What & Why – Desme Angles

What is MSME

Micro, small, and medium-sized businesses (MSMEs) are the unsung heroes of thriving economies, especially in developing countries because of the vital role they play in promoting economic growth, employment, and innovation.
MSMEs are those business entities that do not exceed a predetermined number of employees, annual revenue, or other metrics.
While the minimum and maximum employee counts for micro and small businesses, respectively, vary by country and industry, they typically range from one to ten.
Micro-enterprises are those with 11 or fewer employees and assets (excluding land) of less than 50,000 USD. Additionally, small and medium-sized businesses have more assets and between 11 and 100 employees.
Micro, small, and medium-sized enterprises (MSMEs) are the foundation upon which all strong economies are built.
These innovative businesses stimulate economic growth, provide jobs, and influence positive change, owing to their limitless energy and inventiveness. They are essential to prosperity, particularly in emerging countries.

MSMEs excel in niche markets due to their efficient operations and swift responsiveness. Their easy market entry, lesser regulatory constraints, and lower additional costs enhance the potential for significant ROI (Soni, 2022).
Recently, MSMEs have shown impressive growth globally, making them lucrative investment opportunities for DeSME. For instance, in Kenya, MSMEs raised $40M through 87 offerings, a growth of 150% year-on-year (Kenyan Economic Review, 2023).
Germany’s tech-focused MSMEs raised €25M ($28M) for 60 projects (German Business Journal, 2023). The Philippines saw a 120% surge in MSME funding with $15M raised (Philippine Financial Report, 2023).
Similarly, South Africa and Singapore reported substantial MSME funding growth, with ZAR 200M ($13.5M) and SGD 50M ($36M) respectively (South African Economic Review, Singapore Business Gazette, 2023).
These instances highlight the immense opportunities MSMEs offer.
With their specialized market focus and nimble operations, MSMEs serve as promising, potentially highly profitable investment ventures.