UNCTAD Warns Strait of Hormuz Disruptions Threaten to Push SMEs Out of Global Value Chains
UNCTAD warned that continued Strait of Hormuz disruptions strain global trade, lift energy, transport and financing costs, and heavily burden small and medium-sized enterprises.
UNITED NATIONS,ECONOMY
Global N Press
9/8/20261 min read
On September 8, 2026, UNCTAD released a report warning that continued disruptions in the Strait of Hormuz are straining global trade, raising energy, transport and financing costs, and putting severe pressure on small and medium-sized enterprises. The report said micro, small and medium-sized enterprises account for about 90 percent of all firms, provide roughly 70 percent of employment and contribute 50 percent of global GDP, yet are less able to withstand shocks because they lack diversified suppliers and financing channels.
Based on an analysis of more than 20,000 manufacturing firms in 114 developing and 43 developed economies, UNCTAD found that small firms in developing economies face annual electricity costs equal to 4.2 percent of sales, higher than medium and large firms. Import compliance costs for small firms in developing economies were 19.4 percent of product value, compared with about 8 percent for all firm sizes in developed economies. UNCTAD warned that if pressure persists, many SMEs may cut production, postpone investment or be pushed out of global value chains, concentrating trade among larger firms and reducing economic inclusivity and resilience.
