An Analysis of Production Efficiency of Pottery Enterprises In India: Stochastic Production Frontier Approach

An Analysis of Production Efficiency of Pottery Enterprises In India: Stochastic Production Frontier Approach | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Article An Analysis of Production Efficiency of Pottery Enterprises In India: Stochastic Production Frontier Approach Dr Dikshika Jakhar, Dr Jaspal Singh This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6318034/v1 This work is licensed under a CC BY 4.0 License Status: Under Revision Version 1 posted 16 You are reading this latest preprint version Abstract Pottery industry is considered as an eco-friendly small scale cottage base industry in India. In a predominantly rural country such as India, pottery plays a significant role in generating employment, increasing exports, etc. However, the flourishing pottery industry has encountered various hurdles that threaten their livelihood. The study is attempted to investigate the socio-economic conditions of pottery artisans in India. Another objective is to analyze the technical efficiency and determinants of inefficiency of pottery enterprises in India. Secondary data from the 73rd National Sample Survey Organization (NSSO) unit-level data on the Unincorporated non-agricultural enterprise Survey 2015-16 is being used in study. In our study, we have used the data on various socio-economic variables using the National Industrial Classification codes (NIC codes) mentioned under NIC code 23933. 811 enterprises were taken into the survey. A simple descriptive analysis was used to study the general socioeconomic background of the pottery manufacturers. The changes in the factors and their association with pottery production were examined by fitting the stochastic frontier production function with determinants of inefficiency. Thus, the model estimates both technical efficiency and time-varying technical inefficiencies. The study reveals that pottery workers continue to grapple with numerous socio-economic challenges that hinder their overall well-being and the sustainability of their craft. This occupation remained in the rural spheres. In addition, gender biasness can be seen in the field of potter. The study also shows that the cost of raw material, any other cost, number of hours spent enterprises, production tax and daily hour spent are positively associated with the production efficiency and trading cost is negative associated with production efficiency of pottery enterprises. This research study employs the stochastic production frontier which help in assessing the production efficiency and identifying the key determinants of inefficiencies which will provide novel insights into the sector productivity, offering valuable recommendations for policy interventions to enhance the performance of pottery enterprises. Business and commerce/Economics Social science/Development studies Efficiency Stochastic production model pottery industry socio-economic variables Figures Figure 1 Introduction India has been showered as a land where art thrives in every corner of the country. Art has been an inseparable part of the economy since the existence of humans (Vidyarthi, 1986 ). Artisans had a significant place and are acknowledged for their art and skills in the society (Srivastava, 2015 ). The MSME sector contributes around 45 per cent to the India’s manufacturing output and 20 per cent to GDP of the India (Singh and Mallaiah, 2022 ). In a developing country like India, small-scale industry has a large capability, to provide employment, revenue, and foreign investment (Pizam, 1990 ). Providing employment opportunities is key for the enhancing the living standards and thus brings positive impact on economic development of the country (Singh, 2021 ). Similarly, pottery has been an integral part of culture and heritage for years, serving both utilitarian and artistic purposes. The pottery industry not only reflects the rich traditions of the country but also contributes significantly to its economy, such as rural development (Pegu, 2017) and India being a predominately a rural country about 70 per cent of population belongs to rural areas (Chand, et. al., 2017). Pottery making is based on particular set of material resources, tools, manufacturing techniques, skills and knowledge (Pfaffenberger, 1992 ). The handicraft industry creates the products characterized by its heterogeneity, with a diverse range of pottery products, production techniques, and market segments (Yadav et. al., 2022 ). From traditional earthenware to modern pottery for decorative and export purposes, this industry has evolved over time. In recent years, as India undergoes rapid industrial revolution, modernization and urbanization, the small and medium enterprises like pottery sector faces new challenges and opportunities (Ekanayake et al., 2020 ). Consequently, the per day earning of the workers engaged in traditional sector is low as compared to other sectors of the economy, as a result there is decline in number of workers in traditional sector due to low income earned (Jakhar, et. al., 2023 ). There is no study on the socio-economic conditions of pottery artisans in India based on secondary data. Moreover, there is no study focusing on the productive efficiency and the determinants of inefficiency of the pottery industry in India. So, keeping this gap in mind, the study focusses on transformative journey of pottery workers, examining their socio-economic conditions that outline their choices and strategies. Another objective is to understand how efficiently these enterprises operate, which becomes critical for their growth, competitiveness, and sustainability. Understanding the production efficiency of pottery enterprises is crucial to sustaining this age-old craft while promoting economic growth. The performance of productive efficiency is a key indicator to determine the competitiveness (Prasetyo, et al., 2020). This paper delves into the technical production efficiency of pottery enterprises in India, employing a stochastic production frontier approach as a robust analytical framework. The model allows one to assess the efficiency levels of individual pottery firms, identifying the factors that contribute to both optimal and suboptimal production outcomes (Khanum et al., 2023 ). Another important task is to find the number of factors that are likely to be determinants of inefficiency and measures the extent to which they contribute to the presence of inefficiency (Baten et al., 2009 ). Therefore, the study can help to shed light on the broader dynamics of the pottery industry in India and provide valuable information for policymakers, entrepreneurs and stakeholders. Thus, efficiency analysis using the Stochastic frontier production model will help in finding factors that influence production efficiency and determinants of inefficiency of pottery enterprises in India. It also helps in making policy recommendations that can be derived from efficiency analysis to improve the overall performance of the pottery industry. Data and methodology The main source of data was 73rd National Sample Survey Organization (NSSO) unit level data on Incorporated non-agricultural enterprise Survey 2015-16. The data from the 73rd round of NSO meet the objective of the study. In our study, we have used the data on various socio-economic variables using the National Industrial Classification codes (NIC codes) mentioned under NIC code 23933. 811 enterprises were taken into the survey. Of which 623 enterprises were from the rural area and the rest from the urban areas. A simple descriptive analysis was used to study the general socioeconomic background of the pottery manufacturers. The study hypothesis is that the change in the efficiency of production in pottery enterprises is attributed to the change in various factors including the cost of raw material, the trading cost, any other cost, the number of labors working in the enterprises, the production cost and the daily hours spent in the enterprises. The changes in these factors and their association with pottery production were examined by fitting the stochastic frontier production function with determinants of inefficiency. Thus, the model estimates both technical efficiency and time-varying technical inefficiencies. The empirical form of model is given below Ln_productionit = b 0 + b 1 Ln_cost of raw materialit + b 2 Ln_trading costit + b 3 Ln_any other costit + b 4 Ln_labour working in enterprisesit + b 5 Ln_production taxit + b 6 Ln_working hours spent in enterprisesit + (Vit-Uit) Where, Ln_cost of raw materialit = Log cost of raw material (Rs./ enterprise /per annum) Ln_trading costit = Log trading cost (Rs./ enterprise /per annum) Ln_any other costit = Log any other cost (Rs./ enterprise /per annum) Ln_labour working in enterprisesit = Log labour working hours (number/enterprise/ per annum) Ln_production taxit = Log production cost (Rs. /enterprise/ per annum) Ln_working hours spent in enterprisesit = Log working hours spent in enterprise (Rs. /enterprise/ annum) The subscriptit denotes ith observation in tth year and Ln denotes the natural logarithms. Vit is assumed to be the independent and identical distributed random error. Uit represents technical inefficiency and is assumed to be non-negative. Vit captures the stochastic effects outside the control of households whereas Uit measures shortfall of observed output from its maximum possible value. Further, the average level of technical inefficiency was measured by Uit. Uit = d 0 + d 1 Rural_dummy + d 2 Own_account_enterprise_dummy + d 3 Female_owner_dummy + d 4 partner_ownership_dummy + d 5 SC_ST_dummy + d 6 OBC_dummy + d 7 Season_dummy + d 7 contract_dummy Rural_dummy = if enterprise in rural then 1 otherwise 0 Own_account_enterprise_dummy = if own account enterprise then 1 otherwise 0 Female_owner_dummy = if female worker then 1 otherwise 0 partnership_ownership_dummy = if partnership ownership then 1 otherwise SC_ST_dummy = if worker belong to SC and ST then 1 otherwise 0 OBC_dummy = if worker belong to OBC then 1 otherwise 0 Season_dummy = if enterprise work only during season then 1 otherwise 0 contract_dummy = if enterprise work on the contract then 1 otherwise 0 Further, by using the estimated values of technical efficiency, the average potential to raise gross value added by the enterprise with the given level of input use has been obtained for the study using the following formula: $$\:\mathbf{E}\mathbf{f}\mathbf{f}\mathbf{i}\mathbf{c}\mathbf{i}\mathbf{e}\mathbf{n}\mathbf{c}\mathbf{y}\:\mathbf{G}\mathbf{a}\mathbf{p}\:\left(\mathbf{\%}\right)=\:\left[1-\frac{\mathbf{m}\mathbf{e}\mathbf{a}\mathbf{n}\:\mathbf{t}\mathbf{e}\mathbf{c}\mathbf{h}\mathbf{n}\mathbf{i}\mathbf{c}\mathbf{a}\mathbf{l}\:\mathbf{e}\mathbf{f}\mathbf{f}\mathbf{i}\mathbf{c}\mathbf{i}\mathbf{e}\mathbf{n}\mathbf{c}\mathbf{y}}{\mathbf{m}\mathbf{a}\mathbf{x}\mathbf{i}\mathbf{m}\mathbf{u}\mathbf{m}\:\mathbf{t}\mathbf{e}\mathbf{c}\mathbf{h}\mathbf{n}\mathbf{i}\mathbf{c}\mathbf{a}\mathbf{l}\:\mathbf{e}\mathbf{f}\mathbf{f}\mathbf{i}\mathbf{c}\mathbf{i}\mathbf{e}\mathbf{n}\mathbf{c}\mathbf{y}}\right]\times\:100$$ Results and discussion The handicraft sector has a major contribution that has augmented the national income, source of export and employment (Koehane, et. al., 2016). Likewise, the pottery industry has been an indispensable part of India’s cultural heritage and economic activities. By examining the socioeconomic background, one can propose the viable solution and can empower the workers. By studying the production efficiency one can determine the factors that contributes to the efficiency in the production. (Table I here) The study of socioeconomic background is essential for both cultural preservation and socioeconomic development (Loulanski,2006). It helps to ensure that this ancient and valuable craft continues to be a source of livelihood, cultural pride and artistic expression for generations to come. Table I highlights the socioeconomic conditions of pottery workers in India. According to the data 76.82 per cent of the total sample were from rural areas and the remaining were from urban areas. This depicted the fact that more pottery workers reside in rural area and compared to urban area. Handicraft industry is more inclined towards the rural economy (Ghosal et.al., 2020 ). Furthermore, in India, most pottery enterprises were owned by males. Of the total sample 92.36 per cent were male owned, 3.58 per cent were owned by men, 3.58 percent owned by men, 3.58 percent owned by women, and 4.07 were in partnership. There is a wide gap between the three categories. India, being the caste-based society where people follow their ancient occupation and stand in a particular position in the society (Srinivas, 1962 ). Workers belonging to the OBC category were the highest, followed by SC and ST. Another important variable was ownership a bank account. It was found that 55.24 per cent of the total pottery workers do not have a bank account. The remaining 44.65 had a bank account in their own name and 1.11 had an account in the name of enterprises. The location of the enterprise in the artisanal units can have a significant impact on its success and operations as sometimes timely access to market information becomes difficult (Menon, 2010 ). So, in pottery industry the workers who worked within the enterprises were 83.35 per cent and around 16 per cent worked outside the household premises. Less than 1 per cent had a mobile market or street vendors. Another important variable was the work experience. Working experience is certainly beneficial in the pottery industry, as it enhances the skills, knowledge, and understanding of craft. Our of the total sample 19.11 per cent workers had an experience of five years. 