Международный журнал экономики и менеджмента

The Role of Micro Enterprises in Employment and Income Generation: A Case Study of Timergara City Dir (L) Pakistan

Abstract

Taj Hassan and Bilal Ahmad

In this study an attempt is made to assess the role of micro enterprises creating employment opportunities and income generation opportunity in Timergara District Dir Lower, KPK Pakistan. During the study primary data were collected from the owners of 80 micro enterprises. Questionnaire was used as data collection instruments. For Data analysis descriptive statistical tools such as tables, frequency distribution and percentages, and inferential statistical tools such as regression analysis were used to describe the responses on the role of micro enterprises. The study elaborate that there is some positive growth rate of micro enterprises in Timergara City. Regarding employment creation these micro enterprises created around 4.75 average numbers of employees per micro enterprise. The total number of employees in 80 enterprises was 380 employees. Most of the enterprise owners (42.5%) get average monthly income from Rs.53000 to Rs.89000 and each employee in the enterprise get average income of Rs.11997 per month. The total average monthly sale of 80 enterprises in Timergara City is Rs.61000000. Besides this the enterprises also faced some constraints during start-up time and also face constraints during operation, such as financial shortage, security, high rent and energy shortage. To conclude that, micro enterprises play a great role in reducing unemployment and also play a great role in income generation to the owners and employees. Based on the major findings a number of policy recommendations are drawn. Among these the access to credit, price control, government check and provision of energy is very important for the development of these micro enterprises.