When the incumbent State government launched the Kerala State Self Entrepreneur Development Mission in 2011-2012, it was thought that the establishment of 10 microenterprises in each local body in five years would give encouragement to 50,000 entrepreneurs, about 50,000 more employment opportunities, and much more indirect employment.
Many then believed that the mission would become a ‘role model’ for the country, inspiring innovation, confidence and entrepreneurship among the youth. Whether the ambitious scheme has successfully tackled unemployment of lakhs of educated youths of the State or not, the situation is that even today young entrepreneurs are still struggling to meet their expectations at the hands of local self-government institutions. Saji Gopinath of Indian Institute of Management, Kozhikode, says that initially start-ups get support for both conventional and neo-generation industries. “Trouble starts during the running stage of a venture when dwelling units crop up around the industry.
Subsequently, local bodies have no option but to support any protest. Such a situation could have been avoided with the creation of buffer zones,” he adds. Kerala’s entrepreneurship is locked in a time warp with unnecessary monitoring and regulation. “The licencing is still centralised resulting in the delay of projects. The so-called single window system is not effective. IT and ITES companies do not face this problem because these sectors are now in their visible stages in the State,” Prof. Gopinath says.
Technology writer and MSME promoter V.K. Adarsh says that norms for green category industries should be relaxed to encourage competition among grama panchayats. “Perhaps a five-year tax holiday can be given for IT, tourism, or bio-energy sectors. But the government should frame the rules,” he adds.
The government should devise simpler rules for those entrepreneurs involved in waste management as this is the single and biggest issue that is plaguing all local bodies in the State, Mr. Adarsh says.
However T.K. Manzoor, managing director Keltron and former project director of Science and Technology Entrepreneurship Development, says that the State needs to evolve a harmonious balance of developing industry and conserving the eco-system.
Today the Akshaya sustainable entrepreneurship development model which Mr. Manzoor envisaged is working as the government then refused to stoop to subsidy gimmicks. “If entrepreneurship is to developed, local bodies have to play a wider role in focusing on start-up industries. After all, start-ups or manufacturing units obviously bring in revenues,” he says.
