The United Nations (UN) World Micro-, Small, and Medium-sized Enterprises (MSME) Day is annually observed across the globe on 27 June to raise awareness about MSMEs’ contributions to achieving the UN Sustainable Development Goals (SDGs).
- Theme of MSME Day 2024 is “Leveraging Power and Resilience of Micro-, Small and Medium-sized Enterprises (MSMEs) to Accelerate Sustainable Development and Eradicate Poverty in Times of Multiple Crises.”
Note: MSMEs account for 90% of businesses, over 70% of employment, and 50% of Gross Domestic Product (GDP) worldwide.
Significance:
i.This Day also recognises the role of MSMEs in transforming economies, fostering job creation, and promoting equitable economic growth with adequate support.
ii.MSME Day 2024 invites key stakeholders to exchange ideas on supporting MSMEs and the focus areas include advancing the 2030 Agenda, poverty eradication, and ensuring decent work for all.
Background:
i.On 6 April 2017, the UN General Assembly (UNGA) adopted the resolution A/RES/71/279, proclaiming 27 June of every year as Micro-, Small and Medium-sized Enterprises (MSMEs) Day.
ii.The 1st ever World MSMEs Day was observed on 27 June 2017.
2024 Events:
i.On 27 June 2024, an event was organised in New York, United States of America (USA) to mark World MSME Day 2024.
- The event was co-organized by the Permanent Missions of Argentina and Indonesia, the Department of Economic and Social Affairs (DESA), the UN Global Compact, the UN Industrial Development Organization (UNIDO), the International Trade Centre (ITC) and UN Trade and Development (UNCTAD).
ii.Another event focusing on “Human-Centered Impact: Advancing the UN SDGs through MSMEs” was organised in Palais des Nations, Geneva, Switzerland. A workshop was also organized by the UNCTAD,the International Council for Small Business(ICSB), and other partners, to mark the International Day of MSMEs 2024.
- The co-organisers of the events: ICSB, the Permanent Mission of Argentina to the UN Office in Geneva, and the Permanent Mission of the Republic of Korea to the UN Office in Geneva.
Note: The MSME conference is organised by Associated Chambers of Commerce and Industry of India(ASSOCHAM) in Lucknow Uttar Pradesh on 26th and 27th June.
Key Facts:
According to the World Bank’s estimation:
i.SMEs are essential for job creation, generating 7 out of 10 formal jobs in emerging markets.
ii.By 2030, 600 million jobs will be needed to absorb the growing global workforce.
iii.Formal SMEs contribute up to 40% of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included.
iv.41% of SMEs in the Least Developed Countries (LDCs) report access to finance as a significant barrier to growth and development.
- 30% of SMEs in Middle-Income Countries (MICs) face similar financial constraints.
- In the High-Income Countries (HICs), only 15% of SMEs experience major issues with accessing finance.
v.The International Finance Corporation (IFC) estimates an unmet financing need of USD 5.2 trillion annually for 65 million SMEs in developing countries.
- It is equivalent to 1.4 times the current level of global MSME lending.
vi.East Asia and the Pacific account for the largest share (46%) of the total global finance gap, followed by Latin America and the Caribbean (23%), and Europe and Central Asia (15%).
MSME Sector in India:
i.The MSME sector is crucial to India’s economy, contributing almost 30% of the country’s GDP, around 45% of manufacturing production, and is the 2nd largest employer after agriculture.
ii.As of 26 June 2024, there are 4.62 Crore registered enterprises in the Ministry of MSMEs’ Udyam Registration Portal, including Informal Micro Enterprises, employing over 20 crore people.
iii.India’s 64 million estimated MSMEs employ nearly 23% of the workforce. Registered MSMEs reported nearly 190 million jobs, up from 90 million in 2022.
iv.Women-led MSMEs significantly contribute to employment and investment. From 2021-22 to 2023-24, women’s participation in MSMEs increased by 66%.
