World MSMEs Day Theme 2024 – Building a Stronger Future Together

NEW DELHI : World MSME Day is celebrated annually on June 27, designated by the United Nations General Assembly and dedicated to recognizing the critical role that MSMEs play in fostering inclusive and sustainable economic development in India and globally. 

To be sure, MSMEs have been the backbone of many economies, especially developing countries, contributing significantly to employment generation, poverty reduction, and economic growth. MSMEs operate across various sectors, including manufacturing, services, agriculture, and trade, driving innovation, entrepreneurship, and local development. 

The observance of World MSME Day highlights the substantial contributions of MSMEs to the global economy and acts as a platform to raise awareness about the challenges faced by MSMEs. This includes access to finance, technology, skills development, and market opportunities. 

According to the United Nations Conference on Trade and Development, formal and informal MSMEs make up over 90 per cent of all companies worldwide, average of 70 per cent of total employment and 50 per cent of GDP. 

Despite their significance, MSMEs continue to face challenges, primarily around access to finance. As per the International Finance Corporation (IFC) reports that around 65 million firms, or 40 per cent of formal MSMEs in developing countries, have an unmet financing need of $5.2 trillion annually. This gap is equivalent to 1.4 times the current level of global MSME lending. 

Moreover, regional disparities in access to finance also exist. East Asia and the Pacific account for the largest share (46 per cent) of the total global finance gap, followed by Latin America and the Caribbean (23 per cent), and Europe and Central Asia (15 per cent). The financing gap is even more pronounced when considering micro and informal enterprises. 

“The gap volume varies considerably by region,” according to the IFC. “Latin America and the Caribbean and the Middle East and North Africa have the highest proportion of the finance gap compared to potential demand, measured at 87 per cent and 88 per cent, respectively. About half of the formal SMEs lack access to formal credit.” 

India is home to approximately 63 million MSMEs, as reported by the MSME Ministry’s FY23 annual report. This number is second only to China’s approximately 140 million micro and small enterprises. Indian MSMEs contribute about 30 per cent to the GDP, over 40 per cent to exports, and have created 110 million jobs. 

Currently, as per details available on the government Udyam registration portal, 46 million MSMEs were registered with the MSME Ministry and reported 200 million jobs. 

In addition to World MSME Day, India also observes National Small Industry Day annually on August 30. This day celebrates the contribution of the small-scale industry to the country’s growth. The Indian government launched an extensive policy package for small industry on August 30, 2000, and since then, National Small Industry Day has been observed to recognize the efforts and achievements of small industries in India. 

“We recognise the vast potential of MSMEs to be a key driver of our nation’s economic progress in the next few years. They are on the path to contribute to over 50% of the country’s GDP by 2030. MSMEs lean heavily on the operational efficiency of their third-party logistic partners to strengthen market competitiveness and boost profitability. For MSMEs, fragmented supply chains, proper warehousing, and transportation infrastructure often become the bottlenecks in the growth trajectory. We believe creating great customer experiences right from the first interaction with buyers to the final delivery of products is crucial to their success. Committed to empowering these powerhouses, RapidShyp plays a pivotal role in removing entry barriers for MSMEs and enabling them to thrive through tech-enabled shipping solutions and AI-based tools, serving as their growth partners to keep pace with global growth trends.”

Mr. Ravi Goel, Chief Business Officer, RapidShyp

“The logistics sector, a backbone of global trade, is witnessing a transformation driven by technology. Micro, Small, and Medium Enterprises (MSMEs) are at the forefront of this change, leveraging AI to create a more collaborative and future-ready business landscape. AI empowers MSMEs by optimizing supply chain operations, from inventory management to last-mile delivery. Predictive analytics help these businesses forecast demand accurately, reducing wastage and ensuring timely delivery. This technological edge enables MSMEs to compete with larger players, enhancing their market presence.

Collaboration is another critical aspect where AI plays a significant role. By integrating AI-driven platforms, MSMEs can seamlessly connect with suppliers, distributors, and customers. This connectivity fosters a cohesive ecosystem where information flows efficiently, and decision-making becomes more data-driven. For instance, real-time tracking systems powered by AI provide transparency and accountability, ensuring that all stakeholders are on the same page. AI also brings about cost efficiencies. Automation of routine tasks such as sorting, packaging, and route optimization reduces labor costs and minimizes errors. For MSMEs operating on tight budgets, these savings can be redirected towards growth initiatives and innovation.

At iThink Logistics, we are committed to empowering MSMEs by providing AI-enabled solutions tailored to their unique needs. By embracing AI, MSMEs are not only enhancing their operational efficiency but also paving the way for a more resilient and adaptive logistics sector. The future of logistics lies in this symbiotic relationship between technology and MSMEs, driving progress and creating new opportunities for all.”

Ms. Zaiba Sarang, Co-founder of iThink Logistics

At Zypp Electric, we firmly believe that embracing AI and technology is key to empowering MSMEs in logistics and creating a collaborative, future-ready enterprise. Our data shows that solution the use of AI can increase MSME productivity by a significant rate and operating cost benefit with strategic efficiency and demand. Forecasting and fleet management enable MSMEs to streamline operations, reduce waste and provide prompt and reliable service to their customers.

However, the real power comes when MSMEs collaborate and share data through secure AI-powered platforms. This allows them to collectively gain powerful insights, predict trends, and make intelligent decisions. Zypp is committed to building this collaborative AI ecosystem to help MSMEs thrive in an increasingly competitive export market. By harnessing technological potential and working together, we can unlock the full potential of India’s exports and foster sustainable growth for all major industries

Mr. Akash Gupta Co –founder & CEO of Zypp Electric

“At Shiprocket, we consider MSMEs to be the protagonists of Bharat’s growth story and a pivotal driver of our economy. On International MSME Day, we want to double down on our commitment to making eCommerce simple, accessible, and trustworthy for the MSMEs of Bharat. We strongly support the government’s vision for India@100 and believe that achieving this will require establishing an inclusive and accessible environment where businesses from every nook and corner of the country have equal opportunities and the right tools to thrive. Shiprocket acknowledges and celebrates the innovation brewing in different corners of Bharat; from Jaipur’s local businesses renowned for their handcrafted excellence to Bengaluru startups leveraging AI solutions for personalised customer experiences. These powerhouses will prove to be the engines of growth, contributing to the projected $300 billion Indian eCommerce market.”

Mr. Saahil Goel, MD & CEO, Shiprocket