Small and medium-sized enterprises (SMEs) are one of the key drivers of economic development.

Entering global markets (increasing the client base, becoming familiar with successful business practices and innovations) provides SMEs with new opportunities for growth. However, as the authors of a new report of the United Nations Conference on Trade and Development (UNCTAD) note, SMEs face a number of challenges that hinder their investment abroad. The main ones include the long-term consequences of the COVID-19 pandemic, unequal access to finance, the growing digital divide between SMEs and larger companies, high business concentration, and lack of support for SME investment activities. As a result, foreign direct investment from SMEs is declining; the number of foreign investment projects in 2022 amounted to 25% of 2015 figures.

UNCTAD recommends:

• Assessing the effectiveness of SME support measures, develop programs to promote and facilitate SME investments, taking into account their needs and capabilities
• Creating specialized development institutions that provide SMEs with support in finding partners and entering new markets
• Contributing to the growth of competitiveness of SMEs through the development of the innovative potential of business
• Facilitating SMEs' access to capital, incl. due to digitalization of government services
• Reducing the regulatory and administrative burden on SMEs.