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International MSMEs Day: History, Significance, All you Need to Know

MSMEs, which typically employ less than 250 people, are regarded as the backbone of most economies

MSMEs, which typically employ less than 250 people, are regarded as the backbone of most economies

According to data from the International Council for Small Business (ICSB), formal and informal MSMEs account for 70% of total employment and 50% of GDP in most middle-income countries

Since 2017, June 27 has been observed as Micro, Small, and Medium-sized Enterprises (MSME) Day. It is to recognise the importance of these enterprises in achieving improvement goals, promoting innovation and creativity, and creating employment internationally. The MSME Day 2021 is being observed in the midst of the coronavirus (COVID-19) epidemic and consequent lockdown in a number of countries, both of which have a significant impact on small business. Indian banks in 2020, sanctioned over Rs 75,000 crore loans to MSMEs under the Credit Score Assure Scheme to help them out of the corona-crisis.

History

According to data from the International Council for Small Business (ICSB), formal and informal MSMEs account for 70% of total employment and 50% of GDP in most middle-income countries. The United Nations General Assembly, in its 74th Plenary on April 6, 2017, designated June 27th as Micro, Small, and Medium-sized Enterprises Day, recognizing the significance of MSMEs in attaining sustainable development objectives and encouraging innovation, creativity, and sustainability of work for all.

Significance

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MSMEs, which typically employ less than 250 people, are regarded as the backbone of most economies globally and play an important role in developing countries. Moreover, MSMEs are responsible for critical job and revenue generation opportunities all over the globe and have been identified as a key engine of poverty reduction and progress.

A virtual event titled ‘Key to an Inclusive and Sustainable Recovery’, organised by the UN Department of Economic and Social Affairs with other departments, is scheduled for this year. The theme is ‘Achieving the Sustainable Development Goals (SDGs), and an economy that is greener and fairer, requires resilient and flourishing MSMEs everywhere’.

MSMEs are critical to meeting the Sustainable Development Goals. Efforts to improve access to credit for SMEs in key areas of national economies are a critical component of achieving the SDGs. As MSMEs start to arise stronger from the aftereffects of Covid-19, MSME Day recognises the critical role that these adaptable entrepreneurs play in reinforcing the local and global economies. MSMEs play a critical role in promoting economic growth and generating jobs for vulnerable populations in all social groups.

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first published:June 27, 2021, 07:00 IST