As World SME Day approaches on June 27, the global spotlight turns to micro SMEs and their critical role as engines of economic growth and innovation. This year’s theme, “Enhancing the Role of Micro Small and Medium-sized Enterprises as Drivers of Sustainable Growth and Innovation,” comes at a pivotal moment in the global economy.
The team at Dynamic Business congratulates all SMEs that continue to lead with resilience purpose and creativity. We are proud to celebrate the businesses that are not only building strong foundations but also driving meaningful change in their industries and communities. In recognition of their impact we are showcasing stories of SMEs making waves in sustainability technology health and beyond.
MSMEs represent the backbone of economies worldwide, serving as key sources of jobs, income, and local growth: especially for women, young people, and vulnerable groups. Their size and flexibility help build strong, fair, and sustainable communities. Yet despite their importance, these businesses continue to face significant structural challenges that limit their potential for growth and impact.
The timing of World SME Day 2025 is particularly significant, falling just ahead of the Fourth International Conference on Financing for Development (FfD4) in Sevilla and the Second World Summit for Social Development in Doha, amid ongoing shifts in the global trading landscape. This presents a crucial opportunity to spotlight the vital role of MSMEs in driving inclusive growth and sustainable development, and to catalyze the finance, policy support, and enabling conditions they need to thrive.
The Capital Challenge
Access to capital remains one of the most persistent barriers facing small businesses globally, with the challenge becoming even more acute for underrepresented entrepreneurs. Industry leaders are calling attention to how traditional funding models systematically exclude entire communities from economic participation.
“There is a startup funding gap in this country, and it hits Indigenous founders the hardest. Most early-stage capital relies on credit history, savings, or family wealth. That model excludes the majority of Indigenous entrepreneurs from even getting started,” explains Darryl Majid, CEO and Founder of Esparq Ventures.
“Good ideas are not the issue, capital is. We see founders with real products, community demand, and the hunger to build, but no pathway to test and scale their business. Without early capital, momentum stalls and potential goes unrealised,” Majid continues. “But when that gap is filled, things move fast. With the right capital at the right time, we have seen founders win contracts, hire locally, attract follow-on investment, and shift from side hustle to sustainable business in no time.”
The impact extends beyond individual businesses. “These businesses create both financial and social returns. They generate revenue, build wealth, and drive growth, while also creating jobs and impact in the community. The value is tangible, though may show up differently in comparison to traditional startups. As many are calling on the startup sector to diversify, innovate, and think outside the box, it’s these kinds of differences we should be celebrating,” Majid notes.
This funding challenge is compounded by traditional banking practices that favor established businesses with extensive credit histories and collateral, creating systemic barriers for the very enterprises that could drive inclusive economic growth.
Data as infrastructure
Beyond capital, access to reliable data and information represents another critical infrastructure need for small business success. The digital divide isn’t just about having internet access—it’s about having access to the quality information that enables smart business decisions.
Jessica Booth, COO of Biza.io, highlights how regulatory changes are beginning to address this challenge: “Accurate and reliable data is vital for SME innovation, but they are still being held back by regulatory frameworks and data quality issues. Not having access to accurate data makes it very challenging for SMEs to make smart and informed comparisons or choices regarding their services.”
“The Consumer Data Right (CDR) changes this by granting secure and controlled access to high-quality consumer and product data, previously only available to large institutions, to SMEs. They are now able to use tools that are built using the CDR to compare prices, explore more financing options, and monitor energy usage with precision. SMEs with access to timely, reliable information shift from guesswork to informed planning, optimising resources, avoiding costly mistakes, and fueling sustainable growth,” Booth explains.
The implications extend to financial services innovation: “With the expansion of CDR to non-bank lenders, SME’s will gain access to a wider range of tailored funding options, fostering competition, reducing barriers, and driving more innovative financial solutions. By leveraging tools that use the CDR, SMEs can innovate responsibly, scale sustainably and have confidence in their data-driven decisions.”
Governance and compliance
As regulatory environments become increasingly complex, small businesses face a paradox: they need sophisticated governance systems to compete and comply, but often lack the resources to implement them effectively. However, technology solutions are emerging that can transform compliance from a cost center into a competitive advantage.
Rohit Nayak, Solutions Specialist Director at Diligent, outlines the scope of the challenge: “Micro, small and medium-sized enterprises (MSMEs) are critical drivers of innovation, employment and shared prosperity in the global economy. However, MSMEs continue to face significant challenges that inhibit their growth and sustainability.”
“The most common challenge is limited access to capital. Many traditional banks have stringent lending practices, including high collateral demands, strict eligibility criteria and complex loan application processes, which make it very difficult for MSMEs to secure the funding they need,” Nayak explains.
“MSMEs also struggle with outdated technology and fragmented governance structures. When coupled with the complexity of regulatory environments, they face increasing operational inefficiencies, compliance costs and greater risk exposure, all of which undermines their competitiveness and resilience,” he continues.
The solution lies in integrated technology platforms: “Modern governance, particularly an unified and integrated governance, risk and compliance (GRC) solution can prove to be a competitive differentiator for MSMEs. Integrated GRC solutions offer MSMEs with a complete visibility into emerging risks, automate internal controls and centralise compliance workflows, allowing them to proactively manage regulatory obligations, respond faster to changing laws and effectively mitigate business risks. In addition to this, having access to tools like real-time dashboards and powerful analytics, empowers MSMEs with clear, auditable insights that builds trust with stakeholders, both within and outside of their business.”
The remote work revolution
The shift toward remote and distributed work has created unprecedented opportunities for small businesses to access global talent pools, but it has also introduced new complexities around compliance and workforce management across multiple jurisdictions.
Nick Martin, GTM Lead APAC at Remote, explains the opportunity and challenge: “Small and medium-sized enterprises (SMEs) are increasingly embracing global employment to access diverse talent pools, reduce overhead costs, and scale operations efficiently. However, many SMEs struggle with the costs and complexity of hiring internationally, including navigating the intricacies of international labour laws, tax regulations, and compliance requirements.”
“Each country has its own set of rules regarding employee classification, benefits, and payroll, making it challenging for SMEs to ensure compliance without dedicated legal and HR teams. The rise of remote work has further complicated the landscape,” Martin notes.
The solution requires both technology and strategic thinking: “To thrive in this remote working revolution and effectively manage global teams, SMEs need to stay agile and informed, often requiring specialised knowledge and resources.”
“Global HR platforms that automate compliance monitoring and centralise workforce data help SMEs navigate these challenges, by providing the infrastructure to hire, onboard, and manage employees across borders, ensuring adherence to local laws and regulations,” Martin explains. “Empowering SMEs with robust global hiring infrastructure serves as a strategic lever, transforming them into innovative leaders and accelerating sustainable growth and resilience in an increasingly interconnected marketplace.”
On World SME Day 2025, the focus must shift from simply acknowledging the challenges facing small businesses to actively implementing the solutions that can unlock their potential as drivers of sustainable growth and innovation.
The question is no longer whether MSMEs can drive sustainable growth and innovation, but how quickly we can remove the barriers preventing them from doing so.
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