37.98 had an experience of 5–10 years and 23.43 had an experience of 10–20 years. Around 20 per cent had an experience of more than 20 years. 83.37 per cent of the total sample run their enterprise throughout the year and 17.51 operated during season only. Furthermore, the maximum enterprise runs their company during the month of September to December. The type of enterprise was another significant variable. Out of total sample, 83.97 enterprise were own account enterprise which means they were running without any hired employed on fairly regular basis and 16.03 were the establishments which hired at least one worker on the fairly regular basis. (Table II here) Different costs were taken during production. it is necessary to study the different cost and receipts that directly impacts the viability and profitability of enterprises. The Table II shows the various cost components and the receipts of the sample per month. The administration of raw material affects the production of the manufacturing unit (Akindipe, 2014 ). As per the data, rural workers incurred Rs. 2677 per month and urban workers incurred Rs. 9447 per month. This showed that the cost of raw material was higher in the urban area compared to rural area. Another cost of was the trading cost urban workers Rs. 30 per month, which was higher compared to rural workers. Urban and rural workers incurred Rs. 2206 and Rs. 1615 per month on the other cost like machinery etc. The gross receipt after sale was Rs. 24004 in urban and Rs. 10139 in rural area. Net receipts after deduction of gross expenses were higher in the urban area compared to rural area. The expenses on distribution were of Rs 30 per month in rural areas and nil in urban area. When the distributive expense and taxes on product are deducted, the left amount is considered as gross value added, which was of RS. 12317 per month in urban area and Rs. 5807 per month in rural area. Now, if the taxes on production were deducted from the gross value added, net income was left which was Rs. 5804 per month in rural and Rs. 12303 in an urban area. This depicted the fact that net receipts were higher in urban area as compared to rural area. Keeping the track of expenses and receipts is absolutely crucial in managing the pottery business effectively and better equipped to make informed decisions for its growth and development. (Table III here) It was necessary to study the average number of workers in the sector and the nature of employment, as it provides critical data for informed decision-making, economic planning, and the development of effective labour market policies and strategies. Table III highlights the average distribution according to the area and nature of employment. According to the data, the average number of workers in each enterprise was 2.21 in rural area and 2.46 in the urban area. In each rural area enterprise, 1.87 work full-time in this profession and 0.35 work part-time. In each enterprise of the urban area, the average full-time workers were 2.01 and 0.45 were part-time workers. This represented the fact that there was a slight difference in the average workers in each enterprise in the rural and urban areas, and the part-time workers were much less compared to full-time workers in each enterprise in both the rural and urban areas. (Table IV here) Another important information regarding the average number of workers among the different type of pottery enterprises and characteristic of worker within the industry is necessary for the valuable information for industry analysis, policy development and efforts to promote sustainable and inclusive pottery industry. Table IV highlights the average number of workers among different enterprises and nature of employment. In the own account of the enterprises, the average number of full-time workers was 1.79 and the average number of part-time workers was 0.37. In establishments, the average number of full-time workers was 4.12 and the average number of part-time workers was 0.07. This showed that full-time workers were more as compared to part-time workers between both types of establishments. Moreover, full-time workers were higher in establishments as compared to own account enterprises. (Table V here) Table V reflects the average level of technical efficiency as a function of the type of ownership and sector. According to the table, there was a slight difference in the average efficiency of the rural and urban areas. In rural areas, partnership-run enterprises were at top in terms of technical efficiency followed by male run enterprises and female run enterprise were at the bottom. In the urban area, the partnership-run enterprise was at top in terms of technical efficiency followed by male run enterprises and female run enterprise were at the bottom. So, this depicted that average technical efficiency was greater in urban area as compared to rural area. The partnership run enterprises had a maximum average technical efficiency compared to other categories. Hence, partnership type of enterprise should be encouraged as it helps in pooling the skills and spread of risk (Pandey, 2013 ). (Table VI here) The study of technical efficiency among the type of enterprises is indeed important for the comprehensive understanding of this particular sector. It helps in developing the appropriate strategy and address specific challenges within the industry. In rural area, the average technical efficiency was 0.693 which was higher as compared to own account enterprises with the average efficiency of 0.609. In urban area also, the average technical efficiency was higher in establishments as compared to own-account enterprises. This showed that the average technical efficiency was higher in establishments as compared to own-account enterprises in both rural and urban area. (Table VII here) The improvement of efficiency in pottery production can be an important source of income at a given level of input used. Table VII highlights the stochastic production function of the pottery industry and the determinants of inefficiency in India. The stochastic production model has been used to estimate the technical efficiency and determinants of inefficiency (Zeeshan et. al., 2018). The estimated value of γ was 0.984 and was significant at a 1 per cent level of significance. The predicted average efficiency in pottery production was estimated to be 62.8 per cent. This implies that there exists the inefficiency in the model. The cost of raw material had a positive impact on production and was significant at 1 per cent level of significance. As the worker incur on rupee more on purchase of raw material, there has been increase in production by 12.7 per cent as the worker will have more availability of raw material to scale up the production. Another cost was the trading cost. The trading cost had a negative relation to the level of production and was insignificant. Increased trading cost may increase the cost of production. Other cost including machinery cost, marketing cost etc. had a positive impact on production and was significant at 1 per cent level of significance. As there was increase in other cost by 1 rupee, increase in production was by 19.3 per cent. the use of additional labour had a positive impact on the production and was significant at 1 per cent level of significance. Additional use of labour increased the pottery production by 9 per cent. Furthermore, the tax on production had a positive and significant relation with production in pottery industry. Hours spent in the enterprise for the production had a positive relation with level of production and was significant at 1 per cent level of significance. An additional hour spent in the business led to an increase in production by 8 per cent. The gamma squared value showed that there still exists inefficiency. The model estimates the various determinants of inefficiency. The enterprises being in the rural area had a positive impact on production inefficiency and was significant at 1 per cent level of significance. Further, the own account enterprises had a positive impact on production inefficiency but was insignificant. Another important variable was gender of the worker because gender of the worker influences the production capacity (Lee, 2010 ). Workers gender being female was associated positively with inefficiency and was significant. This is a recognized fact the gender inequality hampers the economic growth rate and productivity (Timothy and Adeoti, 2006 ). Another variable was ownership; enterprises owned in partnership had a negative relation with inefficiency and was significant at 1 per cent level of significance. The caste of workers being SC and ST was not significantly associated with inefficiency. The worker belongs to OBC category had a negative impact on inefficiency in pottery production and was significant at 1 per cent level of significance. The workers engaged in this profession only during the season had a positive relationship with the inefficiency in pottery production and was insignificant. The enterprises working on the contractual basis were negatively associated with inefficiency. Thus, leading to efficiency in pottery production. (Fig. 1 here) Figure I show the cumulative distribution of efficiency of pottery enterprises in India. The distribution showed that about 20 per cent of enterprises had an efficiency level below 50 per cent. It implies that there was a chance to increase pottery production almost twice. Furthermore, it was also highlighted in the figure that 80 per cent of enterprises had an enterprise above the 50 per cent. So, there is a desirable future scope for pottery production through efficiency enhancement. (Table VIII here) Based on technical efficiency, Table VIII highlights the actual, potential and gap in technical efficiency. According to the table, there was a slight difference in actual efficiency between the enterprises in the rural and urban area. The potential efficiency in the rural area was 0.912 which resulted in an efficiency gap of 32.07 per cent. The efficiency gap of urban enterprises was 27.14 per cent. This showed that the efficiency gap in rural enterprises was larger compared to urban enterprises. Another category was type of enterprise. The efficiency gap of own account enterprise was comparatively higher than the establishments. Furthermore, the efficiency gap in male owned enterprise was 30.92 per cent and the efficiency gap in female owned enterprise was 38.09 per cent. The efficiency gap of the partnership firm was 20 per cent. This showed that there was a maximum efficiency gap in the companies owned by female workers followed by the rural companies. Conclusion The rich tradition of pottery in India, dating back to thousands of years, has been an integral part of country’s cultural heritage and economic landscape. The study reveals that pottery workers continue to grapple with numerous socio-economic challenges that hinder their overall well-being and the sustainability of their craft. This occupation still remained in the rural spheres. Almost 85 per cent of the total pottery enterprises are in rural areas. In addition, gender biasness can be seen in the field of pottery. It has been male oriented occupation. Maximum number of workers practicing this occupation belonged to SC and ST category. Out of total sample 83.97 enterprise were own account enterprise which means they were running without any hired employed on fairly regular basis. The study also shed light on the technical efficiency and determinants of inefficiency in the pottery industry in India. Trading cost was negatively associated with the technical efficiency of the enterprises. Further, Rural enterprise had a less efficiency as compared to urban enterprises because urban enterprises have better access to modern technology which significantly improves the production process. Moreover, urban enterprises have larger pool of skilled labour. Therefore, providing the fund for purchase of modern equipment’s can enhance their productivity. In addition, the establishments outperform the own account enterprises in terms of technical efficiency as establishments often involve division of labour and have access to more resources. Establishments often invest in training and development for their employees. Encouraging establishments in the pottery industry can have numerous positive impacts both from economic and cultural perspective. The enterprises run by female were least efficient and were positively associated with the technical inefficiency of the enterprise. Males have more strength to perform the core methods of production as compared to females. So, government should establish and expand skill development and training programs specifically designed for women in pottery sector. These programs should include various aspects of pottery, marketing, business skills etc. Encourage the adoption of modern technology can help women to stay competitive in the market. By fostering an environment that values and supports the pottery worker community can help in overcoming these socio-economic challenges that can ensure the preservation of this ancient craft and enhance the well-being of pottery workers. Declarations Author Contribution Author ContributionsDikshika Jakhar: Conceptualization, Review & Editing, Methodology, Writing – Original DraftJaspal Singh: Data Analysis, Data Collection, Validation References Akindipe OS (2014) The role of raw material management in production operations. 