ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Sarbajit SenguptaSubscribe to Sarbajit Sengupta

Declining Registration by Small Manufacturing Units: A Case Study of Durgapur

Economic policy since Independence has provided various benefits to small enterprises to ensure employment to workers who did not find work in the organised sector. These benefits provided incentives to small entrepreneurs to formally register their enterprises. This paper examines the impact of liberalisation - which led to a withdrawal of many of these benefits - on the registration of small enterprises. There appears to be a sharp fall in the growth rate of employment in registered small enterprises around the time of liberalisation. A case study of Durgapur in West Bengal shows that while registration has a positive impact on profits for firms set up before liberalisation, no such trend exists for post-liberalisation firms.
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