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Empowering Employment in Aurangabad District of Bihar (India): A Policy approach through MSMEs

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Author Affiliations

  • 1Department of Economic Studies and Policy, Central University of South Bihar, Gaya- 824236, Bihar, India
  • 2Department of Economic Studies and Policy, Central University of South Bihar, Gaya- 824236, Bihar, India
  • 3Department of Economic Studies and Policy, Central University of South Bihar, Gaya- 824236, Bihar, India

Int. Res. J. Social Sci., Volume 14, Issue (4), Pages 1-8, October,14 (2025)

Abstract

The role of MSMEs is vital when it comes to employment determination and Its impact on overall employment. This research examines the extent of job creation in Aurangabad District through Micro, Small and Medium Enterprises (MSMEs). The primary focus of this work is to determine whether MSMEs genuinely play a critical role in job creation. The district industry centre of Aurangabad's official website served as the study's primary secondary data source. For this study, employment is considered a dependent variable; the explanatory variables are investment and the number of registered units. Time-series data from 1984 to 2018 are used. Cointegration, Error Correction Mechanism (ECM), and the Engel-Granger Cointegration test are utilised as econometric tools. This study provides a trend analysis of MSMEs and elaborates on how small and medium-sized enterprises can continue to create jobs in the Aurangabad district of Bihar. The study also satisfies the need to explore the labour relations of MSME enterprises in developing economies like India. Policy proposals aim to augment the contribution of MSMEs to employment by enhancing access to capital, advancing infrastructure development, and implementing skill training programs. Streamlining corporate procedures and fostering digital adoption are recommended to enhance business convenience and ensure sustainable development.

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