Challenges of Entrepreneurship Development in Manipur

Posted on

With the outgrowth of globalisation, the demand for entrepreneurship development has been recognized particularly by the less developed states. An effort was made by Dr. Singha and Dr. Singha, to underscore the importance of entrepreneurship development in an economic system, particularly in Manipur. Despite of its importance, the sector can non be flourished in the State. How the concern activities are disturbed in the province and the factors impacting it, are besides analyzed in the paper. The paper farther attempts to project the function of rail conveyance in developing entrepreneurial activities in the State.

Introduction

With the outgrowth of globalisation, the demand for economic integrating has been realized by the international communities and recently by the Less Developed Countries ( LDCs ) . Most of the states both developed and less developed, have reoriented their development schemes to better their growing public presentation by incorporating their economic systems with the universe economic system ( Singh 2008 ) . To do India ‘s vision 2020 a world, the state needs to widen farther the market for domestic concerns every bit good as import must needed capital equipment and proficient know-how through economic cooperation ( Singha and Patikar 2008 ) .

In this context, India tries to incorporate its economic system with universe ‘s largest market and economic axis, ASEAN and its adjacent states and Look East Policy is the first measure in this procedure. India ‘s eastern most bantam State, Manipur is the most convenient road1 in this respect. This chance compels the State to develop entrepreneurial activities to go a victor in the integrating procedure. Here the inquiry that arises is, – do we desire the State to take part or to do merely as a corridor in the procedure. Winners in the planetary competition are the 1s who manage to construct up robust entrepreneurial and knowledge-based societies.

With the aid of secondary informations, the present paper is the modest effort to foreground the importance of entrepreneurship development in an economic system, particularly in Manipur. Entrepreneurship is governed by four dominant forces such as: ( 1 ) The Socio-Sphere System, ( 2 ) The Support System, ( 3 ) The Resource System, and ( 4 ) Self-Sphere System. These four systems are inter-linked, invariably interacting and seting with each other. Assuming qualities and measures of the staying factors remain satisfied the present paper trades with the Second factor, i.e. Supporting System in the entrepreneurship development. To contract down our analysis, the paper concentrates more on conveyance system in entrepreneurship development2. The paper farther attempts to project the function of rail conveyance ( non yet materialized ) in developing entrepreneurial activities in the State.

Entrepreneur and Entrepreneurship

Before we proceed to the demand and importance of entrepreneurship development, it is imperative to do a differentiation between enterpriser and entrepreneurship. Joseph Schumpeter, who was possibly, the first to acknowledge the importance of the enterpriser in economic development, and said that “ Entrepreneurship is basically a originative activity ” , enterprisers have been described as the shapers of new universes ( Czarniawaka and Wolff 1991 ) , who are the instrumental in the construct of the thought of an endeavor and its execution ( Kets 1996 ) , pioneers and accelerators of alteration who continuously do things, that have non been done before and who do non suit established forms ( Schumpeter 1965 ) . Entrepreneurship is the capable covering with enterprisers and entrepreneurial activities. It is the scientific discipline and pattern of enterpriser, entrepreneurship instruction, entrepreneurial activities and development of entrepreneurial accomplishments. Entrepreneurship is regarded today as a field of survey. The cognition of entrepreneurship can be acquired and entrepreneurial accomplishments can be developed. It is to be learned in combination of theory and pattern.

An enterpriser is a individual who is willing to make any sort of work, initiates the same and does it in a originative mode with honestness and diligence, who organizes and takes calculating hazard, who is determined and consistent in attempt and does non acquire de-motivated through failure instead keeps his eyes and ears open for seeking chances. He/She is dynamic in nature and is guided by achievement motive. In other words, an enterpriser is a individual who is skilled at placing new merchandises or new methods of production, puting up operations to supply new merchandises, marketing the merchandises and set uping the funding of the operations. Entrepreneur has become a firing subject now-a-days all over the Earth and serious country of survey and research. At present, developing states give much accent to entrepreneurship for economic and industrial development. Entrepreneurs are persons who recognize, chances where others see pandemonium, confusion and contradiction ( Kuratko and Hodgetts 1998 ) .

