Page 33 - MSME BULLETIN 2022 NEW LAYOUT 19082022.indd

MSME & START-UP BULLETIN, VOLUME 1, ISSUE 1, AUGUST 2022

51.25% (324.88 lakh) of MSMEs are located in rural
Medium 0.01 0.04 0.05 0.01 areas and 48.75% (309 lakh) are in urban areas.

Apparently, the sector-wise distribution of the
Total 324.88 309.00 633.88 100.00
MSMEs is concerted on micro units whereas locational
distribution appears to be fairly balanced between the
Share 51.25 48.75 100.00
(%) rural and urban areas. It is also reported that 95.98%
(608.41 lakh) MSMEs were proprietary concerns.
The table throws up the facts that out of 633.88
lakhs, Micro sector accounts for 99.47% (630.52 lakh MSMEs have been providing huge employment
enterprises); Small sector for 0.52% (3.31 lakh) and across the country. The data relating to the employment
Medium sector 0.01% (0.05 lakh) of the total. Further, in MSME are furnished table 3.

Table 3: Employment in MSMEs

Rural Urban Total Employees
Category Share (%)
(Lakhs) (Lakhs) (Lakhs) per unit

Micro 489.30 586.89 1076.19 96.96 1.71
Small 7.88 24.07 31.95 2.88 9.65
Medium 0.60 1.15 1.75 0.16 35

Total 497.78 612.11 1109.89 100.00 1.75
Share (%) 44.85 55.15 100.00
Employees per unit 1.53 1.98 1.75

As may be seen from the table, Micro sector with 03.00 CMA Competency
1076.19 lakh employees accounts for 96.96%; Small The fraternity of CMAs has been tuned to facilitate
sector with 31.95 lakh accounts for 2.88% and Medium prudent deployment and optimum utilisation of the
sector with 1.75 lakh accounts for 0.16% of the total. entrepreneurial resources. CMA computations take
Location wise, 44.85% (497.78 lakh) are employed forward the fi nancial analysis by introducing cost
by the rural MSMEs and 55.15% (612.11 lakh) are classifi cation and segregating costs into convenient
employed in the urban units. categories. The enshrined objective is ascertainment of
the unit costs with reasonable accuracy for the purpose
The average number of employees per unit works out of cost analysis, cost control and value maximisation.
to 1.71 for the micro units, 9.65 for small units, 35 for
medium sector, and 1.75 in the overall. Location-wise, Over the decades, various methods of cost computing
the employees per unit work out to 1.53 for rural units were evolved with a view to fi ll the needs of the
and 1.98 for urban units. manufacturers and service providers. The list reads
on like Job Costing, Batch Costing, Contact Costing,
It goes without saying that Micro, Small & Medium Process Costing, Operating Costing, etc. Different
Sector has the potential to strengthen the socio- methods are adopted for different industries. Even a
economic growth of the nation by providing solution to combination of the methods is chosen as is needed.
the unemployment problem of the country at local level
which will reduce the population load at megacities. Simultaneous to the methods, multiple techniques
This will, also, enable lessening the inequalities of Cost Management too have come up. Marginal
between the geographical areas in terms of economic Costing, Budgetary Control, and Standard Costing may
imbalances. In addition, the sector holds the potential be mentioned as vital techniques that can be adopted
to grow at a faster pace. conveniently by the small and Medium Enterprises.
In addition, Cost Strategies such as Target Costing,

The Institute of Cost Accountants of India 33