Empowering Informal Sector Enterprises for global market outreach: Challenges and Way forward Development

12 November, 2013: YWCA Conference Hall-1, Ashoka Road Connaught Place, New Delhi 110001

PRESS RELEASE

Informal Sector Enterprises: Needs Formal Institutional Mechanism, Policy Attention and Tailor Made Training Programs
Informal Sector Enterprise sector has got the presence of highly talented entrepreneurs. But they need a helping hand at various stages of their growth, so that many of them could graduate into micro, small and medium sized enterprises and grow further contributing much more to the economic growth and development, as formal enterprises in the economy. However, an economic and enterprise focused policy approach is needed, as that only would augment their competiveness and enhance their employment and wealth generation capacity. Further, there is a need to address issues such as packaging, marketing, product quality and better, appropriate & green technologies. Also, training and capacity building needs to be addressed along with creating an institutional mechanism that provide various services to them such as hand holding, mentoring, technology & finance facilitation and providing information to informal sector at each of the community bloc level. These were some of the recommendations emerged out of a round table discussion organized by International Society for Small and Medium Enterprises (ISSME), on 12th November 2012
Organised by:

International Society for Small and Medium Enterprises (ISSME)

PO Box 4354, Kalkaji HPO, New Delhi 110019, India Switchboard: +91-11-29993844; Central Fax: +91-11-29993845 Email: info@issme.org; Website: www.issme.org

IE 001

Round Table Discussion on Informal Sector Enterprises

Empowering Informal Sector Enterprises for global market outreach: Challenges and Way forward Development
12 November, 2013: YWCA Conference Hall-1, Ashoka Road Connaught Place, New Delhi 110001

at YWCA conference hall, New Delhi. ISSME is an international organization working for the promotion of SMEs and informal sector entrepreneurs globally. The discussion was attended by representatives from various industry associations, informal sector enterprise associations & forums, micro finance agencies, NGOs, government agencies, many grass root organizations and informal sector entrepreneurs. Mr. P. K Padhy, Principal Labor and Employment Advisor, Ministry of Labor and Employment, Government of India, delivered the keynote address. In his address, Mr. Padhy highlighted the need for an economic approach rather than sociological approach while dealing with informal sector enterprises, as that would be crucial in order to enable and empower them to reach out to the global market addressing issues related to quality and competitiveness. He also highlighted the importance of training programs and talked about government initiatives and schemes. He specifically mentioned about the need for tailormade programs for informal sector enterprises. Ms. Anubha Prasad, DGM of SIDBI, explained about SIDBIs initiatives in reaching out to informal sector and financial inclusion strategies. She mentioned about the works of SIDBI foundation for micro finance and other such steps taken by SIDBI. She highlighted the importance of enhancing the competiveness and quality, as they determine the viability of any project whether in formal or informal sector. There were more than 12 presentations from different sectors by experts and representatives from associations and chambers. Dr. P. Koshy, Director (ISSME), who moderated the discussion, called for an enterprise focused approach. He said, challenges faced by informal sector enterprises need to be viewed as a matter of industrial policy and enterprise development strategies rather than limiting to labour market and related issues. He highlighted the need for an institutional mechanism called Enterprise Resource Centers to be set up at local level, at each community blocs so as to reach out to the enterprises at their time of crisis to extend a helping hand. Others who made presentations are Mr. Charles Dhinakaran, Project Officer at CASA. Mr. Dhinkaran, apart from giving a macro overview of the informal sector, addressed some of the challenges such as marketing, brand-building, better packaging, quality etc. He also talked about models like FABINDIA and other initiatives by NGOs involved in training the informal sector workers. Mr. K. S. Alhuwalia, talked about Earthen Creations, an organization working among pottery entrepreneurs in 20 clusters in 7 States of India. He explained how they could empower and help them in marketing and contribute towards the welfare and enhanced income levels of these entrepreneurs. Prof. H. P. Singh of NIESBUD, talked about how training programs offered by NIESBUD would be of use to informal entrepreneurs. He also talked about informal sector enterprises reaching out to global market by enabling them to export their products and services. Training programs and continuous mentoring support that are available at NIESBUD would be of use to informal players, he added.
Organised by:

International Society for Small and Medium Enterprises (ISSME)

PO Box 4354, Kalkaji HPO, New Delhi 110019, India Switchboard: +91-11-29993844; Central Fax: +91-11-29993845 Email: info@issme.org; Website: www.issme.org

IE 001

Round Table Discussion on Informal Sector Enterprises

Empowering Informal Sector Enterprises for global market outreach: Challenges and Way forward Development
12 November, 2013: YWCA Conference Hall-1, Ashoka Road Connaught Place, New Delhi 110001

Mr. Ashish Porwal of Srathak Advocates and Solicitors talked about the need for reforms and legal framework impacting informal sector enterprises. Mr. Satayender Chaudhary talked about ICT tools that could be used by informal sector enterprises in a cost effective manner. Mr. Vignesh Jha presented the case of E-Waste workers and Kabadis as well as the modernization attempt by informal urban transport providers like cycle rickshaw workers and others. He explained the initiatives like solar rickshaws and innovations that are happening in the sector. He called for introducing minimum charges per kilometer and metered rickshaws. And Mr. P. K Padhy agreed to look into some of the demands made by Mr. Jha. Mr. M. L Dhawan of Laghu Udyog Bharati highlighted various challenges faced by the sector such as labor shortage. He also said how employment guarantee schemes by the government are affecting the sector and acting counterproductive to production process and entrepreneurship and SMEs in the country, including informal manufacturing in the rural as well as in urban India. Also, those who talked and participated in the discussions are Mr. Anoop Kaul, National Head (Financial Inclusion), BASIX; Dr. S. K Surana, All India Plastics Industries Association; Mr. Vijay Seth, Indian Micro, Small Industry & Handicrafts Association; Mr. Anit Kartar, CEO, Store Next Door Retail Chain shops and Mr. Bhupesh Sharma, Technical Officer, Shriram Institute, New Delhi. Earlier on the day, Mr. Sunil D Sharma, Secretary General of ISSME welcomed the audience and talked about the focus of ISSME. In his message Secretary General mentioned about initiatives and technology package offers and technology support provided by ISSME to informal sector enterprises and MSMEs. Mr. Siddhartha Mishra, Chief Operating Officer (ISSME) introduced ISSME to the participants. Mr. Mishra presented objectives, vision and mission of ISSME as well as activities and a brief report. Dr. P. Koshy, while concluding, put across recommendations and suggestions that emerged apart from what was prominently repeated in the discussions. Mr. Padhy, in his final remarks, highlighted some of the important points discussed and promised the participants that he would take up whatever that is possible at his end with the ministry.

Organised by:

International Society for Small and Medium Enterprises (ISSME)

PO Box 4354, Kalkaji HPO, New Delhi 110019, India Switchboard: +91-11-29993844; Central Fax: +91-11-29993845 Email: info@issme.org; Website: www.issme.org

IE 001

Round Table Discussion on Informal Sector Enterprises