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Int J Hum Resource Manage Res 8(6):11–22 Tables Table I: Particulars of the enterprises in the survey and the estimated frequency Particular Unit In sample Estimated Freq % Freq % Sector Rural 623 76.82 208361 84.46 Urban 188 23.18 38345 15.54 Ownership Male proprietary 749 92.36 238095 96.51 Female proprietary 29 3.58 5800 2.35 Partnership with members 33 4.07 2810 1.14 Social Group ST 4 0.49 453 0.18 SC 83 10.23 11258 4.56 OBC 645 79.53 218134 88.42 Others 77 9.49 16380 6.64 Not known 2 0.25 480 0.19 Whether the enterprise maintains any bank account Yes, in the owner's name 354 43.65 97697 39.60 Yes, in the enterprise's name 9 1.11 1285 0.52 No 448 55.24 147723 59.88 Location of enterprise Within household premises 676 83.35 218135 88.42 Outside household premises: with fixed premises and with permanent structure 101 12.45 18923 7.67 Outside household premises: with fixed premises and with temporary structure 11 1.36 5098 2.07 With fixed premises but without any structure 19 2.34 4292 1.74 Mobile market 1 0.12 68 0.03 Without fixed premises (street vendors) 3 0.37 190 0.08 Working experience Less than 5 155 19.11 33769 13.68 5-10 308 37.98 103385 41.91 10-20 190 23.43 55819 22.63 20-30 100 12.33 34131 13.83 30-40 49 6.04 18627 7.55 Greater than 50 9 1.11 974 0.39 Nature of operation Perennial 668 82.37 208508 84.52 Seasonal 142 17.51 36683 14.87 Casual 1 0.12 1515 0.61 Operation months during the year 1: 0-3 19 2.34 8603 3.49 2: 3-6 126 15.54 30813 12.49 3: 6-9 106 13.07 32514 13.18 4: 9-12 560 69.05 174776 70.84 Enterprise Type Own Account Enterprises (OAE's) 681 83.97 236584 95.90 Establishments 130 16.03 10121 4.10 Source: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data. Table II: Average value of cost components, Gross receipts and value added in the sample (Rs/month) Item Sector Rural Urban All Raw material cost 2677 9447 3730 Trading cost 9 30 12 Other any cost 1615 2206 1707 Gross expenses(sum) 4302 11683 5449 Gross receipt (received after sale) 10139 24004 12294 Net receipt (gross receipt minus gross expenses) 5837 12321 6845 Distributive expenses 31 0 26 Taxes on products 0 4 1 Gross Value Added (net – distributive and tax on products) 5806 12317 6818 Taxes on Production 2 14 4 Net Income (GVA- taxes on production) 5804 12303 6814 Source: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data. Table III: Average of workers (number) among sectors and nature of employment in the sample Average number of workers Sector Rural Urban All Full time 1.87 2.01 1.89 Part-time 0.35 0.45 0.36 Total 2.21 2.46 2.25 Source: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data. Table IV: Average number of workers among type of enterprise and worker in the sample Average number of workers Enterprise type Own Account Enterprises Establishments Overall Full time 1.79 4.12 1.89 Part-time 0.37 0.07 0.36 Total 2.17 4.19 2.25 Source: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data. Table V: Average level of technical efficiency number of workers among sector and type of ownership Sector Ownership Type Overall Male Female Partnership Rural 0.621 0.519 0.664 0.620 Urban 0.662 0.532 0.690 0.655 All 0.630 0.524 0.669 0.628 Source: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data. Table VI: Average level of technical efficiency number of workers among sector and type of enterprise Sector Enterprise type Overall Own Account Enterprises (OAE's) Establishments Rural 0.609 0.693 0.620 Urban 0.626 0.727 0.655 All 0.613 0.707 0.628 Source: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data. Table VII: Results of stochastic production frontier Parameter coefficient standard-error t-ratio Production function Dependent variable= Ln Gross value added beta 0 6.106 0.131 46.64 Log raw material cost (Rs.) 0.127 0.010 12.64 Log trading cost (Rs.) -0.046 0.035 -1.32 Log any other cost (Rs.) 0.193 0.019 10.15 Labour working in enterprise (number) 0.090 0.011 7.86 Log production tax (Rs.) 0.047 0.022 2.15 Spent work hrs daily in enterprise 0.085 0.012 6.89 Inefficiency function Dependent variable= Estimated inefficiency delta 0 -23.113 5.184 -4.46 Rural dummy (if enterprise in rural then 1 otherwise 0) 2.335 0.935 2.50 OAE dummy (if enterprise own account enterprise then 1 otherwise 0) 0.139 1.040 0.13 Female owner dummy 10.521 1.910 5.51 Partnership ownership -5.506 1.863 -2.96 SC ST dummy -3.833 0.772 -4.97 OBC dummy -3.691 1.133 -3.26 Season dummy 2.040 1.544 1.32 Contract dummy -5.398 1.084 -4.98 sigma-squared 15.73*** gamma 0.984*** Log-likelihood function -918.52 LR Ratio 299.91 number of observations 811.0 Average Efficiency 0.628 Source: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data. Table VIII: Estimation of actual, potential, and gap in technical efficiency Category Particular Actual efficiency Potential efficiency Efficiency Gap (%) Sector Rural 0.620 0.912 32.07 Urban 0.655 0.899 27.14 Enterprise type Own Account Enterprises 0.613 0.874 29.91 Establishments 0.707 0.912 22.49 Ownership Type Male 0.630 0.912 30.92 Female 0.524 0.846 38.09 Partnership 0.669 0.836 20.00 Overall All 0.628 0.912 31.17 Source: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data. Additional Declarations No competing interests reported. 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Art has been an inseparable part of the economy since the existence of humans (Vidyarthi, \u003cspan citationid=\"CR22\" class=\"CitationRef\"\u003e1986\u003c/span\u003e). Artisans had a significant place and are acknowledged for their art and skills in the society (Srivastava, \u003cspan citationid=\"CR20\" class=\"CitationRef\"\u003e2015\u003c/span\u003e). The MSME sector contributes around 45 per cent to the India\u0026rsquo;s manufacturing output and 20 per cent to GDP of the India (Singh and Mallaiah, \u003cspan citationid=\"CR18\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). In a developing country like India, small-scale industry has a large capability, to provide employment, revenue, and foreign investment (Pizam, \u003cspan citationid=\"CR15\" class=\"CitationRef\"\u003e1990\u003c/span\u003e). Providing employment opportunities is key for the enhancing the living standards and thus brings positive impact on economic development of the country (Singh, \u003cspan citationid=\"CR17\" class=\"CitationRef\"\u003e2021\u003c/span\u003e). Similarly, pottery has been an integral part of culture and heritage for years, serving both utilitarian and artistic purposes. The pottery industry not only reflects the rich traditions of the country but also contributes significantly to its economy, such as rural development (Pegu, 2017) and India being a predominately a rural country about 70 per cent of population belongs to rural areas (Chand, et. al., 2017). Pottery making is based on particular set of material resources, tools, manufacturing techniques, skills and knowledge (Pfaffenberger, \u003cspan citationid=\"CR14\" class=\"CitationRef\"\u003e1992\u003c/span\u003e). The handicraft industry creates the products characterized by its heterogeneity, with a diverse range of pottery products, production techniques, and market segments (Yadav et. al., \u003cspan citationid=\"CR23\" class=\"CitationRef\"\u003e2022\u003c/span\u003e). From traditional earthenware to modern pottery for decorative and export purposes, this industry has evolved over time. In recent years, as India undergoes rapid industrial revolution, modernization and urbanization, the small and medium enterprises like pottery sector faces new challenges and opportunities (Ekanayake et al., \u003cspan citationid=\"CR4\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Consequently, the per day earning of the workers engaged in traditional sector is low as compared to other sectors of the economy, as a result there is decline in number of workers in traditional sector due to low income earned (Jakhar, et. al., \u003cspan citationid=\"CR6\" class=\"CitationRef\"\u003e2023\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eThere is no study on the socio-economic conditions of pottery artisans in India based on secondary data. Moreover, there is no study focusing on the productive efficiency and the determinants of inefficiency of the pottery industry in India. So, keeping this gap in mind, the study focusses on transformative journey of pottery workers, examining their socio-economic conditions that outline their choices and strategies. Another objective is to understand how efficiently these enterprises operate, which becomes critical for their growth, competitiveness, and sustainability. Understanding the production efficiency of pottery enterprises is crucial to sustaining this age-old craft while promoting economic growth. The performance of productive efficiency is a key indicator to determine the competitiveness (Prasetyo, et al., 2020). This paper delves into the technical production efficiency of pottery enterprises in India, employing a stochastic production frontier approach as a robust analytical framework. The model allows one to assess the efficiency levels of individual pottery firms, identifying the factors that contribute to both optimal and suboptimal production outcomes (Khanum et al., \u003cspan citationid=\"CR8\" class=\"CitationRef\"\u003e2023\u003c/span\u003e). Another important task is to find the number of factors that are likely to be determinants of inefficiency and measures the extent to which they contribute to the presence of inefficiency (Baten et al., \u003cspan citationid=\"CR2\" class=\"CitationRef\"\u003e2009\u003c/span\u003e).\u003c/p\u003e\u003cp\u003eTherefore, the study can help to shed light on the broader dynamics of the pottery industry in India and provide valuable information for policymakers, entrepreneurs and stakeholders. Thus, efficiency analysis using the Stochastic frontier production model will help in finding factors that influence production efficiency and determinants of inefficiency of pottery enterprises in India. It also helps in making policy recommendations that can be derived from efficiency analysis to improve the overall performance of the pottery industry.\u003c/p\u003e"},{"header":"Data and methodology","content":"\u003cp\u003eThe main source of data was 73rd National Sample Survey Organization (NSSO) unit level data on Incorporated non-agricultural enterprise Survey 2015-16. The data from the 73rd round of NSO meet the objective of the study. In our study, we have used the data on various socio-economic variables using the National Industrial Classification codes (NIC codes) mentioned under NIC code 23933. 811 enterprises were taken into the survey. Of which 623 enterprises were from the rural area and the rest from the urban areas. A simple descriptive analysis was used to study the general socioeconomic background of the pottery manufacturers. The study hypothesis is that the change in the efficiency of production in pottery enterprises is attributed to the change in various factors including the cost of raw material, the trading cost, any other cost, the number of labors working in the enterprises, the production cost and the daily hours spent in the enterprises. The changes in these factors and their association with pottery production were examined by fitting the stochastic frontier production function with determinants of inefficiency. Thus, the model estimates both technical efficiency and time-varying technical inefficiencies. The empirical form of model is given below\u003c/p\u003e\u003cp\u003e\u003cem\u003eLn_productionit\u0026thinsp;=\u003c/em\u003e\u0026thinsp;b\u003cem\u003e0\u0026thinsp;+\u003c/em\u003e\u0026thinsp;b\u003cem\u003e1 Ln_cost of raw materialit\u0026thinsp;+\u003c/em\u003e\u0026thinsp;b\u003cem\u003e2 Ln_trading costit\u0026thinsp;+\u003c/em\u003e\u0026thinsp;b\u003cem\u003e3 Ln_any other costit\u0026thinsp;+\u003c/em\u003e\u0026thinsp;b\u003cem\u003e4 Ln_labour working in enterprisesit\u0026thinsp;+\u003c/em\u003e\u0026thinsp;b\u003cem\u003e5 Ln_production taxit\u0026thinsp;+\u003c/em\u003e\u0026thinsp;b\u003cem\u003e6 Ln_working hours spent in enterprisesit + (Vit-Uit)\u003c/em\u003e\u003c/p\u003e\u003cp\u003eWhere,\u003c/p\u003e\u003cp\u003e\u003cem\u003eLn_cost of raw materialit\u003c/em\u003e\u0026thinsp;=\u0026thinsp;Log cost of raw material (Rs./ enterprise /per annum)\u003c/p\u003e\u003cp\u003e\u003cem\u003eLn_trading costit\u003c/em\u003e\u0026thinsp;=\u0026thinsp;Log trading cost (Rs./ enterprise /per annum)\u003c/p\u003e\u003cp\u003e\u003cem\u003eLn_any other costit\u003c/em\u003e\u0026thinsp;=\u0026thinsp;Log any other cost (Rs./ enterprise /per annum)\u003c/p\u003e\u003cp\u003e\u003cem\u003eLn_labour working in enterprisesit\u003c/em\u003e\u0026thinsp;=\u0026thinsp;Log labour working hours (number/enterprise/ per annum)\u003c/p\u003e\u003cp\u003e\u003cem\u003eLn_production taxit\u003c/em\u003e\u0026thinsp;=\u0026thinsp;Log production cost (Rs. /enterprise/ per annum)\u003c/p\u003e\u003cp\u003e\u003cem\u003eLn_working hours spent in enterprisesit\u003c/em\u003e\u0026thinsp;=\u0026thinsp;Log working hours spent in enterprise (Rs. /enterprise/ annum)\u003c/p\u003e\u003cp\u003eThe subscriptit denotes ith observation in tth year and Ln denotes the natural logarithms. Vit is assumed to be the independent and identical distributed random error. Uit represents technical inefficiency and is assumed to be non-negative. Vit captures the stochastic effects outside the control of households whereas Uit measures shortfall of observed output from its maximum possible value.\u003c/p\u003e\u003cp\u003eFurther, the average level of technical inefficiency was measured by Uit.