EMERGING MARKET INSIGHTS - Which Firms Create More Jobs?
Identifying which firms hire, where, and why is essential for delivering opportunity to tomorrow’s workforce in developing economies. While predicting which firms will create the most jobs and better jobs is challenging, research provides valuable insights on the attributes of firms with the greatest employment potential.
Five themes consistently surface from the evidence:
A small number of firms accounts for a disproportionate share of new jobs.
The most dynamic employers tend to be relatively young, and their chances of success are generally unrelated to initial size.
Businesses tend to flourish in well-connected locations.
They accelerate when plugged into value chains, multinationals, or sophisticated suppliers.
Stronger management skills and technology adoption underpin their success.
These facts together point to practical, actionable ways of channeling private capital into large-scale employment, underscoring a potentially strategic role for policies to support firms.
Across a range of sectors, a narrow group of businesses creates up to two-thirds of all new jobs.
Beyond financial inclusion: What drives financial health for women entrepreneurs?
- Financial Insecurity in Crises: While 80% of entrepreneurs save for their business, only 16% would use business savings to recover from a crisis. Others instead rely on household savings or borrowing, which may limit the ability of the business to recover in the long-term.
- Limited Access to Credit: 27% of women entrepreneurs lack the financial resources needed to grow. High interest rates (49%), low loan amounts (23%), and short loan terms (14%) create barriers to formal financing, and debt stress remains particularly high in Pakistan, where 94% of borrowers are “very concerned” about repayment.
- Digital Divides: While 94% of respondents own a smartphone, only 51% use digital tools for their business. Access to digital upskilling remains a challenge, limiting women’s ability to tap into online financial services and expand into new markets.
- Satisfied but Stressed: While many cite satisfaction with the state of their business, households, and finances, this may come at the cost of high levels of stress. However, when spouses were involved in decision-making, women were 27 percentage points less likely to “always worry” about their business and 23 percentage points less likely to “always worry” about their household.
- Disconnected from Support Networks: One-third (34%) of women entrepreneurs lack access to networks like peer groups and mentors for business advice.
- Offering long-term, higher-interest savings accounts with features like automated deposits to help women build emergency funds.
- Financial products tailored to women’s business needs, with larger loan sizes, flexible repayment terms and alternative credit assessments.
- Offering tiered, practical digital literacy programs, from mobile banking basics to advanced tools like e-commerce and AI.
- Creating peer groups and family-inclusive workshops to build networks, mentorship, and shared responsibility at home.
- Innovations that support redistributive care responsibilities, through mechanisms such as subsidized childcare and financial tools designed with caregiving realities in mind.
GFTN and the SMEFF join forces on SME financing across developed and emerging markets
Global Finance & Technology Network and the SME Finance Forum join forces on SME financing across developed and emerging markets
18th May 2025 – The Global Finance & Technology Network (GFTN), a Singapore head-quartered Global Forums, Advisory and Investment company and the SME Finance Forum, a global network established by the G20 and managed by the International Finance Corporation (IFC) are partnering to further organize and grow the annual Global SME Finance Forum event and create value-added services to enhance the SME knowledge bank and digital services offered by the SME Finance Forum.
By uniting GFTN’s expansive international network with the SME Finance Forum’s deep expertise and leadership, this collaboration aims to elevate the annual Global SME Finance Forum and expand access to cutting-edge insights, digital tools, and best practices. Together, the two organisations will harness their complementary strengths to accelerate innovation, deepen knowledge exchange, and drive sustainable, inclusive growth in SME financing across developed and emerging markets.
“In today’s deeply interconnected world, the exchange of global knowledge is essential to tackling the complex and persistent challenges faced by SMEs and MSMEs,” said Sopnendu Mohanty, Group Chief Executive Officer of GFTN. “This partnership stands as a powerful affirmation of our shared commitment to narrowing the SME financing gap. It reflects GFTN’s core mission to harness technology and innovation in building financial ecosystems that are resilient, inclusive, and future-ready. Through this collaboration with the SME Finance Forum, we aim to translate insight into impact, shaping scalable solutions and fostering meaningful partnerships that empower entrepreneurs and strengthen economies worldwide.”
