Micro, small, and medium enterprises' Gross value added (GVA) across India accounted for over ** percent of India's gross domestic product (GDP) in the financial year 2023. This was an increased contribution as compared to the previous year. Additionally, MSMEs account for a significant part of the country's exports. Classification of MSMEs in India   As per the upward revision announced in 2020, the definition of micro manufacturing and services units was increased to ** million Indian rupees of investment and ** million rupees of turnover; the small unit was increased to 100 million investment and *** million turnover. The limit of the medium unit was increased to *** million in investment and *** billion in turnover. The objective of this change was to ensure that MSMEs can exhaust the state benefits without the fear of outgrowing themselves. However, critics argue that the gap defining medium enterprises is too wide and may create unfair competition. Informal micro enterprises Micro enterprises account for the majority share of the MSME sector in India, and a significant number of these enterprises are informal. Cost of compliance, complex labor laws, and lack of awareness about the benefits of formalization could be some reasons for keeping the micro-enterprises unregistered. Since businesses in the informal economy do not contribute to the tax base and tend to remain small with limited access to formal finance, it impairs a country’s ability to truly gauge the socio-economic metrics.

In 2022, micro, small, and medium enterprises (MSMEs) in Indonesia contributed to around **** percent of the country's gross domestic product (GDP). While this marked a slight decline compared to the previous year, it indicated a steady recovery following the significant drop during the pandemic in 2020.

In the third quarter of 2024, the output of micro, small, and medium enterprises (MSMEs) in Thailand contributed **** percent to the country's gross domestic product (GDP). The MSME GDP in the country was forecast to grow over ***** percent in 2024.

Micro, Small, and Medium Enterprises (MSMEs) contributing around 30% of the Indian gross domestic product (GDP), around 45% of the manufacturing output, and approximately 40% of the country’s exports. It won’t be wrong to refer to them as the ‘Backbone of the Indian economy.’MSMEs players a crucial role in the development of the Indian economy and have contributed immensely to the country’s socio-economic development. It not only generates employment opportunities but also works for the development of the nation’s backward and rural areas.

As of February 2025, Maharashtra held over 17 percent share of medium, small, and micro enterprises in India. It was followed by Tamil Nadu with more than 10 percent share. The Ministry of MSMEs runs various schemes to provide credit and financial assistance to MSMEs. The central government has also initiated schemes targeting the northeastern states of India.

In financial year 2025, consumption lending in India had the highest lending volume of around 431.7 million loans as compared to other lending segments like microfinance and MSME loans. While the volume of consumption loans increased from last year, MSME and microfinance loans witnessed a decline.

Credit to MSMEs registered a robust **** percent year-on-year growth as of March 2025. The credit for the industry crossed ** trillion Indian rupees in the year.

As of March 2025, micro enterprises accounted for over 81 percent of market share of active loans in the MSME segment. Medium enterprises were the borrower segment with the lowest share in active loans.

Abstract

The MSME sector in Kenya has over the years been recognized for its role in provision of goods and services, enhancing competition, fostering innovation, generating employment and in effect, alleviation of poverty. The crucial role of MSMEs is underscored in Kenya's Vision 2030 - the development blueprint which seeks to transform Kenya into an industrialized middle-income country, providing a high-quality life to all its citizens by the year 2030. The MSME sector has been identified and prioritized as a key growth driver for achievement of the development blue print.

The measurement of the size of the sector in terms of employment as well as its contribution to Gross Domestic Product [GDP] and the generation of income is of major importance. This is not only because of their usefulness in the design of appropriate policies and programmes but also in understanding their dynamics in terms of income, wages, growth patterns, sector and their evolving nature among others. MSMEs tend to be dynamic: the structure and their operations change considerably within a short time. The last comprehensive study is the 1999 National Micro and Small Enterprise (MSE) Baseline Survey. The 2016 National MSME Survey was therefore, designed to respond to the existing data gap and sought to provide data at national and county levels. The unit of observation was the establishments and the survey targeted those that engaged at most 99 persons. The terms establishment, enterprise and business are however, used interchangeably in this report.

