It’s been said that small businesses form the backbone of the global economy. They provide more than 70 percent of jobs worldwide and contribute to more than 50 percent of developing countries’ GDPs, according to the International Labour Organization (ILO), a UN agency that brings together governments, employers, and workers to set labor standards and develop policies to promote social justice.
But as COVID-19 continues to remind us, small businesses are also more vulnerable to crises and unexpected shocks. That’s especially true for those in developing countries. Recognizing this challenge, McKinsey has supported the ILO in creating a comprehensive framework of initiatives that can help small firms in developing countries navigate crises and build resilience.
The framework offers guidance on a number of challenges that small businesses may face, including liquidity bolstering mechanisms, ways to preserve employment and support an organization’s day-to-day operations, and more. “Financial support measures are not always available to governments of developing countries,” says Tarek Rida, a McKinsey partner based in Dubai. “But they are also…
