En­trepreneur­ship De­vel­op­ment in Na­ga­land : A case Study of Mokokchung Town

- E. Thangasamy

Economic Challenger - - NEWS - *E. Thangasamy *Re­search Scholar , Depart­ment of Com­merce, Na­ga­land Univer­sity, Lu­mami, email: nu.thangasamy@gmail.com, cell: 9856232081


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.


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.


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.


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.


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.

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