Abstract:

MSMEs have been considered as the engine of economic advancement especially for the remote and hilly areas like Uttarakhand which have less scope for heavy industriesdue to various reasons like infrastructural gap, inadequate capital, problem of raw material, hilly and difficult terrain, limited access to market etc. The MSME sector has an importantrole to play in Uttarakhand because with rising education and entrepreneurial culture, a growing MSME sector can utilize local youth in creating self-employment in large numberat a lower capital cost. Moreover due to limitations in the hills in generating employment, MSMEs can generate sustainable livelihoods for the community in the hills as well as promote entrepreneurship and use local resourceswhich otherwise would have been left idle to boost the economy.This study which is based on primary data collected from 103 MSMEs in Pauri district is an endeavour to study the contribution of MSMEs in employment generation in Pauri district ofUttarakhand as well as examine the issues and challenges faced by MSME sector of the state. Findings of the study reveal that Micro enterprises account for more employment generation both in case of males and females followed by the Small enterprises in Pauri district of Uttarakhand and the major difficulties faced by these MSMEs were lengthy paperwork, high cost of transportation, bad roads, insufficient demand etc.

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