GFTN, will work with the SME Finance Forum to organize the Global SME Finance Forum 2025 from 15 to 17 September 2025 in Johannesburg, South Africa, as an official side event of the South African G20 Presidency. The conference will focus on practical and scalable financial solutions that empower small and medium enterprises (SMEs) on ‘Building Resilience and Creating Opportunities for Growth’.
Qamar Saleem, Head of the SME Finance Forum, added: “Forging transformative market alliances is a fundamental pillar of the SME Finance Forum's forward-thinking strategy, designed to tackle the pressing challenges in SME financial services and catalyze job creation and retention. We are delighted to unveil our groundbreaking partnership with GFTN, a collaboration that promises to harness the unique strengths and synergies of both institutions. This partnership aims to accelerate the growth of SME financial services by leveraging technological trends and innovative market solutions. Together, we are committed to expanding impactful convening, strengthening our global network, delivering cutting-edge content, and driving solution-building efforts to ensure that SMEs can thrive and grow.”
About the SME Finance Forum
The SME Finance Forum (SMEFF) was established in 2012 by the G20 and is managed by the IFC, World Bank Group. The objective is to scale SME finance for job creation and economic growth. As the leading SME finance network globally, industry innovations support replication of best practices, steer policy advocacy, and foster global knowledge transfer. It also powers global peer learning membership network by connecting them with relevant partners, investors and policymakers. The network comprises nearly 300 financial services stakeholders with coverage of over 190 countries. It’s the largest SME financial services industry network of its kind. Learn more about the SME Finance Forum at: https://smefinanceforum.org/
About the Global Finance & Technology Network (GFTN)
The Global Finance & Technology Network (GFTN) set up by the Monetary Authority of Singapore drives global impact in finance, technology, and sustainability by catalysing technology and innovation in finance for more efficient, resilient, and inclusive financial ecosystems. Through its two subsidiaries, GFTN Services and GFTN Capital, it convenes global forums, offers capacity-building and advisory services, provides access to transformative digital platforms, and invests in technology startups with the potential for growth and positive social impact. Learn more about GFTN at www.gftn.com.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
Yemen Microfinance Network (YMN), Yemen's microfinance institutions association, an NGO co-funded by UNDP and SFD, joins the SME Finance Forum
Registrations for the 10th GABV Leadership Academy now open - Deepen Your Leadership Impact
10 Years of Leadership Excellence - Registration Now Open for the 2025 GABV Leadership Academy
Dear GABV members,
We are excited to announce the 10th edition of the GABV Leadership Academy—a milestone in shaping resilient leaders in values-based banking! Registrations are now open until 5 December 2024.
This year’s programme, 'Resilience in the Face of Polycrisis,' is designed to equip senior professionals with the leadership capacity and personal development tools to drive change in an increasingly complex world.
The programme runs from February to May 2025, featuring four engaging online sessions and a 5.5-day in-person retreat held in conjunction with the 2025 GABV Annual Meeting in Uganda, March 2025.
This edition provides participants with:
- Cutting-edge leadership methodologies to lead your organisation through challenges and inspire innovation.
- A global network of values-driven peers who are pioneering change in the banking industry.
- Peer coaching and individual sessions with expert facilitators.
Learn more about the programme and fees from the link below.
Benefits for your organisation
Develop values-oriented leaders: Empower your senior leaders to amplify their impact and unlock their full leadership potential.
Organisational Transformation: Equip leaders with the tools to innovate and drive transformation, embedding values at their core.
Network with peers: Expand your organisation’s access to a global network of trailblazers in values-based banking.
Together, let's deepen your leadership impact for the next decade of values-based banking.
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GABV is an Affiliate of the SME Finance Forum
EmpowerHer: Stories from the SME Finance Forum’s WEF CoP
The Forum established the Women’s Entrepreneurship Finance CoP (WEF CoP) Practice for groups of practitioners from member institutions to meet and share experiences, seek solutions to challenges that they face in financing women-SMEs. Since launching in 2022, the WEF CoP has evolved into a powerful example of how to empower women entrepreneurs through financial awareness, tailored financial services and promoting financial inclusion for women-led SMEs.
The primary goal of WEF CoP is to translate shared experiences and insights into practical knowledge applicable to better serve women-owned and women-led SMEs (W-SMEs). As a member driven community, it draws on the collective knowledge and experience of industry leaders and practitioners across regions, together with experts from IFC. The platform has facilitated knowledge sharing and connections amongst over 500 industry practitioners, providing practical solutions that members implement in their operations.
