MSME Day 2024: Meaning, Importance, Significance

On 27th of June, MSME Day is observed every year to celebrate the vital contribution of India's micro, small and medium enterprises (MSMEs) in the development of the economy, employment and innovation. This day, as it is being observed on the 27th of July every year, is to create awareness about the role of MSMEs and more so, in developing countries like India. It also points to the significance of these enterprises for the global economy and for the solution of problems that threaten to exacerbate poverty and unemployment.

In India, the day of the celebration of micro small and medium enterprises day is important because the sector plays a huge role in the economy. World msme day is a way to raise awareness about the challenges in MSMEs and encourage governments and stakeholders to support this growth. This article talks about the history, importance and one of a kind things of MSME Day and how it is influencing India’s economic landscape.

What is MSME Day?

MSME Day aims to recognize and celebrate the contribution of micro, small, and medium enterprises globally. It was established by the United Nations General Assembly in April 2017 to raise awareness about the importance of MSMEs in achieving sustainable development goals (SDGs). June 27 was designated as world msme day to highlight the role these enterprises play in fostering innovation, providing employment, and driving economic development.

Key facts about MSMEs globally:

• More than 90% of businesses and more than 50% of jobs globally are held by MSMEs.
• They contribute around 40% to GDP in emerging economies.

MSMEs are the foundation of the Indian economy:

• As of 2023, there were over 63 million MSMEs in India.
• These businesses account for 40% of exports and roughly 30% of the nation's GDP.

History and Origin:

MSME Day was formally proclaimed by the UN General Assembly in April 2017. This decision aimed to recognize the immense contributions of micro, small, and medium enterprises (MSMEs) worldwide. The first world msme day was celebrated on June 27, 2017, marking a significant milestone in global efforts to acknowledge the role of small businesses in economic development.

Why is June 27 celebrated as MSME Day?

The date was chosen to commemorate the adoption of a resolution that underscored the importance of supporting MSMEs for achieving sustainable development goals (SDGs). The United Nations recognized that MSMEs are crucial for reducing poverty, promoting innovation, and fostering job creation.

Importance for Developing Countries:

Micro small and medium enterprises day is very important for developing nations like India. MSMEs play a vital role in the economic growth through creation of employment opportunities and reduction of income inequality. Shared below are some key points about their impact:

• Employment Generation: Second only to agriculture, India’s MSME help employ over 110 million people.
• Economic Inclusion: They aid rural and semi urban areas, and help promote the process of equitable economic growth.

Significance of MSME Day for India:

MSME Day has tremendous importance in India because micro, small and medium enterprises play a crucial role in that country’s economy. India’s industrial sector is founded on MSMEs who generate employment, economic diversification and social stability.

Key Contributions of MSMEs in India:

• Employment: MSMEs are very useful in rural and semi urban areas due to the fact that they provide jobs to more than 110 million people.
• GDP Contribution: Approximately 30% of India's GDP and over 40% of its exports come from the MSME sector.
• Innovation and Growth: MSMEs are known for their flexibility and innovative potential, fostering entrepreneurial spirit and boosting local economies.

Why Celebrating MSME Day Matters:

• Awareness: The purpose of this event is to create awareness of the difficulties small enterprises go through: lack of credit, technology and skilled labour.
• Policy Focus: It prompts governments and policymakers to introduce reforms and support measures tailored to the needs of MSMEs.
• Encouraging Investment: Highlighting the importance of MSMEs encourages both domestic and international investment in this sector.

Government Initiatives:

India has launched a number of programs to assist MSMEs, such as:

• Prime Minister’s Employment Generation Programme (PMEGP).
• CGTMSE which stands for Credit Guarantee Fund Scheme for Micro and Small Enterprises.
• Atmanirbhar Bharat Abhiyan: Focused on self-reliance, this scheme provides financial assistance and incentives to MSMEs.

How MSME Day Differs from Small Industry Day:

While MSME Day celebrates the contribution of micro, small, and medium enterprises on a global scale, Small Industry Day in India has a more national focus. As part of honoring small enterprises to the Indian economy, we observe Small Industry Day annually on August 30. Both days are about the small business, but they are different days in scope, theme and focus.

Key Differences:

• Global vs. National Focus:
  • This Day is celebrated worldwide, focusing on the global importance of MSMEs in promoting innovation, employment, and sustainable development.
  • Small Industry Day, on the other hand, is specific to India and recognizes the achievements of India’s small industries, particularly in terms of domestic economic development.
• Scope of Recognition:
  • All sectors of business, including agriculture, manufacturing, services, and more are celebrated in this event as they are all forms of micro, small and medium enterprises.
  • Small Industry Day primarily recognizes industries that are considered small-scale in the Indian context, with a focus on specific industries like textiles, food processing, and handicrafts.
• Government Initiatives:
  • Often on this Day, the Indian government announces new policies or programs to empower small businesses with access to finance, markets and technology.
  • Small Industry Day is more of an opportunity to celebrate small industry achievements within the given framework of small industries, and its contribution to economic growth.

Current Theme and Celebrations:

MSME Day is celebrated every year with a subject that focuses on the MSMEs’ potential and challenges. The theme for the World MSME Day for the year 2024 might include 'Empowering MSMEs for a Sustainable Future'. The theme of this emphasizes the contribution of MSMEs to sustainable economic growth and an inclusive economy.

Key Celebrations and Activities:

• Global Events:
  • World MSME Day is observed with events, conferences, and webinars across the globe, focusing on the importance of MSMEs in achieving the United Nations’ Sustainable Development Goals (SDGs).
  • Governments, international organizations, and industry leaders collaborate to raise awareness about the needs of MSMEs, with special attention to access to finance, digital transformation, and innovation.
• India’s Celebrations:
  • In India, various workshops, seminars, and exhibitions are held to encourage MSMEs to adopt new technologies and explore growth opportunities.
  • The Indian government often uses this Day to announce new support programs for the sector.

Conclusion

MSME Day is an important opportunity to acknowledge the vital role that these MSMEs play in both the Indian as well as global economy. The part which highlights the need to support these businesses through policies, innovation and investment. Celebrating micro small and medium enterprises day and World MSME day helps us to grow and sustain a sector that is vital to the economy.

FAQs on MSME Day: Significance & History

Q1. What is the significance of MSME Day?

Ans. MSME Day is celebrated every year on 27 June to honor the important contribution of micro, small and medium sized enterprises in national and international economic growth. It brings to the fore the issues the MSMEs face and underscores the need for policy reforms. This event is a reminder of the work done by these efforts around the world, and micro small and medium enterprises day acknowledges the contribution of these organizations to innovation and job creation.

Q2. When is MSME Day celebrated?

Ans. Every year on June 27, we commemorate MSME Day. This day marks a global recognition of the importance of MSMEs in fostering innovation and promoting sustainable economic growth. The observance of this event serves as a reminder of how micro small and medium enterprises day supports MSMEs worldwide, encouraging further development and growth.

Q3. What is MSME Day 2024 theme?

Ans. The theme for MSME Day 2024 is expected to focus on empowering MSMEs for a sustainable future. This aligns with global goals to support micro small and medium enterprises day through access to finance, technology, and innovation. World MSME Day serves as a platform to discuss these challenges and solutions on a global scale.

Q4. How does MSME Day benefit small businesses in India?

Ans. MSME Day in India is to raise awareness about the sector’s contribution to the economy and for the government and private sectors to support. Micro small and medium enterprises day is celebrated to ensure that the policies are designed to address the needs of the small businesses. This event also facilitates global collaboration, helping Indian MSMEs access new markets and resources.