Overview

The micro, small and medium enterprises (MSMEs) are the backbone of economic activities for both developed and developing nations. MSMEs are the strongest driver of economic development, innovation and job creation, accounting for 90% of businesses, 60% – 70% of employment, and 50% of the GDP worldwide. These numbers are higher for the developing countries.

According to the World Bank’s estimates, 600 million jobs will be required to meet a growing global workforce by 2030 which makes MSME development a high priority for many governments around the world. The G20 Bali Declaration has recommended promoting entrepreneurship and supporting MSMEs as a job creation instrument.

Additionally, given their significant aggregated number, MSMEs play critical role in the 17 SDGs and transition towards a sustainable development pathway.  The ‘Better Business Better World’ report, commissioned by the Business and Sustainable Development Commission, states that sustainable business models could open economic opportunities worth USD 12 trillion and create 380 million jobs by 2030, with more than 50% in developing countries.  Transformation is required to adapt to new business models, technologies, and innovation that opens the door to business opportunities for MSMEs. Start-ups and young firms, which are generally small or micro firms, are the primary source of net job creation in many countries and are a driving force of innovation and sustainability in the private sector.

However, a major constraint that impedes MSMEs’ ability to grow is access to finance. According to the World Bank IFC report, MSMEs financing gap stands at approximately $5.2 trillion, with women-led MSMEs facing greater financial constraints than their male counterpart. The COVID-19 pandemic exacerbated the situation, and further underscores the urgent need for a more resilient MSME financing model.

Massive Inclusive Impact MSMEs

The Massive Inclusive Impact MSMEs (MIIM) is a collaborative blended finance funding scheme to address the financing challenges of MSMEs. Its aim is to build a global community of support to address the financing and knowledge gap of the MSMEs to achieve the Sustainable Development Goals, foster robust partnership between governments, DFIs/MDBs, philanthropists, commercial lenders, impact fund and venture capital, and to scale commercial capital flow to MSMEs through innovative de-risking instruments.

Proposed Massive Inclusive Impact MSMEs Scheme (Strawman Framework) 

The Massive Inclusive Impact MSMEs (MIIM) will work across six key pillars to help drive momentum for MSME growth, and they are: 1) Finance Lab, 2) Policy Lab, 3) Innovation Lab, 4) Tech and Data Lab, 4) Knowledge Lab, and 6) the MIIM Exchange.

MIIM 6 Key Action Pillars

The MIIM digital platform will serve as the AI-assisted backbone to facilitate funding, identifying where and how funds will be deployed. It will also serve to digitize MSMEs workflow, from internal management, production, up to the networking, procurement and promotion of goods and services, and supporting MSMEs to export their goods and services online, including online capacity building programs.

To find out more about the Massive Inclusive Impact MSMEs initiative, please reach out to