KEY DRIVERS OF SOCIO-ECONOMIC DEVELOPMENT

MSMEs promote regional development by setting up businesses in rural areas, reducing regional imbalance & fostering equitable growth

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MICRO, Small, and Medium Enterprises (MSMEs) are the backbone of economies around the world. They play a pivotal role in economic growth, innovation, and employment. Despite their size, MSMEs collectively have a massive impact, making them key drivers of socio-economic development.

MSMEs are categorised based on various parameters such as the number of employees, annual turnover and total assets. While definitions vary on a country-to-country basis, the common thread is that they are smaller in scale compared to large enterprises. The European Union defines MSMEs as businesses with fewer than 250 staff and annual turnover not exceeding 50 million Euros.

Economic impact

According to the International Labour Organisation (ILO), MSMEs account for over twothirds of all jobs worldwide. In developing countries, this figure can be even higher, making MSMEs essential for poverty alleviation and income distribution.