Abstract

Uttarakhand is a Himalayan state with most of the part covered with hill areas. Due to difficulty in establishing the large-scale industries, Micro, Small, and Medium Enterprises (MSMEs) are getting more importance and providing employment in various sectors. This paper analyzes the growth, investment, and employment generation by MSMEs in the last ten years in Uttarakhand to find the best scale industries for employment generation with a low capital investment. We further investigate the dependency of MSME growth and employment generation on fully hilly, fully plane and semi-hill regions. We found that the performance of Micro scale industries is the best in terms of employment generation and capital investment. The growth and employment generation through MSME in Uttarakhand depends on the region with a high rate of growth and employment generation in fully plane regions. We utilize the last ten-year data to get an idea of average capital per unit industry and average employment per unit industry for micro, small and medium industries, and based on these values, we suggest a linear programming model to generate maximum employment with in the different constraints.

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