Investing in Labor and Technology: Two “Faces” in India. Comparison of SMEs in West Bengal and Tamil Nadu

  • Rajeev Meenakshi
Part of the International Studies in Entrepreneurship book series (ISEN, volume 19)

3.1 Introduction

There is no doubt that in any developing nation a planner interested in economic growth, in general, and industrial growth, in particular, needs to be concerned about the small-scale sector. In particular, in India, the sector's role is not limited to its contribution to GDP, export earning or employment generation alone. Extensions and adaptation of indigenous technologies, subject to the local availability of raw materials and labor, are features that enhance the importance of this sector. Further, low capital requirement makes entrepreneurship feasible for many. Given the importance of this sector for the Indian economy, it is useful to take a close look at some of the important statistics relating to this sector.1

The small-scale industries (SSI) sector in India creates the largest employment opportunities for the Indian populace (Figure 3.1), next only to agriculture. 2It has been estimated that a lakh of rupees of investment in fixed assets in the small-scale...


Firm Owner Railway Industry Labor Unrest Foundry Industry Optimal Effort Level 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Anderson, D. (1982). Small industry in developing countries: A discussion of issues. World Development, 10(11):913–948.CrossRefGoogle Scholar
  2. Banerjee, A., Bardhan, P., Basu, K., Chaudhuri, M., Ghatak, M., Guha, A., Majumdar, M., Mookherjee, D., and Ray, D. (2002). Strategy for economic reform in West Bengal. Money, XXXVII(41).Google Scholar
  3. Benerjee, A., Bardhan, P., and Basu, K. (2002). Strategy for economic reform in West Bengal. Economic and Political Weekly, 37:4203–4218.Google Scholar
  4. Coase, R. (1937). The nature of the firm. Economica, 4(16):386–405.CrossRefGoogle Scholar
  5. Desai, A. and Taneja, N. (1990). The role of small and medium scale industries in the industrial development of india. In Bank, A. D., editor, The Role of Small and Medium Scale Manufacturing Industries in Industrial Development: The Experiences from Selected Asian Countries, pages 161–252.Google Scholar
  6. Dhar, P. N. and Lydall, H. F. (1961). The Role of Small Enterprises in Indian Economic Development. Asia Pub. House, Bombay.Google Scholar
  7. Eisenhardt, K. (1988). Agency-and institutional-theory explanations: The case of retail sales compensation. The Academy of Management Journal, 31(3):488–511.CrossRefGoogle Scholar
  8. Gang, I. N. (1992). Small firm presence in Indian manufacturing. World Development, 20(9):1377–1389.CrossRefGoogle Scholar
  9. Gang, I. N. (1995). Small firms in India: A discussion of some issues. In Mookherjee, D., editor, Indian Industry: Policies and Performance, pages 322–350. Oxford University Press.Google Scholar
  10. Ghosh, A. (1988). Government policies concerning small-scale industries-an appraisal. In Suri, K. B., editor, Small Scale Enterprises in Industrial Development: The Indian Experience, pages 299–325. Sage Publications.Google Scholar
  11. Knight, F. (1921). Risk, uncertainty and profit. New York: Houghton Mifflin, 2021:226–228.Google Scholar
  12. Liedholm, C. and Mead, D. (1986). Small-scale Industries in Developing Countries: Empirical Evidence and Policy Implications. United States Agency for International Development, Washington DC.Google Scholar
  13. Naik, H. R. (2002). Role of DICs in rural industrialization: A case study of Chitradurga district, Karnataka. SEDME, 29.Google Scholar
  14. Narasaiah, M. L. and Margaret, B. D. (1999). Small-scale Industry. Discovery Publishing House, New Delhi.Google Scholar
  15. Ogbu, O. (1995). Technology policy and practice in Africa. Technical report, CRDI, Canada.Google Scholar
  16. Rajeev, M. (2003). A search for a theory of entreprenuership: A case study of foundry industry in Howrah and Coimbatore. Working Paper 129, Institute for Social and Economic Change, Bangalore, India.Google Scholar
  17. Rajeev, M. (2004). Labour-entreprenuer relationship and technological investment: A comparative study of Howrah and Coimbatore foundry firms. The Indian Journal of Labour Economics, 47:103–114.Google Scholar
  18. Rao, K. C. (2002). Globalisation and the relevance of IP acquisition for small and medium size enterprises. SEDME, 29:53–60.Google Scholar
  19. SIDBI (2000). Technology for small-scale industries. Technical report, Small Industries Development Bank.Google Scholar
  20. Smith, C. W. J. and Jensen, M. C. (2000). Theory of the firm: Governance, residual claims and organisational forms. Harvard NOM working paper 00–01.Google Scholar
  21. Suri, K. (2002). Small Scale Enterprises in Industrial Development: Indian Experience. Sage Publication.Google Scholar
  22. Vepa, R. K. (1988). Modern Small Industry in India. Sage Publication.Google Scholar

Copyright information

© Springer Science + Business Media, LLC 2009

Authors and Affiliations

  • Rajeev Meenakshi
    • 1
  1. 1.Institute for Social and Economic ChangeBangaloreIndia

Personalised recommendations