Micro-Small and Medium Enterprise Day 2020 - Swikriti's Blog

Micro-Small and Medium Enterprise Day 2020

Micro-Small and Medium Enterprise Day is a United Nations Observance day celebrated to recognize the work of enterprise in the local and global economies. This day also acknowledge that these types of enterprises are responsible for substantial opportunities for jobs and income generation worldwide and have been described as a major driver of poverty alleviation and growth.

According to data presented by the International Council for Small Business (ICSB), formal and informal MSMEs make up more than 90% of all businesses and account for 60 – 70 % of total jobs and 50% of GDP on average “(UN, 2019).

On 6 April 2017, the General Assembly of the United Nations adopted a resolution recognizing the critical role played by Micro, Small and Medium Enterprises (MSMEs) to achieve the Sustainable Development Agenda 2030. June 27 was designated as Micro, Medium and Small Enterprise Day under the resolution (A/71/279) With ICSB ‘s support, a resolution was prepared and negotiated with all UN member states by the permanent mission of Argentina to the United Nations.

 Small Business during COVID-19

The economic crisis of the pandemic is affecting small businesses, particularly those owned by young women and entrepreneurs. In most sectors, unprecedented lockdown measures have resulted in supply chain disturbances and a massive decline in demand. Let us not forget that these businesses, that they employ less than 250 people in general and are the backbone of most economies in the world and play a key role in development countries.

Small businesses are more than ever relying on a sustainable business environment, including support for access to capital, knowledge, and markets, to continue to play their key role in creating decent jobs and improved livelihoods.

Theme of Micro- Small and Medium Enterprise Day 2020

This year the MSME Day 2020 will focus on COVID-19: The Great Lockdown and its impact on Small Business

These types of small enterprises are responsible for substantial opportunities for employment and income generation worldwide and it also has been highlighted as a main driver of development and empowerment.

MSMEs tend to employ more vulnerable segments of the workforce-communities with high vulnerabilities in COVID-19 days, including women, young people, and people from poor families. Sometimes micro-sized enterprises can be the only source of rural employment. As such, the key income provider for income distribution at the “pyramid base” is MSMEs as a community.

By 2030, around 600 million jobs will be required to absorb the world’s workforce for making SME development a significant goal for many governments worldwide. The most formal jobs in emerging markets are generated by small and medium-sized enterprises that produce seven out of ten jobs.

MSME’s 2020 UN events

The reaction to a changing environment, smaller organizations should be agile. During the pandemic, we saw several examples, but their size makes them vulnerable. Financing access is a big obstacle. It is more difficult for small companies to recognize foreign market prospects and manage trade-related processes than for their larger counterparts.

The United Nations will be hosting three special events to find inspiration in these difficult times

  • 24 June 14:00-15:30 CET

The International Trade Center invites you to join a special WebTV programme on 24 June.

  • 25 June 09:00 EDT-15:00 CET

“First Responders to Societal Needs”, which is organized by the Permanent Mission of Argentina, DESA, and UNCTAD, and it will give a chance to meet the real MSMEs.

  • 25 June 12:00pm – 14:00pm EAT

MSMEs could play an integral role in the economic and social recovery in Africa following the COVID-19 period. This meeting brings potential entrepreneurs and business people together to discuss ways to create a stronger and healthier future for everyone with MSMEs in the front line.

Swikriti Dandotia

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