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As per recent reports of NSS the number of Employment Opportunities generated by MSME and SME’s amounted to (number of persons) in micro enterprises during the year 2016-17, 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22 (as on 15.11.2021) are 4.08 lakh, 3.87 lakh, 5.87 lakh, 5.33 lakh, 5.95 lakh and 2.90 lakh respectively.
This is seen as positive efforts from the Ministry of Micro, Small and Medium Enterprises (MSMEs) who remains in the forefront to implement various schemes post pandemic.
The focus on the MSME’s when it comes to skill development and labour intensive industry has grown over the years. The reason being MSME’s are seen having immense potential to generate employment and give livelihood across length and breadth of our country.
Available datasets, data sources provide technical inputs for analysis in generating reports and provide evidence based decision making pertaining to MSME sector in regards to employment. Data patterns in employment graph and dynamics of job, skill development scope of improvisation at different enterprise level helps taking majority of decisions where scope is available.
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Earlier it was only the agricultural sector where majority of employment was garnered, now the scope has widened. Government intervention together with stakeholders private and public have helped in mapping patterns from employment can be generated.
Socio economic profiling of the MSME Sector, tracking changes over time and
setting up task forces on how to enumerate export from MSME sector and prepare sampling frame for periodic surveys.
Technical coordination with all stakeholders for updating of MSME database, tracking progress and regular coordination with International and Regional agencies helped in upgrading agenda for employment and widened the scope for work.
MSME’s growing influence in generating employment to boost the economy:
By promoting various schemes are some of the factors that generate employment and also give boost to the economy.
MSME’s growing importance is growing in socio economic development of the country as connecting rural India and providing assistance to big corporations’ through ancillary goods and services.
This in turn helps creating employment opportunity for rural and other backward areas, training for skilled labour and improving standard of living and erasing poverty.
Providing services and preparing raw materials required by big enterprises for production of goods MSME’s in India contribute in supporting an ecosystem and connecting to a wider network both globally and internally.
This way MSME becomes subsidary Potential areas where MSME’s are generating employment includes majority of India’s exporters, smaller manufacturing units, textile, cottage industry connecting the rural India.
Other areas include, garments, different types of shoes; rice and castor oil are among the major products exported by the Indian MSME sector.
Major areas within MSME’s generate employment opportunities include handicrafts, agricultural by products, small scale industry where less investments is required.
These include PMEGP, Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and a Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE).
Government has taken a number of initiatives under Aatma Nirbhar Bharat
Abhiyan to support the MSME Sector in the country especially in Covid-19
Pandemic.
These include: The Indian MSME sector provides a crucial employment opportunity with low capital requirements. The sector helps uplift the country’s rural and less developed areas, reducing regional imbalances and inequality.
Moreover, the sector is complementary to large companies and industries, providing them with the necessary parts and components. All these factors make the MSME sector crucial in the country & socio- economic development.
The government of India encouraging MSME’s by providing support through subsidized credit, technical assistance, exempting excise tax and paving way for procuring materials, byproducts from areas where MSME sectors operate.
In 2006 when the government passed the MSMED Act in the parliament the main aim was to encourage enterprises to register by providing certain safeguards and benefits such as skill development, marketing assistance, infrastructure facilities, and forward linkages, as well as facilitating credit.
The Prime Minister & Employment Generation Programme (PMEGP) scheme was introduced to provide financial assistance for establishing small businesses and creating employment opportunities in urban and rural areas. This paved way for sustainable employment opportunities for India & youth as well as prospective traditional artisans. Also to implement the scheme Banks are allowed to provide financial assistance in the form of a bank- financed subsidy programme Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE) aims to provide aspiring entrepreneurs to opt for self-employment opportunities through credit guarantee support for loans.
Entrepreneurship and Skill Development Programm (ESDP) scheme was mainly to promote the establishment of new MSMEs and enhance the existing MSMEs’ capacity, encouraging an entrepreneurship culture among the citizens of the country.
Subsequently through training and skill development programs for entrepreneurs and skilled workforce will help grow their enterprises rapidly.
Financial contribution of MSME’s in powering up the country’s GDP
As per report the contribution to country’s GDP by the MSME sector was nearly
a third of the country & GVA and while the sector contributed nearly half of the
country’s exports.
Moreover, the sector is a major employer, especially in the country’s rural and less developed areas, helping reduce regional imbalances.
The sector also strengthens other industries by providing them with raw materials and ancillary products.
There are many challenges the MSME sector goes through and one is procuring raw materials and necessary funding. The government continuously support by providing various financial incentives and training knowing the growing importance of MSME in creating employment.
Growth story of MSME’s is here to stay
These factors make the sector more competitive while boosting India’ s economic growth. The growth story in creating employment opportunities by the MSME’s is here to stay. The question is how fast the barriers can be removed so that more youth skill development program can be introduced. How to identify enterprises that can provide more employment.
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MSME’s have distinctive advantages due to their size and they required low investment and have relatively high capital-labor ratio. They mostly try to capture and focus smaller markets and contribute to a more fair distribution of national income.
They the MSME’ also make effective utilization of capital and skill resources and they motivate the growth of industrial entrepreneurship. The MSME sector in India is vast heterogeneous in terms of the size, variety of product and services and level of technology.