A research determination by the bookmans ( e.g. Kabra and Singha 2008 ) reveals that jointly, entrepreneurship is governed by four dominant forces such as: ( 1 ) The Socio-Sphere System, ( 2 ) The Support System, ( 3 ) The Resource System, and ( 4 ) Self-Sphere System. These four systems are inter-linked, invariably interacting and seting with each other. Any effort to consequence alteration in one system pretermiting the other is bound to neglect and distorts the really nonsubjective of advancing entrepreneurship. Entrepreneurship is a phenomena preformed by an enterpriser that is a individual who starts, operates, organizes and manages a concern venture ( set abouting ) presuming the hazard in expectancy of net income. In this procedure, an enterpriser demand to posses: ability to acknowledge avenues and chances, proficient ability, motive, creativeness and originality in bring forthing new concern thoughts in the signifier of new merchandises or services, new markets, new methods, new organisations, and new mix of inputs, critical thought, knowledge about merchandises and markets, analytical ability from new positions, communicating accomplishments, high dedication for long hours working with less emphasis, marshalling and committedness towards resources and aptitude for human dealingss. In the similar determination by other bookmans ( like, Singha and Singha 2008 ) besides that, the successful new concern ventures and economic development make non merely go on. They are the consequence of the combination of right environment, planning, attempt, and invention, which this right mix can merely be accomplishable by the enterprisers

Need for Entrepreneurship Development

The enterprisers give more to the universe far more than they take from it by shooting new energy, new merchandises, and particularly new thoughts into the environment. There is turning grounds that entrepreneurs play an of import function in concern and economic growing. Entrepreneurship besides provides more hearty employment chances to people who had unsatisfactory occupations before, and thereby increasing efficiency and therefore economic prosperity ( Salehi and Valizadeh 2007 ) . Manipur is known for its undeveloped natural and human resources which are the basic factors of economic development. So, the energetic enterprisers are necessary if we want to tackle the available resources decently. With the outgrowth of ‘Look East Policy ‘ and it emanates as globalisation, trade and commercialism has become an of import tool in associating this part with the South East Asiatic states. It is evident that the State as a whole needs a large push or a kick starts to establish the economic system on the development way. Look-East Policy provides an chance to get the better of the job of distance from large markets. But, it ( trade and commercialism ) is greatly hampered by substructure, particularly route conveyance in the part. Economic development of a part is rather illusory end without developing trade and commercialism in the part.

The demand for entrepreneurship in the State is fundamentally two crease: one, bring forthing income and employment, and two, it helps greatly in work outing insurgence job in the State. The job of unemployment can non be tackled by making more occupations in the populace sector and other assorted authorities sections ; there must be development of micro, little and average entrepreneurship for self employment and enlargement of occupation chances. For this, the educated young person of the part must be trained and involved in entrepreneurship oriented careers. Therefore, entrepreneurship development normally implies the development of trade and industry, little graduated table industries and it has a important function in the economic development of the backward part like Manipur. Its development fundamentally depends on two constituents ; foremost, the handiness of resources and physical substructure, and two the congenial environment of the part to use the former efficaciously and economically. In nutshell, in Look East Era, the development of Manipur fundamentally depends chiefly on the entrepreneurial activities and that depends chiefly on the surface conveyance system.

Challenges to Entrepreneurship Development

Despite holding rich natural resources, chances given by the Look East Policy and the market liberalisation, the State is impeded and trapped in the cobweb of poorness due to miss of proper conveyance installations. Trade and concern can non be headed toward right way in the part as it was supposed to be. Surface conveyance system, peculiarly the route particularly National Highways and rail conveyances are the most of import agencies for the development of trade and commercialism in any part. The function of National Highways, if non inveigh, is really important in the wake of Look East Policy enterprise in the State, because it needs trade across the province. In this context, Manipur depends merely on the route conveyance system3 and its status is distressing, which will be discussed in item in the undermentioned subdivision of this paper.

Manipur is connected with the remainder of the state ( other than by air ) by two National Highway. NH-39 links Imphal ( capital metropolis ) with railhead at Dimapur in Nagaland, 215 kilometer. to the north and NH-53 links Imphal with Jiribam, a town bordering Assam, 225 kilometer. in the south-west, and practically this NH 53 is used as an alternate route to NH 39, when it cripples4. As per record maintained by Public Works Department ( PWD ) , Manipur, the entire length of route in the province in 2001 is about 7, 182.80 kilometer. Primarily NH 39 is used a life line of the State and is the most debatable one in the State.

Coming to the point, it is a affair of deep concern that despite bandh/blockade being declared as unconstitutional and illegal by the Supreme Court in 1997 and it is besides supported by assorted High Courts including Gauhati High Court ; the State continues to endure from this syndrome. Manipur authorities has decided to check down on infliction of bandhs, work stoppages and economic blockades5 by assorted organisations. It is a kind of human right misdemeanor in the existent sense. Still, Manipur has become the highest victim of bandhs in the state. Bandhs affect straight trade and commercialism, day-to-day pay earners and concern constitutions, and indirectly the development of the part in the long tally.

