Munich Personal RePEc Archive

Small and Micro Enterprises: A tool in the fight against poverty

Koshy, Perumal and Prasad, V.N (2007): Small and Micro Enterprises: A tool in the fight against poverty.

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The present paper makes an attempt to analyze the role and contribution that Small and Micro Enterprises (SMEs) could play in eradicating poverty and attaining Millennium Development Goals. International approach to poverty eradication is largely based upon poverty eradication through economic empowerment, besides social programmes. It is well-accepted fact that poverty removal and employment generation largely depends upon economic empowerment.

Eradication of poverty is a complex issue as the development of SME itself and requires multi-pronged strategy and actions involving both macro and micro policy initiatives. MSMEs have been identified as a high potential sector for employment generation and provision of livelihood to millions of people in several countries. This is echoed by specific programmes instituted by agencies such as International Labour Organisation (ILO) and United States Agency for International Development (USAID), UNCTAD etc.

The paper attempts to analyze the experiences of some countries in addressing the issue of poverty and suggest measures that can be taken by India to enhance contribution of SMEs to poverty

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