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J&K ATAL Yojna to target 35,000 youth for entrepreneurship in 4 years

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ATAL J&K Yojna to target 35000 youth

LG chairs joint meeting of JKEDI, EDII

BK News

Jammu, Jan 6: ‘J&K Government is focusing on creating a robust ecosystem for growth and empowerment of entrepreneurs of J&K, besides paving a strong foundation to nurture the entrepreneurship abilities and skills of the youth’.

Lieutenant Governor, Manoj Sinha said while chairing a meeting with the officers of Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) and Entrepreneurship Development Institute of India (EDII) Ahmedabad at the Civil Secretariat.

With the intervention of Lt Governor, the EDII will play a significant role in the implementation of entrepreneurship initiatives in J&K, including ATAL J&K Yojana. It will also provide area-specific technical expertise, handholding for Entrepreneurship Development Solutions for the Youth of J&K in Talent, Tradition, Tourism, Trade and Technology.

The Lt Governor asked the Jammu and Kashmir Entrepreneurship Development Institute (JKEDI) and Entrepreneurship Development Institute of India (EDII) Ahmedabad to work in close coordination with Mission Youth J&K to provide sustained handholding to the young and budding entrepreneurs for their inclusive growth and development.

The Lt Governor observed that the UT Government is working with a vision for engaging and empowering the youth of J&K by creating sustainable livelihood avenues for them.

Laying special emphasis on promoting self-employment for the skilled youth, the Lt Governor asked the concerned officers to identify potential sectors for growth and expansion in entrepreneurship.

He further asked them to lay special focus on the development and entrepreneurship training of SC & ST Candidates and prioritizing SC & ST majority districts for entrepreneur skill development of the youth.

Explicitly help SC & ST candidates and give consistent hand-holding to them. Workout the modalities for integrating the programme with Mission Youth, said the Lt Governor.

With the expertise EDII will bring to the table, the development of entrepreneurship in J&K would get a determined push to achieve desired results on the ground, he maintained.

During the meeting, a detailed presentation was given on ATAL J&K Yojana (Accelerated Transformation of Aspirations & Livelihoods for Youth in- J&K).

It was informed that the duration of the project is from the year 2021-24 covering 20 Districts with more than 35,000 youth to be oriented, creating 10,000 Conventional Tiny Enterprises (CTE) and more than 1000 Impact Making Enterprises (IME) to generate around 1 lakh direct and indirect employment.

On  EDII & JKEDI approach in the initiative, it was informed that they are going to play a major role in identifying location-specific business on terms of Vocal for Local with the use of available resources and local skills; growth of the existing business by providing handholding, business development services, branding & networking; focusing on sectors and sub-sectors; mentoring and counselling in Compliances, Technology sourcing, Business plan & Credit Linkages;  to focus on Startups under Incubation, Statutory requirements, Linking to Startup India Mission.

The project would have a great impact in mainstreaming entrepreneurship among local youth; wealth creation; balanced regional growth; increased competition among existing entrepreneurs; community development; employment generation; boost in economic growth by introducing new technologies, innovation and services.

Proposed interventions in J&K include Entrepreneurship orientation cum awareness program; Skill-Preneurship programs on various products/ Enterprises; training of Trainers programs on entrepreneurship development and capacity building of stakeholders and NGOs; innovation-based entrepreneurship certificate program; technology-based incubation support for new start-ups and interface with commercial technology support organizations; need-based research and policy action recommendation; project M&E, dossier and online tools are the primary responsibility of JKEDI and EDII, it was informed.

BVR Subrahmanyam, Chief Secretary; Nitishwar Kumar, Principal Secretary to the Lt Governor; Manoj Kumar Dwivedi, Commissioner/Secretary to the Government, Industries and Commerce Department; Prof Sunil Shukla, DG EDII; HK Mittal, Advisor, EDII; Raman Gujral, Director, Projects, EDII and GM Dar, Director, JKEDI attended the meeting.

