Productivity, Profitability and Status of Growth of Micro Manufacturing Enterprises in West Bengal: An Empirical Analysis

Bhabasankar Das

Abstract: Present paper makes an attempt to analyse the productivity and profitability of Micro Manufacturing Enterprises (MMEs) in general and their status of growth in particular in the context of West Bengal. Productivity of MMEs is significantly high in Establishments than that of Own Account Enterprises (OAEs). The study establishes that the labour Productivity of MMEs significantly associated with location of enterprise, nature of enterprise, nature of operation, life-span of enterprise and government assistance. Productivity of MME is high if it runs business in outside household premises and it has spent higher life time and received assistance from the government. Productivity of MMEs is high if it is owned by general caste household and for seasonal and casual enterprises. The labour productivity also depends on capital-labour ratio. The profit share is relatively high in OAEs than that of Establishments. The study establishes that the profit share of MMEs significantly associated with location of enterprise, nature of enterprise, nature of operation, sector, social ownership and life-span of enterprises. Profit share is high for Perennial enterprises and it is low for seasonal and casual enterprises. Government assistance does not significantly affected by the profit share of MMEs. The expanding status of growth is significantly realized for high productive, high profitable, rural located, Establishment and perennial enterprises. The growth is contracting for low productive, seasonal and casual enterprises. It seems to be stagnating for low productive and Own Account Enterprises. For Establishment enterprises the status of growth is expanding where as for OAEs status of growth is stagnating. Growth Status of MMEs is not significantly affected by government assistance.

Keywords: bhabaecon