Micro-, Small- and Medium-sized Enterprises Day recognises their importance

MSMEs account for 90% of businesses, 60 to 70% of employment and 50% of GDP worldwide. As the backbone of societies everywhere they contribute to local and national economies and to sustaining livelihoods, in particular among the working poor, women, youth and groups in vulnerable situations.

MSMEs hold the potential to transform economies, foster job creation, and promote equitable economic growth if given adequate support.

The United Nations General Assembly designated June 27 as ‘Micro-, Small- and Medium-sized Enterprises Day’ to raise awareness of the tremendous contributions of MSMEs to the achievement of the United Nations Sustainable Development Goals (SDGs).

The 2024 theme is MSMEs and the SDGs – leveraging the power and resilience of MSMEs to accelerate sustainable development and eradicate poverty in times of multiple crises.

Noel Hillman, Chief Commercial Officer at Stenn, one of the UK’s leading start-ups supporting SME financing, said: “Micro-, Small- and Medium-sized Enterprises Day serves as a reminder of the crucial role these businesses play in our economy; employing nearly 17 million people with turnover of an estimated £2.4 trillion every year. Yet these businesses that are so vital to the economic prosperity of the UK do not have the optimal conditions they need to thrive, regularly facing difficulties with building healthy cashflow and accessing capital to fund new jobs, build new products and expand into new markets.  

“Demand from SMEs for lending far surpasses available supply. In fact, according to UK Finance, lending dropped for a third straight year, from £18.4 billion in 2022 to £14.3 billion in 2023 (22%).  A significant factor behind this is the increasing trend of lenders ‘debanking’ small businesses. In 2024 alone, lenders closed over 140,000 business accounts. an indication that traditional lenders still aren’t set up to effectively serve the SME market.  

“In many cases, alternative financing can provide faster and more flexible means to accessing funds. Driving greater awareness of these options could go a long way to enabling SMES to fulfil their growth aspirations and continue to keep growing the economy.”