NATIONAL MSME CONCLAVE 2014  “Let’s unlock India’s MSME Potential: A New Vision” Organised by Indian Institute of Corporate Affairs Empowering India’s SMEs with Skill Development Presented by Dr. J.S.Juneja Chairman, SME Committee Past President – AIMA & Chairman Global Projects & Services (P) Ltd , Ansal Chamber II, Bhikaji Cama Place, New Delhi Tel:++91Tel: , Fax: November, 2014

Barriers to deployment of skilled manpower by MSMEs Inherent bias favoring large company Higher salary and benefits Better work environment Local entrepreneurship is low in India – World Bank Study on Entrepreneurship 2010 "According to a World Bank study on Entrepreneurship in 2010 which compares the new business registration density of South Asian countries with the rest of the world, it was found that contrary to popular belief, India has too few entrepreneurs for its stage of development, even compared to countries such as Thailand, Brazil and Malaysia, Manufacturing not perceived attractive by youth

Opportunities for MSMEs to overcome skilled manpower Recent Developments Apprenticeship (Amendment) Bill 2014 Boon for MSMEs : 50% monthly stipend to be reimbursed by the Government Will be applicable to all firms employing 5 persons and above Expected outcome MSMEs No. : 44 million (est.) Employment of one per MSME : 22 Million 8 years X 22 : 176 Million persons trained Say 200 Million can be trained by MSMEs Need institutions to impart formal skill training

Vardhman Spinning and Weaving Mill ◦ Number of workers : Impact of MGNREGA ◦ Turnout of 5% per month

 Induction of female workers ◦ Increase from 500 to 5000 ( 40% of workforce)  Introduction to night shift allowed by the government  Impact ◦ Machine downtime reduced from 5% to 1% in 4 years ◦ Stability ◦ Discipline ◦ Adjustability ◦ Better performance ◦ Sense of belongingness ◦ Low tendency to in negative activities ◦ Free from any addictions

 10 Textile mills in Punjab hired 50,000 female workers  SMEs recruited in hosiery and garment industry

 Korea: 96%  Japan: 80%  Germany: 75%  UK : 68%  India: 10% Source: Planning Commission of India (2008)

 National Skill Development Mission  National Skill Development Corporation  Apprenticeship Amendment Act 2014  Applicability of Apprenticeship Amendment Act to MSMEs.  Skilled manpower of SMEs can be met by adopting policies with human face  Local solution to local problem