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AgriBiz

Seri-Business: Emerging entrepreneurship model in sericulture

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Emerging entrepreneurship model in sericulture

Naveed Hamid

Aina Bhat

 Sericulture is one of India’s and Asia’s oldest sectors. Sericulture is a labour-intensive and commercially desirable agro-cottage, a forest-based industry that falls under the cottage and small-scale market. The end product of this industry is silk. It is particularly well suited to rural residents employed in agriculture, entrepreneurs, and artisans because it needs minimal investment.

It provides income and jobs to the rural poor, especially small-scale farmers and other vulnerable and poorer members of society. Kashmir produces Mulberry and Tasar silk in a non-traditional sericulture state. The growth of bivoltine sericulture has been a priority sector of the Indian silk industry, but progress has yet to reach the targets. One of them is sericulture.

In the state of Jammu and Kashmir, sericulture holds a special place. This is India’s only conventional Univoltine belt capable of processing silk with qualities equal to the finest imported raw silk of standard quality available on foreign markets. Silkworm rearing offers part-time jobs to around 30,000 households, in addition to providing permanent employment to 5,000 people in the public sector. Furthermore, the silk industry employs about 10,000 full-time weavers in about 2,000 private sector units in the valley. As a result, almost 2.15 million workers are employed in this sector, either full-time or part-time. Until 1988, the silk industry was a state monopoly, and farmers received no revenue from the selling of cocoons at the government-set floor price. It was given much thought as to how to reclaim its former glory. The market was de-monopolized, and plant control was passed to farmers with permission to sell surplus leaves and earn money.

The Indian silk industry is one of the largest generators of employment and foreign exchange for the country as sericulture activities spread across 52,360 villages. India enjoys a unique global position in terms of the production of all commercially useful varieties of silk. India is the second-largest producer of silk. Sericulture provided employment to over 9.1 million people in India during FY19.

The Exports of silk and silk products from India reached US$ 291.36 million in 2018-19 and US$ 243.52 million in FY20 (till December 2019). Source: CSB Banglore.

Status of Indian Sericulture Industry

Raw Silk Production 35,468 MT
Employment: 9.2 Million
Size of the Industry Rs 15,000 crores
Credit Flow Rs 500 Crores
Export Earnings Rs. 2100 crores
Raw Silk Imports 3712 MT (Rs.1200 crores)

 

SWOT ANALYSIS

Strengths

  • Rich natural resources & favourable climate
  • Traditional avocation (way of life), rich design
  • Strong domestic demand-pull
  • Rich heritage of handloom weaving & designs
  • Produces all five commercial varieties of silk

Opportunities

  • Adequate domestic demand for output
  • Low investment & moderate returns
  • High labour cost of silk production in other
  • Nations give India a good opportunity
  • The sector is a huge employment provider
  • Availability of efficient m/c & technologies

Weaknesses

  • Highly unorganized & labour-intensive sector
  • Small producers and small converters
  • Primitive/traditional methods/technologies
  • Outdated machinery.
  • Age-old designs & motifs

Threats

  • Fluctuating international silk prices
  • China- the ‘big brother’ is always a threat
  • Inadequate resources at states’ disposal
  • Heavy dependence on a single product
  • Low capabilities of primary producers
  • Fluctuating market demand – recession

Entrepreneurship Concept

Entrepreneurship is a mindset that involves taking calculated chances and confidence in order to achieve a specific aim. It’s a hybrid ability that combines a number of strengths and characteristics. An entrepreneur is someone that has the drive to do or manufacture something unique, organizes production, takes chances, and handles the economic insecurity that comes with owning a company. The collection of such attributes the entrepreneur possesses is called entrepreneurship.

Entrepreneurship in Sericulture

Sericulture is the discipline and practice of silk production. Agriculture and associated farm operations have traditionally been important to the Indian economy. Sericulture, as an agro-based company, has a major impact on rural people’s economic prospects.

