MSME Day 2024: Know date, history, significance, theme and more

The United Nations declared June 27 as the MSME Day to raise awareness of the significant contribution of MSME in the growth of developing nations

The world celebrates MSME Day every year on June 27. The United Nations declared this day as the day of Micro-Small and Medium-sized Enterprises (MSMEs) to enhance the contribution of small and medium-sized businesses across the world. According to the UN, MSMEs contribute to 90 per cent of businesses including 70 per cent of employment, and 50 per cent of the GDP across the world.

MSMEs have been playing the role of the backbone of many nations, especially developing countries, contributing significantly to employment generation, poverty reduction, and economic growth. These small-scale industries operate in multiple sectors, including manufacturing, services, agriculture and trade that drive innovation, entrepreneurship and local development. 

 

The United Nations believes that a human-centred approach is critical for the evolving 'circular economy' emphasising the importance of individuals and communities driving sustainable transformation. 

"Considering people's well-being and prioritising inclusive participation ensures that new systems align and contextualise local culture and personal/institutional needs," the UN added.

MSME Day 2024: History

The UN stats reveal that MSMEs play a significant role in the growth of an economy. It connects budding entrepreneurs on a local and national level and offers opportunities to people like youth, working class, women and others to generate income. 

These small and medium businesses can create an abundance of job opportunities, bringing economic stability and eventually transforming economies. Hence, the UN took this opportunity to inspire and promote MEMEs across the world. 

MSME Day 2024: Significance

This day holds special significance for not just businesses but people across the world as it strengthens the economies, generates employment and helps eradicate poverty. It allows MSMEs to share their ideas and communicate, grow their prospects and create economic stability.  

Despite MSME's significance, it faces multiple challenges and the most basic is access to finance. According to International Finance Corporation (IFC) reports around 65 million firms comprising 40 per cent of formal MSMEs in the developing nation are still in financial need of $5.2 trillion annually. It is equivalent to 1.4 times the current level of global MSME lending.

What is the theme for MSME Day 2024?

This year, the theme for MSME Day 2024 is “Leveraging Power and Resilience of Micro-, Small and Medium-sized Enterprises (MSMEs) to Accelerate Sustainable Development and Eradicate Poverty in Times of Multiple Crises.”

MSMEs in India

According to the annual report of the MSME Ministry's FY 23, there are more than 63 million MSMEs in India, a number which places the nation only behind China which has 140 million micro and small enterprises. These MSMEs contribute 30 per cent of India's GDP and 40 per cent to exports and have created over 110 million jobs across the country. 

As per details available to the government Udyam registration portal, over 46 million MSMEs were registered with the MSME Ministry and over 200 million jobs.

Along with MSME Day 2024, India also observes National Small Industry Day every year on August 30 to celebrate the contribution of the small-scale industry to the growth of the country. 

An extensive policy package was also launched by the government of India on August 30 200 and since then this day has been observed as National Small Industry Day to recognise the effort and achievements of small industries in India.