Skill Upgradation and Its Effect on MSME Efficiency: A Case Study of SPSR Nellore District

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are critical for India’s economic growth, employment generation, and regional development. However, their efficiency is often constrained by skill gaps and limited technology adoption. This study examines the impact of skill upgradation on operational efficiency of 240 MSMEs in SPSR Nellore District, Andhra Pradesh, using structured questionnaires and stratified random sampling. The study finds that enterprises investing in training and technology adoption experience significant improvements in productivity, product quality, and employee utilization. The results highlight the importance of integrated skill and technology programs for MSME competitiveness.