Financial Performance of the Informal Enterprises in the Clusters: A Study in Assam

This article tries to examine the financial performance of the informal enterprises in the clusters and factors determining their financial performance. It is based on primary data collected through a customised sample survey in four districts of Assam, namely Dhubri, Nalbari, Lakhimpur and Majuli. Three indicators of financial performance of the enterprises were taken, namely gross value added, income accruing to the entrepreneur’s household from the enterprise and profit. It was found that the financial performance of the sample enterprises was not satisfactory. Most of the enterprises were providing subsistence income to the entrepreneurs. Although only a few of the enterprises were earning profit, those were providing employment opportunities to the owners and their family members. In other words, the enterprises were the sources of their livelihood. Further, the financial performance of the enterprises was not linked to their access to credit and level of education. As these enterprises were the sources of livelihood of the sample entrepreneurs, policies should be there for providing social security to those entrepreneurs’ households.