It has the potential to generate jobs, especially in rural areas. Sericulture is a multifaceted industry that includes food plant cultivation (mulberry leaf processing), silkworm rearing (cocoon production), silkworm egg production, silk reeling (yarn production), spinning, warp and weft production, printing and dyeing, weaving (fabric production), finishing, textile design, and marketing etc. The industry encompasses a wide range of on-farm and non-farm activities, necessitating a wide range of expertise, as well as a varied population of people, and bringing people from all walks of life together to work on silk processing. Sericulture is a year-round activity with a variety of career openings. Sericulture is a low-cost, high-yielding crop that produces five to six crops per year. With minimum upkeep, the mulberry plantation will yield reliably for the next 15-20 years. India currently earns over Rs 4,000 crores from the sale of silk fabrics, waste, and garments. Aside from high export potential, silk has a strong domestic demand and a strong handloom base combined with artisan abilities, which is India’s true strength of the Indian sericulture industry.

Sericulture has a significant socioeconomic effect and has the potential to change people’s lives by creating viable and long-term job opportunities. Since it entails a variety of methods, from mulberry plantation to silkworm rearing, spinning, spinning, and selling, it employs a vast number of people, including women. Sericulture has the potential to offer gainful jobs to more than 15 Lac citizens in the state if it is encouraged on a larger scale through value addition.

The various entrepreneurial opportunities in the sericulture industry starting from leaf to fabric production are hereunder discussed:

Raising high-yielding mulberry saplings, silkworm egg preparation and supply, Chawki rearing (young age silkworm rearing), cocoon processing, silk reeling, Zari manufacturing, sericulture byproduct recycling, cocoon and silk-based handicrafts, the silk trade, cocoon crafting and Pet Food, Protein diet foods, and so on.

It is clear that the sericulture industry provides outstanding job prospects as well as a variety of entrepreneurship opportunities. Sericulture, as an agro-based company, plays a significant role in determining the economic fate of rural people and fits well into India’s rural system, where agriculture remains the primary occupation. Sericulture provides job opportunities not only for rural residents but also for skilled youth in semiurban and urban areas. Sericulture development would undoubtedly result in a thriving rural by providing income-generating entrepreneurship opportunities, thus reducing poverty and halting rural-to-urban migration.

Suggestions for boosting the Entrepreneurship in Sericulture:

  • Up gradation of Departmental Nurseries/ farms to improve Mulberry saplings /leaf production
  • Cocoon and Silk yarn marketing support system to the local Reelers.
  • Enhancement in Cocoon Bank Revolving fund
  • Infrastructure development at Farmers’ level
  • Popularizing Multi cropping and green marketing
  • Incentive on cocoon and silk production to farmers/reelers
  • Infrastructure development/up-gradation support
  • Introduction of cocoon crop insurance scheme
  • Development of Integrated Silk parks.
  • Silk Branding push.
  • Private Sector Involvement.
  • R&D from Research Institutes with Skill developments through capacity buildings.

Encouraging the young talent to take up entrepreneurship as a career (Seri-Business)

To inspire young people to engage in entrepreneurship ventures, a variety of methods have been used. Many young people today have business ideas, but only a small percentage of them have the capacity and opportunity to transform such ideas into profitable enterprises. The ability of youth to transform their inventions into businesses is critical to the future of small business start-ups. The ability to recognize an advantage and put it to use is largely dependent on the youth’s willingness to engage in such entrepreneurial practices. Participation in entrepreneurial educational programs has a strong impact on the desire to launch a new company.

To make the dream business a reality, youths need inspiration from all stakeholders, including the government, lecturers, families, friends, and religious groups, either by funding or other support mechanisms. As a result, many young people who are willing to take the risk of starting a new business are concerned about access to resources such as funding and inspiration.

