Patel, Shah kings of Gujarat’s MSME sector

AHMEDABAD: The quintessential rule Gujarat’s Micro, Small and (MSMEs), reveals a study by Takashi Shinoda, professor of economics with Japan’s Daito Bunka University. Patel and Shah surnames collectively command ownership of 16% of the Rs 90,000 crore sector. The study also reveals that apart from Patidars and Banias, communities like OBCs, STs and Brahmins have made forays.
Shinoda collated data of 3.5 lakh MSMEs registered with the government between 2006 and 2015 and analyzed ownership patterns to understand correlation between entrepreneurship and communities among other factors. The professor, who has studied Gujarat’s economy since past three decades now, categorized common surnames associated with specific communities for analysis.

“Analysis of between 2006 and 2015 indicates entrepreneurs with common Patidar and Bania surnames command highest 30% ownership of MSMEs in Gujarat. The number of owners with common Brahmin, Kshatriya, Muslim, Tribal and OBC surnames have increased over these nine years,” he said. He says growth of non-Patidar and Bania communities, however, is reported primarily in micro enterprises segment which is not capital-intensive.

“Average investment in these sectors is Rs 26 lakh – highest of Rs 32.6 lakh by Patidars followed by Rs 31.9 lakh each by Banias and other upper castes identified. Tribals have average investment of Rs 2.7 lakh,” he adds “MSMEs are no longer restricted to any one particular community with entrepreneurs from across sections of society foraying into the business,” said Shailesh Patwari, president, Gujarat Chamber of Commerce and Industry. He added the trend can be attributed to factors like education and awareness about the industry as well as government schemes.

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