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.

Abstract

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

• Item Type: MPRA Paper
• Language: English
• Keywords: Small and Micro Enterprises(SMEs); Poverty; Enterprise Oriented Stratgey; Employment generation
• Subjects: I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L26 - Entrepreneurship; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E26 - Informal Economy ; Underground Economy

References

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6. The International Labor Conference validated this idea in 1998 by adopting Recommendation No. 189 on "Job Creation in Small and Medium-sized Enterprises". This offers a vision of a vibrant, job-creating, poverty-fighting small enterprise sector. http://www.ilo.org/ilolex/cgi-lex/convde.pl?R189

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10. Heifer strategy lies in fighting poverty and hunger through livestock enterprises. They gift a cow/goat or chickens etc to poor people and the recipients have to multiply the receipts over a period of time. Two goats into four or from two cows to three or four and share additions to another poor family and to extend the chain. Heifer calls it making the recipient a donor. More on this from http://www.heifer.org

11. World Vision is involved in micro credit, micro enterprise development and thereby poverty reduction in several Afro-Asian Countries. For more see www.worldvision.org/worldvision/appeals.nsf/stable/med_home

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