Starting a Seri-Business Startup

The phases of starting a profitable company begin with identifying the motivations or commitments for starting one. After acquiring such motives, the next step is to discover a viable idea. This idea must be attractive and validated on whether it can meet customer needs. The next step is to look for the necessary resources required such as materials, source of funding and quality suppliers. The final part is to apply the plan by getting into full business and then build a professional network to sustain the venture. This model is divided into four basic success components. These factors are idea and market, motivation and determination, resources and ability.

Emerging entrepreneurship model in sericulture

                             Entreprenurship activities Framework Model

 

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The lonely journey: Mental health and entrepreneurship in J&K

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Mental health and entrepreneurship in J&K

Sarwar Malik

According to a study, about one half (49%) of entrepreneurs suffer from at least one form of mental health condition during their lifetime.

Freeman’s research has shown that startup founders are:

– Twice as likely to suffer from depression

– Six times more likely to suffer from ADHD

– Three times more likely to suffer from substance abuse

– 10 times more likely to suffer from bipolar disorder

– Twice as likely to have a psychiatric hospitalisation

– Twice as likely to have suicidal thoughts

Becoming an entrepreneur in J&K can be emotionally draining and time-consuming. It can turn into a very stressful situation for youngsters and their families. This problem is exacerbated when family members are unsupportive or resentful of the new business. The family must give you the respect, support, and trust you need to succeed.

The rising unemployment in J&K has put youngsters into deep trouble and a confused state, where they usually have no idea regarding their prospect and the source of their income. They often tend to lose hope and start working somewhere they don’t belong to and usually earn less to stay independent and ask no money from parents. In Kashmir, the widespread sentiment that many college graduates are overqualified for their jobs that do not need their high level of skills and for which they are paid much less than those college graduates who are in jobs that do use their skills.

Small business experts say that significant tensions arise in the household when the family doesn’t share the same expectations as the entrepreneur with regard to the direction of the business. Even more so if the family believes you are indulging a pipe dream and that the business will not succeed. They may tolerate your business in the beginning but grow resentful down the road. If your spouse doesn’t believe your business is a serious venture, there will be conflict in the relationship. Say that you buy equipment for the business; your spouse has to understand this is a necessity and not view it as you are wasting money.

Our society plays a harsh role especially with unemployed youth and that’s why youngsters prefer to stay isolated, which often leads to depression and anxiety. To simplify, the men and women are combined because their stories are virtually the same in relative terms. Consequently, the penalty for being overqualified was largest over a decade because overqualified men and women earned 58 percent less than those in a good-fit job.

Entrepreneurship is important for a number of reasons, from promoting social change to driving innovation. Entrepreneurs are frequently thought of as national assets to be cultivated, motivated, and remunerated to the greatest possible extent. In fact, some of the most developed nations such as the United States are world leaders due to their forward-thinking innovation, research, and entrepreneurial individuals.

Our approach with struggling entrepreneurs should be very soft, supportive and encouraging. In most cases Kashmiri parents want their kids to study hard enough just to acquire government jobs. While looking at the sufferings and miseries of the business fraternity, no parents would want their kids to become entrepreneurs. In certain cases, some parents often show their support towards their kids for setting up a small business but often restrict them from innovations and new startup ideas and they usually end up with simple traditional businesses that too under the supervision of their parents. Such type of entrepreneurship won’t lead to financial freedom rather it tends to create more frustration among youngsters.

In certain cases, many youngsters quit their jobs to begin ventures and many succeeded spectacularly. Even graduating students began to choose entrepreneurship over employment. Financial freedom meant one could choose how to earn their income.

Financial freedom in the mind of a young first-time earner is the joy of not having to ask the parent for money. To have money in the bank to allocate as one desires, and to make all the decisions associated with that earning is financial freedom to savour. Whether that leads to reckless spending and debt, or conservative savings and sacrifice, or a prudent balance of both is a reflection of how a young person learns to deal with newfound financial freedom.

