UN proclaimed Micro-, Small and Medium-sized Enterprises (MSMEs) Day, 27 June, is being observed through social media amidst the COVID-19 pandemic crisis. The theme of the observance this year is "Supporting small businesses through the COVID-19 crisis" which has a gender slant since women are most effected by the crisis,
"Small businesses, including those run by women and young entrepreneurs, are being hit hardest by the economic fall-out of the pandemic. Unprecedented lockdown measures enacted to contain the spread of the coronavirus have resulted in supply chain disruptions and a massive drop in demand in most sectors," observes the UN while urging the world community to to raise public awareness of their contribution to sustainable development and the global economy.
The reason behind selecting the theme is small business should be supported 'to continue playing their crucial role in creating decent jobs and improving livelihoods, small businesses depend more than ever on an enabling business environment, including support for access to finance, information, and markets.'
The UN website adds, "Smaller businesses can be agile in response to a changing world. We have seen multiple examples during the pandemic, but their size also makes them vulnerable. Access to finance is a primary obstacle. Identifying international market opportunities and navigating trade-related procedures can be harder for small businesses than for their larger competitors."
Some other pertinent points made at the UN website are as follows.
-Let's not forget that these enterprises, which generally employ fewer than 250 persons, are the backbone of most economies worldwide and play a key role in developing countries.
-The data provided by the International Council for Small Business (ICSB) indicates that formal and informal MSMEs make up over 90% of all firms and account, on average, for 70% of total employment and 50% of GDP.
-There is need to raise public awareness of their contribution MSMEs to sustainable development and the global economy.
- MSMES 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.
-MSMEs tend to employ a larger share of the vulnerable sectors of the workforce, such as women, youth, and people from poorer households - populations with high vulnerability in times of COVID-19.
-MSMEs can sometimes be the only source of employment in rural areas. As such, MSMEs as a group are the main income provider for income distribution at the “base of the pyramid”.
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