THE GROWTH BARRIERS OF INFORMAL SECTOR ENTERPRISES: EVIDENCE FROM INDIA

摘要

The present study investigates the growth barriers of informal sector enterprises in India. The empirical analysis is based on the National Sample Survey Organization's unit-level data for three years, 2000-2001, 2005-6, and 2010-11. The results of the study reveal: proprietary and large firms survive and grow; enterprises managed by women are less likely to decline; inadequate power supply poses a severe growth obstacle to all categories of firms; and proprietary firms encounter capital shortage while large firms are constrained by the non-availability of raw materials. We do not find evidence of sub-contracting acting as an enabling factor in firm growth.