Determinants of Operational Constraints in India’s Unorganised Manufacturing Enterprises: Evidence from ASUSE 2023–24

Debashruti Jana; Nilmadhab Das

doi:10.55524/ijirem.2026.13.2.5

Abstract

This study examines the factors behind operational and structural difficulties faced by unorganised manufacturing businesses (UMEs) in India. It uses data from the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023–24 to examine the factors associated with problems faced in the unorganised sector using a logistic regression framework. Rural-based enterprises are much more likely to have faced problems when compared to urban-based enterprises; similarly, own-account enterprises will experience problems compared to when there are hired workers involved in running the business. Additionally, social inequities exist, and SC and OBC enterprises tend to report difficulties much more often than other enterprises. Institutional and managerial factors, such as registration and maintenance of accounts, are also associated with a higher likelihood of reported constraints. In addition, the enterprise age and the education level of the owner influence the probability of facing operational difficulties. This study indicates that by improving infrastructure, loan facilities, skills training, and the adoption of new technologies, it is possible to reduce the major problems faced by the unorganised manufacturing sector.

Keywords

Unorganised Manufacturing Sector, MSMEs, Problem Faced, Enterprise Characteristics, Logistics Regression, ASUSE Data, India

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Cites this article as

D. Jana, N. Das, "Determinants of Operational Constraints in India’s Unorganised Manufacturing Enterprises: Evidence from ASUSE 2023–24", International Journal of Innovative Research in Engineering and Management (IJIREM), Vol-13, Issue-2, Page No-33-37, 2026. Available from: https://doi.org/10.55524/ijirem.2026.13.2.5