Conditions of Unorganized Manufacturing Industries with Special Reference to MSMEs: A Field Study in Uttar Pradesh

Abstract

The study sets out to compare the three types of unorganized manufacturing units in India. These three enterprises are: own account manufacturing enterprises (OAMEs), it is the one which runs without any hired worker employed on a fairly regular basis and is engaged in manufacturing and/or repairing activities (with family labour only); non-directory manufacturing establishments (NDMEs), it is an establishment employing less than six workers (household and hired workers taken together) and is engaged in manufacturing activities; and directory manufacturing establishments (DMEs), it is the one which has employed six or more workers (household and hired workers taken together) and is engaged in manufacturing activities. The parameters for comparison are number of units, number of workers, wages, input, output and gross value added (GVA). The field survey of 500 unorganized manufacturing units has been conducted based on seven major manufacturing industries. Target respondents are the owners of the unorganized manufacturing units in Ghaziabad and Noida. An attempt is also made to measure the effect of labour market in unorganized manufacturing sector on its performance. Most of the studies on unorganized sector are based on the secondary data collected from National Sample Survey Organization. But this study is based on primary data collected with a help of structured questionnaire. The findings of the study help in determining the condition of these enterprises and lay down the idea which enterprise is relatively ahead and which is back with regard to various parameters. Independent sample t-test and multiple regression have also been conducted.