Micro firms can create 10.3 million jobs: Report

BENGALURU: India’s informal micro and  small firms can create 10.3 million jobs in next five years and add Rs 2,16,000 crore to the economy with the creation of a network that connects MSEs and helps them scale up digitally, said a policy document released by the experts at Azim Premji University in collaboration with the Tata Institute of Social Sciences and Federation of Indian Chamber of Commerce and Industry on Saturday. 

Udyog Sahayak Enterprises Network (USENET), according to the policy proposal , can connect 15 MSEs initially and, over the course of five years, a total of 4.4 crore enterprises will be connected through the creation of 18 lakh such networks. It noted that the government’s aggressive policies can enable the growth of the current 6.2 crore MSEs to 8 crore MSEs over the next 10 years. 

Based on Gross Value Added (GVA ) per worker observed in  the sector and assuming a 12% nominal rate of growth, these jobs represent an additional economic value of Rs 2,16,000 crore at the end of 5 years and over Rs 19 lakh crore at the end of 10 years, it noted. 

The report also suggested the creation of a support system that will improve Ease of Doing Business for largely informal micro and small entrepreneurs. Udyog Sahayak Enterprises will take services such as digitisation and formalisation, availing of government loans, subsidies or other benefits,  etc., to the micro-entrepreneurs’ doorstep.