Micro, Small and Medium-sized Enterprises Day
Despite immense hurdles to financing in the least developed countries, Micro, Small and Medium-sized Enterprises (MSMEs) remain the highest generator of formal jobs in the emerging markets. It is estimated over 90 per cent of all business in the world is by the MSME sector and that in every seven out of ten jobs created in the emerging markets are generated by the MSMEs. To this end, the Micro-, Small and Medium-sized Enterprises Day explores leveraging the power and resilience of this sector in driving economic growth and innovation, especially in challenging times. Their agility and ability to adapt quickly to changing circumstances make them well-suited to address the complex challenges we face today.
MSMEs are often characterised by their ability to respond quickly to changes in the market or operating environment. This agility can be attributed to several factors such as their size, flexibility, entrepreneurial mindset, close relationship with their stakeholders and their deep-rooted local knowledge. Compared to large corporations MSMEs are smaller in scale which allows them fewer layers of decision making. Their smaller size allows them to make decisions more quickly and implement changes rapidly. With less operational bureaucracy, this affords them the flexibility in their operations to quickly pivot their business models, adjust their products or services and respond to new opportunities and challenges. The current world polycrisis has led to an incremental need for risk-takers and innovators to be able to handle the multiple issues faced globally. As many such enterprises are founded and led by entrepreneurs who inherently display such qualities, they are better suited to see challenges as opportunities for growth and innovation.
The further success of most MSMEs has been brought about by the fact that they are adept at keeping close connections with their community and use the local knowledge they garner from their communities to innovate and grow. Since most of these enterprises are deeply rooted in their local communities and go to extra lengths to form a closer relationship with the community they serve, this enables them to better understand the needs and preferences of the community. Their locale and proximity to their stakeholders gives them a unique understanding of local markets, regulations and cultural nuances. It is this local knowledge which allows them to adapt their business strategies more effectively to local conditions.
