The Potential of Employment, Entrepreneurship, and MSMEs: A Comprehensive Overview

 Employment refers to the state of being engaged in paid work or holding a job in which one contributes skills, time, and effort in exchange for monetary compensation or other benefits. It involves an agreement between an individual and an employer to perform specific tasks or roles within an organization or as part of a contractual arrangement.

Someone involved in a profession, whether it's being a businessman or a doctor, would be considered employed. Employment generally refers to working
in a job in exchange for payment or salary. So, a doctor, or any individual actively participating in a profession like engineering, law practice etc. would fall under the category of being employed.

Either working as an employee to someone or practising as a professional, you need to have some extraordinary qualifications which may serve the purpose of the person, Firm, jurist person like Company, Association, Government or NGO who hires you.

If you are working with someone like an employee, you need only your calibre and experience, if desirable. If you are working as a professional and doing practice in your profession, you may need your calibre, social contacts and some funds, of course, to maintain the chamber, workshop and mobility. But both capacities ensure limited income and your participation. If you suddenly wish to take leave from your daily jobs for some time, you may not be able to have it at short notice.

If you dream of having the comforts and pleasures of life without actively participating in the activities undertaken to earn all the time, you may have to change your mindset and become an entrepreneur. By becoming an entrepreneur, you can accomplish your dreams, even, of becoming a multi-billionaire in a short time.

An entrepreneur is someone who takes on the initiative to start and manage a business, typically assuming considerable financial risks in pursuit of potential profits and success. Entrepreneurs are known for their innovative ideas, willingness to take risks, and their ability to organize and manage resources effectively to bring their ideas to fruition. They often identify opportunities, create a business plan, gather necessary resources, and navigate challenges to establish and grow their ventures.

Generally, an entrepreneur starts a Micro, Small or Medium Scale unit depending upon the resources available at the disposal. You will wonder about the contribution of Micro, Small and Medium Enterprises (MSMEs) to global GDP. For your information, their contribution can be estimated as below:

Globally:

·         Estimated contribution: 50% of global GDP

·         Employment: Up to 70% of total employment

Importance: MSMEs are considered the backbone of many economies, driving economic growth, creating jobs, and fostering innovation.

Variations:

·         Developed countries: MSME contribution to GDP typically ranges from 40% to 60%.

·         Developing countries: MSME contribution can be even higher, reaching up to 70% in some cases.

·         Regional differences: Asia has the highest share of MSME contribution to GDP, followed by Latin America and Africa.

Examples:

·         India: MSMEs contribute around 30% to India's GDP and employ over 110 million people.

·         China: MSMEs contribute around 60% to China's GDP and employ over 800 million people.

Benefits of a strong MSME sector:

·         Job creation: MSMEs typically create more jobs per unit of investment compared to large companies.

·         Poverty reduction: By providing employment and income opportunities, MSMEs can help lift people out of poverty.

·         Innovation: MSMEs can be more flexible and adaptable than large companies, making them more likely to develop new products and services.

·         Entrepreneurship: A strong MSME sector can foster a culture of entrepreneurship and innovation.

But MSMEs have certain Challenges like:

·         Access to finance: MSMEs often have difficulty accessing affordable financing.

·         Lack of skills and training: Many MSME owners and employees lack the necessary skills and training to run their businesses effectively.

·         Competition: MSMEs can face intense competition from larger companies.

·         Regulatory burden: Complex regulations can be a major obstacle for MSMEs.

These challenges can be overcome if the entrepreneur makes a blueprint of working to accomplish his dreams. Such a blueprint is called a Project Report. How a Project Report is prepared, I tried to explain in my new book, “How to Prepare Project Reports” which is now available at https://amzn.to/3tEQLxd.