Study on Demand for Skilled Labor in Unregistered MSMEs of India
This report seeks to highlight the economic importance of unregistered Micro Small and Medium Enterprises (MSMEs) in India and ascertain their role in the job market. It attempts to summarize the sector’s demand for skilled labor and entrepreneuria...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/863101492074536951/Study-on-demand-for-skilled-labor-in-unregistered-MSME-s-of-India http://hdl.handle.net/10986/26418 |
| Summary: | This report seeks to highlight the
economic importance of unregistered Micro Small and Medium
Enterprises (MSMEs) in India and ascertain their role in the
job market. It attempts to summarize the sector’s demand for
skilled labor and entrepreneurial skills training.The report
opens with an executive summary of key findings and a
background explaining the context in which it has been
prepared and the research objectives it seeks to fulfil. The
next section of the reportpresents key insights derived from
the analysis of data collected through the Unregistered
MSMEs censusof 2006-07 and the associated extrapolations
made by the government in 2013-14. This section discusses
the size, scale and profile of the unregistered MSME sector
along with estimates of the employment generated by the
sector. This is followed by a section on insights from field
based research in Chhattisgarh. It utilizes primary datato
estimate how the unregistered MSME sector has grown in the
state; how its profile and scale hasevolved since the census
of 2006-07; the size of the labor force engaged by
unregistered businesses in Chhattisgarh; the sector’s demand
for skilled labor; its preference for formally
skilled/certified employees; the wage gains that employees
can expect to derive from obtaining formal skills
certification;its contribution to the state economy; and the
skills training needs of entrepreneurs. The next section of
the report builds on the findings of the first two sections
to estimate and present national level aggregates for the
growth of the unregistered MSME sector, the quantum of labor
force employed by unregistered MSMEs in India, the sector’s
demand for skilled labor and the wage benefitsthat employees
can derive from attaining formal skills certification.This
is the most recent and holistic data source available as
thenext unregistered MSME census is currently in the
planning and data collection phase. Primary data fromthe
low-income state of Chhattisgarh has been used to
adjust/control the extrapolations made using the2006-07
census data. Extrapolations have been made based on gross
state domestic product per capita,change in gross state
domestic product per capita, female labor force
participation estimates and change infemale labor force
participation estimates.The report closes with a set of
recommendations directed at strengthening policy and
programmingresponse to the skills training needs of
unregistered MSMEs in India. It presents ideas that
different tiersof governance, skills training providers and
skill development agencies can leverage upon to realize
theobjectives of the ‘Skill India Mission.’State level
estimates for key data points are given in Annexure I of the
report and Annexure II presents the approach and methodology
used to structure the field based research carried out in Chhattisgarh. |
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