\u003c/p\u003e\u003cp\u003e\u003cem\u003eUit\u0026thinsp;=\u003c/em\u003e\u0026thinsp;d\u003cem\u003e0\u0026thinsp;+\u003c/em\u003e\u0026thinsp;d\u003cem\u003e1 Rural_dummy\u0026thinsp;+\u003c/em\u003e\u0026thinsp;d\u003cem\u003e2 Own_account_enterprise_dummy\u0026thinsp;+\u003c/em\u003e\u0026thinsp;d\u003cem\u003e3 Female_owner_dummy\u0026thinsp;+\u003c/em\u003e\u0026thinsp;d\u003cem\u003e4 partner_ownership_dummy\u0026thinsp;+\u003c/em\u003e\u0026thinsp;d\u003cem\u003e5 SC_ST_dummy\u0026thinsp;+\u003c/em\u003e\u0026thinsp;d\u003cem\u003e6 OBC_dummy\u0026thinsp;+\u003c/em\u003e\u0026thinsp;d\u003cem\u003e7 Season_dummy\u0026thinsp;+\u003c/em\u003e\u0026thinsp;d\u003cem\u003e7 contract_dummy\u003c/em\u003e\u003c/p\u003e\u003cdiv id=\"Sec3\" class=\"Section2\"\u003e\u003ch2\u003eRural_dummy\u0026thinsp;=\u0026thinsp;if enterprise in rural then 1 otherwise 0\u003c/h2\u003e\u003cdiv id=\"Sec4\" class=\"Section3\"\u003e\u003ch2\u003eOwn_account_enterprise_dummy\u0026thinsp;=\u0026thinsp;if own account enterprise then 1 otherwise 0\u003c/h2\u003e\u003cdiv id=\"Sec5\" class=\"Section4\"\u003e\u003ch2\u003eFemale_owner_dummy\u0026thinsp;=\u0026thinsp;if female worker then 1 otherwise 0\u003c/h2\u003e\u003cp\u003e\u003cem\u003epartnership_ownership_dummy\u0026thinsp;=\u0026thinsp;if partnership ownership then 1 otherwise\u003c/em\u003e\u003c/p\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e\n\u003ch3\u003eSC_ST_dummy = if worker belong to SC and ST then 1 otherwise 0\u003c/h3\u003e\n\u003cdiv id=\"Sec7\" class=\"Section2\"\u003e\u003ch2\u003eOBC_dummy\u0026thinsp;=\u0026thinsp;if worker belong to OBC then 1 otherwise 0\u003c/h2\u003e\u003cdiv id=\"Sec8\" class=\"Section3\"\u003e\u003ch2\u003eSeason_dummy\u0026thinsp;=\u0026thinsp;if enterprise work only during season then 1 otherwise 0\u003c/h2\u003e\u003cdiv id=\"Sec9\" class=\"Section4\"\u003e\u003ch2\u003econtract_dummy\u0026thinsp;=\u0026thinsp;if enterprise work on the contract then 1 otherwise 0\u003c/h2\u003e\u003cp\u003eFurther, by using the estimated values of technical efficiency, the average potential to raise gross value added by the enterprise with the given level of input use has been obtained for the study using the following formula:\u003cdiv id=\"Equa\" class=\"Equation\"\u003e\u003cdiv format=\"TEX\" class=\"mathdisplay\" id=\"FileID_Equa\" name=\"EquationSource\"\u003e\n$$\\:\\mathbf{E}\\mathbf{f}\\mathbf{f}\\mathbf{i}\\mathbf{c}\\mathbf{i}\\mathbf{e}\\mathbf{n}\\mathbf{c}\\mathbf{y}\\:\\mathbf{G}\\mathbf{a}\\mathbf{p}\\:\\left(\\mathbf{\\%}\\right)=\\:\\left[1-\\frac{\\mathbf{m}\\mathbf{e}\\mathbf{a}\\mathbf{n}\\:\\mathbf{t}\\mathbf{e}\\mathbf{c}\\mathbf{h}\\mathbf{n}\\mathbf{i}\\mathbf{c}\\mathbf{a}\\mathbf{l}\\:\\mathbf{e}\\mathbf{f}\\mathbf{f}\\mathbf{i}\\mathbf{c}\\mathbf{i}\\mathbf{e}\\mathbf{n}\\mathbf{c}\\mathbf{y}}{\\mathbf{m}\\mathbf{a}\\mathbf{x}\\mathbf{i}\\mathbf{m}\\mathbf{u}\\mathbf{m}\\:\\mathbf{t}\\mathbf{e}\\mathbf{c}\\mathbf{h}\\mathbf{n}\\mathbf{i}\\mathbf{c}\\mathbf{a}\\mathbf{l}\\:\\mathbf{e}\\mathbf{f}\\mathbf{f}\\mathbf{i}\\mathbf{c}\\mathbf{i}\\mathbf{e}\\mathbf{n}\\mathbf{c}\\mathbf{y}}\\right]\\times\\:100$$\u003c/div\u003e\u003c/div\u003e\u003c/p\u003e\u003c/div\u003e\u003c/div\u003e\u003c/div\u003e"},{"header":"Results and discussion","content":"\u003cp\u003eThe handicraft sector has a major contribution that has augmented the national income, source of export and employment (Koehane, et. al., 2016). Likewise, the pottery industry has been an indispensable part of India\u0026rsquo;s cultural heritage and economic activities. By examining the socioeconomic background, one can propose the viable solution and can empower the workers. By studying the production efficiency one can determine the factors that contributes to the efficiency in the production.\u003c/p\u003e\u003cdiv id=\"Sec11\" class=\"Section2\"\u003e\u003ch2\u003e(Table I here)\u003c/h2\u003e\u003cp\u003eThe study of socioeconomic background is essential for both cultural preservation and socioeconomic development (Loulanski,2006). It helps to ensure that this ancient and valuable craft continues to be a source of livelihood, cultural pride and artistic expression for generations to come. Table I highlights the socioeconomic conditions of pottery workers in India. According to the data 76.82 per cent of the total sample were from rural areas and the remaining were from urban areas. This depicted the fact that more pottery workers reside in rural area and compared to urban area. Handicraft industry is more inclined towards the rural economy (Ghosal et.al., \u003cspan citationid=\"CR5\" class=\"CitationRef\"\u003e2020\u003c/span\u003e). Furthermore, in India, most pottery enterprises were owned by males. Of the total sample 92.36 per cent were male owned, 3.58 per cent were owned by men, 3.58 percent owned by men, 3.58 percent owned by women, and 4.07 were in partnership. There is a wide gap between the three categories. India, being the caste-based society where people follow their ancient occupation and stand in a particular position in the society (Srinivas, \u003cspan citationid=\"CR19\" class=\"CitationRef\"\u003e1962\u003c/span\u003e). Workers belonging to the OBC category were the highest, followed by SC and ST. Another important variable was ownership a bank account. It was found that 55.24 per cent of the total pottery workers do not have a bank account. The remaining 44.65 had a bank account in their own name and 1.11 had an account in the name of enterprises.\u003c/p\u003e\u003cp\u003eThe location of the enterprise in the artisanal units can have a significant impact on its success and operations as sometimes timely access to market information becomes difficult (Menon, \u003cspan citationid=\"CR11\" class=\"CitationRef\"\u003e2010\u003c/span\u003e). So, in pottery industry the workers who worked within the enterprises were 83.35 per cent and around 16 per cent worked outside the household premises. Less than 1 per cent had a mobile market or street vendors. Another important variable was the work experience. Working experience is certainly beneficial in the pottery industry, as it enhances the skills, knowledge, and understanding of craft. Our of the total sample 19.11 per cent workers had an experience of five years. 37.98 had an experience of 5\u0026ndash;10 years and 23.43 had an experience of 10\u0026ndash;20 years. Around 20 per cent had an experience of more than 20 years. 83.37 per cent of the total sample run their enterprise throughout the year and 17.51 operated during season only. Furthermore, the maximum enterprise runs their company during the month of September to December. The type of enterprise was another significant variable. Out of total sample, 83.97 enterprise were own account enterprise which means they were running without any hired employed on fairly regular basis and 16.03 were the establishments which hired at least one worker on the fairly regular basis.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec12\" class=\"Section2\"\u003e\u003ch2\u003e(Table II here)\u003c/h2\u003e\u003cp\u003eDifferent costs were taken during production. it is necessary to study the different cost and receipts that directly impacts the viability and profitability of enterprises. The Table II shows the various cost components and the receipts of the sample per month. The administration of raw material affects the production of the manufacturing unit (Akindipe, \u003cspan citationid=\"CR1\" class=\"CitationRef\"\u003e2014\u003c/span\u003e). As per the data, rural workers incurred Rs. 2677 per month and urban workers incurred Rs. 9447 per month. This showed that the cost of raw material was higher in the urban area compared to rural area. Another cost of was the trading cost urban workers Rs. 30 per month, which was higher compared to rural workers. Urban and rural workers incurred Rs. 2206 and Rs. 1615 per month on the other cost like machinery etc. The gross receipt after sale was Rs. 24004 in urban and Rs. 10139 in rural area. Net receipts after deduction of gross expenses were higher in the urban area compared to rural area. The expenses on distribution were of Rs 30 per month in rural areas and nil in urban area. When the distributive expense and taxes on product are deducted, the left amount is considered as gross value added, which was of RS. 12317 per month in urban area and Rs. 5807 per month in rural area. Now, if the taxes on production were deducted from the gross value added, net income was left which was Rs. 5804 per month in rural and Rs. 12303 in an urban area. This depicted the fact that net receipts were higher in urban area as compared to rural area. Keeping the track of expenses and receipts is absolutely crucial in managing the pottery business effectively and better equipped to make informed decisions for its growth and development.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec13\" class=\"Section2\"\u003e\u003ch2\u003e(Table III here)\u003c/h2\u003e\u003cp\u003eIt was necessary to study the average number of workers in the sector and the nature of employment, as it provides critical data for informed decision-making, economic planning, and the development of effective labour market policies and strategies. Table III highlights the average distribution according to the area and nature of employment. According to the data, the average number of workers in each enterprise was 2.21 in rural area and 2.46 in the urban area. In each rural area enterprise, 1.87 work full-time in this profession and 0.35 work part-time. In each enterprise of the urban area, the average full-time workers were 2.01 and 0.45 were part-time workers. This represented the fact that there was a slight difference in the average workers in each enterprise in the rural and urban areas, and the part-time workers were much less compared to full-time workers in each enterprise in both the rural and urban areas.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec14\" class=\"Section2\"\u003e\u003ch2\u003e(Table IV here)\u003c/h2\u003e\u003cp\u003eAnother important information regarding the average number of workers among the different type of pottery enterprises and characteristic of worker within the industry is necessary for the valuable information for industry analysis, policy development and efforts to promote sustainable and inclusive pottery industry. Table IV highlights the average number of workers among different enterprises and nature of employment. In the own account of the enterprises, the average number of full-time workers was 1.79 and the average number of part-time workers was 0.37. In establishments, the average number of full-time workers was 4.12 and the average number of part-time workers was 0.07. This showed that full-time workers were more as compared to part-time workers between both types of establishments. Moreover, full-time workers were higher in establishments as compared to own account enterprises.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec15\" class=\"Section2\"\u003e\u003ch2\u003e(Table V here)\u003c/h2\u003e\u003cp\u003eTable V reflects the average level of technical efficiency as a function of the type of ownership and sector. According to the table, there was a slight difference in the average efficiency of the rural and urban areas. In rural areas, partnership-run enterprises were at top in terms of technical efficiency followed by male run enterprises and female run enterprise were at the bottom. In the urban area, the partnership-run enterprise was at top in terms of technical efficiency followed by male run enterprises and female run enterprise were at the bottom. So, this depicted that average technical efficiency was greater in urban area as compared to rural area. The partnership run enterprises had a maximum average technical efficiency compared to other categories. Hence, partnership type of enterprise should be encouraged as it helps in pooling the skills and spread of risk (Pandey, \u003cspan citationid=\"CR12\" class=\"CitationRef\"\u003e2013\u003c/span\u003e).\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec16\" class=\"Section2\"\u003e\u003ch2\u003e(Table VI here)\u003c/h2\u003e\u003cp\u003eThe study of technical efficiency among the type of enterprises is indeed important for the comprehensive understanding of this particular sector. It helps in developing the appropriate strategy and address specific challenges within the industry. In rural area, the average technical efficiency was 0.693 which was higher as compared to own account enterprises with the average efficiency of 0.609. In urban area also, the average technical efficiency was higher in establishments as compared to own-account enterprises. This showed that the average technical efficiency was higher in establishments as compared to own-account enterprises in both rural and urban area.