ISED proposes a new approach to mitigating livelihood crisis 

The SME think-tank, Institute of Small Enterprises and Development (ISED) has proposed a new approach to mitigating India’s livelihood crisis. The recommendation comes through the Institute’s annual document, India Micro, Small and Medium Enterprise Report, to be released on Monday.

The United Nations and several economists have warned of a ‘K’ shaped model of global economic recovery, and an impending livelihood crisis, along with possible food scarcity.

Remarkable growth in self-employment

The recent edition of the Periodic Labor Force Survey Report, brought out by the National Statistical Office has pointed out indications of remarkable growth in self-employment in the country. It indicates a post-Covid trend towards the growth of self-employment rates.

While the pre-Covid level of rural self-employment was 51.7 per cent, it has grown to 54.5 per cent during the post-Covid period. The urban growth, however, is from 31.8 per cent to 33.2 per cent.

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While the reasons for such a change have been debated by economists, from the point of view of sustained economic growth, an increased shift from wage employment to self-employment is a welcome step, provided it adds to the entrepreneurial capabilities of the country. Entrepreneurial capabilities, however, are conditional on planning and nourishing the entrepreneurship resources of the country, the report said.

Alternative income opportunities

Growth of self-employment, in itself, need not necessarily be a positive signal of uptake of the economy, says the Report. On the other hand, it can also be an indicator of labour market distress by which labour is on a constant search for alternative income opportunities.

The ISED Report discusses the framework of ‘Social and Solidarity Economy’, as an alternative that addresses the concerns thrown up by the Covid-19 crisis. “The forthcoming ISED report focuses on the theme ‘Enterprise Security & the Social and Solidarity Economy’,” said PM Mathew, Director, ISED.

Based on a multi-modal evidence base, it forms part of the Institute’s unique programme of Development Communication, India MSME Communication Programme (IMCP).

ISED Small Enterprise Observatory is a dedicated knowledge-sharing platform of the Institute. The India MSME Report forms part of a unique development reporting and communication programme that has been organised at the national level with the active participation of major stakeholders including State governments, financial institutions, and promotional agencies. Several of the recommendations of the report series were implemented by the Union and State governments and by the Reserve Bank of India from time to time.

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