Ranjan K Baruah
(With direct inputs from UN/WHO publication and feedback may be sent to bkranjan@gmail.com)
Young people look for a decent job or sustainable employment. The employment opportunities could be with the government sector or any other sector which includes private sectors or through self employment. There are special focuses that we need not be only job seekers but try and become job givers too. The estimated total global unemployment in 2022 was 192 million. Projections indicate that global unemployment is expected to decrease further to 5.3 percent in 2023, equivalent to 191 million people.
Looking at the employment scenario in India or anywhere in the world, we realise that mere government jobs or limited private jobs are not enough as the population has increased, and it’s time that we move beyond and think beyond common jobs. We are familiar with the word MSME. Well, it means micro, small, and medium enterprises can help in the eradication of poverty and improve the lifestyles of millions around the world. The definition might slightly vary from country to country.
In India, manufacturing enterprises and enterprises rendering services where investment is less than Rs 1 crore and annual turnover is less than Rs 5 crore are called micro industries. In the case of medium industries, the amount is between Rs 10 crore and Rs 50 crore, and similarly, in the case of medium industries, the amount varies from Rs 50 crore to Rs 250 crore.
According to the World Bank, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes MSME development a high priority for many governments around the world. In emerging markets, most formal jobs are generated by MSMEs, which create 7 out of 10 jobs. Access to finance is disproportionately difficult for smaller firms in the least developed countries (LDCs), with 41 percent of MSMEs in LDCs reporting access to finance as a major constraint to their growth and development, in comparison to 30 percent in middle-income countries (MICs) and only 15 percent in high-income countries (HICs).
MSMEs are responsible for more than two-thirds of all jobs worldwide. They also account for the majority of new job creation. But despite providing a huge share of global employment, MSMEs still face major challenges when it comes to working conditions, productivity, and informality. Across all countries, MSMEs do more than create employment; they are also engines of economic growth and social development.
The United Nations General Assembly designated June 27 as “Micro, Small, and Medium-sized Enterprises Day” (A/RES/71/279) to raise awareness of the tremendous contributions of MSMEs to the achievement of the SDGs. The theme of this year is “MSMEs and the SDGs.” The UN Secretary-General said in his message that “micro, small, and medium-sized enterprises are central to economies around the world, and today, we recognise their vital contributions in creating jobs, driving economic growth, and empowering women, youth, and marginalised communities.” “As we celebrate Micro, Small, and Medium-sized Enterprises Day, let us reaffirm our commitment to strengthen our support for these entities, accelerate progress towards the Sustainable Development Goals, and leave no one behind,” he said.
The MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. It not only plays a crucial role in providing large employment opportunities at comparatively lower capital costs than large industries but also helps in the industrialization of rural and backward areas, thereby reducing regional imbalances and ensuring a more equitable distribution of national income and wealth.
The Ministry of MSME envisions a vibrant MSME sector by promoting growth and development of the MSME sector, including Khadi, Village, and Coir Industries, in cooperation with concerned ministries and departments, state governments, and other stakeholders, through providing support to existing enterprises and encouraging the creation of new enterprises. The Micro, Small, and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector.
There is no doubt that MSMEs hold the potential to transform economies, foster job creation, and promote equitable economic growth if given adequate support. They are vital in achieving the SDGs, and they are an important element in the implementation of SDG 8 (decent work and economic growth) and SDG 9 (industry, innovation, and infrastructure).
There is much potential for MSMEs in a country like India, and we must take the opportunity and become job creators through MSMEs. There are supports like orientation, trailing, and even funding for aspirants who are interested in MSMEs. Developing countries may bring positive transformation through effective MSMEs. (With direct input from publications of the UN/Ministry of MSME).