In the past decades, the development of technology and the spread of digital infrastructure have opened up new opportunities for sustained growth and innovation. Markets are more connected, digital products and services are springing up all over the world, and digital innovation helps to improve productivity and competitiveness. An important but often overlooked part of the global economy, however, is still largely excluded from the benefits of the “digital revolution”, that is, most micro and small enterprises are often not digitized enough, so it may be difficult to make full use of the opportunities provided by the digital revolution. This is a particular concern given the critical role that MSMEs play in the economy and society as job creators and as engine of economic growth and poverty reduction. It is necessary to create an environment for small and micro enterprises to use digitalization to improve productivity and create more and better employment opportunities. This report considers the diversity of small, medium and micro enterprises, and describes in detail the obstacles and opportunities involved in the digitalization of small, medium and micro enterprises and their contribution to productivity growth and job creation.

This report and its policy recommendations are a call for action in themselves. COVID-19 has brought great pressure to small and micro enterprises and slowed down the process of achieving sustainable development goals. Competitive SMEs that provide decent jobs can be engines of recovery and prosperity in their societies. It is very important to support small and micro enterprises using digitalization to improve their adaptability and competitiveness to achieve this goal.