June 27 — Micro-, Small and Medium-sized Enterprises Day

June 27 — Micro-, Small and Medium-sized Enterprises Day

2018-06-27

News  Department

An Excellent Source of Employment

　　On June 27, 2017, the world celebrated the first Micro-, Small and Medium-sized Enterprises Day. Micro-, small and medium-sized enterprises (MSMEs) usually employ fewer than 250 people; they are the backbone of most economies around the world and play a key role in developing countries.

　　Data from the International Council for Small Business show that formal and informal MSMEs account for 90% of the total number of enterprises, provide 60-70% of all jobs, and create 50% of gross domestic product.

　　Recognizing the importance of MSMEs, the United Nations General Assembly decided to designate June 27 each year as Micro-, Small and Medium-sized Enterprises Day, in order to deepen people's awareness of the contribution of MSMEs to promoting sustainable development.

MSMEs: The First Responders to Social Needs

　　Around the world, MSMEs create a large number of employment opportunities and provide people with sources of income, playing the role of important drivers of poverty reduction and development.

　　MSMEs tend to employ the most vulnerable groups, such as women, youth and people from poor populations, as their employees. In rural areas, MSMEs are even the only source of jobs. Therefore, MSMEs greatly help achieve income growth and income redistribution for the people at the "bottom of the pyramid." MSMEs are the first responders to social needs and have promoted social security and inclusion.

Access to Financing

　　Although MSMEs provide most of the new jobs, they also face many challenges in their daily operations and in their pursuit of development. Financing is one of the main obstacles faced by MSMEs, and every enterprise faces, to a greater or lesser extent, some financing problems. According to World Bank statistics, a total of 200-245 million enterprises worldwide have unmet loan needs, or already have loans but still face financing difficulties. More than 90% of these enterprises are MSMEs.

　　Financing constraints have an even greater impact on informal enterprises, because informal enterprises tend to be smaller in scale and weaker in productivity. Even so, the contribution of informal enterprises to economic development and job creation is very significant. It is estimated that informal enterprises account for about 74% of MSMEs worldwide, and about 77% of all MSMEs in developing countries. Unregistered informal companies rely heavily on informal financing channels. Although informal financing can help enterprises ease financing pressure, it may hinder enterprise growth and increase the risk of enterprises operating illegally.

　　A developed financial sector helps mobilize the allocation of resources, control and manage risks, and promote the development of private enterprises. Financing contributes to economic growth, which in turn helps create employment opportunities.

　　Faced with the challenges posed by financing problems, policymakers and the private sector should seize the opportunity to intervene at all levels and encourage the formation, participation and development of small and medium-sized enterprises in international, national and regional markets. Measures that can be taken include helping enterprises with capacity building and gaining access to financial services such as microcredit and credit.

How MSMEs Promote the Achievement of the Sustainable Development Goals

　　MSMEs are crucial to achieving the Sustainable Development Goals, especially in promoting innovation, creativity and decent work for all.

　　Helping small and medium-sized enterprises in key industries of the national economy gain access to financing is an important factor in implementing the Sustainable Development Goals. Sustainable Development Goals 8.3 and 9.3 call for helping small and medium-sized enterprises gain access to financial services. In addition, small and medium-sized enterprises are an important component of implementing Sustainable Development Goal 8 (decent work and economic growth) and Sustainable Development Goal 9 (industry, innovation and infrastructure).

Commemorating Micro-, Small and Medium-sized Enterprises Day

　　The United Nations General Assembly invites stakeholders such as Member States, agencies of the United Nations system, international and regional organizations, and civil society (including social organizations, academia and individuals) to commemorate Micro-, Small and Medium-sized Enterprises Day together, in reasonable forms and in accordance with their respective national circumstances, in order to deepen people's understanding of the contribution of MSMEs to promoting sustainable development.

　　Micro-, Small and Medium-sized Enterprises Day also invites countries to commemorate the day through forms such as organizing research presentations, policy discussions, and seminars for MSME practitioners and business owners.