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...

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Main Authors: Sinha, Shabnam, Pental, Kartik
Format: Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2017
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
id okr-10986-26418
recordtype oai_dc
spelling okr-10986-264182021-06-14T10:13:25Z Study on Demand for Skilled Labor in Unregistered MSMEs of India Sinha, Shabnam Pental, Kartik LABOR SKILLS MSMEs MICROENTERPRISE INFORMAL LABOR WOMEN ENTREPRENEURS EMPLOYMENT 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. 2017-04-21T15:06:14Z 2017-04-21T15:06:14Z 2017-01 Working Paper 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 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper South Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic LABOR SKILLS
MSMEs
MICROENTERPRISE
INFORMAL LABOR
WOMEN ENTREPRENEURS
EMPLOYMENT
spellingShingle LABOR SKILLS
MSMEs
MICROENTERPRISE
INFORMAL LABOR
WOMEN ENTREPRENEURS
EMPLOYMENT
Sinha, Shabnam
Pental, Kartik
Study on Demand for Skilled Labor in Unregistered MSMEs of India
geographic_facet South Asia
India
description 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.
format Working Paper
author Sinha, Shabnam
Pental, Kartik
author_facet Sinha, Shabnam
Pental, Kartik
author_sort Sinha, Shabnam
title Study on Demand for Skilled Labor in Unregistered MSMEs of India
title_short Study on Demand for Skilled Labor in Unregistered MSMEs of India
title_full Study on Demand for Skilled Labor in Unregistered MSMEs of India
title_fullStr Study on Demand for Skilled Labor in Unregistered MSMEs of India
title_full_unstemmed Study on Demand for Skilled Labor in Unregistered MSMEs of India
title_sort study on demand for skilled labor in unregistered msmes of india
publisher World Bank, Washington, DC
publishDate 2017
url 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
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