Micro- Entrepreneurship in India - Contribution to Economic Development

Micro Entrepreneurship in India is a gateway to many opportunities for people as it creates jobs and provides a dignified means of livelihood to many below the poverty line. It is mainly recognized as one of the prominent ways of poverty alleviation and income-generation in the country. Besides its significant contribution to the overall GDP growth, micro-enterprises positively impact the local economies with an excellent capacity for job creation and sustainable development. The Micro, Small, and Medium Enterprises (MSMEs) sector of India is the largest after China. This sector provides a wide range of services and is engaged in manufacturing over 6,000 products-ranging from traditional to hi-tech items. India has about 63.05 million micro industries, 0.33 million small, and about 5,000 medium enterprises as per official estimates. Uttar Pradesh has the most significant number of estimated MSMEs in the country, followed by West Bengal and Tamil Nadu.

For any country’s economic development, micro-enterprises play a crucial role. They help the business and economy grow and are a step towards sustainable development. They help the economy by creating job opportunities and lowering production costs and increasing purchasing power. The government takes various steps to encourage micro-enterprises, especially in low-income areas. There are several schemes launched by the government to promote micro-entrepreneurship in the country. Schemes such as Prime Minister Employment Generation Programme (PMEGP), ASPIRE Scheme (A Scheme for Promoting Innovation, Rural Industry and Entrepreneurship), SFURTI (Scheme of Fund for Regeneration of Traditional Industries), Coir Udyami Yojna, Credit Guarantee Fund Scheme, are all aimed at facilitating and improving micro entrepreneurship in India.

Aatmnirbhar Sena’s Role in the Direction of Micro-entrepreneurship in India

Micro-entrepreneurship in India would serve the purpose of income generation and poverty alleviation. It is well understood that micro-enterprises’ role is immense in developing the country’s economy and making it self-sufficient. To enhance the micro-enterprise sector’s development, our organization Aatmnibhar Sena will be lending every possible help. We will be working to remove significant barriers in the sector’s growth, such as access to finance, absence of market linkage, infrastructural constraints, etc.

Micro Financing and microcredit are critical components in the growth and development of micro-enterprises in India. Financial institutions like Banks and NBFCs provide microfinance, i.e., small amounts of loans to individuals to help them out of poverty and set them up with micro-enterprises to earn a living and promote economic development. Technology is another vital factor that drives the growth of micro-enterprises in a better way. Technology plays a crucial role in making micro-entrepreneurship in India cost-effective and profitable as it provides easy access to information, aids marketing, and increases connectivity with relevant markets. For further development of micro-enterprises government needs to increase the scale of the microenterprise sector substantially. The role of women entrepreneurs in the micro-enterprise sector should be improved, which would eventually provide impetus to the sector.

It is well understood that micro-enterprises’ role is immense in developing the country’s economy and making it self-sufficient. To enhance the micro-enterprise sector’s development, our organization Aatmnibhar Sena will be lending every possible help. We will be working to remove significant barriers in the sector’s growth, such as access to finance, absence of market linkage, infrastructural constraints, etc.

Our mentors will guide the budding entrepreneurs of micro-enterprise through every hurdle. We will be offering skill development programmes to those who aspire to learn new skills and create employment opportunities. For Financing, we will collaborate with various financial institutions like Banks and NBFCs that provide small amounts of loans to set up a micro-enterprise. By removing specific barriers that people face in the micro-enterprise sector, we will work towards making India a ‘self-reliant‘ nation