Published on: 2026-09-08
Source: United Nations – United Nations –
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September 8, 2026 Economic Development
Disruptions in the Strait of Hormuz may lead to the displacement of small and medium-sized enterprises from supply chains and international trade. This warning comes from the authors of a new report by the United Nations Conference on Trade and Development (UNCTAD).
Disruptions in global trade affect all companies, but rarely to the same extent, the report states. The current situation in the Strait of Hormuz is no exception.
Large companies can distribute risks among different suppliers, markets, and sources of financing. Small and medium-sized enterprises usually do not have such an opportunity. At the same time, they make up about 90 percent of all companies in the world, provide approximately 70 percent of jobs, and generate about half of the world’s GDP.
Risk of displacement from the market
As the costs of energy, transportation, and financing rise, profitability decreases and supply chains are disrupted. This may force companies to reduce production, postpone investments, or even exit the market entirely. The risk of displacement becomes a constant threat, warn the authors of the report.
Small and medium-sized enterprises risk being excluded from value chains even if global trade volumes recover after disruptions: their resilience may be undermined by long-term increases in energy costs, higher freight tariffs, rising insurance premiums, and limited access to financing.
UNCTAD economists’ recommendations
The report’s authors recommend that governments strengthen monitoring of small and medium-sized enterprises’ participation in international trade during crises.
According to economists’ estimates, it is necessary to expand access for small and medium-sized businesses to financing, liquidity, and working capital, strengthen government support for trade and logistics services, as well as increase the resilience of enterprises to crises and promote their participation in markets.
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