Aligning enterprise development with decent work objectives: A new paradigm for MSMEs policies

Micro, small and medium-sized enterprises (MSMEs) generate most of the world's jobs and are central to inclusive economic growth. Yet too often, MSME policies assume that better employment outcomes will naturally follow from business development, without explicitly addressing how to create more and better jobs. This report reviews MSME policy frameworks in 20 countries and finds that, while employment creation is frequently cited as a policy objective, labour market considerations are rarely integrated into policy design. Drawing on the ILO's Decent Work Agenda, the report proposes a new approach that places employment outcomes—job creation, job quality and access to decent work—at the heart of MSME strategies. The publication offers policymakers practical recommendations to strengthen governance, improve policy coherence, better target public support and develop monitoring systems that capture both business performance and decent work outcomes. It argues that aligning enterprise development with decent work objectives can unlock a virtuous cycle of higher productivity, greater competitiveness and inclusive growth.