The 27th of July marks the annual World MSME Day. This day is devoted to championing Micro, Small and Medium-sized Enterprises and raising awareness of the value they provide and the struggles they face. Globally, MSMEs are responsible for about 70% of employment and 50% of GDP. Bearing this in mind, there has perhaps never been a time when recognising the significance of MSMEs has been more important…
Why Are MSMEs So Important?
A lot of the owners and founders of these businesses are the innovators who push forward our society. Don’t forget, all the biggest companies in the world started off as a MSME. But the most obvious reason that MSMEs are so important is that they form the backbone of communities all over the world. Not only do they provide necessary services, they also provide jobs and livelihoods for our society. Indeed, MSMEs are responsible for the creation of 7/10 of all jobs.
This job creation is going to be vital for our planet in the coming years. It is thought that an extra 600 million jobs worldwide will be needed by 2030. This number will likely continue to rise as automation becomes more and prevalent as our workforces as more and more jobs will be filled by automatons and complicated softwares. At this time of chronic unemployment, jobs and entrepreneurship are things we need now more than ever.
The Pandemic Has Made World MSME Day Even More Important Than Ever This Year
It is obvious that the outbreak of the Coronavirus has had a disastrous affect on MSMEs all over the world. What is interesting is that the pandemic has affected different categories with varying degrees of severity. Research has shown that MSMEs ran by women, youth and ethnic minorities have been affect the most.
62% of women-led SMEs have been severely affected compared to just over 50% of those led by men. The same research also showed that women-led SMEs are 27% more likely to fail to survive the pandemic.
Regardless of the above information, it is clear that every single MSME has had to face unprecedented and extremely difficult circumstances over the last 18 months. As we are coming towards the end of the pandemic, it is important that we as a society protect our MSMEs and attempt to make them more durable for the future.
What Support Is Currently Out There?
When it comes to the UK, the government have really tried to support small businesses through the pandemic. We can see this through the schemes such as the Coronavirus Business Interruption Loan and the Coronavirus Recovery Loan.
On top of this, they have also given help in the form of training courses in order to strengthen our SMEs for the future after the pandemic.
Conclusion – Wishing You A Very Successful MSME Day
Judging by the above information, it is clear that our MSMEs need more support than ever. This could come in the form of shopping at their store or website, but also interacting with their social media or recommending them to people can go a long way in supporting small businesses.
Are you the owner of a small business or start up?
Our long history of working with ecommerce sellers, means we can offer you expert advice – so please do not hesitate to give us a call on 0773182821 or send an e-mail to enquiries@jpaccountant.com. As well as help with the upcoming EU Ecommerce VAT Package and registering you for the OSS, we would be more than happy to file your EU VAT returns, and help you comply with VAT in case your account faces any issues. Get in touch to receive a quote today.
