A Study on the Role of Micro, Small and Medium Enterprises (MSMEs) in Employment Generation in Tirupur District

Abstract

This study examines the role of Micro, Small and Medium Enterprises (MSMEs) in employment generation in Tirupur District, with special focus on the textile and garment sector. The study analyses the contribution of MSMEs to direct and indirect employment and their role in improving income and livelihood opportunities. Primary data were collected from 91 respondents comprising employees, owners, and managers of selected MSMEs using a structured questionnaire. Convenience sampling was adopted, and secondary data were collected from books, journals, government reports, research papers, and online sources. The study examines employment opportunities for youth, women, migrant workers, and other sections of the workforce. The findings indicate that MSMEs provide significant employment opportunities and contribute to reducing youth unemployment in Tirupur. The study also identifies challenges such as seasonal employment, skill gaps, financial constraints, labour shortages, and technological changes.
Respondents generally expressed positive opinions regarding job opportunities, regular wages, welfare facilities, apprenticeships, and future employment prospects. A Chi-Square Goodness-of-Fit test produced a calculated value of 53.01, which is greater than the table value of 9.488 at the 5% level, indicating a significant difference in respondents’ opinions. The study concludes that MSMEs are important drivers of employment generation and inclusive economic development in Tirupur, and recommends strengthening skill development, financial assistance, technology adoption, and employment-support measures.