Impact of Micro, Small, and Medium Enterprises (MSMEs) on Employment Status in Pondicherry

Abstract

Micro, Small, and Medium-Sized Enterprises (MSMEs) have long been acknowledged as important forces behind industrialization, social justice, and economic prosperity. They are essential to inclusive development because of their ability to generate jobs across a variety of industries and geographical areas, especially in developing nations like India. MSMEs have been crucial in increasing job possibilities, lowering unemployment, and encouraging entrepreneurial activity in the Union Territory of Puducherry, which is distinguished by a blend of urban dynamism and rural economy. This study looks at the various ways that MSMEs affect Puducherry's job market. It looks at how the expansion of MSMEs both directly and indirectly boosts ancillary industries including supply chains, logistics, and services. The types of employment created, such as full-time, part-time, skilled, and unskilled jobs, as well as the demographic groups most affected women, young people, and rural workers are given particular consideration. The study aims to comprehend the amount and caliber of jobs generated by combining primary data gathered from field surveys and interviews with MSME owners and employees with secondary data analysis from government records. It highlights important industries where MSMEs have demonstrated substantial employment potential, including textiles, food processing, handicrafts, and tourism. But the study also reveals problems, such as the high rate of informal work, pay inequalities, skill mismatches, and MSME workers' restricted access to social security. The study also evaluates the effects of legislative barriers, market rivalry, and financial limitations on MSMEs' capacity to maintain and grow employment. The results show that although MSMEs have significantly contributed to the creation of jobs in Puducherry, there is still need for focused measures to improve the caliber of employment. These include making financing more accessible, offering programs for skill development that are in line with industry demands, fostering formalization, and encouraging businesses to use new technologies. The study comes to the conclusion that improving living standards, reducing poverty, and fostering more balanced economic growth in Puducherry can all result from bolstering the MSME sector with an emphasis on creating sustainable jobs. In addition to encouraging the growth of MSMEs, future policy frameworks must guarantee that the jobs generated promote social inclusion and long-term economic resilience