Entrepreneurship Development in Nagaland : A case Study of Mokokchung Town
- E. Thangasamy
Entrepreneurship is an engine for accelerating the economic growth of any region. It is an important element in the dynamics of modern economy. There has been a great deal of attention paid to t he subject of entrepreneurship over the past few years because the small firms can contribute considerably to the economic growth of a country. Moreover, many people have chosen entrepreneurial career because, in doing so, the entrepreneur can derive greater economic and psychological rewards than he chooses to employ himself in a large company. They have made significant contributions in introducing valuable new products, keeping the economy competitive in the world markets, and creating new jobs – many businesses, small and medium have become the major sources of new job creation.
The impressive and rapid growth of entrepreneurship is attributed to the power of education in promoting social, economic, political, and spiritual well-being of an individual and social development. Education has been the instrument in the development of man to enable him live an effective and meaningful life thereby making him able to contribute towards the development of a society in which he lives.
CURRENT SCENARIO OF ENTREPRENEURSHIP DEVELOPMENT IN MOKOKCHUNG TOWN:
In Nagaland, there are 11 districts viz., Mokokchung, Dimapur, Kohima, Wokha, Kiphire, Zunheboto, Tuensang, Longleng, Phek, Peren and Mon. Of them, Mokokchung is one of the developing districts in terms of education, employment etc. Particularly, the Mokokchung Town is developing at a faster rate year after year
in respect of its infrastructural and entrepreneurial growth owing to governmental efforts and a sharp increase in educational level among the youth.
In Mokokchung Town of Nagaland, in the wake of such i ncreasing educational opportunities for youth, most of the educated youth prefer to be employed, preferably in Government sector However, in no way, it is feasible to accommodate everyone in tertiary sector. Alternatively, self employment alone in the long run will solve the problem of unemployment in the study area. Realizing this fact, the town is developing at a faster rate in terms of setting up of micro enterprises.
Simultaneously, several endeavors are also being made by the training institutes to improve the tempo of entrepreneurship development. The progress of entrepreneurial growth, however, is notable but still it has to go a long way to capitalize its opportunities. Local youth in the town are yet to be motivated to attend Entrepreneurship Development Programmes and set up their own enterprises. Against this background, an attempt has been made to study the impact of EDPs on the entrepreneurship development in the study area.
REVIEW OF LITERATURE
Many studies have been carried out at national and international levels by researchers on entrepreneurship development. Some of them are presented below:
James J. Berna (1960) studied 50 medium six manufacturing firms engaged in various kinds of light engineering production in and around Madras and Coimbatore cities and found that the initial entry into industry was open to persons of very different social standing and economic position.
V.R. Gaikwad and R.N. Tripathi (1970)
studied about the small entrepreneurs of Tanuku region of West Godavari district in Andhra Pradesh. The main focus to the study was on the manufacturing concerns belonging to the family of a leading industrial magnet, Mullpadi Harischandra Prasad and his kith and kin. The findings of Gaikwad and Tripathi are very important for the policy makers as the tradesmen are often looked upon as potential entrepreneurs.
N. Gangadhara Rao's study (1978) FACTORS INFLUENCING THE ENTREPRENEURSHIP GROWTH:
aimed at evaluating the impact of the programme of industrial estates on the emergence of entrepreneurship and growth of small units in coastal Andhra. According to him, educational and income levels are the important factors to motivate the entrepreneurs.
Ashis Nandy and Raymond I. Owens (1977)
analyzed some of the psychological and social correlates of entrepreneurship in an urban community of Howrah (West Bengal) on exploratory basis and compared two caste groups within the community. This was an attempt to compare the enterprising and non-enterprising cultures.
The study observed that finance and technical factors were important factors which hindered the growth of the entrepreneur's potential and capacity. Adding to this, the market conditions in terms of market accessibility and competition affected t he growth of entrepreneurship.
The study observed that Educational system, Transport system, Communication system, and Information and Technology have highly influenced the entrepreneurial growth in the town. Despite these influencing factors of entrepreneurship development, the personal traits such as innovativeness and industriousness of the entrepreneurs, EDPs, social status, family background, churches, civic organizations, friends and relatives are also found to be the most dominant factors in the study area.
