International MSME day is observed on 27th June by United Nations

It is to recognize the importance of MSMEs in achieving sustainable development goals

• The United Nations and the countries across the globe observed International MSME day on 27th
  June – 2020
• Objective of the day is to recognize the importance of MSMEs in achieving sustainable
  development goals and in promoting innovation, creativity and sustainable work for all
• MSMEs are creating the most significant employment and income generation
  opportunities during the COVID 19 crisis

Significance of International MSME day

•  The United Nations on 6th April 2017 has adopted a resolution as per which 27th June to be
  observed every year as the day of Micro, Small and Medium Enterprises (MSME)
• For achieving the Sustainable Development Goals, Governments across the globe are required to
  create an environment for promoting innovation and creativity
  For this, the importance of Micro, Small, and Medium-sized Enterprises needs to be recognized
• This will further help in encouraging the formalization and growth of the MSME sector across
  the domestic and international markets
• Globally, the MSME sector is the largest employment provider and also the backbone of major
  economies
• As per the International Council for Small Business data, MSMEs on average contribute 50
  percent in the GDP and generate 70 percent employment in an economy
• Most of the employment generated by MSMEs is for the vulnerable sectors of our society

Highlights of International MSME Day – 2020

• At the time of a global pandemic when millions across the world have lost their jobs
• MSMEs are creating the most significant employment and income generation opportunities,
  especially in rural areas
• But as countries across the globe have been imposing nationwide or partial lockdown the
  business of the MSMEs have also affected significantly
• Their primary obstacle has been lack of access to financial support
• This year’s MSME day is to raise awareness and remind the governments of the important role
  that MSMEs have played in their economy over the decades
• Reviving the MSME sector through financial support can revive the overall economy of a country
• These types of enterprises are responsible for significant employment and income generation
  opportunities across the world and have been identified as a major driver of poverty alleviation and
  development
• The MSMEs as a group are the main income provider for income distribution at the “base of the
  pyramid”

What is MSMEs and its importance?

• The criteria for defining the size of a business differ from country to country
• As a reference, the European Commission’s definition of micro – small and medium-sized
  enterprises is established according to the number of employees and the annual turnover or
  balance sheet
• Micro-enterprise: fewer than 10 employees and an annual turnover (the amount of money
  taken in a particular period) or balance sheet (a statement of a company’s assets and liabilities)
  below €2 million
• Small enterprise: fewer than 50 employees and an annual turnover or balance sheet below €10
  million
• Medium-sized enterprise: fewer than 250 employees and annual turnover below €50 million or
  balance sheet below €43 million
• The choice of MSME definition could depend on many factors, such as business culture, the size
  of the country’s population, industry and the level of international economic integration
• According to the data provided by the International Council for Small Business (ICSB), formal
  and informal Micro – Small and Medium-sized Enterprises (MSMEs) make up over 90% of all firmsand account on average for 70% of total employment and 50% of GDP

Pic courtesy : currenthunt.com