Geographic coverage

i) National ii) Counties and iii) Urban and rural residence

Analysis unit

i) National ii) Counties and iii) Urban and rural residence

Kind of data

Census/enumeration data [cen]

Sampling procedure

Survey Design The previous MSE studies used the household-based approach to identify businesses/establishments. However, the 2016 MSME survey, in addition to the household-based approach, interviewed businesses/establishments identified from business registers maintained by county governments. The 2016 MSME survey was cross-sectional and was designed to provide estimates at national and county levels. The survey used a representative probability sample design aimed at producing estimates at the following domains; · National · Counties and · Urban and rural residence (For Unlicensed businesses only.

The survey adopted a stratified random sampling method for the establishment-based sample in which a systematic random sample of establishments was drawn using equal probability selection method. For the household-based sample, a two-stage stratified cluster sampling design was used where the first stage involved selection of 600 clusters (354 in rural and 246 in urban) with equal probability. In the second stage, a uniform random sample of 24 households in each cluster was selected using systematic random sampling method.

Mode of data collection

Face-to-face [f2f]

Research instrument

One Enterprise questionnaire

In the 21st Century, India's micro, small, and medium enterprises (MSME) have mass employment and contributed to around 30% of India's GDP in 2020. As of 2020, India has a house of 2.5 million units and is the backbone of large sectors such as manufacturing, agriculture, aviation, IT & ITeS, pharma, cement, and automobiles. India Government initiatives helped MSME to grow at the rate of 18.5% CAGR in 2019-2020. Indian Government is committed to bringing sustainable growth to the MSME sector. This brings the point to look into scalability issues often faced by these industries due to the typical owner and employee organization structure and the lack of knowledge of recent HR practices. All the management and operational decisions are factored into top leadership (the business owner and his sons). With the young entrepreneurs stepping into the family business, the face of this industry is bound to change further. Indian Government has doubled the budget for the MSME sector in FY22 from $ 1.03 billion in FY21 to $ 2.14 billion in FY22. With the Industrial Revolution 5.0, India has witnessed multiple unicorns in the last decade, and they are bound to see maturity in leadership sustainability and focus on employee empowerment. The study aims to look into labor law barriers faced by those not covered in the FY22 vision document for adopting to meet 5 trillion dollar business demands by 2025.

In fiscal year 2025, the value of loans and advances by Small Industries Development Bank of India amounted to over 4.96 trillion Indian rupees. The bank acts as the principal financial institution for the promotion, financing and development of the micro, small and medium sector enterprises in the country.

In the financial year 2025, the contribution of MSME-related exports as a share of total exports from India is expected to be over ** percent. The share was over ** percent during the financial years 2020 and 2021 but registered a decline since the financial year 2022.

Micro, Small, and Medium Enterprises (MSMEs) form the backbone of Myanmar's economy, contributing significantly to employment, GDP, and community development. However, the integration of sustainable practices into MSMEs remains a critical challenge due to limited resources, knowledge gaps, and socio-political instability. This study by EHS Myanmar explores the current landscape, challenges, and opportunities for MSMEs in advancing sustainable development. Through a qualitative approach, involving secondary data and expert interviews, the research examines the environmental and social impacts of MSMEs, highlighting both positive contributions and adverse effects such as pollution and biodiversity loss. MSMEs play a pivotal role in achieving global Sustainable Development Goals (SDGs), particularly those related to clean energy, responsible consumption, and climate action. Nevertheless, they often lack access to affordable financing, adequate infrastructure, and technical expertise, which hinders their ability to adopt eco-friendly practices. Focused on Yangon and Mandalay, this study identifies key barriers to sustainability, including insufficient waste management, resource depletion, and vulnerability to climate change. Despite these challenges, MSMEs in Myanmar exhibit potential to drive sustainable growth by leveraging green technologies, fostering community engagement, and aligning with international best practices. Recommendations emphasize capacity-building initiatives, policy reforms, and financial incentives to encourage sustainable business models. This research underscores the importance of tailored interventions to enhance MSME resilience and competitiveness while safeguarding the environment. By addressing systemic challenges and fostering collaboration among stakeholders, Myanmar’s MSMEs can transition towards sustainability, contributing to long-term economic growth and environmental preservation. The findings aim to inform policymakers, business leaders, and development organizations in shaping a sustainable future for the MSME sector.

