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I. Introduction:
While discussing about rural India we find a widely pronounced statement as ‘India is
still in villages’. This is, no doubt true since more than 70 % of India’s total population lives in
villages. We can not expect a developed India when the rural India is found undeveloped in real
sense of the term. The Government of India has been implementing a large number of schemes
to uplift the rural economy of India. For example, the NREGA is one of the schemes by which
rural people are being given opportunities to earn. But nevertheless, the economic condition of
the rural people has not upgraded. But some states of India like Gujarat, Maharastra, Punjab and
Haryana have been able to show some good results in the rural areas. This has become possible
because of the development of entrepreneurship in such states. So the development of
entrepreneurship in rural India can be regarded as an important condition for the economic
development of India.
Despite offering different incentives by the Central Government and the respective state
Governments, the people of the North Eastern Region (NER) of India are lagging behind in
entrepreneurship. Consequently the region has to import almost all the articles from other states
with some exceptions. The NER of India consists of eight states viz. Assam, Arunachall Pradesh,
Meghalaya, Mizoram, Nagaland, Tripura and Sikkim. The NER of India covers an area of 2.62
lakh square kilometer, which is 7.9% of total geographical area of the country. The area is
divided into three geographical divisions- the Shillong Plateau, the North Eastern Hill Basin and
the Brahmaputra Valley. With a total population of 39 million (2001), it accounts for 3.8% of the
total population of India. The economy of the NER of India is different from other regions
because of its peculiar physical, economic and social characteristics.
In comparison with other states and regions of India, the NER is economically backward.
The number of economic activities is less in this region than in other regions of the country. The
indigenous people of this region are simple and less interested in commercial activities than the
migrated people of other states of the country. For example, the business hub of Assam-Fancy
Bazar, situated in the heart of Guwahati, the capital city of Assam, has been controlled by the
people of outside the NER of India. During the course of our study we have observed that almost
100% businessmen in Fancy Bazar is from out side the region. Same is case in other business
cities of Assam like Tinsukia, Jorhat etc. With some exception, almost all the talented young
people want a blue colour job. Those who can not manage a job start some ventures. But in most
of the cases entrepreneurship is not their passion. It has also been observed that some of the
young persons constantly try to get a job even though they have already started ventures which
start earning profits. Entrepreneurship culture is still in the bud in this region. But the entire
region with its rich natural resources, wonderful scenic beauty, fertile soil, wide rivers and blue
hills, pollution free environment and many other peculiar features has got high potentials to
develop the entrepreneurship culture particularly in the rural areas. It is also a fact that the
entrepreneurs both the existing as well as prospective have to face a lot of problems in this
region.
The objective of this paper is to identify the potentials and challenges of rural
entrepreneurship in Assam and suggest measures to overcome the challenges.
In the following section, the methodology part of the paper is discussed.
The paper contains both primary and secondary data. Primary data have been collected by
canvassing questionnaires to small tea growers, bought leaf factories, workers of small tea
gardens, suppliers and intermediaries relating to small tea sector scattered in different parts of
Assam on random sampling basis. In order to collect necessary information regarding the
production and the marketing of green leaves multi stage random sampling design has been
adopted. In case of multi stage random sampling technique which has been applied in this study
the units of population such as small tea growers, labourers, green leaves suppliers, bought leaf
factories etc. have been interviewed through an open ended survey instrument(Schedules) at
various stages according to the sample design framed. By applying the same method, primary
information have been collected from the Muga and Eri seed producers, rearers, reelers, weavers
and traders for the purpose of this paper. Some business areas of Assam such as Fancy Bazar of
Guwahati, Jorhat city of Jorhat district and Tinsukia city of Tinsukia district have been visited in
order to collect information about the percentage of indigenous people engaged in business in
such areas to verify the recorded data of the Municipal corporation of Guwahati and other
Municipal Boards of the concerned towns. Personal interview has also been conducted with the
office bearers of the All Assam Small Tea Growers of Assam.
