MSME Day 2024
June 27, 2024
Eight years ago, our CEO, Asheesh Advani, traveled to UN headquarters in New York City to help launch MSME Day, a UN observance honoring micro, small, and medium-sized businesses and the contributions they make toward realizing the UN Global Goals for Sustainable Development (SDGs), including
Goal 1: No poverty
Goal 5: Gender equality
Goal 8: Decent work and economic growth
Goal 9: Reduced inequalities
According to the UN, MSMEs represent over 90% of all businesses globally, create seven out of every ten new jobs, find innovative solutions to the biggest challenges of our time, are essential for empowering local economies, and are the key drivers toward inclusive growth and shared prosperity. Today, from 10am–12pmEDT, the UN will convene a session for policymakers, corporations, financial institutions, and the international community to discuss how to best support MEMEs to reach the Global Goals by the 2030 deadline, just six years away. Participate at https://webtv.un.org/en/asset/k1w/k1wi9cnva0
Lack of Access to Finance
Access to financing opportunities for MSMEs is difficult in the least developed countries (LDCs). According to the International Finance Corporation (IFC), a member of the World Bank, “65 million firms, or 40% of formal MSMEs in developing countries, have an unmet financing need of $5.2 trillion every year, which is equivalent to 1.4 times the current level of the global MSME lending. East Asia And Pacific accounts for the largest share (46%) of the total global finance gap and is followed by Latin America and the Caribbean (23%) and Europe and Central Asia (15%). The gap volume varies considerably region to region. Latin America and the Caribbean and the Middle East and North Africa regions, in particular, have the highest proportion of the finance gap compared to potential demand, measured at 87% and 88%, respectively.”
The International Labour Organization (ILO) is also focused on the financial needs of MSMEs: “MSMEs are central to the promotion of decent work, economic growth and social justice. Despite their significance, MSMEs face the triple challenge of low productivity, poor working conditions and high vulnerability to economic, political and environmental shocks. Women, young workers and entrepreneurs operating in the informal economy are particularly vulnerable, and face additional constraints.” This morning, the ILO celebrated MSME Day 2024 by hosting “Human-Centered Impact: Advancing the UN SDGs through MSMEs,” a hybrid event to discuss the global impact of MSMEs for economic growth and social justice, with a special focus on entrepreneurs, young workers and women in business. Watch the replay at https://live.ilo.org/events/human-centered-impact-advancing-un-sdgs-through-msmes-2024-06-27.
Other Trends for MSMEs
The International Council for Small Business (ICSB)—which originally proposed the idea of a United Nations Day for MSMEs—each year outlines the top trends for MSMEs, listing Access to Sustainable Finance for MSMEs as trend #10. The other nine trends include:
9: Tourism and Sports for MSMEs’ Development and Growth
8: Humane Entrepreneurship: Coaching and Mentoring of Employees
7: The Evolution of WomenPreneurs
6: Circular Economy Business Models
5: Delivery Economy and Agility of MSMEs
4: Agribusiness and Agtech for MSMEs
3: Artificial Intelligence and GEN AI
2: Peace for Economic Development and Prosperity
1: MSMEs Forming Collaborative Alliances
Read more at https://icsb.org/toptrends2024.
As an original signatory to MSME Day, JA Worldwide celebrates the young people who are driving the growth of MSMEs around the world, and the peace and inclusive prosperity that are possible when young entrepreneurs have the resources they need to grow their MSMEs. And not just today, but everyday!