The community fosters open discussions, sharing insights, and exchanging ideas on various practical topics relevant to women entrepreneurs, including product design and delivery, business development, risk management, alternative data utilization, legal and regulatory matters, and more. Additionally, it provides a space to discuss the unique challenges faced by women entrepreneurs, fostering the exploration of mitigation techniques and solutions. Through this dialogue, members collectively contribute their unique cross regional experiences and insights, enriching the knowledge pool that benefits both women-owned SMEs and financial service providers.
On International Women’s Day/ Month 2024 we are pleased to showcase the remarkable work and impact of our member community in their respective markets and regions. Fostering partnerships, technology, and innovations, members develop unique solutions and products towards sustainable financial services for W-SMEs. These unique stories reflect the tremendous collective impact of our community in providing financial services to W-SMEs, thereby, closing the gender finance gap and facilitating W-SMEs full contribution to the global economy.
Here are some of the captivating stories and innovative initiatives from our remarkable community:
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Small Business Silver Lining supports small business owners through its Silver Lining Action Plan (SLAP), a tech-enabled, data-driven program, which helps users set defined goals and plot an attainable route to them using behavioral psychology. Silver lining has worked with 14,000 small businesses in more than 76 countries, helping them to become more profitable and sustainable. Read more
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Overview of the European Investment Bank’s support for gender equality and women’s economic empowerment. It details the Bank’s activities in the sector and highlights key projects. The stories, videos and case studies, illustrate how the Bank’s financing and advice help countries, regions and cities. Read more
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Alraedah provides financial services to women-SMEs to achieve their business and personal financial goals, and thereby improve lives. In this video see how Alraedah supported the small dream of a W-SME into a leading confectionary business in Saudi Arabia. Watch the video
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Stanbic IBTC’s strong commitment to empowering women led to the creation of an innovative value proposition called Blue Blossom. This unique offering provides women in business comprehensive financial (bank and non-bank) and non-financial benefits, empowering women to take control of their finances, future and live a fulfilling lifestyle. It provides solutions aimed to foster the growth and success of women entrepreneurs.The GoBloom Community’s value proposition recognizes that today’s woman requires tailored non-financial solutions alongside comprehensive support to foster learning, connections, wellness, and personal development. Read more
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FMO - Dutch entrepreneurial development bank's innovative women and climate project empowers rural women entrepreneurs in India and promotes the use of clean energy products to drive change. Read more
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Access Bank Plc innovative 'W' initiative tailors products and services to meet the unique needs and requirements of women SMEs. In this video a client shares her experience, and the impact of the W-Power Loan on her business. Watch the video
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Funding Societies | Modalku Group offers innovative alternative financing services to women-SMEs. In this video, the founder of a fast growing cookie bakery in Malaysia attests to the benefits and flexibility of Funding Societies | Modalku Group's Digital Financial Services. Watch the video
Addressing Financial and Digital Literacy Challenges for Inclusive Finance: insights from Microfinance Institutions and FinTech Organisations.
This paper investigates strategies of European microfinance institutions (MFIs) and inclusive FinTech organisations to address financial and digital illiteracy among vulnerable customers. It reveals that both MFIs and FinTech organisations focus on personalised financial education, training and coaching but adopt distinct strategies in their approach.
The study highlights the crucial role of support teams in enhancing literacy and recommends a balance between digitalisation and human interaction, alongside advocating for governmental and EU educational initiatives.
This is the third paper resulting from a research project on “Strengthening Financial Inclusion through Digitalisation” (SFIDE), initiated by EIF’s Research & Market Analysis division. The project is funded by the EIB Institute under the EIB-University Sponsorship Programme (EIBURS). It aims to investigate the potential of technological and financial innovation to increase the efficiency of the inclusive finance sector, through the identification and promotion of best practices.
The EIF Working Papers are designed to make available to a wider readership selected topics and studies in relation to EIF´s business. The Working Papers are edited by the EIF and are typically authored or co-authored by EIF staff or are written in cooperation with EIF.
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This working paper was produced by The European Investment Fund, specialist provider of risk finance to benefit small and medium-sized enterprises (SME) across Europe.