Question

What are the indicators of sustainability of the MSME’s in the country?

Answer 1

He¥Mate

HERE IS YOUR ANSWER

================================

♣ This note provides an overview of updated and expanded data for Micro, Small, and Medium Enterprise Country Indicators (MSME-CI) in 155 economies. It presents detailed statistics for micro, small, and medium enterprises (MSME) definitions and data. Based on an analysis of the data, the most widely used variable for defining an MSME is the number of employees, followed by turnover, and assets. There are about 162.8 million formal MSMEs, employing more than 508 million employees. Countries use a wide range of thresholds to define whether a business is a micro, small, or medium sized enterprise. The range of thresholds narrows as firms become smaller. Countries frequently use 250, 50, and 10 employees to define medium, small, and microenterprises, respectively. The employee-based definition is more uniform among microenterprises. In general, low- and middle income economies tend to use lower threshold values for defining an MSME than high-income economies. High-income economies have the most MSMEs per 1,000 people, or MSME density. But the growth rate in the number of MSMEs is highest among low- and middle-income economies and countries in Europe and Central Asia. MSMEs account for 50 percent to 70 percent of employment across regions. While MSMEs are important because of their total numbers and contribution to employment, they could improve the amount of value added they contribute to an economy, particularly in developing countries. Better access to finance, a more streamlined environment in which businesses operate, greater competition, adequate institutional frameworks, lower poverty, and a more equal distribution of wealth are linked to greater numbers of formal MSMEs per 1,000 people around the world. Finally, the quantity and quality of MSME data require drastic improvements to produce more rigorous studies and a better understanding of the MSME sector. ♣

================================

Hope it helps.