If you want to shine like a sun, first
burn like a sun – Dr APJ Abdul Kalam
Dr B K Mukhopadhyay
(The author is a Professor of
Management and Economics, formerly at IIBM (RBI) Guwahati. He can be contacted at m.bibhas@gmail.com)
(Continued from yesterday)
So far as capital support is concerned, the situation has been changing, albeit slowly, compared to what it was even a decade ago. In today’s complex private-public equity environment, players across the industry—investors, entrepreneurs, governments, banks, financial institutions, and professional intermediaries alike—have been taking greater interest in this score. On the part of entrepreneurs, the time is ripe to have a better understanding of the arena of financing ventures by studying the antecedents and consequences of funding decisions, both domestically and internationally. Locating sources of funding is just the beginning; a lot depends on how the fund is utilized in a risk-managed manner.
The need, thus, is for capacity-building afresh. The SME sector can play a bigger role in the days to come. Already, the process has started, but it lacks accentuation. Since the land scarcity has been there and agriculture itself has limitations, the establishment of non-traditional units in the industrial sector can yield further generation of income and employment. This could boost the inter-sectoral resource flow to a significant extent. Production of agri-crops, if followed by industrial ventures, could open new vistas. Rural industries, so to speak, at the same time call for a shot in the arm, inasmuch as the traditional processes have severe limitations and market orientation must be there in the shortest possible time.
The bell metal industry of Sarthebari [Barpeta] has been one of the industries that enjoys historical pull factors. The world-famous, glorious Assamese utensils and other bell metal items have the potential to forge ahead, provided some corrective measures are taken to address the ongoing problems plaguing the industry at present.
Newer avenues are not also difficult to locate. For example: very recently, a new type of mineral, apatite, was discovered in the state. This can be used. Large bedded deposits of impure apatite or phosphate rock occur in various places across the world. This material is mined as the most important industrial source of phosphates. Phosphate chemicals are used in a wide variety of applications, but the largest use of phosphate is in the fertilizer industry for agriculture. The primary use of apatite is in the manufacture of fertilizer and it is a source of phosphorus. So, the same can be used for agricultural activities. Where the crystals are clean and clear, apatite is sometimes also used as a gemstone; however, its lack of sufficient hardness keeps it from gaining real popularity in that regard; it is considered to be more of a collector gemstone.
Naturally grown agri-horti products from the North East offer a vast scope for entrepreneurs [existing and new]. Mention may be made of: strawberry, orange, honey, grapes, lemon, kiwi, ginger, turmeric, bay leaves, black pepper, cardamom, tamarind, areca nut, potato, papaya, banana, grass brooms, and cashew, among others. Processed food products have, needless to say, a huge market even in the eastern region, not to speak of the entire country or overseas. A number of new units can come up, as the threshold population would not be a constraint.
Horticulture is another area that can offer a further boost to the entrepreneurship growth process. The diverse agro-climatic conditions, varied soil type, and abundance of rainfall offer immense scope for the cultivation of different types of horticultural and other crops—fruits, vegetables, flowers, plantation crops, tuber and rhizomatous crops, and crops of medicinal and other economic value. The fruits grown in this region range from tropical and sub-tropical fruits like banana, papaya, pineapple, and citrus to temperate fruits like apples, pear, peach, plum, and even certain nut fruits.
In the other field of farm activities, investment flow from banks and financial institutions can bolster the entrepreneurship growth drive. The NER has a rich diversity of different vegetable crops, and both indigenous tropical vegetables and temperate vegetables are grown to a considerable extent. The major vegetables grown in the regions are brinjal, cabbage, cauliflower, okra, onion, pea, potato, tomato, knol-khol or Kohlrabi, radish, carrot, French bean, and different cucurbitaceous crops. Tuber and rhizomatous crops like tapioca (cassava), sweet potato, dioscorea, colocasia, ginger, and turmeric grow abundantly in the region, while plantation crops like tea have a considerable impact on the economy of the Assam region, in particular. Later on, other plantation crops like rubber and coffee and medicinal and aromatic oil-yielding plants like Solanum spp., Dioscorea spp., Cymbopogon spp., Mentha spp., etc. have been considered suitable for certain areas of the region.
