FP Trending‘s came up with all you need to know about the day that marks the recognition of small businesses of the international MSMEs day 2021.

Small and medium enterprises (SMEs), including tiny and micro firms, have always been critical to economic growth in all countries, the world over.
These enterprises play a crucial role in employment creation and product innovation. It is, therefore, necessary to devise a coordinated plan to mitigate the impact of the pandemic on SMEs. Restoring confidence in economic growth in a safe, sustainable and inclusive way has never been more critical in the MENA region.

Micro, small and medium enterprises (MSMEs) have not always benefited in the MENA region from any help and faced a significant challenge in promoting more vital financial inclusion for SMEs. According to the World Bank, as a percentage of total financing demand by region, the MENA has the largest global finance gap for SMEs, estimated at 84 per cent.

International MSMEs Day 2021: All you need to know about day that marks recognition of small businesses

June 25, 2021

The UN resolution passed in April 2017 stressed the importance of encouraging formalisation of MSME segment that accounts for over 90% of all firms globally, around 70% of total employment.

Representational image. Credit: CNBC-TV18

Micro, Small and Medium-sized Enterprises (MSMEs) Day is celebrated every year on 27 June. The day is marked to recognise the contribution of these industries in the implementation of the Sustainable Development Goals (SDGs).

As many as 90 percent of businesses are generated from MSMEs. As per a blog on the United Nations  (UN) website, these businesses provide 60 to 70 percent of employment.

The contribution of MSME to GDP worldwide is 50 percent.

Micro, Small and Medium-sized Enterprises Day history:

The UN designated 27 June as Micro, Small and Medium-sized Enterprises Day through a resolution passed in the UN General Assembly in April 2017.

A month later in May 2017, a program titled ‘Enhancing National Capacities for Unleashing Full Potentials of MSMEs in Achieving the SDGs in Developing Countries’ was launched. It has been funded by the 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Fund.

Micro, Small and Medium-sized Enterprises Day significance:

By observing the MSMEs Day, the UN wants countries to recognise sustainable development goals and create awareness about them. Member states organise presentations, workshops, discussions with business owners, and other events to celebrate this day.

Micro, Small and Medium-sized Enterprises Day theme:

A virtual event titled Key to an inclusive and sustainable recovery, co-organised by the UN Department of Economic and Social Affairs with other departments, is scheduled for this year. The theme is ‘Achieving the SDGs, and an economy that is greener and fairer, requires resilient and flourishing MSMEs everywhere’.

With this theme, the UNDESA will be discussing actions that can be taken to ensure a quick COVID-19 recovery for the MSMEs while also keeping sustainable development goals in mind. It will also discuss ways to enhance creativity and innovation while providing decent work for all.