The role of the Micro, Small and Medium Enterprises (MSME) sector cannot be over emphasized in terms of its contribution to GDP and employment generation, particularly in emerging economies. Studies indicate that formal SMEs contribute up to 45 percent of employment and up to 33 percent of GDP in developing economies (IFC: Scaling-Up SME Access to Financial Services in the Developing World 2010). These numbers are significantly higher when taking into account the estimated contributions of SMEs operating in the informal sector.

Author: Qamar Saleem, Senior SME Banking Specialist MENA, IFC