How Small Businesses Can Navigate Global Trade in An Era of Polycrisis

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Micro, small, and medium-sized enterprises (MSMEs) account for 95% of all businesses and 60% of global employment, forming the backbone of the global economy. Yet they face persistent barriers to fully benefiting from international trade, including limited access to finance, complex regulations and poor digital infrastructure.

These challenges are exacerbated by the current polycrisis of economic shocks, supply chain disruptions, climate change and geopolitical uncertainty.

With support, small businesses can compete globally and drive inclusive economic development.

Discover how small businesses can navigate global trade in an era of polycrisis.

Unlocking Opportunities for Small Businesses in Cambodia

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Despite their importance, small businesses often struggle to access international markets due to the high costs of infrastructure, marketing, distribution, compounded by complex compliance and regulatory barriers.

However, technological advances, especially in online shopping, are alleviating some of these barriers by providing affordable digital storefronts and access to global customers without needing a physical presence.

Over the past decade, the Cambodian government has made significant strides to enhance the export potential of its small enterprises.  

Learn what those strides are here and a lot of it is digital support.

Time to Think Big (and Global) American Small Businesses!

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US micro-, small, and medium-size enterprises, like their global counterparts, struggle with productivity. But a win–win economic fabric connecting all businesses can maximize their potential.

At a glance: 

• Micro-, small, and medium-size enterprises (MSMEs) are the bedrock of the US economy. 
• MSMEs in the United States are only half as productive as large companies, compared with 60 percent in other advanced economies. 
• MSME performance varies across US states and metro areas. 
• Interactions between small and large businesses are key to boosting collective productivity. 

Read the entire report by McKinsey Global Institute, October, 2024.

Small Business Productivity Issues Differ From Country to Country

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The McKinsey Global Institute aggregated a richly granular data set of micro-, small-, and medium-size enterprises (MSMEs) and large companies across 12 broad sectors, 68 level-two sub-sectors, and more than 200 level-three sub-sectors for 16 countries that account for more than half of global GDP.

In these countries, MSMEs on average have only half the productivity of large companies, and less than that in emerging economies. Raising MSMEs to top-quartile levels relative to large companies represents value equivalent to 5 percent of GDP in advanced economies and 10 percent in emerging economies.

The visual presentations here summarize the findings for the 16 countries in McKinsey's research representing different income levels. 

The Backbone of Our Economy: Global Small Businesses

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Global small businesses are vital to the USA recovery from the global pandemic yet micro, small and medium enterprises (MSMEs) can power an even stronger recovery from the COVID-19 pandemic, due to their innovative and opportunity-seeking nature, but they need more support.

Such support should be aligned with the priorities of the post-COVID-19 social and economic recovery, said the United Nations Conference on Trade and Development (UNCTAD) Acting Secretary-General Isabelle Durant.

Read on to find out how supporting small businesses is critical for COVID-19 recovery.

Today in Global Small Business: How to Negotiate a Killer Foreign Distributor Agreement

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What's affecting me, my clients, my colleagues and other global small business owners:

• What happens to SME trade should Britain leave the European Union?
• Valuable leadership lessons from Intel chief Andy S. Grove.
• Acair goes global.  Wait, not so fast.  Who is Acair?  A Gaelic non-profit book publisher.
• How micro, small and medium enterprises (MSMEs) are at the heart of industrial activity in India.
• Five ways to increase your business on a global scale.
• How to negotiate a killer foreign distributor agreement (no charge webinar on 4/13).