My own struggle of setting up an FMCG factory at Lassipora Industrial Estate was full of challenges and hurdles, I felt like quitting most of the times but I never gave up, and above all, the social and mental pressure from the family added up to the miseries. I was often made to feel regret for my bank loan and instead of showing their support, I was put down to fight my own struggle alone. But yes, definitely things would’ve been different and better if I had been encouraged instead of demoralising. Family plays an important role during the development phase of any entrepreneur, it acts like a painkiller and a ray of hope, it motivates an entrepreneur to conquer more heights. At the beginning of any business, an entrepreneur requires some tiny amount of seed capital for market-related surveys and other developments, and as per my opinion, it becomes the responsibility of family members to support them for such cause.

At last, I feel like I have won the battle by self-motivation and fighting instead of taking a flight to run away from my problems. Today everyone may be proud of me but I know how hard it was and I know how hard it is going to be in future for those who are running their enterprises during such a sensitive period when Kashmir is going through lockdown after lockdown.

Great entrepreneurs have the ability to change the way we live and work, on local and national bases. If successful, their innovations may improve standards of living, and in addition to creating wealth with entrepreneurial ventures, they also create jobs and contribute to a growing economy. The importance of entrepreneurship is not to be understated.

For the government, I advise setting up special counselling cells for aspiring entrepreneurs and guide them through government-related schemes so that they can have a better future. There should be face-to-face interactions with existing entrepreneurs and at the same time, the government must come forward to help those sick unitholders who shut their units post-August 5, 2019 and support them in the form of soft loans or capital infusion.

The author is CEO of Huckleberry Industries and MD at Proactive Premium Water and also general secretary at Consortium 0f Young Industrialists representing young industrialists at various economic platforms

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Never-ending struggle of J&K’s young entrepreneurs

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Struggle of J&K's young entrepreneurs

Sarwar Malik

For over a decade, J&K witnessed a sharp rise in entrepreneurship. A good number of youngsters chose to leave their well-paying jobs to become entrepreneurs and job creators. Youngsters, who were settled outside, came back to invest in Kashmir and contribute their bit towards its development.

While dealing with conflicting social attitudes and other youth-related issues, these youngsters too have to face all those pressures faced by any other businessperson. Entrepreneurship is seen as a channel for the talents of many highly educated young people to explore their potential and cash their business acumen. Lack of jobs and the rise in unemployment is also seen as the main reason for growing entrepreneurship here.

At 16.2%, Jammu and Kashmir has the second-worst unemployment rate among states/union territories in the country as educated youth struggle with neglect and lack of job-creation policy. Evidence shows that the unemployed are unhappier, more likely to experience a range of health issues, for young people the effects of unemployment may be particularly scarring, evidence suggests that a spell of youth unemployment increases the likelihood of poorer wages and unemployment in later life. As per the Economic Survey Report of 2016, the employment rate in Jammu and Kashmir is higher than the average national employment rate. Nearly a quarter of its population in the age group of 18 to 29 years is unemployed, which is far more than the national rate of 13.2%.

Adding to it, the financial crisis post-2014 Floods and turmoil in 2016, youngsters find themselves hanging in between the continued geopolitical issues. However, the government came up with certain startup policies through JKEDI, PMEGP, PMMY, JKREGP, Standup India which somehow came like a hope for those who wanted to start their own enterprise. But this was not the end of their struggle, because most of the times the amount sanctioned through these schemes required to have either mortgage or guarantors by the financial institutions. It has also been witnessed that most of the projects sanctioned are either under-financed or poorly financed. Even maximum of the times banks don’t appreciate credit guarantee CGTMSE cover where govt promise up to Rs 2 crore without any guarantee or mortgage.

