Small and medium-sized enterprises (SMEs) are more vulnerable to current business disruptions due to their reduced ability to diversify suppliers, markets, and sources of financing, the United Nations Conference on Trade and Development (UNCTAD) warned .
The organization noted that the disruptions associated with the Strait of Hormuz have impacted businesses through various channels, including increased energy, transportation, and financing costs. For smaller companies, this pressure can translate into lower margins, supply chain disruptions, and potentially decisions such as reducing production, postponing investments, or withdrawing from certain markets.
SMEs are suppliers of inputs and services throughout supply chains and play a vital role in job creation, entrepreneurship, and economic diversification: they generate 70% of jobs worldwide and contribute 50% of global GDP. Therefore, their exit from value chains can reduce the resilience of economies and foster greater business concentration .
One of the main sources of pressure is electricity costs. Data compiled by UNCTAD, based on World Bank business surveys , shows that small companies have a greater exposure to energy costs relative to their sales, particularly in developing economies.
Foreign trade also represents a greater burden for smaller businesses. In developing economies, the cost of complying with import requirements averages 19.4% of the value of products imported directly by small businesses, compared to 14.7% for large businesses. This measurement considers tariffs, other mandatory payments, and the services of customs brokers or freight forwarders.
Access to finance is another point of pressure . In developing economies, 20% of small businesses considered access to finance a moderate obstacle, while 17% rated it as significant and 11% as very severe.
The financial situation can become even more complicated during periods of volatility, as SMEs face higher borrowing costs. UNCTAD identified that this gap can widen during crises, limiting the ability of smaller companies to finance working capital, absorb cost increases, or maintain operations while supply chains normalize.
During the COVID-19 pandemic, 88% of SMEs in developing economies reported a decrease in sales, compared to 81% of large companies. In developed economies, the percentages were 64% and 58%, respectively.
According to UNCTAD, the current risk is that a recovery in trade flows will not necessarily translate into a uniform recovery for businesses. SMEs could be left out of certain value chains even if global trade volumes return to growth , because their energy, transport, insurance, and financing costs have a greater impact on their operations.
Given this scenario, the organization stated that public policies must address both the continuity of operations and the inclusion of SMEs. Among the proposed measures are expanding access to financing, liquidity, and working capital , as well as improving access to logistics services and trade facilitation.
This warning is particularly relevant for logistics and supply chains: keeping SMEs within them not only means preserving suppliers, but also sustaining employment, diversification, and productive capacity. In an environment marked by higher costs and new business disruptions, resilience will also depend on how well economies can prevent SMEs from being left behind in the recovery after periods of crisis.
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