MSMEs

"Exactly. MSMEs may have different definitions from country to country based on the number of employees, fixed assets, annual sales turnover, and paid-up capital."

Tashi takes out his smartphone again and continues talking.

"For example, here is how India and Pakistan define micro, small, and medium enterprises."

Source: (United Nations ESCAP, 2021)

"Also, take a look at this table which gives an indication of what aspects each country use to define MSMEs."

Table 4: MSME definitions in South Asia

"There is a growing focus on MSMEs because it is recognized that they contribute to achieving the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs). MSMEs represent about 90% of businesses and more than 50% of employment worldwide; formal MSMEs contribute to 40% of GDP in emerging economies, and the number is considerably higher when informal ones are included (UNCTAD, 2023). Also, the majority of MSMEs do business outside the capital. For context, in Southeast Asia 88.1% operate in rural areas and 18.2% operate in the capital (Asian Development Bank, 2021)."

"Hmmm…. that helps me understand the context. So, I must think more carefully about climate impacts on the business if I’m to convince my father of expanding to South Asia."

"True. But again, don’t lose sight of the opportunities. A lot can be done to protect, conserve and restore ecosystems. Have a look at this figure here."

"While MSMEs need to plan for their climate resiliency, they are also one of the key players that can take action. Given the prominent role that MSMEs play in a country’s economy, having a better understanding of the impacts of climate change will open doors to new solutions for climate resilience across different sectors. Let’s discuss some examples."

Lalima stretched in her seat.

"We’ve been in this coffee shop for quite a while, should we take a walk and discuss?”

"Yes, why not. I’ll get the bill."

"Please, let me pay for this one. I’ve learned a lot from you and there’s a long way to go."

Lalima and Tashi leave the coffee shop and head towards the nearby river path for a stroll.

• The Sustainable Development Goals are a call for action by all countries – poor, rich, and middle-income – to promote prosperity while protecting the planet. To learn more about SDGs: United Nations Sustainable Development.
• Learn more about the roles of MSMEs in achieving SDGs here.