Economy

‘Mass enterprises’ provide stable job opportunities: Survey

Our Bureau Chennai | Updated on November 08, 2019 Published on November 08, 2019

\Mass enterprises, which refers to millions of ordinary local businesses, are providers of stable job opportunities and the sector, if nurtured, can help address the country’s unemployment issues, according to a survey report titled ‘Mass Entrepreneurship in Tamil Nadu’.

The survey was commissioned by The Indus Entrepreneurs (TiE), Chennai, in association with Global Alliance for Mass Entrepreneurship (GAME) to get an in-depth understanding of the mass entrepreneurship ecosystem and create enabling interventions in the form of training, skill development and consulting services to the entrepreneurs.

According to the survey, which covered 455 entrepreneurs across 21 districts in Tamil Nadu, the average lifetime of mass enterprise businesses is around 13 years, while more than 50 per cent of the businesses surveyed are minimum 10 years old.

Mass enterprises surveyed includes businesses that hire 5-20 people and includes businesses ranging from beauty salon, small eateries to food catering providers.

Manufacturing accounted for 10 per cent of the total business surveyed and services stood at 36 per cent while the share of trading accounted for 54 per cent. However, the average number of people employed in the manufacturing sector was the highest at 9 followed by services (5) and trading (4).

“Among Mass enterprises, manufacturing firms are a key opportunity, typically employing more people than the service industry, generating more revenue per employee, and having less informality,” the report noted.

Minimal digitisation

The report also highlighted that minimal digitisation of accounting and poor cash flow management are common barriers that affected mass entrepreneurs from accessing formal credit.

“The study findings will enable us to create meaningful interventions for mass entrepreneurs by developing comprehensive and structured service packages, creating job opportunities and student engagements in the larger scheme of things,’ said CK Ranganathan, President, TiE Chennai.

Digital environment

He also added that sector-specific training and mentorship in digital environment are necessary to help rural entrepreneurs understand various complexities of business and to help them learn from their industry peers.

The study, executed and authored by Poornatha, an entrepreneurial development organisation, in association and supported by the Entrepreneurship Development and Innovation Institute, Tamil Nadu Government. The survey was conducted with the support of students from nine colleges.

Published on November 08, 2019
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