In 2023, the total outstanding loans for MSMEs in Indonesia amounted to approximately ***** percent of the country's GDP. Indonesia has the highest number of MSMEs among Southeast Asian countries, and these enterprises contribute significantly to the national economy.

In 2024, the wholesale and retail trade sector of micro, small, and medium enterprises (MSMEs) was estimated to have a GDP growth of *** percent, accounting for the highest growth rate among other industries in Thailand. In comparison, the agriculture sector's output contracted by *** percent.

As of 2023, small and medium size enterprises in Saudi Arabia comprised **** percent of the total GDP in the country. This was an *** percent increase from its base, but still below its Vision 2030 goal of ** percent.

In 2023, preliminary figures indicated that the manufacturing sector contributed approximately ***** percent of Indonesia's GDP, making it the largest contributor to the nation's economy. It was followed by the wholesale and retail trade and agricultural sectors. With its abundant resources, Indonesia ranks among the largest economies in the world. Economic development in Indonesia Indonesia’s GDP is expected to rise steadily until 2029, suggesting consistent economic growth. Resonating with this pattern, foreign direct investment in Indonesia has steadily increased over the past few years. However, the government still grapples with inflation rates and a budget deficit, with government revenue consistently lower than expenditure. Despite these challenges, Indonesia aims to become one of the top five largest economies globally by 2045. The manufacturing sector’s growth and investment Over the years, Indonesia has become an increasingly attractive destination for investments due to its economic expansion and large labor force. As of 2023, the GDP growth rate for Indonesia’s manufacturing sector was projected to be nearly **** percent. Across the various segments of the sector, the highest investment value came from basic metals manufacturing, demonstrating its important role in driving industrial growth.

Small and Medium-sized Enterprises (SMEs) play a significant role in Ghana's economy. In 2023, over ** percent of business enterprises in the country were SMEs. Moreover, they did not only form around ** percent of the total employment in Ghana but also accounted for some ** percent of the country's GDP.

In 2023, the output of medium enterprises in Thailand grew by *** percent, which was the highest compared to small and micro enterprises. Micro, small, and medium enterprises contribute around one-fourth of the country's total GDP.

In 2023, the number of micro, small, and medium enterprises (MSMEs) in Thailand reached around *** million. The wholesale and retail trade sector was the largest MSME sector in Thailand in that same year, followed by the service sector. The number of MSMEs has shown an increase lately, and the GDP of the MSME sector showed continued growth in 2023.  SMEs in Thailand According to the Office of Small and Medium Enterprises Promotion of Thailand, there are ***** types of SMEs in the country: micro, small, and medium enterprises. Micro enterprises are businesses that employ **** people or fewer and have a revenue income that does not exceed *** million Thai baht per year. Small and medium enterprises are defined as businesses that employ ** people or fewer and *** people or fewer and have an annual revenue income of less than 100 million Thai baht and *** million Thai baht, respectively. SMEs not only generate the growth of entrepreneurs in the country but also demonopolize and promote employment across the country.  SMEs over large enterprises   SMEs in Thailand play an important role in the Thai economic system. There are several advantages that SMEs have over larger businesses, for instance, less complicated budget management, close connections with customers, and flexibility in the workplace. However, there are also disadvantages for SMEs, including financial risks that companies need to be conscious of. In fact, during the first quarter of 2023, more than half of MSMEs in Thailand claimed to be in debt.