MSMEs need skill enhancement: study

Our Bureau New Delhi | Updated on January 20, 2018 Published on March 25, 2016

‘Lack of technology, trained manpower are major hurdles’

The micro, small and medium enterprises (MSME) sector, considered a key player in the Make in India campaign, needs more funds and ‘hand-holding’ for greater information and communication technology (ICT) push and skill enhancement, say a joint study by PHD Chamber and Avian Media.

According to the study of MSMEs in the northern region, only 42 per cent of the respondents said they conduct skill development training of their employees. It also found that 20 per cent employees in the sector were unskilled and 21 per cent were getting on-the-job training.

“Lack of skilled manpower is one of the key hurdles in the development of the MSME sector,” said report, adding that the biggest challenge was retaining and managing existing skilled manpower in the sector.

Sixty-nine per cent of the respondent MSME firms strongly felt that a “structured” programme for skill development would help, but many of them cited lack of adequate resources and employee resistance as key hurdles. Use of technology could help the sector, said the study, adding that only 41 per cent firms in the finance sector were using ICT tools and 39 per cent in the sales business. “85.5 per cent of the respondents reported that ICT tools resulted in reducing costs of business operations in their enterprise, 80 per cent said that technology saves time,” said the study. Among the other roadblocks are informational barriers, such as limited market information, lack of transportation and multiple taxes.

Published on March 25, 2016
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