Reduction in production; MSMEs face shortage of staff

Business Karnataka Top story

Due to lack of laborers in the MSMEs in Peenya industrial area, owners face difficulty in finishing their orders and delivering the products on time.

According to the former President of the Federation of Karnataka Chamber of Commerce and Industry (FKCCI),there is a shortage of 1.50 – 2 lakh workers in Micro Small and Medium Enterprises (MSMEs) in Peenya industrial estate, since the past three to four years. Owners find it difficult in completing their orders and delivering the products on time.

Nandeesh Dugurmath, owner of a small-scale industry, GSV tech mart said, “There is a shortage of employees in the MSME sector. This has affected my company’s production. We manufacture Special Purpose Machines (SPM) and are not able to deliver the products on time. The  delivery deadline of the order, I had taken in September is November 15, but we have not yet delivered it. Due to this, customers are also very unhappy.”

The employees and laborers feel that since there is no proper job security provided to them in MSMEs which forces them to shift to other sectors like e-commerce, agriculture etc.

Somdev (name changed) a employee at aa MSME said, “The main reason why people don’t want to join MSMEs is because of the salary, lack of insurance and, lack of Provident Fund (PF) facilities, increment, and hospitality.. Less turnovers and production are the main reason why these provisions are not being given by MSMEs.”

According to Dr. Jacob Crastathe the former president of of Federation of Karnataka Chambers of Commerce & Industry (FKCCI), “The GDP growth of manufacturing and services came down to -24.6 percent during the pandemic.”

 He also feels that there should be a grievance or redressal cell for the MSMEs like other sectors.

He said, “Today if any MSMEis in need of help, there is nogrievance nor redressal cell. If all sectors have regulatory authority, then the MSMEs should also have one. If the MSMEs face any problem then they can go and complain to the regulatory authority. Such statutory bodies are essential to revive the MSMEs.”

He further added by saying that Machine learning, artificial intelligence, Internet of Things (IoT), and 3D printing should also be adopted by the MSMEs to improve and sustain the growth of this industry.


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