Productivity in the Small Manufacturing Enterprises: Determinants and Policy Issues

Dipa Mukherjee ()

MPRA Paper from University Library of Munich, Germany

Abstract: The role of Micro and Small Enterprises (MSEs) in employment creation is widely acknowledged. But their contribution to national income is questioned because of their low productivity. The present paper tries to identify important determinants of productivity level in Small Manufacturing Enterprises (SMEs) and suggest appropriate policies for augmenting productivity levels therein. Factors like technology, access to resources and inputs, general macroeconomic atmosphere, etc. emerge as important determinants of productivity. A close association between productivity levels and emolument per worker is also observed. Policies for proper development of these enterprises should include technological upgradation, better access to land ownership and formal credit system, improvement of general economic condition of the states, ensuring remunerative wages and better working conditions etc. For best results, a targeted approach is recommended and for that Focus groups, both at National and State level, have been identified. A co-ordinated approach is the need of the hour.

Keywords: Productivity; Micro-enterprises; Total Factor Productivity; Technology (search for similar items in EconPapers)
JEL-codes: D24 J24 L60 (search for similar items in EconPapers)
Date: 2004
References: View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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