Micro-, Small and Medium-sized Enterprises Day is observed every year on June 27.
Since 2017, Micro-, small and Medium-sized businesses celebrate their day in recognition of their work in local and global economies. 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 day aims to raise awareness about how important they are as well as providing resources that will help these smaller enterprises to succeed. For example, many small enterprises struggle with marketing so many will receive free resources showing them how they can better spend their advertising money and how solutions like this one here will help them achieve efficient and effective communication with their customers. These small businesses are already struggling and can not afford to face additional challenges. It might be preferable if these small businesses took all appropriate precautions. For example, businesses might procure key man disability insurance, which tends to provide the financial benefits needed to keep the business running and making profits during the absence of a key person due to disability.
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 60-70% of total employment and 50% of GDP.
The General Assembly, recognizing the importance of these enterprises, decided to declare 27 June the Micro-, Small and Medium-sized Enterprises Day to raise public awareness of their contribution to sustainable development.
The General Assembly, recognizing the need to improve small business access to microfinance and credit, decided to designate 27 June as Micro-, Small and Medium-sized Enterprises Day through a resolution. It was introduced by the delegation of Argentina, co-sponsored by 54 member states and adopted without a vote by the 193-member General Assembly on 6 April 2017.
What is a micro-, small, or medium-sized enterprise?
The criteria for defining the size of a business differ from country to country. As a reference, the European Commission’s definition of micro-, small and medium-sized enterprises is established according to the number of employees and the annual turnover or balance sheet:
- micro-enterprise: fewer than 10 employees and an annual turnover (the amount of money taken in a particular period) or balance sheet (a statement of a company’s assets and liabilities) below €2 million.
- small enterprise: fewer than 50 employees and an annual turnover or balance sheet below €10 million.
- medium-sized enterprise: fewer than 250 employees and annual turnover below €50 million or balance sheet below €43 million.
The choice of MSME definition could depend on many factors, such as business culture, the size of the country’s population, industry and the level of international economic integration.