Editorials
by Rajen Kumar
No Escaping Social Media
Running a magazine concentrating on issues of small and medium enterprises and managing with limited resources is a like living life on the edge. In this rush of meeting deadlines,...
More
Special Reports
Apr 2012EMRC, Brussels Associates with SME WORLD as its New Media Partner
EMRC has promoted business partnerships with the developing world and has organised dozens of business forums in key decision-making cities, such as Amsterdam, Rome,...
More
Focus
Inclusive Growth through Micro Enterprise Development
Ajay Mohapatra
Nov 2009
Nov 2009
Page 1 of 3
Despite the fact that India is one of the fastest growing economies in the world, still one of the three world's poor is Indian. The poverty in India remains on a staggering scale. As per the World Bank data, 371 million people in India live in extreme poverty on less than $1 per day and 855 million people live less than $2 per day (Ending Poverty in India, DFID, 2007). Out of 496.4 million workforce in India, 49 million (9.9%) are unemployed and 30% (140 million) casual labour and have no regular income or source of work.
By 2010, it is expected that 60 million workforce will be unemployed more than the entire population of UK, France and Italy (CIA World Fact Book). Since last thirty years, the work force participation in the organised sector is almost stagnant at 30 million (22 million engaged in Public Sector and 8 million in Private Sector). The share of agriculture in total employment dropped from 57 % in 1999-00 to 52 % in 2004-05 (Economic Survey, 2007-08). It is only the service sector which has marginally increased its share in the employment from 22.7 % in 1999-00 to 23.4 % in 2004-05.
Jobless Growth
Over the previous decade when economic growth accelerated but employment growth fell to less than half that of the 1980s, raising fears that India is witnessing jobless growth (Skill Development in India, January 2008, Report No. 22, The World Bank). However, the share of the self–employed workers in the Indian workforce has increased tremendously to 260 million (NSSO, 61st Round). A large percentage of the self-employed are economically poor. Unorganised sector employment constitutes the bulk of the work force at 360 million and is on the rise, constitutes 91% of the total work force in the country.
Need for Promotion of Micro-Enterprise
Looking at the poverty, unemployment and labour market scenario, India could not be able to engage the existing 49 million unemployed work force along with 140 million casual labours who have no regular source of work or income totalling to a whopping 189 million besides 12.8 million work force entering into the labour market for the first time, only through wage employment. Moreover, it is evident that the country is already facing almost a stagnated employment growth in the industrial sector and declined employment growth in the agricultural sector. The service sector has increased its share of employment marginally but not adequate to employ the large percentage of unemployed or under-employed.
On the contrary, the micro and small enterprises (MSEs) largely belongs to the unorganised sector has created the bulk of employment in the country next to agriculture. MSEs are recognized as an important constituent of the national economies, contributing significantly to employment expansion and poverty alleviation. The small scale industries in India, including the tiny or micro industries and service/business entities, collectively referred as micro and small enterprises (MSEs), have a long history of promoting inclusive, spatially widespread and employment-oriented economic growth. In terms of employment generation, this segment is next only to agriculture (Rajiv Gandhi Udyami Mitra Yojana). It is also evident that the share of the self-employed workers in the Indian workforce has increased tremendously of which a large percentage are economically poor.
MSEs sector the key employer
Thus, it is pivotal to promote self-employment and micro-enterprise development to address the issue of poverty, unemployment and inclusive growth. Several studies suggest that in India, millions of self-employed are graduated to become micro-entrepreneurs (essentially a self-employed who has created jobs for 5-10 persons through her/his micro-enterprise) through experiential learning and with the support of external institutions and factors such as skills development, financing, mentoring and handholding support.
0 Comments >>
Our Achievements
- Winner of appreciation award for promoting SMEs in India.
- 1st ever Indian magazine to penetrate tier II, III cities & the rural belt.
- Industry Partnerships include CII, FICCI, ASSOCHAM, PHDCC, AIMA, ITPO, SME Network, Federation of Indian Micro Small Enterprises (FISME)
- Official Magazine Partners for several national & international MSME events.
More
The Last Word
More Learned than Educated, You were!
I was speechless. Rather hesitatingly I asked him, “So, what have you decided, Sominder ?” His reply was curt and candid, “I have told the doctors that I don’t want to live life as dumb. Only...
More
Contribute
You can also write for SME WORLD
We are looking for writers and experts to contribute original stories and articles. Send an email to smeworld@gmail.com with your story idea and lets get talking.
Some of our valued contributors are...
