Small Firms, Big Impact: Digitization, Financial Services, and Climate Resilience in Five Emerging Markets

Micro and small enterprises (MSEs) are a critical engine of economic activity in emerging markets, yet their ability to thrive is shaped by an evolving mix of technological, financial, and environmental challenges. This report presents findings from a representative survey of over 4,000 MSEs across Addis Ababa, Jakarta, Lagos, Delhi, and São Paulo, offering a new perspective on the interplay between digital adoption, financial services, and business resilience. Using Adaptive Cluster Sampling (ACS) — a research methodology designed to capture geographically dispersed businesses — this study provides one of the most comprehensive assessments of MSE financial health to date. It examines the overall health of MSEs through the lens of key enablers like digitization and finance, while also exploring the risks they face — from consumer protection issues and fraud to the growing impact of climate-related shocks.