Orissa may adopt entrepreneurship plan

Lack of market competitiveness coupled with inadequate technology and dysfunctional networking of the micro, small and medium enterprises (MSMEs) in Orissa have been responsible for the low success rate of the MSME sector.

BN Palai, general manager, Industrial Promotion and Investment Corporation of Orissa (IPICOL), said: “The success rate of MSMEs in Orissa is 6-7 per cent as compared to the national average of 12-13 per cent. This can be attributed to lack of market knowledge and inadequate technology skill among the state’s entrepreneurs.”

Hemant Sharma, director (industries), Orissa government, said: “The growth of first-generation entrepreneurs in Orissa has not been as widespread as Gujarat, Maharashtra, Karnataka and Tamil Nadu.”

Sharma was speaking at a state-level workshop on Rajiv Gandhi Udyami Mitra Yojana (RGUMY), organised by the Institute of Entrepreneurship and Development, Orissa, and sponsored by the Union ministry of Micro, Small and Medium enterprises.

RGUMY is a scheme launched by the Union government in February this year. The scheme aims to provide handholding support and assistance to the potential first-generation entrepreneurs.

“RGUMY addresses the needs of the potential first-generation entrepreneurs. Orissa will soon experience the multiplier effect of the upcoming large industries that will fuel the growth of MSMEs,” Sharma added.

Through the scheme, assistance is provided in the establishment and management of new enterprises through selected lead agencies (Udyami Mitras) dealing with various procedural and legal hurdles and completion of different formalities required for setting up and running of the enterprises.

The agencies will guide the preparation of project report, arranging finance, selection of technology, marketing tie-ups with buyers and installation of plant and machinery.