Problem of Unemployment -solving it through SME’s

The Problem of Unemployment and solving it through Small & Medium Scale Businesses-

 

 

 

 

 

 

 

 

Problem of Unemployment in India-

By 2021, the unemployment rate stood at 5.98 percent, down from 8 percent in 2020, but still distressing for India’s job-seekers. Unfortunately, in 2021, India’s youth unemployment rate rose to 28.26 percent, increasing from 24.90 percent during the height of the pandemic in 2020, the problems related to the unemployment in India because of the absence of skill-based education in schools and colleges is the primary cause of unemployment. Our educational system is concerned with quality and knowledge, as well as written tests, in addition to practical activities. Students typically lack confidence and competency when presented with job interviews after graduation as a result of these reasons. Unemployment is caused by a variety of circumstances, including rapid population growth, which puts a burden on agriculture, low agricultural production, inadequate economic planning, and a lack of capital, to mention a few, the other reasons are dependencies of youths majorly on government employment not on private association coming up with new employment offers to the population based on their specialization and choices, due to lack of awareness about the stability the population hesitate to go for the opportunity leaving their hometowns.

Solution Providing by SME’s to major Problem of Unemployment-

Small scale or Medium scale industries are very important constituents of Indian economy system. Apart from agriculture which is the major source of earning livelihood, small scale industries are another form generating employment opportunities and reducing poverty in India. This basically focuses in understanding the role of small scale industries and how it helps in engaging manpower to increase employment. By doing this the employment rate of the country increases, income level the household increases, life expectancy increases and standard of living of the people enhanced. The Central Government has the authority to determine capital investment requirements for SME’s The SME’s are listed under the Industries (Development and Regulation) Act, 1951. The SME’s are governed and controlled by Small Industries Development Organization. It is an administrative authority of SME’s; its various issues are solved by it. SMEs are already the country’s second-largest employer, after agriculture, with over 110 million employments. They represent over 90% of industrial units, provide over 45 percent of overall industrial value-added, and employ almost half of the country’s specialists. They are more agile, adaptable, and prone to pandemic shocks. As our economy combines environmental sustainability with economic development, SMEs would be at the forefront, driving employment and livelihood prospects. A move toward energy-efficient, low global warming potential (GWP) refrigerants, as part of our national cooling action plan, would result in a 10-fold increase in job possibilities over the next two decades, from 0.2 million to 2 million technicians. These also solve the problems related to the migration of youths in search of their employment.

 

 

Asmita Soni | PGDM 2| SIMER