Micro, Small and Medium Sized Enterprises Day

Fostering Decent Work in Enterprises

An estimated 42 million people in India work in the Micro, Small & Medium Enterprises. ILO’s unique programmes focus on promoting people-centric and environment-friendly enterprise development.

Comment | 27 June 2017


India has an estimated 42 million persons depending on Micro, Small & Medium Enterprises (MSMEs), which is the second largest employer after agriculture. This sector creates more than a million jobs annually and has huge growth potential.

Recognizing that enterprises have a pivotal role in job creation and development as well as responsibilities to address environmental footprints, the ILO promotes people-centric and environment-friendly integrated approaches to enterprise development for promotion of decent work in global supply chains and just transition to low carbon economy. It works extensively with enterprises of all sizes- from micro, small and medium enterprises to the largest multinationals for the development of sustainable enterprises for creation of more and better jobs globally and in India. As part of its contribution to strengthen the MSME sector, the ILO in India is currently implementing two programmes.

- Start and Improve Your Business (SIYB) Programme: ; - Start and Improve Your Business (SIYB) Programme: SIYB is a worldwide recognized training programme focused on starting and improving micro and small businesses in a professional and sustainable manner as a strategy for creating more and better employment. It is currently being implemented in India in partnership with a number of institutions of the Central and State Governments, private business development and training providers as well as civil society organizations. 6,500 persons have been trained during the last three years, with almost 50 per cent being women. Out of this, approximately 50 per cent have set up their own micro enterprises. These entrepreneurs have employed on an average more than two people to work with them.

- Sustaining Competitive and Responsible Enterprises (SCORE) Programme: SCORE is a practical modular training and in-factory counselling programme. Its objective is to ensure that small and medium enterprises in national and global supply chains improve productivity and working conditions on a sustainable basis. The programme demonstrates best practices in the manufacturing and service sectors. The thrust of work with industry associations, supply chains of corporate and individual enterprises in India has been to promote productivity, competitiveness and sustainability of small and medium enterprises in selected sectors – ready made garments, textiles, automobiles and light engineering - by building business cases. SCORE is currently working in partnership with industry associations - Federation of Indian Chamber of Commerce and Industries (FICCI), Ambattur Industrial Estates and Manufacturers Association (AIEMA), Ahmednagar Auto and Engineering Association (AAEA), Tirupur Exporters Association (TEA), Apparel Export Promotion Council (AEPC) – and corporates viz., Mahinda and Mahindra, Simpsons Ltd, TAFE, L&T, Super Auto Forge, Thermax Ltd, KSB Pumps Ltd, Primark etc. SCORE has been adopted by more than 100 SMEs in India and they are credited with achieving enhanced, efficiency, improved quality, cost savings, judicious energy consumption, reduced defect rate and standardized health & safety conditions. SCORE-trained enterprises have reported on an average more than 20 per cent or more improvement in productivity, quality, on-time delivery and cost efficiency apart from other shared benefits.