The purpose of this report is to provide delegates to the 104th Session of the International Labour Conference with up-to-date evidence on the relevance of small and medium-sized enterprises (SMEs) for employment, the key constraints faced by SMEs and their workers, and the effectiveness of measures to support this enterprise segment. The report ultimately attempts to provide answers to crucial questions such as whether SMEs are living up to their promise of being a major contributor to job creation, whether these jobs are of adequate quality, and how effective the various policies for promoting SMEs are.

With over 10 years of active involvement and experience, ANDE is committed to further deepening our role in the entrepreneurship and development ecosystem. Our updated global strategy, which informs ANDE’s global and regional work for the coming years, aligns with the United Nations’ Sustainable Devel­opment Goals (SDGs), specifically focusing efforts on three urgent issues: decent work and economic growth, gender equality, and climate and environmental action. This brief focuses on decent work and economic growth, for India. It has been developed in partnership with ANDE Members Upaya Social Ventures and Global Alliance for Mass Entrepreneurship (GAME). The brief highlights the current status quo of how small & growing businesses are contributing to creation of decent jobs and outlines strategies for collaborative action to strengthen the ecosystem.

Based on a review of existing literature, this paper discusses to what extent and how SMEs can
deliver green and inclusive growth. The OECD defines green growth as aligning economic growth and environmental objectives. Specifically, it involves transitioning to a resource-efficient, low carbon economy and preserving environmental resources while seizing the economic opportunities that this transition generates (OECD, 2015[9]). Similarly, the World Bank defines green growth as “economic growth that is environmental sustainable.” Put it more concretely, it means “enabling developing countries to achieve robust growth without locking themselves into unsustainable patterns” (World Bank, 2012[10]). Meanwhile, inclusive growth involves raising “societies’ welfare or living standards broadly defined.” It is a multidimensional measure of growth and includes both income-related measures of well-being and non-income elements such as health and education. Inclusive growth also emphasizes the question of distribution; that is, how are aggregate changes in measures of growth distributed across households and individuals (Boarini, Murtin and Schreyer, 2015[11])? Simply, green and inclusive growth involves a transition to an eco-friendly, low-carbon economy and simultaneously, broad improvements in societal welfare. Thus, the paper is concerned with discussing to what extent greening SMEs delivers widespread societal welfare gains."

"Salaried wage jobs are the distinguishing feature separating the middle class from the poor in
developing countries (Banerjee and Duflo 2008). Where do salaried wage jobs come from, and
how can small and medium-sized firms create more of them? We review the evidence on
constraints to growth of small and medium enterprises. We first examine evidence on
constraints to capital and skilled labor, firms’ primary inputs to production. We then consider
factors that affect the efficiency with which firms are able to transform inputs into outputs,
focusing on managerial talent. Finally, we look at the importance of linking firms to markets
and the role of demand in generating firm growth. We conclude with a proposal for a research
agenda built around important but unanswered questions. "

"Today India, and the world, finds itself in the unenvious position of enduring two major economic recessions in a span of 10-12 years, unprecedented in modern history. In the aftermath of COVID-19, which has hit the small enterprise sector the hardest, where a majority of women-led ventures are recorded, it has become imperative to actively find avenues to encourage sustainable growth. This report delves deep into the various factors and circumstances inhibiting the growth of women-led enterprises, and further explores how women entrepreneurship can be encouraged while also being a force of change. Through various articles mentioned in this collection, which are based on original research studies conducted in this area during the pandemic, we seek to provide a snapshot of the existing obstacles, but also the way forward in promoting women entrepreneurship, which can be a major contributor in the socio-economic recovery of India."

"In collaboration with Google, this report presents four opportunities for unlocking the potential of female entrepreneurship in India: 1) Level the playing field for the high-impact, employment-creating entrepreneurs; 2) Enable ambitious “solopreneurs” and small business owners to scale and become high-impact entrepreneurs; 3) Encourage more women to start enterprises; 4) Build, strengthen and scale productive rural “agripreneurs.”