Title of the Project:

“ENTREPRENEURIAL DEVELOPMENT WITHIN THE AREA OF TEOK MUNICIPAL BOARD AND PROSPECTS OF NEW AVENUES OF EMPLOYMENT”

Researcher:

Interdisciplinary Students Research Project Conducted Jointly by the Department of Commerce and Economics

Funding authority:

Principal, CKB College, Teok From Seed Money of CKB College, Teok during the Plan Period 2020-21

Amount of Fund Sanctioned:

Rs.5000/- (Rupees Five Thousand) only

Utilised:

Full Amount (Vouchers enclosed)

Objectives of the study:

1. To examine the performances of the entrepreneurs in the study area.

2. To identify the problems of entrepreneurs.

3. To suggest measures for the development of entrepreneurs.

4. To find out whether any government sponsored entrepreneurial schemes are in process in this particular locality.

Methodology:

The present study is  based on both primary and secondary data. The secondary data are collected from various sources available e.g. Books. Journals, Reports etc. The primary data are collected through questionnaire based empirical survey.

Major Findings:

1) Almost 30% of the respondents are lies in the age group of 31 to 40 years group and 28% of the respondents are lies in the age group of 21 to 30 years group which is a healthy indication of the fact that the young entrepreneurs are coming forward to do the business.

2) There is almost 72% of the sample farms are registered business unit.

3) 76% farm have a business experience of less than 5 years. It indicates that the business environment in a real sense is yet to come in this locality. It seems to be a significant consideration so far as the entrepreneurial attitude is concerned. People of this area are still not choosing entrepreneurship as their career option.

4) 26% businessman are not paying any tax, only 63% pay Municipal tax, 1% pays GST while 9% respondents remain neutral to respond the question. Interestingly the income tax payers are hardly seen amongst the respondents.

5) So far as the nature of business is concerned, almost 90% businessman are related to trading concern, 5% are related to manufacturing while only 1% businessman are related to agro based business concern. Out of the trading business, only grocery shops solely occupies almost 70% share in the entire spectrum. It appears to be a very bad indication towards the entrepreneurship development in this township and thereby pinpoints to the non establishment of the very concept of entrepreneurship in this locality.

6) The survey results show that only a few people introduced more than rupee 1 lac as their start-up capital.

7) Almost 83% are very smallholders of business unit.

8) Only 3% businessman have availed loan from bank which indicates the lack of risk bearing capacity amongst them.

9)49% businessman are satisfied with their annual income, 42% are dissatisfied, only 3% are highly satisfied.

10) According to 57% businessman, there is a good business environment while 30% opined that there is not a good environment to do the business in the area under study.

Test of Assumption:

The above analysis clearly rejects the Assumption that-

                                                    “There is an appropriate environment in Teok Municipal Area and a significant development is in place so far as the entrepreneurial development and employment is concerned.”

Suggestions and Recommendations:

1. Motivational programmes for youths at municipal levels as well as in educational institutions to increase the desire to take up entrepreneurship as a career option. Frequent training programs for entrepreneurship are of a big importance to develop their skill and abilities. Again the trainings should be regular for short duration, which will be more preferable for entrepreneurs.

2. The financial institutions can play an important role in lending money to the entrepreneurs. Banks, government agencies should create awareness and publicity campaigns about the schemes available for rural areas. Easy access to information relating to schemes and benefits for entrepreneurship. Majority of the entrepreneurs of the study area were not aware about the various scheme of the government and the financial institutions. Bank should be advised by the Government to print broachers and pamphlets in local language about the financial / non financial assistance available at each bank and district industries centre (DIC) and distribute it to prospective and existing entrepreneurs.

3. The procedure of applying for loan should be made simple and at the same time, time for sanctioning and disbursing the loan should be lesser.

4. The financial reforms are considered as an important instrument to improve entrepreneurship. Rural industrial credit facilities must be making available at a cheaper rate so that interested persons can move forward.  Considering the backwardness of the area the interest rate of the banks should be minimum to attract the prospective entrepreneurs.

5. Special cell for micro enterprise development should be established in the district level. Mobile banking facilities should be introduced so that the poor can easily get finance.

6. Attention should specially be given to sustainably managed infrastructure, lowering of energy, transport and communication charges, while improving the reliability of these services. Facilitating public-private partnerships and for establishment of industrial parks for SMEs are options that should be considered.

7. It is generally one of the duties of the financing banks to take follow up measures after sanctioning and disbursing the loan amount. But it was found that none of the bank branches made a follow up visit to the entrepreneurs after sanctioning the bank loan. Therefore, it is suggested that the financing bank should make surprise and frequent visit to the units for smooth implementation of the project.

8. Marketing is one of the weakest areas in the state. Very little efforts are made by the local units on effective marketing. It is felt that the micro enterprise of the state has to follow a dynamic marketing strategy to increase its market share in national market. The state level training institution, financial institution may arrange more and more programmes on marketing particularly on marketing techniques, pricing strategies, packaging, total quality management etc. The marketing system should be developed. The Government can help the entrepreneurs in marketing their products through its outlets. The entrepreneurs should give the facility to concentrate only on production not for sale.

 9) The government must take steps to ensure the remunerative price for the products produced by the rural entrepreneurs.      

10) The empowerment of women especially economic empowerment will revitalize the nation and bring about all round development in the society. It was found that there are very limited numbers of women are engaged in micro enterprise in the study area.

11) The transportation system in rural area should be developed so that the entrepreneurs can cheaply carry their required materials for smooth development of their projects.