MSME workforce has limited access to skill development institutions
Updated: Sep 05, 2014 05:10:04pm
New Delhi, Sept 5 (KNN) Minister of State for Skill Development, Entrepreneurship, Youth Affairs and Sports, Sarbananda Sonowal today said that the lack of physical access to skill development institutions remains an additional barrier to the MSME workforce in rural and semi-urban locations, calling for a significant increase in skill development institutions which can impart training in skills required by local economy at block and village levels.
Sonowal said this at the first Mega MSME Fair where he was the Chief Guest during the session on Enterprise and Skill Development.
On other barriers, “The profile of the MSME workforce – high proportion of unorganized /informal employment, low education levels (Class 8 below), irregular working hours, socially disadvantaged background – results in high entry barriers for the workforce to access formal skill development institutions,” he said.
MSME employers are reluctant to invest in skill building as skilled workers will demand wage premiums. Another reason for reluctance towards skill development among MSME employers is the fear of poaching of skilled employees by local competitors, Sonowal added.
Referring to the Finance Minister’s budget speech in which he outlined the Skill India Mission that would focus on job roles like welders, operators, plumbers, masons, cobbler and artisans etc, he said the Government would work towards enabling it to happen.
He said, the 31 Sector Skill Councils set up by the National Skill Development Corporation are in the process of developing a number of standards for different job roles. As many as 16 sectors have already completed standards for job roles that account for 80 per cent of the workforce in their sectors. As a mandate given to each SSC, they are to have representatives from the MSME Sector. While 18 sectors have already done so, others are in the process of identifying the MSME representatives.
Over 800 such job roles have been already finalized, according to him.
However, the participation of MSME employers and industry associations in the skill development has to be greatly enhanced, the Minister said. Simultaneously, the Sector Councils should also increase their outreach to the MSME sector. MSME sector should also engage with the SSCs. This process will result in enabling forward planning for emerging skills.
Sonowal went on to say that MSMEs should enlarge the areas of their engagement for example with the largely untapped but immense potential of food processing industry, because while a lot of small entrepreneurs are already engaged in identical activities, systemic interventions like planned upgradation of skills can easily align them with this sector.
He also called for collaboration between local MSME clusters / industry associations and training institutions which should be strengthened to address the employability gap.
“Skill development has to be tightly coupled with other cluster development initiatives. At village level, Panchayati Raj Institutions should be involved in skill development of artisans and village industry workforce,” he said.
It is well known fact of appropriately skilled workforce is one of the biggest impediments for growth of MSME sector and competitiveness.
“Given the training needs of incremental and existing MSME workforce, skill development capacity needs to be scaled up and traditional skill delivery models and approaches need to be overhauled and aligned with requirements of unorganized workforce as well as MSME employers,” the Minister said. (KNN/ES)
Sonowal said this at the first Mega MSME Fair where he was the Chief Guest during the session on Enterprise and Skill Development.
On other barriers, “The profile of the MSME workforce – high proportion of unorganized /informal employment, low education levels (Class 8 below), irregular working hours, socially disadvantaged background – results in high entry barriers for the workforce to access formal skill development institutions,” he said.
MSME employers are reluctant to invest in skill building as skilled workers will demand wage premiums. Another reason for reluctance towards skill development among MSME employers is the fear of poaching of skilled employees by local competitors, Sonowal added.
Referring to the Finance Minister’s budget speech in which he outlined the Skill India Mission that would focus on job roles like welders, operators, plumbers, masons, cobbler and artisans etc, he said the Government would work towards enabling it to happen.
He said, the 31 Sector Skill Councils set up by the National Skill Development Corporation are in the process of developing a number of standards for different job roles. As many as 16 sectors have already completed standards for job roles that account for 80 per cent of the workforce in their sectors. As a mandate given to each SSC, they are to have representatives from the MSME Sector. While 18 sectors have already done so, others are in the process of identifying the MSME representatives.
Over 800 such job roles have been already finalized, according to him.
However, the participation of MSME employers and industry associations in the skill development has to be greatly enhanced, the Minister said. Simultaneously, the Sector Councils should also increase their outreach to the MSME sector. MSME sector should also engage with the SSCs. This process will result in enabling forward planning for emerging skills.
Sonowal went on to say that MSMEs should enlarge the areas of their engagement for example with the largely untapped but immense potential of food processing industry, because while a lot of small entrepreneurs are already engaged in identical activities, systemic interventions like planned upgradation of skills can easily align them with this sector.
He also called for collaboration between local MSME clusters / industry associations and training institutions which should be strengthened to address the employability gap.
“Skill development has to be tightly coupled with other cluster development initiatives. At village level, Panchayati Raj Institutions should be involved in skill development of artisans and village industry workforce,” he said.
It is well known fact of appropriately skilled workforce is one of the biggest impediments for growth of MSME sector and competitiveness.
“Given the training needs of incremental and existing MSME workforce, skill development capacity needs to be scaled up and traditional skill delivery models and approaches need to be overhauled and aligned with requirements of unorganized workforce as well as MSME employers,” the Minister said. (KNN/ES)
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