In recent years the Indian economy has blossomed under the growth of microbusinesses providing numerous benefits and helping in the growth and development of the Indian economy. A microbusiness is often described as a business with 1-9 employees. They typically have one owner and provide products and services tailored to locals. Also known as micro-enterprises, the ones being established in the rural areas of India, provide services like groceries, tailoring, fish vendor, jewellery, etc.
According to recent studies ”these enterprises on average provide 38% of their owners household incomes”. Although the money made is not enormous these additional incomes are a boon to the impoverished as well as lower and middle class and provide pathways through which an individual can escape poverty. Micro-businesses create jobs that help in skill-building and often employ local residents. These businesses offer wages above the federal minimum wage as well as helping employees in skill development and job security.
India has approximately 6.3 crore micro small and medium enterprises and it is a major contributor to the socio-economic development of the country. In India, this sector has gained significance due to its contribution to the GDP of the country and exports. The MSME ministry has facilitated the promotion and development of khadi and village industries providing employment opportunities in rural areas, thereby improving the rural economy. The working conditions for workers in this sector has also been improved. The government of India has also underlined key projects to bolster the growth of micro-businesses as they believe it will play a major role in accelerating India's economy in the near future.
Written by Auvi Mukherjee, Alok Vernekar & Nishq Nerlekar
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