Obviously, very mentionable support on this score has been given by NERAMAC [North Eastern Regional Agricultural Marketing Corporation Ltd.], with its registered office in Guwahati and branch offices in all of the eight NE states. Among the major assignments being performed by this organization, there are: assistance extended to the farmers in obtaining remunerative prices for their agro-horti products; small-scale processors in marketing exotic products of NER. A positive area has been that they are assisting consumers in getting fresh and exotic products from NER at a reasonable price. They are also assisting in the field of supplying inputs to different states of India, along with input supplies under the Bamboo Mission, the National Food Security Mission, the I C D S Programme, the HMNEH [Horticultural Mission for the North East and Hill States], and the NHM [National Horticultural Mission]. The infrastructure already created by such efforts and by such agencies can be fully tapped to invite new entrepreneurs.
Floriculture is another area that can improve the picture significantly. Blessed by nature with tremendous biodiversity and an extremely congenial climate for various kinds of horticultural activities, Floriculture in particular holds high promise for improving the economies of these regions. Among the flowering plants, special mention may be made of the orchids; about 600 species are reported to occur in the region alone. The other commercial flowers of the region are marigold, tuberose, gladiolus, and chrysanthemum.
Of late, it has been observed that the booming floriculture industry in these parts of the country is being hit by a real estate boom. Under such circumstances, the need arises to promote alternative areas in order to carry forward the floriculture development process in the country. Because of the congenial climate, unexplored potential, availability of sufficient land, and other inherent strengths, the North Eastern region of the country and other Himalayan states provide a suitable alternative. The region being totally free from any external forces holds great promise for commercial floriculture.
The Horticulture Mission launched by the Government of India has played a significant role in augmenting floriculture development in these regions. The most remarkable impact has been brought about by technological interventions coupled with a complete package of inputs. Inputs like quality planting material, greenhouses, drip irrigation systems, feeds, and fertilizers have a direct and positive impact on the overall development of floriculture. The Mission has been able to spearhead floriculture development from the right perspective. The convergence of ongoing programmes and schemes leading to holistic impact has been achieved to a great extent. The regions have been able to take advantage of various provisions under the APEDA and NHB schemes to dovetail resources for holistic development. Various issues related to product diversification, marketing, and forward linkages have been addressed through the establishment of different infrastructures. The requirement here is infrastructure and packaging support, apart from finance. Markets are located away from the NER. Regarding protecting the freshness and fragrance, suitable latest packaging technology applications are a must.
As a whole, the issue is a burning one in as much as it not only affects the liquidity, profitability, and equity of individual companies but also affects the national economy by freezing the supply chain, which, in turn, terribly affects the process of capital formation.
Is it not the fact that the path to success is an elaborate one? A long journey before one comes out of the tunnel, indeed! Tasks remain unending: [a] building credibility; deciding on what to do; identifying the competitive edge; locating what makes service successful; understanding what makes the service fail; and what makes ourselves stand out. [b] knowing about our customers and prospects: who needs us at the market, in order of importance; whom do we want to be our customers; whom don’t we want; where are they; how do we get to them; when is the best time to get to them; what turns them on; and of course, what turns them off????? It is the goodwill ladder that is to be ascended. One only gets a single chance to make a first impression, and most of the respondents’ first impression becomes the last impression—rightly or wrongly! The fact remains: the world wants to see the results only! What good is more business if you don’t get paid?
Though the NE region has high potential for the development of farm and non-farm activities, for achieving better growth, the major hurdles must be tackled, as efforts have not been made to develop the entire process as a commercial venture. Some of such areas can be immediately tackled through government intervention or the PPP-cum-training process: prevalence of shifting cultivation; poor cultivation practices and low yield; lack of desirable planting material and lack of village seed bank; lack of marketing facilities; scarcity of trained manpower and extension support; land tenure and land ownership system; scientific processing; betterment of credit flow from the banking sector; research work; and extension of insurance facilities, among others.
As planning is a time-bound programme, it can be broken into two parts: the short run and the long run. For promoting entrepreneurship in the short run, special mention must be made of horticultural crops, which, apart from improving biological productivity and nutritional standards, earn foreign exchange, maintain ecological sustainability, and provide gainful direct and indirect employment. As the productivity of horticultural crops still remains at a lower level in the north-eastern region than in other parts of the country, the development of location specific high-yielding varieties and hybrids, the mass multiplication of quality planting materials through a participatory approach through the use of biotechnology, the cultivation of off-season vegetables and high-value low-volume horticultural crops under protected conditions, etc. can increase the productivity to meet the future demand of the country. Commercial floriculture is a new area for the economic upliftment of the people. Why not encourage in a hectic manner these types of ventures, which do not involve huge investment comparatively?