As India struggles with an unemployment crisis, its microenterprises–units with fewer than 20 workers–can become significant engines for job creation, concluded an October 2019 report.
India has failed to increase the scale of the microenterprise sector substantially;
A majority of India’s microenterprises are tiny and run with fewer than three workers;
The sector shows good growth in labor productivity but with very low wage levels.
These are some of the significant conclusions of the study by Azim Premji University’s Centre for Sustainable Employment and the Global Alliance for Mass Entrepreneurship, which looked at all non-farm microenterprises, except the construction sector (National Sample Survey covered manufacturing and services sectors).
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Microenterprises create 11% of jobs in India, as per the report, which is based on the Sixth Economic Census and National Sample Survey data (67th and 73rd rounds). This is significantly less than the 30%-40% in other developed and developing nations. This can be changed if state and central governments help microenterprises scale up their operations and become more gender-inclusive, the study has said.
Source: IndiaSpend