I MPACT OF ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES (EDPs) ON ENTREPRENEURSHIP DEVELOPMENT
In Nagaland, the state has made a lot of efforts for entrepreneurship development. In 1983, the Government of Nagaland adopted an integrated model of entrepreneurship development evolved by the National Institute of Small Industry Extension Training (NISIET) for effective promotion of entrepreneurship, particularly, among the educated unemployed youth of the state.
The overall progress of EDPs in different districts of Nagaland during the period, 20022012 is depicted in the following table:
The study observes that the overall progress of EDPs in the state of Nagaland is remarkable as far as organizing of the Entrepreneurship Development Programmes (EDPs) is concerned. The number of training programmes has increased from 13 to 89. Selection of trainees for EDPs also goes on increasing throughout the period except the year, 2006-07. However, the number of trainees has been considerably increased in the successive years commencing from 2007-08 to 2011-12 (i.e. ranging from 344 to 2569).
In the year, 2011-12, 83.73% of EDP trainees have completed their training. However, only 32.07% of the trainees have started their own ventures. The study revealed that the mean success rate was less than 50% in all the years taken for the study which indicates that the effectiveness of EDPs in the study area needed to be improved. The study further revealed that mere increase in the number of programmes and trainees alone did not result in the development of entrepreneurship. Therefore, the causes of failure in creation of the new ventures by trained youth require further investigations.
It was also revealed during the investigation that about 55.5% of the entrepreneurs had gone in for less skilled activities like running petty shops, poultry farms, and bakeries etc, Informal discussions with the sample respondents showed that these activities had proved to be of low risk and low cost economic activities for supplementing family income with minimum efforts.
The study observed that 90 per cent of the selected sample members reported their monthly family income below Rs.4000 indicating that they were below the poverty line. It was further i ndicated that after becoming entrepreneur 16 (32%) members were below poverty line, while this nuber was 45(90%) before becoming entrepreneur. It shows the progress in families in shifting from lower income group to higher income group. It reflects that after becoming entrepreneurs they are able to generate some additional amount of income.
The study further revealed that the average monthly income of the sample respondents was Rs.2675 before becoming entrepreneurs and it was Rs.4140 after becoming entrepreneurs constituting a mean income generation rate of 54.76% This suggests that most of the respondents were able to increase their income level and could contribute to the development of their family. The income generation rate would have been much higher if all the respondents managed their business activities efficiently.
Further, the study showed that 66% of the total sample entrepreneurs were engaged in Furniture Making, Handloom and Weaving, Transport Agency services and Beauty Parlours. The remaining 34% were engaged in various business endeavours such as Restaurants, Meat/ Fish shops etc., which required comparatively less capital investment, skill, experience etc
The identification and examination of the factors influencing the attitude of the youth towards entrepreneurship programmes is very important. This highlights the necessity of understanding various factors that may enhance or inhibit the success of the programmes in the study area. Post-monitoring activities of the youth, after attending EDPs, and extending the support through various schemes by the Government will be of a great help to improve the tempo of the entrepreneurship development in the study area in particular and economic development of the state in general.
1. James Berna, J., ( 1960): Industrial Entrepreneurship in Madras State, Asia Publishing House, Bombay, 1960.2. Gaikwad, V.R., and Tripathi, R.N.(1970) SocioPsychological Factors influencing Industrial Entrepreneurship in Rural Areas, National Institute of Community Development, Hyderabad, 1970. 3. Gangadhara Rao, N. Entrepreneurship in Industrial Estates (1978): A study with special reference to coastal Andhra, Ph.D thesis, submitted to the Andhra University, Waltair, April, 1978. 4. Ashis, Nandy and Raymond, L.Owens, The
New Vysyas, Allied Publishers Pvt. Ltd., 1977. 5. Annual Administrative Reports of Department of District Planning and Development, Mokokchung, Nagaland. 6. Statistical Hand books, published by the Department of Statistics, Mokokchung District, Nagaland.
Source: NEITCOAnnualAdministrativeReport * Data for the period is not available.