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec17\" class=\"Section2\"\u003e\u003ch2\u003e(Table VII here)\u003c/h2\u003e\u003cp\u003eThe improvement of efficiency in pottery production can be an important source of income at a given level of input used. Table VII highlights the stochastic production function of the pottery industry and the determinants of inefficiency in India. The stochastic production model has been used to estimate the technical efficiency and determinants of inefficiency (Zeeshan et. al., 2018). The estimated value of γ was 0.984 and was significant at a 1 per cent level of significance. The predicted average efficiency in pottery production was estimated to be 62.8 per cent. This implies that there exists the inefficiency in the model. The cost of raw material had a positive impact on production and was significant at 1 per cent level of significance. As the worker incur on rupee more on purchase of raw material, there has been increase in production by 12.7 per cent as the worker will have more availability of raw material to scale up the production. Another cost was the trading cost. The trading cost had a negative relation to the level of production and was insignificant. Increased trading cost may increase the cost of production. Other cost including machinery cost, marketing cost etc. had a positive impact on production and was significant at 1 per cent level of significance. As there was increase in other cost by 1 rupee, increase in production was by 19.3 per cent. the use of additional labour had a positive impact on the production and was significant at 1 per cent level of significance. Additional use of labour increased the pottery production by 9 per cent. Furthermore, the tax on production had a positive and significant relation with production in pottery industry. Hours spent in the enterprise for the production had a positive relation with level of production and was significant at 1 per cent level of significance. An additional hour spent in the business led to an increase in production by 8 per cent.\u003c/p\u003e\u003cp\u003eThe gamma squared value showed that there still exists inefficiency. The model estimates the various determinants of inefficiency. The enterprises being in the rural area had a positive impact on production inefficiency and was significant at 1 per cent level of significance. Further, the own account enterprises had a positive impact on production inefficiency but was insignificant. Another important variable was gender of the worker because gender of the worker influences the production capacity (Lee, \u003cspan citationid=\"CR9\" class=\"CitationRef\"\u003e2010\u003c/span\u003e). Workers gender being female was associated positively with inefficiency and was significant. This is a recognized fact the gender inequality hampers the economic growth rate and productivity (Timothy and Adeoti, \u003cspan citationid=\"CR21\" class=\"CitationRef\"\u003e2006\u003c/span\u003e). Another variable was ownership; enterprises owned in partnership had a negative relation with inefficiency and was significant at 1 per cent level of significance. The caste of workers being SC and ST was not significantly associated with inefficiency. The worker belongs to OBC category had a negative impact on inefficiency in pottery production and was significant at 1 per cent level of significance. The workers engaged in this profession only during the season had a positive relationship with the inefficiency in pottery production and was insignificant. The enterprises working on the contractual basis were negatively associated with inefficiency. Thus, leading to efficiency in pottery production.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec18\" class=\"Section2\"\u003e\u003ch2\u003e(Fig.\u0026nbsp;1 here)\u003c/h2\u003e\u003cp\u003eFigure I show the cumulative distribution of efficiency of pottery enterprises in India. The distribution showed that about 20 per cent of enterprises had an efficiency level below 50 per cent. It implies that there was a chance to increase pottery production almost twice. Furthermore, it was also highlighted in the figure that 80 per cent of enterprises had an enterprise above the 50 per cent. So, there is a desirable future scope for pottery production through efficiency enhancement.\u003c/p\u003e\u003c/div\u003e\u003cdiv id=\"Sec19\" class=\"Section2\"\u003e\u003ch2\u003e(Table VIII here)\u003c/h2\u003e\u003cp\u003eBased on technical efficiency, Table VIII highlights the actual, potential and gap in technical efficiency. According to the table, there was a slight difference in actual efficiency between the enterprises in the rural and urban area. The potential efficiency in the rural area was 0.912 which resulted in an efficiency gap of 32.07 per cent. The efficiency gap of urban enterprises was 27.14 per cent. This showed that the efficiency gap in rural enterprises was larger compared to urban enterprises. Another category was type of enterprise. The efficiency gap of own account enterprise was comparatively higher than the establishments. Furthermore, the efficiency gap in male owned enterprise was 30.92 per cent and the efficiency gap in female owned enterprise was 38.09 per cent. The efficiency gap of the partnership firm was 20 per cent. This showed that there was a maximum efficiency gap in the companies owned by female workers followed by the rural companies.\u003c/p\u003e\u003c/div\u003e"},{"header":"Conclusion","content":"\u003cp\u003eThe rich tradition of pottery in India, dating back to thousands of years, has been an integral part of country\u0026rsquo;s cultural heritage and economic landscape. The study reveals that pottery workers continue to grapple with numerous socio-economic challenges that hinder their overall well-being and the sustainability of their craft. This occupation still remained in the rural spheres. Almost 85 per cent of the total pottery enterprises are in rural areas. In addition, gender biasness can be seen in the field of pottery. It has been male oriented occupation. Maximum number of workers practicing this occupation belonged to SC and ST category. Out of total sample 83.97 enterprise were own account enterprise which means they were running without any hired employed on fairly regular basis.\u003c/p\u003e\u003cp\u003eThe study also shed light on the technical efficiency and determinants of inefficiency in the pottery industry in India. Trading cost was negatively associated with the technical efficiency of the enterprises. Further, Rural enterprise had a less efficiency as compared to urban enterprises because urban enterprises have better access to modern technology which significantly improves the production process. Moreover, urban enterprises have larger pool of skilled labour. Therefore, providing the fund for purchase of modern equipment\u0026rsquo;s can enhance their productivity. In addition, the establishments outperform the own account enterprises in terms of technical efficiency as establishments often involve division of labour and have access to more resources. Establishments often invest in training and development for their employees. Encouraging establishments in the pottery industry can have numerous positive impacts both from economic and cultural perspective. The enterprises run by female were least efficient and were positively associated with the technical inefficiency of the enterprise. Males have more strength to perform the core methods of production as compared to females. So, government should establish and expand skill development and training programs specifically designed for women in pottery sector. These programs should include various aspects of pottery, marketing, business skills etc. Encourage the adoption of modern technology can help women to stay competitive in the market. By fostering an environment that values and supports the pottery worker community can help in overcoming these socio-economic challenges that can ensure the preservation of this ancient craft and enhance the well-being of pottery workers.\u003c/p\u003e"},{"header":"Declarations","content":"\u003ch2\u003eAuthor Contribution\u003c/h2\u003e\u003cp\u003eAuthor ContributionsDikshika Jakhar: Conceptualization, Review \u0026amp; Editing, Methodology, Writing \u0026ndash; Original DraftJaspal Singh: Data Analysis, Data Collection, Validation\u003c/p\u003e"},{"header":"References","content":"\u003col\u003e\u003cli\u003e\u003cspan\u003eAkindipe OS (2014) The role of raw material management in production operations. Int J Managing Value Supply Chains 5(3):37\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eBaten MA, Kamil AA, Fatama K (2009) Technical efficiency in stochastic frontier production model: An application to the manufacturing industry in Bangladesh. Aust J Basic Appl Sci 3(2):1160\u0026ndash;1169\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eChand Ramesh, Srivastava SK, Singh, Jaspal (2017) Changing Structure of Rural Economy of India Implications for Employment and Growth. \u003cem\u003eNational Institution for Transforming India NITI Aayog\u003c/em\u003e. Discussion paper, p. 1\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eEkanayake E, Prasanna P, Jayasundara JMSB, Gamage S, Rajapakshe P, Abeyrathne GA, K. NJ, Gunasena K (2020) Traditional SMEs with cultural heritage: challenges in modernity a case study from Sri Lanka. Int J Arts Commer 9(11):76\u0026ndash;95 A. K. I. C\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eGhosal I, Prasad B, Behera MP (2020) Delineating the exchange environment of handicraft industry from market space to marketplace: An inclusive map for RURBAN development. 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Environments: J interdisciplinary Stud, \u003cem\u003e34\u003c/em\u003e(2)\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eMenon V (2010) Art of marketing village crafts: challenges in applying quantitative marketing to resist recession. Int Rev Bus Res Papers 6(5):196\u0026ndash;205\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003ePandey V (2013) Trends, opportunities and challenges in small scale and cottage industries in Uttar Pradesh. Asian J Technol Manage Res, \u003cem\u003e3\u003c/em\u003e(02)\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003ePegu D (2019) Pottery Industry in Majuli District of Assam: It\u0026rsquo;s problems and prospect. Int J Sci Technol Res 8(12):3650\u0026ndash;3652\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003ePfaffenberger B (1992) Social anthropology of technology. 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Asia publishing house\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eSrivastava S (2015) A Study of Awareness of Cultural Heritage among the Teachers at University Level. Univers J Educational Res 3(5):336\u0026ndash;344\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eTimothy AT, Adeoti AI (2006) Gender inequalities and economic efficiency: New evidence from cassava-based farm holdings in rural south‐western Nigeria. Afr Dev Rev 18(3):428\u0026ndash;443\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eVidyarthi LP (1986) Art and Culture of North-East India. Publication Division, Ministry of Information and Broad Casting Government of India, New Delhi\u003c/span\u003e\u003c/li\u003e\u003cli\u003e\u003cspan\u003eYadav US, Tripathi R, Tripathi MA (2022) One district one product (ODOP) of Uttar Pradesh: New initiative for developing Global Handicraft Index. 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Int J Hum Resource Manage Res 8(6):11\u0026ndash;22\u003c/span\u003e\u003c/li\u003e\u003c/ol\u003e"},{"header":"Tables","content":"\u003cp\u003e\u003cstrong\u003eTable I: Particulars of the enterprises in the survey and the estimated frequency\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n\u003ctable border=\"1\" cellspacing=\"0\" cellpadding=\"0\" width=\"99%\"\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 22px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eParticular\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eUnit\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"2\" valign=\"bottom\" style=\"width: 20px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eIn sample\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"2\" valign=\"bottom\" style=\"width: 27px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eEstimated\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eFreq\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e%\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eFreq\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e%\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 22px;\"\u003e\n \u003cp\u003eSector\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 29px;\"\u003e\n \u003cp\u003eRural\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e623\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e76.82\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e208361\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e84.46\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 29px;\"\u003e\n \u003cp\u003eUrban\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e188\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e23.18\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e38345\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e15.54\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"3\" valign=\"top\" style=\"width: 22px;\"\u003e\n \u003cp\u003eOwnership\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eMale proprietary\u0026nbsp;\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e749\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e92.36\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e238095\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e96.51\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eFemale proprietary\u0026nbsp;\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e29\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e3.58\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e5800\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e2.35\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003ePartnership with members\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e33\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e4.07\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e2810\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e1.14\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"5\" valign=\"top\" style=\"width: 22px;\"\u003e\n \u003cp\u003eSocial