COVID-19 Pandemic and Problems of Micro-enterprises in Dibrugarh District of Assam: An Empirical Study

Abstract

Small-scale industries play a crucial role in industrialisation of India. These industries face numerous problems, some of which are peculiar to them, while others are common to both small-scale and large-scale industries. The COVID-19 pandemic has unleashed unprecedented threats as well as opportunities on this sector. This article tries to analyse the problems affecting the entrepreneurs associated with 141 micro-manufacturing enterprises in the Dibrugarh district of Assam and puts forward some policy suggestions. In order to identify the most pressing problem faced by the entrepreneurs, the Garrett ranking method is employed in the study. It is found that dearth of skilled labour is the most acute problem encountered by the sector. Lack of proper marketing arrangements, shortage of quality and cheap raw materials, obsolete technology and lack of timely finance are other important hindrances. The significance of skilled labour points to the intense need for continuous skill development of the local workforce by establishing more technical institutes, training programmes, etc. Furthermore, the government should provide special assistance for technological upgradation, develop institutional marketing facilities, and supply cheap and quality raw materials. Further, simplification of procedures in banks’ lending policies, relaxation of requirements like collateral security and margin money may go a long way in enhancing both confidence and performance of small entrepreneurs.