Current Affairs Micro, Small and Medium – Sized Enterprises Day 2020 – June 27

Micro, Small and Medium – Sized Enterprises Day 2020 – June 27

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The UN General Assembly declared the 27 June the Micro-, Small and Medium-sized Enterprises Day, recognizing the importance of these enterprises and their contribution to sustainable development.
Objective of the day is to recognize the importance of MSMEs in achieving sustainable development goals and in promoting innovation, creativity and sustainable work for all.
MSMEs are creating the most significant employment and income generation opportunities during the COVID 19 crisis.

Significance of MSME Day-

The United Nations on 6th April 2017 has adopted a resolution as per which 27th June to be observed every year as the day of Micro, Small and Medium Enterprises (MSME).
For achieving the Sustainable Development Goals, Governments across the globe are required to create an environment for promoting innovation and creativity.
For this, the importance of Micro, Small, and Medium-sized Enterprises needs to be recognized.
This will further help in encouraging the formalization and growth of the MSME sector across the domestic and international markets.
Globally, the MSME sector is the largest employment provider and also the backbone of major economies.
As per the International Council for Small Business data, MSMEs on average contribute 50 percent in the GDP and generate 70 percent employment in an economy.
Most of the employment generated by MSMEs is for the vulnerable sectors of our society.

Highlights of International MSME Day 2020-

At the time of a global pandemic when millions across the world have lost their jobs.
MSMEs are creating the most significant employment and income generation opportunities, especially in rural areas.
But as countries across the globe have been imposing nationwide or partial lockdown the business of the MSMEs have also affected significantly.
Their primary obstacle has been lack of access to financial support.
This year’s MSME day is to raise awareness and remind the governments of the important role that MSMEs have played in their economy over the decades.
These types of enterprises are responsible for significant employment and income generation opportunities across the world and have been identified as a major driver of poverty alleviation and development.
According to the data provided by the International Council for Small Business (ICSB), formal and informal Micro – Small and Medium-sized Enterprises (MSMEs) make up over 90% of all firms and account on average for 70% of total employment and 50% of GDP.