A entire sum of Rs. 1319.96 crore has been lost in Manipur between April 1, 2004 and January 31, 2007 due to Bandhs and Blockades. The Directorate of Information and Public Relation ( DIPR ) , Government of Manipur, has revealed that Bandhs and Blockades called by All Naga Students ‘ Association of Manipur ( ANSAM ) and Kuki Students ‘ Organization ( KSO ) entirely on the two National Highways6 had resulted in the highest loss of money summing up to Rs. 144.10 crore during the period ( refer Table 2 ) .

Table 1: No. of Bandhs and Blockades in Manipur

Year

State-wide

National Highway*

2004-05

20

60

2005-06

48

97

2006-07

42

77

Entire

110

234

Beginning: The Morung Express 20/08/08, Dimapur and Nagaland Post 20/08/07, Dimapur

* National Highway 39 Imphal -Dimapur route and NH 53 Silchar – Imphal route

Harmonizing to the Directorate Statistics and Economics, Government of Manipur, in 2004-05, the statewide bandhs led to a loss of Rs. 22 per caput per twenty-four hours numbering to a doomed of Rs. 5.34 crores per twenty-four hours. The National Highway blockades led to a doomed of Rs. 9 per caput per twenty-four hours numbering to a loss of Rs. 2.32 crores per twenty-four hours. In 2005-06, the statewide bandh led to a loss of Rs. 24 per caput per twenty-four hours numbering to a doomed of Rs. 6.13 crores per twenty-four hours and loss of Rs. 11 per caput per twenty-four hours numbering to Rs. 2.67 crores per twenty-four hours for National Highway encirclement. An estimation of loss calculated by the Government of Manipur, due to the bandh called by assorted organisations in the province during April 1, 2004 to January 31, 2007 is given below ( table 2 ) . There were a sum of 110 yearss province broad bandh and 234 yearss of economic encirclement in the NHs during the three old ages from April 2004 to January 2007 in the State.

Table 2: Sum loss due to the Bandhs called by assorted Organizations:

( From1/4/2004- 31/1/2007 )

Amount ( Rs. in Crore )

Organization

Affected Area

144.10

ANSAM, KSO

National Highways

105.10

MEELAL

Imphal and bordering vale countries

96.80

ADC Demand Committee

National Highways

70.91

Jiri District Demand Committee, MSF, AMSU, DESAM

Jiribum, Imphal and bordering vale countries

54.45

Sadar Hill District Committee

National Highways

52.41

Zeliangrong Students ‘ Union, IT Road Development Committee

National Highways

43.16

ATSUM, ACTP

National Highways

27.17

APUNBA LUP and MAFYF

Jiribum, Imphal and bordering vale countries

24.45

ATSUM

National Highways

Beginning: The Morung Express, Dimapur 20/08/08 pp. 5

The economic losingss due to bandh merely in the National Highways were Rs. 246 croes in 2004-05. It increases to 553.23 crores in 2005-06, and it decreases marginally to Rs. 520.73 crores in 2006-07 in the province ( see Table 3 ) . On the portion of boundary line trade, Moreh ( in Manipur ) on Indian side and Tamu in Myanmar ‘s side is the lone land usage station ( LCS ) of India with Myanmar. An official estimation of day-to-day concern turnover of this LCS is about 2 crores, and it is much higher in the informal trade. Moreh trade point is consequence of the sign language of Indo-Myanmar Trade on January 1994, and which was operationalised in April 1995. Merely 22 points have been allowed as exchangeable by the occupants across the boundary line. Entire volume of trade dealing through Moreh in 2006 was about Rs. 62 crores, but the informal trade was around Rs. 2000 crores. So, the economic loss in a twenty-four hours ‘s bandh cost about Rs. 6 crores merely in Moreh.

Table 3: Economic Losingss in Manipur due to Bandhs in National Highways ( NH 39 and NH 53 )

Year

Sum

( in Crore )

Per Capita/Day

( in Rs. )

2004-05

246

22

2005-06

553.23

24

2006-07

520.73

27

Beginning: Nagaland Post, Dimapur 20/08/07

The statistics given above shows the troubles and the economic losingss incurred in the State due to the hapless and inefficient route conveyance system. Entrepreneurial activities are severely impeded by this hapless conveyance system in the State. In this respect, State should take some executable solution to better trade and commercialism in the State, particularly trans-border trade. So, when we look at alternate or complementary to the route conveyance, development of rail route has become demand of the hr.

