CONTRIBUTION OF SMALL AND MEDIUM ENTERPRISES TO EMPLOYMENT GENERATION IN WESTERN MARATHWADA

Commerce

Small and Medium Enterprises (SMEs) are universally recognized as essential drivers of inclusive economic development, innovation, and job creation. In developing economies like as India, their function is particularly vital in mitigating regional inequities and providing decentralized employment opportunities. This study examines the Western Marathwada region of Maharashtra, which includes the districts of Aurangabad, Jalna, Beed, and Parbhani, an area characterized by industrial promise yet frequently overlooked in policy discussions. This research aims to analyze the extent, magnitude, and influence of SMEs on employment creation in the region, specifically within non-agricultural sectors including manufacturing, services, and agro-based businesses. A mixed-method approach was employed to gather data from 120 SMEs via structured interviews and questionnaires, augmented by secondary data from governmental and institutional sources. The results demonstrate that SMEs account for roughly 48% of total employment in the region's non-agricultural industries. Manufacturing SMEs exhibited the greatest employment flexibility, succeeded by service and agro-based sectors. Furthermore, the research underscores that SMEs are vital in advancing women's employment and accommodating semi-skilled rural adolescents. Nonetheless, obstacles such as restricted access to credit, insufficient infrastructure, and talent deficiencies endure. The analysis yields pragmatic policy recommendations, such as the formation of SME support clusters, enhanced access to affordable financing, infrastructure enhancements, and specialized skill development initiatives to bolster the sustainability and scalability of employment via SMEs in Western Marathwada.

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.