Businesses that employ fewer than 250 persons are categorized under micro, small, and medium enterprises (MSMEs). They make up more than 90 percent of all firms worldwide, provide 70 percent of all employment, and constitute roughly half of the global economy. In the next ten years, more than 600 million new jobs will be needed globally to meet the needs of a growing workforce, much of them in emerging markets.1 Therefore, policymakers must prioritize the development of a resilient MSME sector. Recognizing the importance of this issue, CSIS partnered with the Tipping Point Fund on Impact Investing to convene two working groups examining the state of play of the MSME sector in Africa and the United States.

This brief builds on the working groups’ findings, with a particular focus on the consequences of Covid-19 on the sector. This brief also looks at the available opportunities for collaboration that impact investors, policymakers, and other philanthropic institutions could use to build resilience in the MSME sector, as the world plans a post-pandemic economic recovery and strives to meet its broader sustainable development goals.