Growth and Productivity of Micro Manufacturing Enterprises in West Bengal: An Analysis

Abstract

Present paper makes an attempt to study the status of Micro Manufacturing Enterprises (MMEs), its labour productivity and profitability in general and analyse the factors that determine the status of growth of MMEs in the context of West Bengal on the basis of 67th Round(2010-11) & 73th round (2015-16) NSSO Unit Level data. West Bengal has occupied the top position in the growth of number of MMEs as well as in the expansion of employment and output in MMEs. The density of MMEs is the highest in West Bengal among the states of India where one MME exists per 5 households. But the productivity of MMEs has been declined during 2010-11 to 2015-16.Productivity of MMEs is significantly high in establishment enterprises than that of own account enterprises (OAEs). From the status of growth of MMEs in West Bengal it is evident that establishment enterprises are more promising than OAEs. Multinomial logit estimates indicate that expanding status of growth is significantly affected by productivity, profitability, location, nature of enterprise and size of firm. Rural located, establishment, higher productive and larger size MMEs are more likely expanding than stagnating as well as contracting nature of growth.