Household enterprises: India

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The Times of India

Work-from-home enterprises

Tamil Nadu among top states with work-from-home ventures

House enterprise.png

The Times of India B Sivakumar,TNN | Jul 31, 2014

Tamil Nadu has emerged top among states having more household-enterprises, says the latest Economic Census released by the National Statistical Association on Wednesday. The state has 48.36% of the establishments within households out of the total establishments in the state. The national average is 38.39%.

"There are many small establishments which work from home or as cottage industries in the state. The jobs for these establishments come from big industrial units which outsource part of their work," business economist Raman Mahadevan told TOI. These establishments quote a lower price for the job they do and it is a win-win situation for the big industry as well as the household establishment, he said.

Adimoolam for example, mainly deals with waste paper and his wife and other relatives manage the photocopier machine and electronic typing unit. "I am not educated but with whatever I know I manage the waste paper business but my wife and others take care of the copier machines and also sell prepaid mobile cards. The shop is owned by my family and therefore we save on rent and labour by employing ourselves," said Adimoolam.

In other areas of the state, household establishments take up jobs of making small components for industries.

"For a household establishment, there is no fixed cost in the form of provident fund and other expenditure incurred by companies for employing people on their rolls. Thus a job which normally used to be done in the company itself is being outsourced," said Mahadevan. The example in rural areas of household establishments is the beedi rolling industry, he said.

Across the country, there are 58.47 million establishments, including those in households. Uttar Pradesh has 67 lakh establishments, followed by Maharashtra with 61.25 lakh and Tamil Nadu comes third with 50.52 lakh establishments. The overall growth rate in number of establishments during the intervening period of 2005 and 2013 is 41.73% and employment grew by 34% during that period.

In terms of employment, Maharasthra has 11.26% (1.43 crore) of the total employment in establishments excluding crops production, plantation, public administration, defence & compulsory social security services activities).

This is followed by UP with 10.77% (1.37 crore) and five states, Maharashtra, Uttar Pradesh, West Bengal, Tamil Nadu, and Gujarat have the combined share of about 46.63% of total employment in establishments at the country level.

There are about 21.93 lakh handicraft/handloom establishments, accounting 3.75% of the total number of establishments in the country.

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