Secondary data have been collected to supplement the primary information. Secondary
data such as published reports of Tea Board of India, All Assam Small Tea Growers Association,
Souvenirs of the different bi-ennial Conferences of the All Assam Small Tea Growers
Association, Central Silk Board, Government of India, Directorate of Sericulture, Government of
Assam and different publications of the concerned departments.
The size of the sample has been determined by using adequate statistical method of
determination of the size of sample with 95% level of confidence and desired level of precision.
Scope of the Study:
In this region, there are immense potentials for rural entrepreneurship in different sectors.
But, this paper deals with only the potentials and challenges of two sectors viz. small tea and
natural silk of Assam. Other aspects of entrepreneurship such as psychological traits
(achievement-motivation etc.), Cognitive Reflection (IQ), Risk Aversion and Time Preference
etc. are not dealt with in this paper. Since there is dearth of research literature on these areas of
rural entrepreneurship, researchers may select them as the themes of their research.
Following table shows the state wise breakup on Area and Families involved in Natural
silk sector in the NER of India:
Table-1
State Area in hectares Families
Mulberry Muga Eri Oak Total Nos
Assam 4539 7263 7938 27 19767 185000
Source: Status Report 2006-07 of concerned states: Available in the Office of the
Director of Sericulture, Govt. of Assam, Khanapara, Guwahati.
Though Muga silk is simply unparallel to any silk of the world for its luxurious look and
wonderful comforts, the weavers of Assam cater the domestic need of local people only. Product
diversification is one of the most important aspects to increase the revenue in this sector. But this
has not been observed significantly during our study.
Though the production of Eri and Muga silk is confined to the NER of India, a very small
amount is exported to other countries. There is not any focused approach to organize the silk
sector to meet the needs of the foreign countries. There is no denying the fact that the Muga
and Eri silk of Assam would be able to create a high demand in the world market if every
aspect of the production of such silk is modernized keeping in view the latest taste and
preferences of the consumers.
During our survey it was observed that some of the adventurous producers have started
producing some new items out of Muga and Eri silk. These are Shoes, readymade shirting, Tie,
Hat, Socks, Sweaters, T. shirts, Umbrella, Scarves, Coats, Inner wears, Jackets, Eri blankets, etc.
All these products have high demand even in the local market. This has revealed the fact that
Muga and Eri silk products would be sold in the foreign market like hot cake.
VI. Why Entrepreneurship in Muga Silk Sector should GROW
As has already been mentioned Muga is endemic to the NER of India. So proper care
should be taken up to protect this wonderful silk worm so that it does not become extinct. Muga,
the magnificent silk with its gorgeous look can win the heart of any people of the world.
Muga is the indicator of climate and pollution. Muga can be reared only in a pollution free
environment. Production of Muga would clearly indicate the environmental condition of the
region. Muga food plants are green and high. So these plants create a green atmosphere
which is highly required in the present context of alarming global warming. This will have a
positive effect on the environment and it will also enhance the scenic beauty. This in turn
would help in boosting the tourism industry of the region as the tourists from industrial world
prefer green and pollution free places having natural beauty.
This sector is women friendly. Since most of the master weavers are women, this sector
contributes to a large extent in empowering the women among the weaker section of the state.
The gestation period in this sector is very low, but the return is high. Moreover, this sector is able
to provide employment opportunities to a large extent.
Natural Silk sector creates a set of entrepreneurs such as:
Seed (Muga and Eri) producers, Seed sellers, Rearers (Cocoon producers), Cocoon
sellers, Yearn producers (Reelers and Spinners), Weavers, Fashion Designers, Traders,
different types of Loom manufacturers, Loom traders etc.
Why entrepreneurs would be the gainer by exporting the natural silk
products:
• Muga & Eri silk are totally natural and these silk have got natural colour and need no
dyeing. So the latest taste and preferences of modern and moneyed customers would
be met by the Muga and Eri silk products.
