Micro Small and Medium-sized Enterprises Day | June 27

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.

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.

Background

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.

About the author

Vignesh

Vignesh Sathyan is the Founder of Day Today GK, a portal that helps Aspirants who are preparing for Competitive Exams.

You can reach him at sathyan@daytodaygk.com

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