Rail caput in development of trade

Railway being a chief manner of transit plays a important function in development of economic, trade and industry in the state. It contributes to freight every bit good as rider transit. For the development of enterprisers and entrepreneurial activities, the importance of rail caput is really important. Having trade across the State without this manner of transit will be like a soldier in the conflict field without arm.

In Manipur, the long precious dream of railroad line is now nigher to world. The foundation rock of the railroad line from Jiribam7 ( surrounding town of Assam ) to Tupul ( near Imphal ) in the first stage was laid by Prime Minister, Dr. Manmohan Singh in November 2004. To be constructed under the Prime Minister ‘s bundle has been announced as a National Project. It is targeted to be completed by 2010. The same line will be extended from Tupul to Moreh ( Manipur ‘s boundary line town with Myanmar ) via Imphal in the 2nd stage of the undertaking. It is the first measure of the India authorities to look toward the E, Look East Policy ( Singha 2005 ) . If it materializes, the State will be one of the most developed provinces in the state. The State will be the gateway or theodolite point of Indo-ASEAN trade corridor. With the materialisation of railroad in the State, the small town or rural economic system can be expanded and developed in to a new tallness. Manipuri handloom and handcrafts are being used widely by the communities in Assam, Tripura, Bangladesh and other States in the state. Oranges of Tamenglong8 can be made available to other parts of the state. The State ‘s undiscovered touristry potencies can be opened to the universe with the realisation of railroad line in the State9.

Coming to the trans-border trade, the State serves as a gateway to the Indo-ASEAN trade. It is besides of import to observe that about all the trade goods coming from ASEAN and other adjacent states are coming through this State. The people of this axis prefer to hold trade through this part, peculiarly Manipur because of its historical, societal, cultural, and racial and some other factors. This lone can be materialized by developing rail caput in the State, apart from favourable jurisprudence and order status in the part. There is barely any household in the part ( North Eastern Region ) and some other adjacent provinces in the state without the merchandises of ASEAN and its adjacent states. It is catered by the NH 39 and partly by the NH 53. Still entrepreneurial activities can non be accelerated due to hapless transit system. In this respect, rail conveyance can assist as a accelerator in the procedure.

As a policy deduction, rail caput making Imphal should be a wide gage and Imphal-Delhi and other major metropoliss should be connected from Imphal straight. It should be a day-to-day service from the Imphal and linking Silchar, Lamding, Guwahati and other metropoliss of the state. It will be a longest and chief line in the state and good for other provinces excessively. On this chief line, other lines can besides fall in, like Aizwal to Silchar, Agartala to Badarpur, Meghalya to NC Hills ( Haflong ) , and that can go through through Guwahati, etc. Now, inquiry that arises in forepart of us is, whether it can be materialized or non? Harmonizing to the original program, Jiribal-Tupul line was being targeted to be completed by 2010. But really late, it has been noticed that the original study alliance was in the first stage needs to be changed. This gives us some apprehensiveness in happening the dream. Even Diphu ( Assam ) – Karong ( Manipur ) railroad undertaking had been cancelled. We have to wait and watch for our dream.

Notes:

Manipur boundary lines with Myanmar, one of the ASEAN members through the aged old Indo-Myanmar route ( Moreh-Tamu )

Here in this present paper, entrepreneurship development is considered as trade and commercialism. The term will interchangeably be used throughout the paper.

In-spite of Imphal being the 2nd largest airdrome in North Eastern Region, surface conveyance system, including rail and route occupies the premier factor for the development of entrepreneurship or entrepreneurial activities.

Very frequently NH 39 is disturbed by tribal communities and it becomes really convenient for them. It is one of the biggest concerns of the State. NH 53 is used as an option to NH 39

State ( Manipur ) cabinet meeting on 18 August 2007 has decided to check down the organisation who calls on Bandh/blockade in the State.

Manipur incurs heavy loss due to Bandh/Blockade merely. Despite of confronting blockade/bandh in different parts the State, the present paper trades with two National Highway. Because, encirclements on the Highways affect severely trading across the State

Silchar to Jiribam Narrow Gauge railroad line ( about 45 kilometers. ) is complete but non yet to the full made operationalised.

Tamenglong is the most backward territory in the State. The territory is celebrated for orange and the villagers face marketing job of their orange due to hapless transit.

Tourism and other trading activities in Manipur can non be flourished and catered by the NHs. For the travellers, going in these NHs is really unsure and the status of the route is besides really distressing.