• Since Muga & Eri silk are totally natural and no chemical is used, it is the best silk
for human skin. This aspect is taken care of by the conscious consumers and the
consumers of the developed countries.
• It absorbs sunlight and protects the body from the ultraviolet rays and heat of the Sun.
It (Muga) has the special character of keeping the body cool during summer and
warm during winter. It should be publicized widely all over the world in order to
create markets particularly in the developed countries.
• Its colour, glaze and other qualities will attract the customers of the developed
countries.
• Production of silk helps in increasing the green cover on the earth which in turn helps
in reducing the harmful effects of the global Warming. This will no doubt help the
mankind to minimize the green house gas emission. It will help in growing the
tourism industry in the region in return also.
• Natural Silk like Eri and Muga are environment friendly. The consumers of the
developed countries seek green products now-a-days.
• The customers of the developed countries are highly educated and health conscious.
So the natural silk would be able to create high demand in such countries.
There are lots of challenges that are being encountered by the existing entrepreneurs and
the prospective entrepreneurs have also to be prepared to overcome the challenges. In this
respect our study has identified the following:
VII. Findings relating to the Challenges in this sector:
Our study has revealed that the reeling, spinning and processing of both Muga and Eri are
done in a traditional manner. At present, these activities are confined to the household level
instead of entrepreneurial. There is not any Industrial Estate for Muga reeling and Eri
spinning. The available machinery for doing these activities is also not sophisticated and there is
also a scarcity of spare parts of the machinery. The reelers and spinners have to face a lot of
difficulties to get the required spare parts if the machinery goes out of order. Muga reelers also
face the paucity of working capital for which they have to borrow money from money lenders at
a very high rate of interest in order to run their activities. The Muga weaving sector is also facing
a number of problems such as absence of skilled workers, lack of sufficient working capital, lack
of the supply sufficient raw materials and high operational cost. Moreover, there is not any
facility of processing such as dyeing, embroidery, tailoring etc. in the weaving clusters. Erratic
power supply is also another problem that is being suffered by all the people connected with
Muga and Eri Silk sector.
It has been observed that due to the free entry of Chinese Silk into our country in
recent times, our weavers use to mix the Chinese Silk with Muga after a dye in Muga
colour. This habit of the weavers will certainly decrease the value of Muga Silk.
One of the most interesting aspects that have been found from our study is that most of
the Weavers are not well aware of the worth of the product. They are also not so much
interested in getting training.
So far as the Eri sector is concerned, it is less organized than Muga sector. Eri spinning is
regarded by the spinners as a part time activity only. Just as the Muga sector, Eri sector is also
having the problem of working capital, lack of modern machinery to spine Eri cocoon, lack of
processing facility etc. Due to the lack of sufficient facility in Assam to spine and to make
dresses, a large quantity of cocoons are sent to Bhagalpur in Bihar every year.
Marketing is a complex process. In order to be expert in marketing, one needs to have
business acumen, finance, human resource management and technical expertise. Most of the
People of Assam are lacking these qualities and the people associating with Eri and Muga sector
are also of no exception.
The demand of Muga and Eri products are more than the supply or production at
present. It means the resources are limited and insufficient to feed the demand of the market. So
a market research is required to produce the marketable products for the existing as well as
prospective customers in order to earn optimum revenue with limited resources.
To produce and distribute marketable goods made of Muga & Eri silk, we must identify
the problems that are being faced by the real producers and the weavers of Muga & Eri silk.
To determine the size, nature and organization of the sales of the Muga and Eri products
we must identify the constraints of putting the finished products into market
In order to know the taste & preferences of existing as well as prospective customers
within and outside the country we have to interact with the Fashion Designers and Export
Houses of different places. To facilitate the creation of new market within and outside the
country we must study the problems that stand in the way of increasing the volume of Muga and
Eri products in Assam. A systematic market study will facilitate necessary market information to
the producers.
In order to increase the volume of marketable products we have to study the strength and
weaknesses of existing products.
