Steady job loss and declining profits for MSMEs and traders: Survey
New Delhi, Dec 17 (KNN) Steady job loss and declining profits since 2014 for traders and micro, small and medium enterprises (MSMEs) have been reported, according to a new survey by the All India Manufacturers’ Organization (AIMO).
Demonetization and the roll-out of GST are among the reasons for the slowdown, according to the survey.
While job loss was reported at the rate of 43% in the trader segment, micro-segments reported job losses of 32%, small segments reported 35% and medium-scale industries reported 24% job losses.
The survey shows that the trade sector suffered a set-back with demonetization although it had a significant progress, up to 106 %, in 2015-16.
The survey on jobs, keeping the industry status in 2014-15 as the base, shows that the trade sector which had 100 employees has now reduced to 57 by 2018-19.
Government documentation, profitability, sourcing funds, availing incentives were among the major challenges faced by small and medium scale industries.
The AIMO survey, which analyzed 34,700 samples from traders and MSMEs across the country, revealed that these sectors suffered major setbacks in terms of its performance on various business aspects since 2014.
The AIMO represents over 3lakh micro, small-scale, and medium and large scale industries engaged in manufacturing and export activities.
The survey looked at the performance of traders and MSMEs since 2014 to assess the growth factor of industries during a period when the government had come out with several schemes, policy changes and assistance for the industries.