Micro Enterprises and Poverty Alleviation

Abstract or Introduction

The Micro, Small and Medium Enterprises (MSMEs) play a vital role in the economic and social development of the country, often acting as a weapon for fighting against poverty. They also play a key role in the development of the economy with their effective, efficient, flexible, and innovative entrepreneurial spirit. The MSME sector contributes significantly to the country’s manufacturing output, employment, and exports and is credited with generating the highest employment growth as well as accounting for a major share of industrial production and exports.

The MSME sector in India is highly heterogeneous in terms of the size of the enterprises, variety of products, services and levels of technology. Micro, Small, and Medium Enterprises (MSME) contribute nearly 22 percent of the country’s GDP, 45 percent of the manufacturing output and 40 percent of the exports. They provide the largest share of employment after agriculture.

The book is based on a research study conducted in one of the municipal regions of Tamil Nadu. This study aims to bring out the performance, problems, and prospects of Micro Enterprises promoted under Swarna Jayanti Shahari Rozgar Yojana (SJSRY) operating in Tiruppur municipal region of Tamil Nadu. It presents how the micro-enterprises helped the members of self-help groups to come up from poverty. The book also contains the reasons for failure of micro-enterprises.