UN acknowledges economic role played by Micro, Small and Medium-sized Enterprises

Today marks a special day for the United Nations as, for the first time, the organisation acknowledges the major economic role that Micro, Small and Medium-sized Enterprises play in developing countries around the world. The UN General Assembly has declared 27 June each year as Micro, Small and Medium-sized Enterprises Day, celebrating those enterprises which generally employ fewer than 250 persons, and are the backbone of most economies worldwide - and certainly here in Africa. 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. These types of businesses are often started and run by women, and are the first responders to societal needs. They are also often responsible for significant employment and income generation opportunities across the world and have been identified as a major driver of poverty alleviation and development. Through this new dedicated day, the UN hopes to encourage both policy makers and the private sector to aid the growth of these businesses in international, regional and national markets. This includes generating greater access to capacity-building and financial services, such as affordable micro-finance and credit.