India's micro, small, and medium enterprises (MSMEs) have been lighting up the country's economic scene, with recent data indicating they've created nearly 10 crore new jobs within just 15 months. According to the Udhayam Portal, the number of registered MSMEs has surged from 2.33 crore to 5.49 crore, leading to job opportunities soaring from 13.15 crore to 23.14 crore.
This massive job creation includes 2.84 crore jobs originating from informal micro units, with 5.23 crore jobs particularly benefiting women. With the vast majority of registered MSMEs being micro-enterprises, which total approximately 5.41 crore, the sector continues to evolve, providing significant employment opportunities and driving economic progress.
Supporting this growth, the Government of India has introduced several key measures aimed at bolstering the MSME sector. The budget for 2024-25 saw the Union Budget allocate Rs 22,137.95 crore to the MSME Ministry — this marks a substantial 41.6% hike from last year's budget, which reflects the central government's commitment to this pivotal sector.
Beyond funding, new schemes have emerged to provide term loans to manufacturing MSMEs without the requirement for collateral or third-party guarantees. Under the “Tarun” category of the Mudra loan scheme, entrepreneurs with good repayment history can now secure loans up to Rs 20 lakh.
Interestingly, the government has recently lowered the turnover limit for buyers from Rs 500 crore to Rs 250 crore, ensuring broader market opportunities for MSMEs across diverse sectors. Another initiative aims to assist these enterprises with purchasing necessary machinery and equipment via term loans, also supported by a Rs 100 crore guarantee fund.
These developments reflect the Indian government's recognition of the importance of MSMEs, not just for economic growth, but also for job creation, especially amid the complex challenges posed by today's global market dynamics. The sector's agility and adaptiveness are proving to be key elements as India strives for enhanced economic resilience.
Meanwhile, collaborative efforts are gaining traction among various stakeholders to fortify Ghana's MSME ecosystem. At the 2024 Greater Accra Annual Regional Network of Entrepreneurial Development and Employment Promotion Conference, Dr. Dirk Aßmann, Country Director at GIZ Ghana, underscored the necessity for diverse parties—ranging from public and private sectors to international donors—to unify their strategies to effectively support MSMEs.
Dr. Aßmann noted the astonishing statistic: MSMEs contribute to over 90% of businesses and provide approximately 80% of total employment within Ghana. Yet, he also pointed out the obstacles these enterprises face, including limited resources, tough regulatory environments, and inadequate market access.
He remarked, “Over the past decade, stakeholders – including public and private business development services, international donors, development partners and financial institutions – have worked tirelessly to support SMEs. Yet, a common challenge remains: the need for greater co-ordination to avoid duplication of efforts and inefficiencies.” This sentiment echoes among various other stakeholders at the meeting.
Ambassador Irchad Razaaly of the European Union to Ghana shared remarks on the importance of MSMEs as engines of recovery. Given the pressing youth unemployment crisis, with around 400,000 young people joining the labor market annually, the need for focused training and skill development initiatives is greater than ever.
The ambassador highlighted the pivotal roles of digitalization and green skills for the country's future workforce. “Digitalisation is already creating a growing demand for digital skills in Africa,” he explained, identifying skills investment as integral not only for Ghana’s progress but for the broader African continent's economic future.
Meanwhile, Zimbabwe's push for MSME development continues to gain momentum, with the launch of training programs aimed at enhancing skills within the sector. The Ministry of Women Affairs, Community, Small and Medium Enterprises Development recently unveiled a new MSME training manual crafted with the support of the United Nations Department of Economic and Social Affairs (UNDESA).
This training manual, which emerged as part of initiatives to empower MSMEs, provides resources for developing business resilience amid changing market conditions. Minister Monica Mutsvangwa spoke at the launch event, emphasizing the sector's substantial contribution to the economy, with MSMEs employing around 4.8 million people and contributing over 60% to Zimbabwe's GDP.
“The crafting of the training manual by UNDESA is timely as it will provide the officers with comprehensive guides to train MSMEs effectively,” the minister said. It is hoped this effort will equip small business owners with the necessary skills for thriving amid economic challenges.
Sibongile Sibanda, the UNDESA consultant behind the training manual, detailed how it embodies key entrepreneurial skills including financial management, business resilience, and market engagement strategies. The goal? To cultivate sustainable business practices among MSMEs.
These joint efforts across the Indian, Ghanaian, and Zimbabwean landscapes showcase the pivotal role of micro, small, and medium enterprises as they navigate economic uncertainties and aim to create inclusive growth paths. With coordinated strategies and donor support, the potential for MSMEs to thrive and shape economic futures remains vibrant, signaling hope for job creation and community development.
Through these global narratives, it becomes evident how MSMEs not only form the bedrock of local economies but also serve as catalysts for greater job creation and economic resilience. The stories from Ghana and Zimbabwe reflect broader trends seen within Indian MSMEs, highlighting both opportunities and challenges as they continue to evolve within the global marketplace.
