Abstract
The unorganised sector is no more considered as a residual one in the developing and in the underdeveloped countries; rather it is considered as a common component of such economies. This sector is playing an important role in those countries both in terms of its contribution to the national income and employment generation. However, despite its importance, the enterprises in this sector are facing various problems. A large segment of enterprises state non-accessibility to credit is the most important problem faced by them. Moreover, existing reports and literature states that the formal financial institutions are not interested to deal with the unorganised enterprises. As a result, they have to depend on the informal sources of credit. This present paper based on secondary data analyses the various characteristics of unorganised manufacturing enterprises in Assam and their accessibility to credit. Results indicate that the average amount of outstanding loan per unorganised manufacturing enterprise in Assam is smaller than that of all-India average. Again, the enterprises in the rural areas are more dependent on the non-institutional sources of credit when compared to those in the urban areas. Similarly, the smaller enterprises have limited access to credit from the formal financial institutions as compared to the larger enterprises.Â
Highlights
The unorganised sector has attracted the attention of the theoreticians and the researchers in the dynamics of development economics since long back
Those economic activities taking place outside the organised sector are termed as informal sector by the international organisations like International Labour Organisation (ILO)
Currently it is considered as a common component of the developing and underdeveloped economies; where it is playing an important role both in terms of its contribution to national income and employment generation
Summary
The unorganised sector has attracted the attention of the theoreticians and the researchers in the dynamics of development economics since long back. It was assumed that along with economic development, those engaged in this sector would be able to absorb themselves in the organised sector (Harish & Todaro, 1970) Currently it is considered as a common component of the developing and underdeveloped economies; where it is playing an important role both in terms of its contribution to national income and employment generation. The enterprises in this sector are facing various problems, such as small and fluctuating level of income, lack of skill, use of poor technology and non-accessibility to capital, etc. The internal funding (Allen et al, 2006) and credit from the non- institutional sources constitutes the major source of funding for these enterprises Based on this information, this paper tries to address the following objectives: To examine the nature and importance of the unorganised manufacturing enterprises in Assam. To analyse the financial accessibility of unorganised manufacturing enterprises in Assam
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