It’s also required to have your own place of work either owned or leased, which also becomes a reason for aspirants to give up because it’s not easy for everyone to have their own business place and at the same time it’s not easy to acquire leased place and above all, there is no land available in any industrial area throughout J&K. While discussing the latest J&K industrial land allotment policy 2021-30, there is no special quota for youngsters especially women entrepreneurs and there is no relaxation of land premium as well, which means that anyone be it a well-established businessman or aspiring entrepreneur or any new startup, the procedure of land allotment remains same, and that is the reason we see most of the industrial estates are dominated by either businessmen or second-generation entrepreneurs.

While going through our industrial policy and the latest Central Industrial Development Scheme of Rs 28,400 crore announced by the Lt Governor, it’s again a ray of hope for youngsters but how is this possible when there is lack of ease of doing business or poor management in any implementing department.  In 2020 the union territory has obtained 21st rank in ease of doing business which may be better than 29th rank in 2018 but on a broader perspective, J&K doesn’t even contribute 1% to the average national income.

Promoting youth entrepreneurship will not only help in reducing unemployment but more importantly showing young people that they have alternatives to create their own destiny by starting their own companies and just not waiting to find a job. A lot of constraints and perceived barriers to youth entrepreneurship have been identified as lack of capital, poor infrastructure, strict and cumbersome Government regulations, lack of guidance and awareness etc. J&K is facing slow growth of entrepreneurship due to least developed infrastructural facilities like communication, transport, power, and economic information etc.

Entrepreneurs create jobs, increase innovation, raise competition and are responsive to changing economic opportunities and trends. Entrepreneurship offers other positive externalities. A young person setting up a new business may provide ‘demonstration’ or learning externalities in that they may act as a role model for other young people. This may be particularly advantageous in deprived communities because setting up a new business especially if it goes on to be successful may signal that entrepreneurship is a mechanism for helping disadvantaged people break out of social exclusion. Indeed, one of the reasons why youth entrepreneurship is so attractive is that it offers an indigenous solution to economic disadvantage.

In spite of the increasing recognition of entrepreneurship as a source of job creation, regional development, and economic dynamism in a rapidly globalising world, there has been no systematic attempt to look at it from a youth angle. Youth entrepreneurship is picking up fast not only in developed states but also in developing states/UTs like J&K. Yet the overall poor rate of entrepreneurship may be attributed to several different factors like lack of venture capital, lack of infrastructure and political instability. While the state government has provided a host of incentives for industrial development, the rate of youth entrepreneurship remains low. Educated, skilled and unskilled youth need to consider entrepreneurship.

Post lockdown August 5, 2019, in continuation with the emergency lockdown of Covid19, came like a dent to already struggling economy. Entrepreneurs were still paying the losses of the turmoil of 2016 through the bank restructuring scheme which was supposed to end in December 2019. This instability caused huge sufferings to young entrepreneurs and ultimately lost all their savings and working capitals. As per the study held by the Youth Co:Lab (Asia Pacific) 86% of young entrepreneurs reported that coronavirus has negatively impacted their business. Among these, 1 in 3 report a major slowdown, and 1 in 4 have stopped entirely. Of the young entrepreneurs who report that coronavirus has negatively impacted their business, 88% have experienced reduced customer demand, 34% have experienced supply chain disruptions, 26% cannot progress government business, and 25% have experienced distribution disruption.

The special economic package which was announced by the Finance Minister, Smt. Nirmala Sitharaman on 13 May 2020. The name of the Scheme is ‘Distressed Assets Fund – Subordinate Debt for Stressed MSMEs but it came in the form of another loan and ultimately increased the liabilities of struggling entrepreneurs. As per another survey held by local body CYIK only 9.5% of young entrepreneurs reported that their business has received a tax break, loan, grant, subsidy, or another form of support.

Despite these negative impacts, the youth-led enterprises across J&K are innovating to support their communities to combat coronavirus and build back better. Youth-led enterprises are fighting misinformation, mobilising community action to protect the vulnerable, and developing innovative new products and services.

The author is CEO of Huckleberry Industries and MD at Proactive Premium Water and also general secretary at Consortium Of Young Industrialists representing young industrialists at various economic platforms

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