VIII. Conclusion:
In order to survive in the face of stiff competition from the MNCs the existing new
generation as well as the prospective Small Tea Growers of Assam will have to change their
style of functioning. They need to keep abreast of the demands of the international market and
produce their commodity on a par with international standard. It is the need of the hour to change
the approach of the small tea growers of the region in order to understand different aspects of
Business World.
Both state and the central Government should pay special attention to the problems and the
prospects of these entrepreneurs of so that the young generation can get engaged in some
economic activities rather than any extremist activities in this extremists hit region. Moreover, in
order to protect the influx of illegal foreign nationals from Bangladesh, which has been creating
serious problems to our nation in general and to Assam in particular, every plot of land suitable
for tea cultivation should be utilized preferably with the cultivation of tea. Otherwise, these
illegal nationals would get settled in such plots and our governments would be helpless
afterwards.
Sericulture, being one of the most important means of livelihood of the people of the
NER of India, should boost in order to generate more and more employment opportunities in the
region. Muga and Eri culture has got immense potentials not only to meet the demand of the
domestic consumers but also the consumers of the developed countries. To attract the consumers
of developed countries, the concerned parties (Weavers, Dress makers, Fashion Designers, etc.)
must study the taste and preferences of the customers spread apart. Instead of devoting to meet
the need of the local people, the producers should target the consumers of the developed states of
our country too in order to earn optimum revenue. The Eri sector, which is still a primitive one,
should be modernized and sophisticated spinning machines should be used for spinning Eri
cocoons.
The Central Silk Board (CSB), Government of India and the Department of Sericulture,
Government of Assam have been trying to develop the Eri and Muga sector of the region. A
number of research studies have also been conducted under CSB in order to increase the
productivity of this sector and to reduce the problems that are being faced by all the parties such
as seed producers, cocoon producers, reelers, Spinners, weavers, traders etc. But until and unless
the people, who are associated in this volatile sector, including the Government Officials, put
their heart, everything will be ended in smoke.
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References:
1. John Kao and Howard Stevenson (eds.) Entrepreneurship- What It Is
and How to teach it. Division of Research, Harvard Business School, 1989.
2. Gupta C.B. and Srinivason N.P., Entrepreneurship Development in
India, Sultan Chand and Sons, New Delhi, 2003, p. 1.17.
3. All Assam Small Tea Growers Survey Report, 2008 available in the
Head Office of the All Assam Small Tea Growers Association, Jeewan Phukan
Nagar, C.R. Building, Chowkidingee, Dibrugarh-3, Assam.
4. Kakoti Jibanjyoti and Saikia Jatindra Nath, Challenges Before Small
Tea Growers of Assam, The Kurukshetra, Vol. 57, No.-6, April 2009, P. 32.
5. All Assam Small Tea Growers Survey Report, 2008 available in the
Head Office of the All Assam Small Tea Growers Association, Jeewan Phukan
Nagar, C.R. Building, Chowkidingee, Dibrugarh-3, Assam.
6. Kakoti Jibanjyoti and Saikia Jatindra Nath, Challenges Before Small
Tea Growers of Assam, The Kurukshetra, Vol. 57, No.-6, April 2009, P. 34.
7. Status Report, 2006-07, available in the Office of the Director of
Sericulture, Government of Assam, Khanapara, Guwahati, Assam.
8. ibid.
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Dr. Jatindra Nath Saikia.
* DR. JATINDRA NATH SAIKIA is a Selection Grade Lecturer ( Associate Professor),
Department of Human Resource Management, Director, Entrepreneurship & Career
Guidance Cell, Coordinator, BBA Programme, Golaghat Commerce College, Assam,
PIN: 785 621 and Individual Professional Member of the All India Management
Association and Life Member of the Indian Commerce Association.
Residence:
P.W.D. Colony Road,
Near Circuit House, Golaghat,
Dist & P. O. Golaghat,
PIN: 785 621(Assam).
Email: jatin_saikia&yahoo.com
Mobile: 9435151015.