MSME Day

Leveraging Power and Resilience
of Micro-, Small and Medium-sized Enterprises
to Accelerate Sustainable Development
and Eradicate Poverty in Times of Multiple Crises

Businesses focus on growth and expansion. Some companies become so huge that there will be a disconnect with the local communities regarding providing employment and bringing equity. This is where small and medium-sized enterprises come to the fore. The day is about them. Yes, it is MSMEs Day. The UN designated 27 June as “Micro-, Small, and Medium-sized Enterprises Day”. It focuses on raising awareness of their contributions towards realising the UN’s SDGs. They account for 90% of companies, 60-70% of employment, and 50% of GDP worldwide. In India, as of March 2024, the number of MSMEs registered on the Udyam portal has crossed four crores. Each MSME is unique, so tailor the strategies to the specific context and goals. Governments need to complement MSMEs by developing proactive policies that support them. They bring distributed development and ensure that smaller communities are not left behind. 

Human-Centered Impact: Advancing the UN SDGs through MSMEs

Businesses focus on growth and expansion. Concerted efforts result in the companies growing, going beyond national boundaries, and becoming multi-national. Some companies become so huge that there will be a disconnect with the local communities regarding providing employment and bringing equity. The world needs successful MNCs. They change the way the world functions and people live. It also leads to migration and people moving to countries that provide employment and attractive perks. However, there is a need to reflect on regional and local aspirations. This is where small and medium-sized enterprises come to the fore. The day is about them, and it is MSMEs Day.

In June 2016, The International Council for Small Business urged the UN to dedicate a day of observation for SMEs. The UN  designated 27 June as “Micro-, Small, and Medium-sized Enterprises Day”. It focuses on raising awareness of their contributions towards realising the UN’s SDGs. MSMEs contribute to the growth of national economies, particularly the local economies and sustain livelihoods. A human-centred approach to individuals and communities is essential in driving sustainable transformation.  

World Bank and the UN describe the businesses and enterprises that employ 250 persons or fewer as MSMEs. They account for 90% of companies, 60-70% of employment, and 50% of GDP worldwide. Data suggests that they create seven out of ten jobs. In most OECD countries, SMEs contribute more than 50% of GDP, though it is less than 30% in lower-middle-income countries. 

In India, as of March 2024, the number of MSMEs registered on the Udyam portal has crossed four crores. 20% of the workforce in MSMEs are women, and 20% of women own MSMEs. As a part of legal reforms in the Act, the Ministry aim to align the MSMED Act with the transformative changes that occurred in the economic and technological landscape.   

The Power of Small: Unlocking the Potential of MSMEs

MSMEs are engines of development and do more than create employment. They also contribute to growth and social development. They support locals and are informal enterprises providing livelihoods for 60% of the world’s workers.

Each MSME is unique, so tailor the strategies to their specific context and goals. Some of them include embracing technology aiding in digital transformation, collaborating with fintech companies, exploring alternative financing options, investing in employee training, and upskilling  Another important aspect is to foster a culture of innovation and to collaborate with research institutions, universities, and industry peers. The way forward is to understand customer needs and provide excellent customer service to build loyalty. Governments need to complement MSMEs by developing proactive policies that support them. They bring distributed development and ensure that smaller communities are not left behind. 

Toons: Reema     
Logs: M Sai Baba
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