MSMEs and Start-up Participation in Global Value Chains

Abstract

Micro, Small and Medium Enterprises (MSMEs) and start-ups play a significant role in economic growth, employment generation, innovation, and industrial development. In the era of globalization, participation in Global Value Chains (GVCs) has become an important pathway for these enterprises to access international markets, technology, finance, and knowledge networks. This research paper examines the role of MSMEs and start-ups in GVCs, the opportunities and challenges associated with their participation, and policy measures required for enhancing their global integration. The study highlights that digital transformation, innovation, and supportive government policies are essential for improving competitiveness. However, limited access to finance, technological gaps, poor infrastructure, and regulatory barriers continue to restrict effective participation. The paper concludes that strengthening institutional support, promoting digital capabilities, and improving global market access can significantly enhance the contribution of MSMEs and start-ups in global trade and sustainable economic development.