June 27 is designated by the United Nations General Assembly as World MSME Day to acknowledge the contributors of Micro, Small and Medium Enterprises (MSMEs)

June 27 is designated by the United Nations General Assembly as World MSME Day to acknowledge the contributors of Micro, Small and Medium Enterprises (MSMEs)

Jun 27, 2024

Mohammed Ramees

MSMEs are essential to many economies, especially in developing countries, by generating employment, reducing poverty, and driving growth across various sectors

World MSME Day highlights MSME contribution to the global economy and raises awareness about the challenges viz., finance, tech, skills, and market opportunities

According to the UNCTAD, formal and informal MSMEs account for over 90% of all companies worldwide, provide around 70% of employment, and 50% of global GDP

The IFC reports that around 65 million firms, or 40 percent of formal MSMEs in developing countries, have an unmet financing need of $5.2 trillion annually. This is equivalent to 1.4 times the current level of global MSME lending

Regional disparities in access to finance exist, with East Asia and the Pacific holding 46% of the global finance gap, followed by Latin America and the Caribbean at 23%, and Europe and Central Asia at 15%

India has around 63 million MSMEs, second only to China's 140 million. These MSMEs contribute 30% to GDP, over 40% to exports, and have created 110 million jobs

As per details available on the government Udyam registration portal, 46 million MSMEs were registered with the MSME Ministry, reporting 200 million jobs

India also observes National Small Industry Day annually on August 30 to celebrate the contribution of small-scale industries to the country's growth

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