Since 2017, on June 27, by decision of the UN General Assembly (resolution №71/279), the holiday – is celebrated as Micro, Small and Medium-sized Enterprises Day.
These enterprises, which tend to employ no more than 250 people, are the backbone of the economies of most countries and play a key role in developing countries because they create jobs primarily for the most vulnerable groups of the population and are often the only source of income in rural areas. They therefore play a critical role in combating poverty and achieving economic development.
However, even though such enterprises are the main source of job creation, they face serious obstacles when trying to obtain financing, which significantly limits their growth and development prospects. The most difficult situation is faced by enterprises that are not officially registered, which is approximately 74% of the total number of enterprises. They are the ones who often resort to unofficial forms of financing, which is sometimes illegal.
In addition, small businesses, including those run by women and young entrepreneurs, have been hit hardest by the economic impact of the coronavirus pandemic. To continue to play their key role in creating decent and productive jobs and improving living standards, small enterprises are more dependent than ever on an enabling business environment, including support for access to finance, information and markets.
Therefore, the purpose of Day – is to highlight the important role of micro, small and medium-sized enterprises in the economy and development of any country, as well as in the overall achievement of sustainable development goals. Recognizing this fact and the importance of the principles of responsible entrepreneurship, the UN invites states to encourage « to come out of the shadows» and formalize such enterprises, provide them with access to investment and preferential lending, and develop international cooperation between micro, small and medium-sized enterprises in different countries.
According to the International Agency for Small Enterprises, micro, small and medium-sized enterprises account for about 90% of all enterprises, employing approximately 70% of the working population, and account for 50% of global GDP.
In most countries, supporting small businesses and private enterprises is considered a strategically important task for economic development. In Russia, the share of small and medium-sized businesses in GDP accounts for about 20%, while abroad, for small businesses alone, this figure reaches 50%.
In most countries, supporting small businesses and private enterprises is considered a strategically important task for economic development (Photo: Dusan Petkovic, licensed from Shutterstock.com)
According to Rosstat, in Russia the number of employed workers in the small and medium-sized enterprise (SME) sector accounts for 25% of total employment in the economy. But only 3.4% of small businesses live more than three years, the rest close earlier. Unfortunately, in Russia the growth rate and number of registered individual entrepreneurs remain low. Therefore, the state develops and implements financial support programs for small and medium-sized businesses. For example, providing loans on preferential terms for priority sectors of the economy.
On the holiday itself, June 27, the UN invites all Member States, United Nations organizations and other international and regional organizations, as well as civil society, including non-governmental organizations, academia, individuals and other relevant stakeholders, to appropriately celebrate Micro, Small and Medium Enterprises Day in accordance with national priorities in order to raise public awareness of their contribution to sustainable development.
It is also proposed to conduct research reports, organize policy discussions, workshops and speeches by business owners from around the world, in collaboration with public, private and non-profit organizations.