MSME: The Growth Engine
The United Nations General Assembly in its 74th Plenary held on the 6th April 2017, declared 27th June as MSME Day. MSME abbreviates for Micro, Small, Medium-sized Enterprises. This day recognizes the importance of MSME in achieving sustainable development goals and in promoting innovation, creativity, and sustainable work for all.
The theme for International MSME day 2020: ‘COVID19: THE GREAT LOCKDOWN AND ITS IMPACT ON SMALL BUSINESSES’
This year marks the 4th International MSME Day. During the global pandemic, where the economy is hit badly across the world and numerous people have lost their jobs, the MSMEs are proving many opportunities of income generation to the young blood and the women of the nation. Major take over the employment in the rural and backward area is governed by the MSMEs. 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.MSMEs are an important part of larger national and global value chains and their health has a bearing on supply chains overall and indeed the ability to supply numerous goods and services. MSME is most seriously affected by social distancing measures and transport restrictions on a global scale. https://www.youtube.com/watch?v=XSsSY_L83iw
Intending to overcome these challenges, the International Trade Center, the United Nations’ entity, works in the internationalization of micro and SMEs. The center has launched its flagship report: "The SME Competitiveness Outlook 2020: COVID-19: the Great Lockdown and its Effects of Small Business Big money for small businesses. To access: https://www.youtube.com/watch?v=SGQeP9pTgpY, https://www.youtube.com/watch?v=ZmcRQWgyZDs
Growth in India:
In India, 6.3 crore MSMEs provide over 12 crores of jobs; contribute to 45% of exports, and over 30% of manufacturing value-added. MSMEs are an important part of larger national and global value chains and their health has a bearing on supply chains overall and indeed the ability to supply numerous goods and services.
Minister of Information and Broadcasting, Prakash Javadekar tweeted “Today MSME Day can be celebrated for the historic package announced by Narender Modi government consisting of Rs.3 lakh 70 thousand crores. MSME is the backbone of the Indian economy.” https://www.youtube.com/watch?v=LPqb1Fjj45Y
The Ministry of Micro Small and Medium Enterprises has taken several measures to support and bring relief to MSMEs in India. Read more: https://msme.gov.in/sites/default/files/ActiononCOVID-19ReliefforMSMESector.pdf
The uprooting exists:
DialMeNow is Rajasthan’s number one search destination. The service bridges the gap between buyers and sellers by helping buyers find the right providers of products and services while helping sellers to enhance their sales and improve the efficiency of marketing channels. https://www.dialmenow.in/
Most MSMEs need cash resources to replenish working capital to restart the business. Any cash injection though will be short-lived, and indeed markets and consumer demand need to be rebuilt urgently to restart the economic engine.