A new report reveals that small firms in developing nations are adapting to climate change more than previously thought.

Using World Bank Enterprise Survey data, the study uncovers a widespread yet underreported trend of adaptation among micro, small, and medium enterprises. Finance emerges as a critical barrier, highlighting the need for tailored support mechanisms.

The findings suggest that while many smaller businesses are taking steps to cope with climate impacts, they often lack the resources needed to fully implement effective strategies.

Without adequate financial backing, these firms face long-term vulnerabilities that could undermine their resilience and sustainability.

What is the long-term climate outlook for this region?

The report introduces an MSME Adaptation Finance Typology to guide policymakers in addressing funding gaps. This tool can help ensure smaller firms receive the support they need to weather future climate challenges.

The typology offers a roadmap for enhancing resilience among small businesses.