Group\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eST\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e4\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e0.49\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e453\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e0.18\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eSC\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e83\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e10.23\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e11258\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e4.56\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eOBC\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e645\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e79.53\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e218134\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e88.42\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eOthers\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e77\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e9.49\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e16380\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e6.64\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eNot known\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e2\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e0.25\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e480\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e0.19\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"3\" valign=\"top\" style=\"width: 22px;\"\u003e\n \u003cp\u003eWhether the enterprise maintains any bank account\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eYes, in the owner\u0026apos;s name\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e354\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e43.65\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e97697\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e39.60\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eYes, in the enterprise\u0026apos;s name\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e9\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e1.11\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e1285\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e0.52\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eNo\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e448\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e55.24\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e147723\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e59.88\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"6\" valign=\"top\" style=\"width: 22px;\"\u003e\n \u003cp\u003eLocation of enterprise\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eWithin household premises\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e676\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e83.35\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e218135\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e88.42\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eOutside household premises: with fixed premises and with permanent structure\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e101\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e12.45\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e18923\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e7.67\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eOutside household premises: with fixed premises and with temporary structure\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e11\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e1.36\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e5098\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e2.07\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eWith fixed premises but without any structure\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e19\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e2.34\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e4292\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e1.74\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eMobile market\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e1\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e0.12\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e68\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e0.03\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eWithout fixed premises (street vendors)\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e3\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e0.37\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e190\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e0.08\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"6\" valign=\"top\" style=\"width: 22px;\"\u003e\n \u003cp\u003eWorking experience\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eLess than 5\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e155\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e19.11\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e33769\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e13.68\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003e5-10\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e308\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e37.98\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e103385\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e41.91\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003e10-20\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e190\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e23.43\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e55819\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e22.63\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003e20-30\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e100\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e12.33\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e34131\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e13.83\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003e30-40\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e49\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e6.04\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e18627\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e7.55\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eGreater than 50\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e9\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e1.11\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e974\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e0.39\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"3\" valign=\"top\" style=\"width: 22px;\"\u003e\n \u003cp\u003eNature of operation\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003ePerennial\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e668\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e82.37\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 12px;\"\u003e\n \u003cp\u003e208508\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 15px;\"\u003e\n \u003cp\u003e84.52\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eSeasonal\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e142\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e17.51\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 12px;\"\u003e\n \u003cp\u003e36683\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 15px;\"\u003e\n \u003cp\u003e14.87\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eCasual\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e1\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e0.12\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 12px;\"\u003e\n \u003cp\u003e1515\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 15px;\"\u003e\n \u003cp\u003e0.61\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"4\" valign=\"top\" style=\"width: 22px;\"\u003e\n \u003cp\u003eOperation months during the year\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003e1: 0-3\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e19\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e2.34\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 12px;\"\u003e\n \u003cp\u003e8603\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 15px;\"\u003e\n \u003cp\u003e3.49\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003e2: 3-6\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e126\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e15.54\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 12px;\"\u003e\n \u003cp\u003e30813\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 15px;\"\u003e\n \u003cp\u003e12.49\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003e3: 6-9\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e106\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e13.07\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 12px;\"\u003e\n \u003cp\u003e32514\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 15px;\"\u003e\n \u003cp\u003e13.18\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003e4: 9-12\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e560\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e69.05\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 12px;\"\u003e\n \u003cp\u003e174776\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 15px;\"\u003e\n \u003cp\u003e70.84\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 22px;\"\u003e\n \u003cp\u003eEnterprise Type\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eOwn Account Enterprises (OAE\u0026apos;s)\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e681\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e83.97\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e236584\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e95.90\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 29px;\"\u003e\n \u003cp\u003eEstablishments\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e130\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 10px;\"\u003e\n \u003cp\u003e16.03\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 12px;\"\u003e\n \u003cp\u003e10121\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e4.10\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n\u003c/table\u003e\n\u003cp\u003e\u003cstrong\u003eSource: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data.\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eTable II: Average value of cost components, Gross receipts and value added in the sample\u0026nbsp;\u003c/strong\u003e\u003cstrong\u003e(Rs/month)\u003c/strong\u003e\u003c/p\u003e\n\u003ctable border=\"1\" cellspacing=\"0\" cellpadding=\"0\" width=\"100%\"\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 64px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eItem\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"bottom\" style=\"width: 35px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eSector\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eRural\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eUrban\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eAll\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003eRaw material cost\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e2677\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e9447\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e3730\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003eTrading cost\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e9\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e30\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e12\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003eOther any cost\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e1615\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e2206\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e1707\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eGross expenses(sum)\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e4302\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e11683\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e5449\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eGross receipt (received after sale)\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e10139\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e24004\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e12294\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eNet receipt (gross receipt minus gross expenses)\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e5837\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e12321\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e6845\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003eDistributive expenses\u0026nbsp;\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e31\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e0\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e26\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003eTaxes on products\u0026nbsp;\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e0\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e4\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e1\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eGross Value Added (net \u0026ndash; distributive and tax on products)\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e5806\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e12317\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e6818\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003eTaxes on Production\u0026nbsp;\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e2\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e14\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e4\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 64px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eNet Income (GVA- taxes on production)\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 14px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e5804\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e12303\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 10px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e6814\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n\u003c/table\u003e\n\u003cp\u003e\u003cstrong\u003eSource: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data.\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u003cbr\u003e\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eTable III: Average of workers (number) among sectors and nature of employment in the sample\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n\u003ctable border=\"1\" cellspacing=\"0\" cellpadding=\"0\" width=\"100%\"\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"2\" valign=\"bottom\" style=\"width: 36px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eAverage number of workers\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 63px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eSector\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 26px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eRural\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 16px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eUrban\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 20px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eAll\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 36px;\"\u003e\n \u003cp\u003eFull time\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 26px;\"\u003e\n \u003cp\u003e1.87\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 16px;\"\u003e\n \u003cp\u003e2.01\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 20px;\"\u003e\n \u003cp\u003e1.89\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 36px;\"\u003e\n \u003cp\u003ePart-time\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 26px;\"\u003e\n \u003cp\u003e0.35\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 16px;\"\u003e\n \u003cp\u003e0.45\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 20px;\"\u003e\n \u003cp\u003e0.36\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 36px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eTotal\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 26px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e2.21\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 16px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e2.46\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 20px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e2.25\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n\u003c/table\u003e\n\u003cp\u003e\u003cstrong\u003eSource: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data.\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eTable IV: Average number of workers among type of enterprise and worker in the sample\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n\u003ctable border=\"1\" cellspacing=\"0\" cellpadding=\"0\" width=\"100%\"\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"2\" valign=\"bottom\" style=\"width: 33px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eAverage number of workers\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 66px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eEnterprise type\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 31px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eOwn Account Enterprises\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 23px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eEstablishments\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 11px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eOverall\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 33px;\"\u003e\n \u003cp\u003eFull time\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 31px;\"\u003e\n \u003cp\u003e1.79\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 23px;\"\u003e\n \u003cp\u003e4.12\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 11px;\"\u003e\n \u003cp\u003e1.89\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 33px;\"\u003e\n \u003cp\u003ePart-time\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 31px;\"\u003e\n \u003cp\u003e0.37\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 23px;\"\u003e\n \u003cp\u003e0.07\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 11px;\"\u003e\n \u003cp\u003e0.36\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"bottom\" style=\"width: 33px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eTotal\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 31px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e2.17\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 23px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e4.19\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 11px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e2.25\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n\u003c/table\u003e\n\u003cp\u003e\u003cstrong\u003eSource: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data.\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eTable V: Average level of technical efficiency number of workers among sector and type of ownership\u003c/strong\u003e\u003c/p\u003e\n\u003ctable border=\"1\" cellspacing=\"0\" cellpadding=\"0\" width=\"100%\"\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 18px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eSector\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 62px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eOwnership Type\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eOverall\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eMale\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 20px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eFemale\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 23px;\"\u003e\n \u003cp\u003e\u003cstrong\u003ePartnership\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 18px;\"\u003e\n \u003cp\u003eRural\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.621\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 20px;\"\u003e\n \u003cp\u003e0.519\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 23px;\"\u003e\n \u003cp\u003e0.664\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.620\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 18px;\"\u003e\n \u003cp\u003eUrban\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.662\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 20px;\"\u003e\n \u003cp\u003e0.532\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 23px;\"\u003e\n \u003cp\u003e0.690\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.655\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 18px;\"\u003e\n \u003cp\u003eAll\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.630\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 20px;\"\u003e\n \u003cp\u003e0.524\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 23px;\"\u003e\n \u003cp\u003e0.669\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"bottom\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.628\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n\u003c/table\u003e\n\u003cp\u003e\u003cstrong\u003eSource: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data.\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eTable VI: Average level of technical efficiency number of workers among sector and type of enterprise\u003c/strong\u003e\u003c/p\u003e\n\u003ctable border=\"1\" cellspacing=\"0\" cellpadding=\"0\" width=\"100%\"\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eSector\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"2\" valign=\"top\" style=\"width: 70px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eEnterprise type\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eOverall\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 44px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eOwn Account Enterprises (OAE\u0026apos;s)\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 26px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eEstablishments\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003eRural\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 44px;\"\u003e\n \u003cp\u003e0.609\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 26px;\"\u003e\n \u003cp\u003e0.693\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e0.620\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003eUrban\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 44px;\"\u003e\n \u003cp\u003e0.626\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 26px;\"\u003e\n \u003cp\u003e0.727\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e0.655\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 15px;\"\u003e\n \u003cp\u003eAll\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 44px;\"\u003e\n \u003cp\u003e0.613\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 26px;\"\u003e\n \u003cp\u003e0.707\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e0.628\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n\u003c/table\u003e\n\u003cp\u003e\u003cstrong\u003eSource: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data.\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u0026nbsp;\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eTable VII: Results of stochastic production frontier\u003c/strong\u003e\u003c/p\u003e\n\u003ctable border=\"1\" cellspacing=\"0\" cellpadding=\"0\" width=\"100%\"\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eParameter\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e\u003cstrong\u003ecoefficient\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e\u003cstrong\u003estandard-error\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e\u003cstrong\u003et-ratio\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eProduction function\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 53px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eDependent variable= Ln Gross value added\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003ebeta 0\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e6.106\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.131\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e46.64\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eLog raw material cost (Rs.)\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.127\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.010\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e12.64\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eLog trading cost (Rs.)\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e-0.046\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.035\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e-1.32\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eLog any other cost (Rs.)\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.193\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.019\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e10.15\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eLabour working in enterprise (number)\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.090\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.011\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e7.86\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eLog production tax (Rs.)