Orissa offers opportunity for start up business, SME: expert

Orissa has basic infrastructure and resources needed for any kind of start-up business, be it agro-based or manufacturing, but its people need to make the most of these opportunities by taking the help of various government incentives on offer, said K L Rao, director of Micro, Small and Medium Enterprises Development Institute, Cuttack.

“There are big opportunities in downstream and ancillary industry as many large manufacturing units are outsourcing as much as 80 per cent of their work, but unfortunately in Orissa, many people are unaware of it,” he said inaugurating an entreprenuership awareness seminar at Asian School of Business Management (ASBM), a city based B-school.

Rao said, there is need to promote metal-based finished product units in the state considering its strength in natural resources. For example, Orissa has huge reserves of bauxite, which is mined and transported to neighbouring states and countries for making of various aluminium products, which are then brought back to the state for local use.

“There can be a lot of small and medium business units in the state if somebody has interest in this area,” Rao said.

But the SME sector is facing difficulty in getting cheaper loans unlike the farm sector. Though the Union government has allocated Rs.5,000 crore in the 2011-12 budget, red tapism and banks’ reluctance to give loans to this sector are dwarfing the government’s highly ambitious plan.

“To facilitate easy funding to SME sector, the government of India has a scheme, with which we can lend up to Rs. 1 crore without any collateral. But many people do not have any idea about such facilities,” said Rao.

Between 2001 and 2008, total proposals for such mortgage-free government loans were just 200,000 across the country, but in last two years, additional 200,000 proposals were received, said Rao.

He said, many dairy and poultry firms can be started in the state as it has a huge unused land bank and required climate for such business.

“Things are changing and more people with risk taking ability are coming forward to set up their own enterprises. Students should not just focus on job opportunities in corporate sector, rather they should imbibe the spirit of entrepreneurship,” he added.