced in developing countries than in industrialized countries.
ITC's SME Competitiveness benchmarking survey is a modular tool with the potential of
being used in a variety of contexts related to SME Competitiveness, since it assesses the
capabilities of SMEs across a broad but comprehensive set of
Bottlenecks to competitiveness, and whether they originate from within the firm or the
external business environment, can be identified, tracked, and addressed.
Assisting governments to set up national SME competitiveness data collection exercises
enables direct tracking of progress on three key sustainable development goals
SDG Goal 8: Decent work and economic growth
Closing the productivity gap between SMEs and larger firms is key: it would contribute to GDP growth
and lead to higher wages in the low-wage segment of the economy, with positive and equitable distributional
SDG Goal 5: Gender equality
Women are the cornerstone of most families, communities, and, by extension,
economies. In developing countries, they manage the household, take on most of the
childcare responsibilities, and play the role of a social safety net. In addition to these
responsibilities, many women in many cases run their own businesses to supplement family
incomes. When women succeed, the benefits to society are great. They spend more on their
family’s health, nutrition, and education, increasing the chance that their children will rise out
of poverty and make substantial contributions to society.
The SME Competitiveness Survey includes a host of gender related questions. Recently,
the survey was deployed in partnership with ITC SheTrades,
to better understand the bottlenecks faced by women entrepreneurs in Kenya and Indonesia's services
sector. The result was two SME competitiveness reports, one for
and one for
SDG Goal 4: Quality education
Young people represent the future of societies
and economies. Decent and productive economic opportunities for young people
are critical to achieve sustainable growth, development and social stability.
The inclusiveness of a country’s growth path can play a pivotal role
in empowering young people both economically and socially. Young people are
more likely to be unemployed or drop out of the labour force. For those
who do find work, greater labour market inequalities, longer school-to-work
transitions, and a wider mismatch between their skills and labour market
needs has become the norm.
Creating large numbers of decent jobs for young people is critical for achieving overall
development objectives. Data is key to identify specific issues faced by youth across sectors
and countries. For this reason, the SME Competitiveness Survey has been used in the context
of the Gambia Youth Empowerment Project
for the production of the Gambia Strategic Youth and Trade Development Roadmap (2017-2021).
The Gambia Youth Empowerment Project (YEP) addresses the economic root
causes of irregular migration by supporting youth employment and entrepreneurship.
The project takes a market-led approach to improving the skills and employability of
potential and returning migrants according to demands of the job market and simultaneously
creating employment opportunities along Gambian value chains.
22 May 2018
Promoting SME Competitiveness in the Gambia
08 May 2018
Promoting SME Competitiveness in Sri Lanka
25 Oct 2017
Promoting SME Competitiveness in Hungary
25 Sept 2017
Promoting SME Competitiveness in Kenya
Promoting SME Competitiveness in Indonesia
10 Jan 2017
SME Competitiveness in Ghana