Empowering informal sector for global market out reach a major challenge of policy making

Informal Sector Enterprises (ISE) contributes significantly to the economy in terms of employment generation, manufacturing output and national income. A large number of people are involved and they earn their livelihood in informal sector through a number of activities. It is out of their dire need to find some economically productive vocation that they pursue entrepreneurial ventures in the informal sector. There are a number of informal sector segments that are into all kinds of manufacturing and trading activities. As the main and often only source of income for the poor, the informal economy has a key role in poverty reduction.

ISEs in India accounts for 93% of total employment including agriculture and 82.4% of employment in non-agricultural economic activities, as per the survey on employment and unemployment (NSSO, 2004-05). ISE sector contributed 57.1% to the total net domestic product (NDP) and 49% in non-agricultural NDP in 2007-08.

Issues that they face are innumerable. They need skill development & specific training assistance. In addition to that they need support to address challenges such as finance, better technology, marketing support and linkages. They need training in accounting, marketing skills, technology adoption/use, skill up-gradation and development. Many of these entrepreneurs, given such support could grow and contribute much to the economy in terms of employment generation and most importantly, making a better life for themselves and their families.

In this context, International Society for Small and Medium Enterprises (ISSME) is organizing a discussion on empowering informal sector enterprises for global market outreach: challenges and way forward on 12th November 2013 at YWCA Conference Hall-1, New Delhi, 3.00 PM to 5.30 PM.

ISSME feels that specific policy interventions are needed with a focus on benefiting informal sector enterprises. ISSME strongly advocates for building a support mechanism for informal sector for providing mentoring, hand holding, skill training, information, technology related assistance and identifying markets and developing linkages for them. Just providing skill development or finance alone won’t do, it feels. Support to informal entrepreneurs should be very comprehensive and together with skill development and technology, they need support in marketing as well. Important aspects such as need for hand-holding, mentoring support, information needs, marketing and market linkages are often ignored or overlooked by the policy makers when it comes to informal sector. ISSME feels that ‘in the context of global market realities, such aspects cannot be ignored’.

It is expected that this discussion would help understand various challenges with regard to marketing, market linkages, training & skill development, challenges involved in being part of global value chain and getting support through various government schemes and programmes.

The International Society for Small and Medium Enterprises (ISSME) is an International Non-Government Organisation, with its headquarters at New Delhi, the capital of India. It works with members, affiliates and partners across the world for the promotion of Small and Medium Enterprises (SMEs).

Sunil D Sharma
Secretary General
International Society for Small and Medium Enterprises (ISSME)
PO Box 4354, Kalkaji HPO, New Delhi 110019, India
Tel.: +91-11-29993844; Fax: +91-11-29993845
Email: events@issme.org
Website: http://www.issme.org

This release was published on openPR.