Did you know that the MSME sector in India has created more than 19 crore jobs, as per the recent updates on the Udyam registration portal? This included jobs for 4.27 crore women and 2.15 crore employees in the informal sector, thus contributing to 62% of employment in India. (Ref: Financial Express, May 2024)
To share another incredible fact: MSME sector contributes 30% of the GDP and 50% to exports!
How do MSMEs meet their talent requirements? Do all of them hire skilled professionals from MSME training institutions? Are these people productive from day one? Is there a skill gap and how is it addressed? How do we foster sustainable industry-academia collaboration that can be mutually beneficial to the MSMEs and the academic institutions?
Perhaps, the answer lies in exploring the MSME training ecosystem, which comprises skill development interventions in a variety of trade-specific skills, non-technical skills, and entrepreneurship development. Most of the training programs are designed and implemented by national-level institutions across India.
Challenges in hiring skilled professionals
Typically, most formal micro and small enterprises face issues with hiring skilled professionals due to many reasons, like access, affordability, and retention. And informal enterprises often run their businesses without formally skilled professionals.
One of the ways to address this issue is to explore sustainable partnerships with academic institutions in order to attract talent and proactively engage students through internships, apprenticeships and OJT (on-the-job-training). And, this is already on top of the agenda for the government and the private sector by way of promoting apprenticeships in the MSME sector.
While this could be the most popular way for MSMEs to hire their future workforce, there are other avenues to expand their reach through academic institutions. This involves taking proactive measures to build a rapport and inviting academia to partner with and participate in various training programs in trade-specific technical skills and entrepreneurship development.
In addition to adopting apprenticeships, MSMEs can involve schools, colleges, and universities through concerned MSME training institutions. This could be done by finding ways to integrate academic programs at the high school and UG levels with the MSME training ecosystem. Besides enhancing their appreciation of working in various industry sectors, the students gain first-hand exposure to the workplace and gain insights into how MSME entrepreneurs run their businesses.
Exploring industry-academia partnerships through MSME training institutions
The MSME training and skill development ecosystem comprises several national and state-level institutions and state-of-the-art technical and non-technical training in different industry sectors. Today, this training is confined to students and job seekers who enroll and get certified. There is very little scope for academic institutions (schools, colleges, and universities) around these centers to explore what kind of training is offered, what skills are offered, etc.
And similarly, for training institutions, there aren’t many ways to collaborate with academia. Hence, we need to build the bridge between these training centers and the academic institutions for continuous engagement through trainers, teachers, infrastructure, technology, and others.
Such a strategic interaction would pave the way for a long-term partnership between academia and industry to offer skill-based programs.
MSME skilling, training and entrepreneurship development in India
Under the Ministry of MSME, skill training programs are delivered through a robust network of institutions catering to trade-specific skills and entrepreneurship development. There are various levels of courses under the training program, like certificate courses, diplomas, advance diplomas, post-diplomas, post-graduate diplomas, and post-graduate courses.
1. National Small Industries Corporation Ltd. (NSIC)
The NSIC offers an Incubation Training Program through its Incubation Training Centers to create self-employment opportunities by providing entrepreneurship training. Additionally, the NSIC Incubation Centres also offer comprehensive exposure to all aspects of business operations, like business skill development, identifying appropriate technology, project/product development, hands-on experience with working projects, commercial guidance, etc.
2. National Institute for MSME (ni-msme)
The National Institute for MSME (ni-msme) plays a transformational role in providing a pro-business environment to promote the growth and progress of MSMEs in the country. ni-msme helps and assists practicing and potential entrepreneurs through varied services like training, research, consultancy, information, education, and extension.
3. MSME Technology Centres
Over the years the Ministry of MSME has set up several Technology Centres (Tool Rooms and Technology Development Centres) to provide technological support to the industries through design and manufacturing of tools, precision components, moulds, dies etc. in sectors like Forging and Foundry, Electronics, Electrical Measuring Instruments, Fragrance and Flavour, Glass, Footwear and Sports Goods, etc.
The Technology Centres are located at various locations across the country: Central Tool Room & Training Centre, (CTTC), Bhubaneswar, Central Institute of Tool Design (CITD), Hyderabad, Indo Danish Tool Room, (IDTR), Jamshedpur, Fragrance and Flavour Development Centre (FFDC), Kannauj, Central Footwear Training Institute (CFTI) Chennai, etc.
4. Khadi and Village Industry Commission (KVIC)
KVICs conduct several skill development programs catering to the Khadi sector and village industry activities. KVIC has currently established 18 Departmental Training Centres and 17 Non-Departmental Training Centres.
5. Coir Board
The Coir Board conducts several training programs on manufacturing of value-added coir products, spinning, weaving, and other product diversification processes.
6. NIESBUD
NIESBUD, one of the premier organizations in the country, is into training, consultancy, research, etc. NEISBUD’s training programs include Trainers Training Program (TTPs); Management Development Program (MDPs); Entrepreneurship Development Program (EDPs); Entrepreneurship-cum-Skill Development Program (ESDPs) and specially designed training activities for different target groups.
The institute’s Regional Centre is located in Dehradun and operates from NSTI Dehradun premises. The institute has 20 State centres across the country at NSTI Noida, NSTI Indore, NSTI Mumbai, NSTI Goa, NSTI Vadodra, and NSTI Shimla, among several others.
NIESBUD has also launched a mentorship platform called Udyam Disha. It is a one-stop solution for aspiring and existing entrepreneurs, with wide coverage of information and a support system required for setting up or scaling up an enterprise.
Also read: Unlocking the potential of MSMEs in skill development and higher education in India
Entrepreneurship skill development programs through government schemes for MSMEs
These entrepreneurship skill development, financial and incubation support programs for MSMEs broadly come under the below government schemes:
- Prime Minister’s Employment Generation Program (PMEGP) through KVIC – The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. It is a bank-financed subsidy program for setting up new micro enterprises in the non-farm sector.
- Assistance to Training Institutions (ATI) Scheme – Under the scheme, assistance would be provided to the training institutions under the Ministry of MSME for the creation, strengthening and expansion of infrastructure, including the setting up of new branches and centres.
- National SC/ST Hub Scheme – Under this scheme, the SC/ST hubs provide mentoring and handholding support to SC/ST entrepreneurs and enterprises in technological upgradation and capacity building.
- Coir Vikas Yojana – Skill Upgradation and Mahila Coir Yojana – Through this scheme, the Coir Board conducts various programs like the Entrepreneurship Development Program, Awareness Program, Workshop, Seminar, Exposure Tour, etc. to attract more entrepreneurs to start coir processing units.
- ASPIRE (A Scheme for Promotion and Innovation, Rural Industries and Entrepreneurship) – It aims to set up a network of technology centres and to set up incubation centres to accelerate entrepreneurship and to promote startups for innovation in agro-industry.
- Khadi Gramodyog Vikas Yojana (KGVY) Scheme – The Khadi Vikas Yojana scheme is for promotion and development of Khadi sector i.e. cotton, woollen, silk. Whereas, the Gramodyog Vikas Yojana (GVY) is for promotion and development of village industries through common facilities, technological modernization, training etc. and other support and services for village Industries.
The skilling ecosystem in MSMEs is vast and ever-evolving with the introduction of new courses, alignment with NSQF levels, and constantly upgrading curriculum to meet the demands of the industry. However, to scale the impact and widen the reach, academic institutions should come forward to explore working with the MSME training institutes across India.
