Small & Informal Business in a Green Economy

The document highlights that SMEs, particularly in emerging economies, are essential for a fair economic transition due to their ability to integrate social and environmental purposes into local economies. While SMEs drive innovation and job creation, they face significant barriers, including a 'missing middle' financing gap where approximately 70% of micro, small, and medium-sized enterprises in emerging markets lack access to credit. The brief recommends a shift from general support to tailored, needs-based approaches, including the creation of simple legal forms for social enterprises, support for informal self-organisation, and the alignment of local, national, and international policy frameworks to provide clarity for small businesses.

• SMEs are vital to the economic structure of emerging economies, where formal SMEs can account for up to 60% of total employment and up to 40% of national GDP.
• There is a significant financing gap for SMEs in emerging markets, termed the 'missing middle', with World Bank estimates suggesting around 70% of micro, small, and medium-sized enterprises lack access to credit.
• SMEs face systemic barriers to growth, including limited access to technology, financing, and business management skills, which are further exacerbated for social and environmental SMEs pioneering new business models.
• To effectively support the green transition, policymakers should implement specific measures such as creating simple legal forms for social enterprises, supporting the self-organisation of informal businesses to win group contracts, and establishing sector-specific certifications or ecolabelling to create new markets.

APA

Green Economy Coalition (n.d.). Small & Informal Business in a Green Economy. https://www.greeneconomycoalition.org/assets/reports/Cape-Town-Global-Meet-2019/PAGE-GEC-SME-policy-brief_final.pdf

Chicago

Green Economy Coalition. Small & Informal Business in a Green Economy. n.d. https://www.greeneconomycoalition.org/assets/reports/Cape-Town-Global-Meet-2019/PAGE-GEC-SME-policy-brief_final.pdf.

Wikipedia

{{cite report |author=Green Economy Coalition |title=Small & Informal Business in a Green Economy |url=https://www.greeneconomycoalition.org/assets/reports/Cape-Town-Global-Meet-2019/PAGE-GEC-SME-policy-brief_final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greeneconomycoalitionndsmall, author = {{Green Economy Coalition}}, title = {{Small \& Informal Business in a Green Economy}}, institution = {Green Economy Coalition}, url = {https://www.greeneconomycoalition.org/assets/reports/Cape-Town-Global-Meet-2019/PAGE-GEC-SME-policy-brief_final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }