By Ricky Ozukum
Nagaland became the 16th State of India on 1st December 1963. In its 50 years plus of existence as one of the federal State of India, it could hardly improve the economy and the position of Naga people by means of business with exception for education, healthcare and several infrastructure developments. Majority of the populace has become dependent on the government salary earners. Nagaland has the highest number of Government Servant to population ratio. For every 15 people, Nagaland has one Government servant and the capacity of the State Government to provide employment has been stretched to the maximum. With increase growth in population and literacy level, unemployment has reached an alarming percentage. But recently, the youth have come into a realization that Entrepreneurship has become a new potential career.
Entrepreneur in a simple way can be defined as “one starting a new project (Enterprise), venture or trying a new opportunity with his/her innovative ideas taking financial risk”. An entrepreneur and its enterprise are called Entrepreneurship. Unlike traditional businesses, entrepreneurship comes with social responsibility, thereby forming as the fourth factor of production. With almost no corporate houses in Nagaland, entrepreneurs play significant role providing employment in our community.Government of India has been extensively campaigning to promote entrepreneurship throughout the country for creating new employment opportunities and tackle the menace of poverty. At this juncture, I am not going to elaborate in detail about the present scenario of entrepreneurship in Nagaland but the opportunities of being an entrepreneur. With the Government of India signing ceasefire agreements with different political parties and various developmental projects being taken up, no doubt, entrepreneurship is becoming a driving force behind State’s economy.
With ever increasing number of unemployed youths and government jobs stretched to the limit, entrepreneurship found its place as an alternative means for employment generation and livelihood. Nagaland lacks no resources for entrepreneurship. There are abundant opportunities for entrepreneurship in Nagaland. The only thing that is needed is a proper guidance and right approach for the first generation entrepreneurs.
Before I discuss in detail on different potentials and opportunities for entrepreneurship in Nagaland, I would like to share few schemes the Government is providing for first time entrepreneurs. It is said that 60% of all the businesses in this world fails. So it is important for the youths to be properly trained and well informed in this field before they venture into different avenues. It is also said that entrepreneurs are not made they are forced to become one. Most of them neither are youths with no skills nor trained in this field. As mentioned, it is highly recommended that you at least undergo basic entrepreneurship training. Doing so, it will help you to approach the right direction in setting up your enterprise and also avail different government schemes and subsidies. Moreover there are plenty of Free Entrepreneurship and Skill development training programmes organized and sponsored by different Govt. agencies such as State Govt. Departments, Indian Institute of Entrepreneurship(IIE), MSME, KVIC, SIDBI, NSDC, etc to nurture and provide hand holding support to you in your step towards entrepreneurship.
Most of the youth are hesitant to venture into business thinking that the first thing they require is money. Wrong! All you need is to have clear idea what you want to start, create business idea, and make a strategic business plan and that’s when the real works began. In Nagaland there are several financial institution you can approach based on your project like Nagaland Industrial Development Corporation Limited(NIDC), National Small Industries Corporation(NSIC), Small Industries Development Bank of India(India), National Schedule Tribes Finance and Development Corporation(NSTFDC), National Minorities Development and Finance Corporation (NMDFC), North East Industrial Development Finance Corporation(NEDFi), District Industry Centers(DIC), Micro credit-NABARD, SIDBI,GOI, various State Government Depts., leading Associations, NGOs and commercial banks.
Just recently our Hon’ble Prime Minister has launched several new schemes like Start up India, Pradhan Mantri Mudra Yojana, Stand up India etc. Startup India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage start ups with jobs creation (Visit: www.startupindia.gov.in) where entrepreneurs can avail multiple benefits. Micro Units Development & Refinance Agency Ltd. (MUDRA) is a new institution set up by Government of India to provide funding to the non-corporate; non-farm sector income generating activities of micro and small enterprises whose credit needs are below 10 Lakh to encourage entrepreneurship in India & provide the funding to the non corporate small business sector. While Stand-Up India Scheme Facilitates bank loans between Rs. 10 lakh and Rs. 1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise (new enterprise). This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or woman entrepreneur. Similarly, there are other entrepreneur friendly schemes like Prime Minister Employment Generation Programme (PMEGP) The maximum cost of the project/unit admissible under manufacturing sector is Rs.25 lakh and under business/service sector is Rs.10 lakh implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centers (DICs) and banks. Under PMEGP beneficiaries can avail upto25-35% subsidy (of project cost).
Likewise, there are many other benefits the entrepreneurs both startups and existing can take advantage of it. To get detail information and insight, the following site/ portals may be visited: www.msme.gov.in, www.sidbi.com, www.nedfi.com, www.kvic.org.in .
One humble tip to both startups and existing entrepreneurs to avail such benefit is that very important that you posses AADHAAR Card, Pan Card and have a Current Account opened in units name with any Nationalized Bank ( b). With the abolition of EM-I (Entrepreneurs Memorandum -1, a compulsory registration with state govt. for entrepreneurs to avail subsidy) by Centre you can now directly register you unit and list your enterprise directly with the Government of India with no registration fee. All you need to do is go online and visit: http://udyogaadhaar.gov.in/UA/UdyogAadhar-New.aspx and fill the required information and they will issue a UDYOG AADHAAR which you can print out immediately. Udyog Aadhaar will be your MSME Registration and will also work as a market linkage by listing your products and services to a common portal for all the buyers.
If you’re planning to start your own enterprise, it is always useful to visit those financial institutions mentioned above and meet the concerned officers to guide you. They are very welcoming as long as your intentions are genuine. All of these offices are located in Dimapur with some branch offices in Kohima. You do not need to be a MBA graduate to be an entrepreneur. It doesn’t matter if you are a school dropout. All you needed is Confidence, Dedication and Creativity. Someone who love challenges who does not want to be pushed, who thinks positive and most importantly knowing the art of ‘Making it Happen’ could become an Entrepreneur. Are you the one??