\u0026nbsp;\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.047\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.022\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e2.15\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eSpent work hrs daily in enterprise\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.085\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.012\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e6.89\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eInefficiency function\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 53px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eDependent variable= Estimated inefficiency\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003edelta 0\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e-23.113\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e5.184\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e-4.46\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eRural dummy\u0026nbsp;\u003c/p\u003e\n \u003cp\u003e(if enterprise in rural then 1 otherwise 0)\u0026nbsp;\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e2.335\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.935\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e2.50\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eOAE dummy (if enterprise own account\u0026nbsp;\u003c/p\u003e\n \u003cp\u003eenterprise then 1 otherwise 0)\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.139\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e1.040\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e0.13\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eFemale owner dummy\u0026nbsp;\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e10.521\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e1.910\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e5.51\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003ePartnership ownership\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e-5.506\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e1.863\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e-2.96\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eSC ST dummy\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e-3.833\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e0.772\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e-4.97\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eOBC dummy\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e-3.691\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e1.133\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e-3.26\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eSeason dummy\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e2.040\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e1.544\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e1.32\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eContract dummy\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e-5.398\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 19px;\"\u003e\n \u003cp\u003e1.084\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 14px;\"\u003e\n \u003cp\u003e-4.98\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003esigma-squared\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 53px;\"\u003e\n \u003cp\u003e15.73***\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003egamma\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 53px;\"\u003e\n \u003cp\u003e0.984***\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eLog-likelihood function\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 53px;\"\u003e\n \u003cp\u003e-918.52\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eLR Ratio\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 53px;\"\u003e\n \u003cp\u003e299.91\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003enumber of observations\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 53px;\"\u003e\n \u003cp\u003e811.0\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 46px;\"\u003e\n \u003cp\u003eAverage Efficiency\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd colspan=\"3\" valign=\"top\" style=\"width: 53px;\"\u003e\n \u003cp\u003e0.628\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n\u003c/table\u003e\n\u003cp\u003e\u003cstrong\u003eSource: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data.\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003e\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eTable VIII: Estimation of actual, potential, and gap in technical efficiency\u0026nbsp;\u003c/strong\u003e\u003c/p\u003e\n\u003ctable border=\"1\" cellspacing=\"0\" cellpadding=\"0\" width=\"622\"\u003e\n \u003ctbody\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 126px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eCategory\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 180px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eParticular\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 108px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eActual efficiency\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 120px;\"\u003e\n \u003cp\u003e\u003cstrong\u003ePotential efficiency\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 88px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eEfficiency Gap (%)\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 126px;\"\u003e\n \u003cp\u003eSector\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 180px;\"\u003e\n \u003cp\u003eRural\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 108px;\"\u003e\n \u003cp\u003e0.620\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 120px;\"\u003e\n \u003cp\u003e0.912\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 88px;\"\u003e\n \u003cp\u003e32.07\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 180px;\"\u003e\n \u003cp\u003eUrban\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 108px;\"\u003e\n \u003cp\u003e0.655\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 120px;\"\u003e\n \u003cp\u003e0.899\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 88px;\"\u003e\n \u003cp\u003e27.14\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"2\" valign=\"top\" style=\"width: 126px;\"\u003e\n \u003cp\u003eEnterprise type\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 180px;\"\u003e\n \u003cp\u003eOwn Account Enterprises\u0026nbsp;\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 108px;\"\u003e\n \u003cp\u003e0.613\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 120px;\"\u003e\n \u003cp\u003e0.874\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 88px;\"\u003e\n \u003cp\u003e29.91\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 180px;\"\u003e\n \u003cp\u003eEstablishments\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 108px;\"\u003e\n \u003cp\u003e0.707\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 120px;\"\u003e\n \u003cp\u003e0.912\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 88px;\"\u003e\n \u003cp\u003e22.49\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd rowspan=\"3\" valign=\"top\" style=\"width: 126px;\"\u003e\n \u003cp\u003eOwnership Type\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 180px;\"\u003e\n \u003cp\u003eMale\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 108px;\"\u003e\n \u003cp\u003e0.630\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 120px;\"\u003e\n \u003cp\u003e0.912\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 88px;\"\u003e\n \u003cp\u003e30.92\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 180px;\"\u003e\n \u003cp\u003eFemale\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 108px;\"\u003e\n \u003cp\u003e0.524\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 120px;\"\u003e\n \u003cp\u003e0.846\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 88px;\"\u003e\n \u003cp\u003e38.09\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 180px;\"\u003e\n \u003cp\u003ePartnership\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 108px;\"\u003e\n \u003cp\u003e0.669\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 120px;\"\u003e\n \u003cp\u003e0.836\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 88px;\"\u003e\n \u003cp\u003e20.00\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003ctr\u003e\n \u003ctd valign=\"top\" style=\"width: 126px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eOverall\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 180px;\"\u003e\n \u003cp\u003e\u003cstrong\u003eAll\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 108px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e0.628\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 120px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e0.912\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003ctd valign=\"top\" style=\"width: 88px;\"\u003e\n \u003cp\u003e\u003cstrong\u003e31.17\u003c/strong\u003e\u003c/p\u003e\n \u003c/td\u003e\n \u003c/tr\u003e\n \u003c/tbody\u003e\n\u003c/table\u003e\n\u003cp\u003e\u003cstrong\u003eSource: Authors estimation using, NSO-Incorporated non-agricultural enterprise survey 2015-16 data.\u003c/strong\u003e\u003c/p\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":false,"hideJournal":false,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"humanities-and-social-sciences-communications","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"palcomms","sideBox":"Learn more about [Humanities \u0026 Social Sciences Communications](http://www.nature.com/palcomms/)","snPcode":"41599","submissionUrl":"https://submission.springernature.com/new-submission/41599/3","title":"Humanities and Social Sciences Communications","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Nature AJ","inReviewEnabled":true,"inReviewRevisionsEnabled":false},"keywords":"Efficiency, Stochastic production model, pottery industry, socio-economic variables","lastPublishedDoi":"10.21203/rs.3.rs-6318034/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6318034/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003ePottery industry is considered as an eco-friendly small scale cottage base industry in India. In a predominantly rural country such as India, pottery plays a significant role in generating employment, increasing exports, etc. However, the flourishing pottery industry has encountered various hurdles that threaten their livelihood. The study is attempted to investigate the socio-economic conditions of pottery artisans in India. Another objective is to analyze the technical efficiency and determinants of inefficiency of pottery enterprises in India. Secondary data from the 73rd National Sample Survey Organization (NSSO) unit-level data on the Unincorporated non-agricultural enterprise Survey 2015-16 is being used in study. In our study, we have used the data on various socio-economic variables using the National Industrial Classification codes (NIC codes) mentioned under NIC code 23933. 811 enterprises were taken into the survey. A simple descriptive analysis was used to study the general socioeconomic background of the pottery manufacturers. The changes in the factors and their association with pottery production were examined by fitting the stochastic frontier production function with determinants of inefficiency. Thus, the model estimates both technical efficiency and time-varying technical inefficiencies. The study reveals that pottery workers continue to grapple with numerous socio-economic challenges that hinder their overall well-being and the sustainability of their craft. This occupation remained in the rural spheres. In addition, gender biasness can be seen in the field of potter. The study also shows that the cost of raw material, any other cost, number of hours spent enterprises, production tax and daily hour spent are positively associated with the production efficiency and trading cost is negative associated with production efficiency of pottery enterprises. This research study employs the stochastic production frontier which help in assessing the production efficiency and identifying the key determinants of inefficiencies which will provide novel insights into the sector productivity, offering valuable recommendations for policy interventions to enhance the performance of pottery enterprises.\u003c/p\u003e","manuscriptTitle":"An Analysis of Production Efficiency of Pottery Enterprises In India: Stochastic Production Frontier Approach","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2025-09-08 13:14:16","doi":"10.21203/rs.3.rs-6318034/v1","editorialEvents":[{"type":"communityComments","content":0},{"type":"decision","content":"Revision requested","date":"2026-01-04T10:26:31+00:00","index":"","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2025-12-30T21:58:54+00:00","index":"hide","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2025-12-29T10:15:38+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"283218492795757573662218658492812517275","date":"2025-12-10T06:16:30+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"158888936168852687628272413633055194176","date":"2025-12-08T12:10:25+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"213408521707284906912608534525219496465","date":"2025-12-05T21:09:46+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"257581065997694322967615349099219498565","date":"2025-12-03T14:46:49+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"39471837020574989274640572136692691295","date":"2025-12-03T13:12:33+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"188870050206385832783972865360006127538","date":"2025-12-03T11:27:30+00:00","index":"hide","fulltext":""},{"type":"editorInvitedReview","content":"","date":"2025-10-16T17:34:35+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"59909715924983865739117844329799786084","date":"2025-09-07T15:20:28+00:00","index":"hide","fulltext":""},{"type":"reviewerAgreed","content":"312577221092610161945983078931284843914","date":"2025-09-07T15:09:34+00:00","index":"hide","fulltext":""},{"type":"reviewersInvited","content":"","date":"2025-09-02T15:03:00+00:00","index":"","fulltext":""},{"type":"editorAssigned","content":"","date":"2025-06-10T10:29:38+00:00","index":"","fulltext":""},{"type":"checksComplete","content":"","date":"2025-04-16T18:54:52+00:00","index":"","fulltext":""},{"type":"submitted","content":"Humanities and Social Sciences Communications","date":"2025-03-27T07:26:01+00:00","index":"","fulltext":""}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"humanities-and-social-sciences-communications","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":false,"externalIdentity":"palcomms","sideBox":"Learn more about [Humanities \u0026 Social Sciences Communications](http://www.nature.com/palcomms/)","snPcode":"41599","submissionUrl":"https://submission.springernature.com/new-submission/41599/3","title":"Humanities and Social Sciences Communications","twitterHandle":"","acdcEnabled":true,"dfaEnabled":true,"editorialSystem":"stoa","reportingPortfolio":"Nature AJ","inReviewEnabled":true,"inReviewRevisionsEnabled":false}}],"origin":"","ownerIdentity":"3887d9c5-31fb-4482-bc02-8b26c4aa481b","owner":[],"postedDate":"September 8th, 2025","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"in-revision","subjectAreas":[{"id":54321525,"name":"Business and commerce/Economics"},{"id":54321526,"name":"Social science/Development studies"}],"tags":[],"updatedAt":"2026-01-04T10:38:27+00:00","versionOfRecord":[],"versionCreatedAt":"2025-09-08 13:14:16","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-6318034","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-6318034","identity":"rs-6318034","version":["v1"]},"buildId":"8U1c8b4HqxoKbykW_rLl7","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}