Genaesis Celebrates the UN's 4th Annual MSMEs Day

On Thursday, June 25, Genaesis proudly took part in the International Council for Small Business (ICSB)'s global recognition of the United Nation's 4th annual Micro-, Small and Medium-Sized Enterprises (MSMEs) Day (officially celebrated on June 27).

Created to bring visibility, support and much-deserved recognition to the unsung heroes of the world, our founder and CEO, Erin-Michael Gill, joined the MSMEs Day worldwide conversation to discuss the challenges these core businesses face, as well as meaningful progress being made to help them achieve their growth objectives.

His address brought attention to the incredible $5.2 trillion dollars of unmet annual financing need of small businesses worldwide, the impact these core companies have on economies around the globe, the obstacles that these businesses face and how we can help champion them.

Erin-Michael’s inspirational presentation and script are available below.

“Hello.

I am Erin-Michael Gill, Founder and CEO of Genaesis, a US-based advisory firm specializing in Micro-, Small and Medium-Sized Enterprises. I also serve as chairman of the United States Department of Commerce and White House Office of U.S. Trade Representative’s Industry Trade Advisory Committee for Intellectual Property Rights. I want to thank the United Nations, and the International Council for Small Business for convening this event. I wish we could be meeting together, but like many small businesses during this COVID-19 Pandemic, I am reaching out today from my home.

My company, Genaesis, helps connect businesses and entrepreneurs with the opportunities and resources they need to grow. In many cases, we help small businesses, typically owned by women, minorities, and service-disabled veterans acquire much larger small businesses who are unable to exit through traditional means. This involves bringing together, buyers, sellers and specialized capital partners in a way that benefits everyone in the transaction.

I am pleased to say we are making meaningful progress helping MSME’s achieve their growth objectives. However these companies, both here and abroad, are increasingly facing challenges with access to expertise, opportunity, and capital. As many of you know, MSME’s form the core of the world’s economy. Over 50% of the world’s employment and over 40% of the worlds GDP come from these businesses.

In my experience, these companies are incorrectly named. Calling them “Small” businesses really understates their impact. “Small” suggests they need to be looked after; or need some sort of social welfare. “Small” suggests they can’t do – or don’t know how to do – the things they need to be successful. In my experience, I know the opposite to be true.

In my career, I have helped small businesses raise over a quarter of a billion dollars, all with intangible assets as their primary value driver. And as proud as I am of these companies, and these transactions, the unmet annual financing need of small businesses worldwide is $5.2 trillion dollars. That’s the annual need.

Not supporting these businesses leads to a dangerous erosion of the core of many economies. We see high-tech start-ups building business plans to please capital partners instead of customers. We see operationally successful small businesses making financially bad decisions because their banker knows their company account number but not the owners name. But lenders and investors aren’t irrational, they are in business to put capital prudently to work. So what’s the issue? It’s that the risk-reward equation, too often, doesn’t justify the investment of time or capital into these businesses.

We believe this unmet demand for capital in today’s environment, presents countries with one of the largest economic opportunities in history. To stop treating these companies as small businesses that need a safety net for protection, and start treating them as core business that drive the foundation of their economies, and with that, support lenders and investors by encouraging this type of investment.

Small businesses are only small because the obstacles that confront them loom so large. Put policies in place that encourage and also incentivize investments in small enterprises. Create programs that provide access to capital and subsidize advisory services to help manage their growth. Policymakers can direct their attention to legislation that addresses small business needs – like hiring and continuity of funding.

But still, we talk about small businesses with phrases that – at best – undermine their importance and – at worst – reinforce a narrative that they’re somehow in need of our patronizing, rather than our patronage. Instead of saying “small businesses are the backbone of our economy” – what about just: Small businesses are core businesses.

In the United States and around the globe, the pandemic has caused us to rethink a lot of what makes our society run. We’ve redefined what is “essential” and what is not. Redefining small businesses as core businesses – and putting policies in place to make sure they thrive – is critical to reviving and growing our communities. These enterprises need us more than ever … and as it turns out, we need them too. I hope we can do some good for these people. And I hope you will join us in working to make that happen.

Thank you very much.”

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