Micro, Small and Medium Enterprises (MSME) form the backbone of many global economies, including India. Recognizing their significance, the United Nations (UN) established International MSME Day, observed annually on 27th June. This day is dedicated to highlighting the vital role of MSMEs in economic growth and sustainable development.
The Origin of MSME Day
International MSME Day was instituted by a resolution passed in the UN General Assembly in April 2017. The following month, a program titled ‘Enhancing National Capacities for Unleashing Full Potentials of MSMEs in Achieving the Sustainable Development Goals (SDGs) in Developing Countries’ was launched. It was funded by the 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Fund.
The 2022 Theme: Resilience and Rebuilding
The theme for International MSME Day 2022 is ‘Resilience and Rebuilding: MSMEs for Sustainable Development.’ It emphasizes the socio-economic development role played by Micro-Small and Medium-Sized Enterprises.
Objectives of MSME Day
The primary goal of World MSME Day 2022 is to underline the potential of these enterprises and their crucial role in bolstering economies worldwide. In addition, it aims to raise public awareness about MSME’s contributions to global economic growth and sustainable development.
Significance of MSMEs
Both formal and informal MSMEs make up a significant part of global employment and Gross Domestic Product (GDP). They constitute approximately 70% of total employment, contribute to 50% of the GDP, and comprise 90% of all firms. However, many MSMEs still face challenges ranging from poor working conditions and low productivity to bureaucratic hurdles.
About MSMEs
MSMEs are organizations that typically employ less than 250 people but are responsible for creating over two-thirds of all jobs globally. In India, they contribute about 30% of the country’s GDP and 48% of overall exports. Notably, MSMEs also play a crucial role in rural India, generating employment for approximately 110 million people.
Efforts to Promote MSMEs
Numerous initiatives and schemes have been introduced to support MSMEs. These include the Micro Small and Medium Enterprises Development (MSMED) Act, the Prime Minister’s Employment Generation Programme (PMEGP), the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), and others. Furthermore, various portals such as the CHAMPIONS portal and the MSME SAMBANDH have also been established to assist MSMEs.
Role of MSMEs in Indian Economy
MSMEs are considered growth accelerators of the Indian economy. They play a significant role in the country’s export sector and are integral to the supply chain. In addition, they contribute immensely to employment generation across the country and have a substantial presence in rural India.
The importance of MSMEs in economic development and job creation globally cannot be overstated. International MSME Day offers an opportunity to highlight their contributions and potential, promoting greater support and recognition from governments, policy-makers, and the public. With the right support, these small and medium-sized enterprises can continue to drive global economic growth and sustainable development.
