Role of micro enterprises in capacity building and skill development in Kerala A comparative study of Kudumbashree micro enterprises in Malappuram and Alappuzha

Abstract

The Micro,small and Medium Enterprises (MSMEs) have been recognized as the engine of growth of industries in Kerala. Running a business is more riskier than starting a business. Even highly educated and trained entrepreneurs from formal institutions fail to manage their business in the later stages mainly because of the gap between theory and practical aspect . The skill gap and inadequate capacitations process will lead to the pre mature death of micro enterprises . This study entitled “Role of micro enterprises in capacity building and skill development in Kerala – A comparative study of Kudumbashree micro enterprises in Malappuram and Alappuzh” is an attempt to explore how micro enterprises help to improve capacity and skills of entrepreneurs and how such acquired skills influence on performance of their business as well as personal development Kudumbashree Project implemented by Government of Kerala in 1998 views micro enterprise development and promotion as a powerful strategy for bringing socio-economic development to the poor. The mission developed specific strategies by analyzing the requirements of micro entrepreneurs. This contributes skill enhancement, financial, technical and marketing support. Kudumbashree Mission has been also selected as the nodal agency for the implementation of Centrally sponsored skill development programmes like National Urban Livelihood Mission and Deen Dayal Upadhya Grain Kaushalya Yojana . Kudumbashree implemented its skill development programme , ‘Ajeevika’ to enhance the skill development process of Kudumbashree micro enterprises under the guidance of NCDC. The study has used eight constructs namely, entrepreneurial orientation, institutional assistance, entrepreneurial engagement, perceived entrepreneurial behaviour,capacity building, skill development, business performance and women empowerment to establish the research framework and to prove the theoretical relationship.The Study was conducted by taking 428 Kudumbashree micro entrepreneurs from Malappuram and Alappuzha districts as sample. Malappuram and Alappuzha are the two districts having a prominent position on the map of Kudumbashree. Required primary data were obtained through a structured questionnaire and secondary data from published as well as unpublished sources. Data analysis was done by using regression analysis, t- test, descriptive statistics,EFA&CFA . All the analysis have been performed with the help of SPSS except validation of construct (CFA) . It was identified that Kudumbashree micro enterprises play a vital role in the capacity building and skill development of micro entrepreneurs that result in the increased business performance and women empowerment. Acquired skills of the women micro entrepreneurs significantly determine the socio-economic growth of entrepreneurs. The study concludes that entrepreneurial skills acquired from the business activities not only determine the business performance but also empowering the entrepreneurs in their private life