June'20

Articles

Place-of-Origin Effect: A Source of Entrepreneurship Development in North-East India

Anubhuti Deorah
Guest Faculty, Department of Business Administration, Guwahati University, Assam, India; and is the corresponding author. E-mail: jain.anubhuti1@gmail.com

Debosree Sarma
Faculty, North East Regional Institute of Management (NERIM), Guwahati, Assam, India. E-mail: sarma.debosree@gmail.com

This paper attempts to draw the focus of the youth towards the rich heritage of the North-Eastern Region (NER) and cites caselets of several entrepreneurs who have built successful and sustainable business models. The NER market provides huge potential for entrepreneurship in various sectors like food processing, fruit and spices, animal husbandry, horticulture, service sectors, etc. There is a lot of scope for both conventional and unconventional products and services. It is the best time for the youth to explore the same and provide employment opportunities to the unemployed in the region.

Introduction
The issue of employment is crucial especially from the point of view of income generation. In this context, the concern for creating jobs in massive numbers and at a rising level of productivity has been the subject of intense public debate, especially in view of the fact that the employment situation since the 1990s or so has not been encouraging. While there are a number of studies dealing with the national employment scenario, state-specific studies are hard to come by (Sundaram, 2001 and 2007; Chadha and Sahu, 2002; Rangarajan et al., 2007; and Abraham, 2009). Even studies evaluating the state-level employment scenario have limited their analysis to 17 major states, Assam being the only North-Eastern state featured in this list (Bhattacharya and Sakthivel, 2003; Chadha and Sahu, 2004; Bhaumik, 2007; Ramaswamy, 2007; and Rangarajan et al., 2007). Thus, the North-Eastern Region (NER) has not received due attention in labor research and policy, partly due to the problem of inadequacy or non-availability of statistically authentic data.

The NER consists of eight states, namely, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. Creation of gainful employment opportunities is probably the single-most critical problem in NER because this region still portrays the combined outcome of dominance of subsistence agrarian economies, poor industrial base, lack of infrastructure, significant dependence on public sector employment, political insurgency and violence and gross negligence by the Central and respective state governments towards overall development. In spite of rich endowment of natural resources, the region is lagging behind the rest of the country in terms of various developmental outcomes.

Former chief minister of Assam, Tarun Gogoi was quoted in Business Standard (May 2012) as saying that unemployment is one of the biggest problems facing Assam and imparting modern skill to the youths can eradicate it to a large extent. A change in the pattern of education and putting more emphasis on skill development is required. He said that with the change in habit and rise in income levels, demand for professionals in services like plumbing, fashion, furniture making, agri-industry and vehicle repair and maintenance is on the rise.

The solution lies in 'Entrepreneurship'. It creates opportunities for the unemployed youth to make them self-employed. In the NER, education has always been stressed upon, leading to well-qualified youth but no employment. This leads to a graver scenario of educated unemployed, mainly due to the lack of awareness of self-employment opportunities, lack of motivation, failure to acquire skills, etc.

Objective

Through the caselets presented, this paper stresses the importance of entrepreneurship and how self-employment can be achieved by finding product and service opportunities in and around NER by indigenous products.

Literature Review

To understand the concept, the authors delved into the literature on place branding and placeof- origin effect, and the difference between the two concepts.

Place Branding

Kotler et al. (1993) were among the few who introduced the concept of strategic place marketing. The study emphasized that places needed to run themselves like businesses and market themselves like businesses if they were to respond adequately to the threats of global competition, technological change and urban decay.

Zenker and Braun (2010) defined a Place Brand as a network of associations in the consumers' mind based on the visual, verbal, and behavioral expression of a place, which is embodied through the aims, communication, values, and the general culture of the place's stakeholders and the overall place design. Essential for this definition is that a brand is not in reality the communicated expression or the "place physics" but the perception of those expressions in the mind of the target group(s).

Place-of-Origin Effect

Schooler (1965) concluded that the country of origin of a product can have an effect on a consumer's opinion of the product. It was one of the first studies to throw light on the subject.

Bilkey and Nes (1982) summarized the country-of-origin research to that point in time, qualitatively evaluating the results of 25 country-of-origin studies. The 1965-1982 period in the country-of-origin research is characterized by development from simple single cue studies-where country-of-origin is the only product cue to be manipulated-towards more complex investigations such as that by Bilkey and Nes (1982) into the generalizability of country-of-origin effects.

Johansson et al. (1985) questioned the findings of earlier studies and claimed that previously conducted research may have overstated the significance of country-of-origin effects, particularly where a multi-attribute approach was not used.

Ettenson et al. (1988), in their study of the effect of country-of-origin on consumer choice, used conjoint analysis which supported the contention of Johansson et al. (1985) that contrary to earlier contributions to the literature, other product cues such as price and quality may have a stronger effect on consumer product evaluations than country-of-origin information.

Papadopoulos and Heslop (1993), in their study, presented a view on the impact and role of international marketing and the importance of product-country image in this context. Harrison-Walker (1995) emphasized that ophthalmology services and that the country-oforigin effects should be examined in relation to services and not exclusively in relation to tangible products.

Al-Sulaiti and Baker (1998) provided a comprehensive review of the literature regarding the effect of country of origin on consumer perceptions of products and services. The results revealed that consumer perceptions differ significantly on the basis of product/service and country-of-origin. The country-of-origin may be an important element in the perception consumers have of products and services, especially where little other information is available.

Webb and Po (2000), in their study, mentioned about a growing recognition that countryof- origin effects should be examined in relation to services and not exclusively in relation to tangible products.

Javalgi et al. (2001) also mentioned in their study about a growing recognition that country-of-origin effects should be examined in relation to services and not exclusively in relation to tangible products.

Thakor and Kohli (1996), in their study, presented views on the proliferation of different streams of research, many of which seek to reconceptualize country-of-origin in terms of brand origin. They defined the concept of brand origin as "the place, region or country to which the brand is perceived to belong by its customers".

Askegaard and Ger (1998) addressed conceptual issues concerning COOB and its significance as a cue, and how and under what conditions it is used, in order to understand the important implications for changing, maintaining, or modifying country-of-origin image. Laing et al. (2002) stated that in post-industrial economies, the service sector is facing unprecedented change and globalization is one of the main drivers of this; it may therefore be conjectured that country-of-origin will assume increasing relevance in the service sector.

In simple terms, place branding (including place marketing and place promotion) is a new umbrella term encompassing nation branding, region branding and city branding.

Employment Statistics

For any study on entrepreneurship, studying the unemployment scenario of NER is imperative. The unemployment rate in the North-Eastern states is rising alarmingly. Though people are getting educated, employment generation in both public and private sector is not proportionate. Despite the government's efforts for creation of jobs, the number of people graduating each year is much more. Thus, people from the North-East move out of the state to the rest of India or even abroad in search of job opportunities. Many a time, it happens that a person's skill, capabilities or even his/her degree may not match the job opening, due to which he/she does not get a suitable job. People seldom think of starting their own business and becoming self-employed. This may be due to lack of funds to start a business, lack of creativity and innovation, etc. Becoming an entrepreneur not only gives a source of income to oneself, but it can be a source of generating employment for other people as well. Tables 1 and 2 gives a vague idea of the ratio of employment and unemployment in the eight states of North-East India.

Current Daily Status (CDS) gives the average level of unemployment on a day during the survey year. CDS is the most inclusive estimate of unemployment. It captures the unemployed days of the chronically unemployed, the unemployed days of the usually employed who become intermittently unemployed during the reference week and unemployed days of those classified as employed according to the priority criterion of Current Weekly Status.

  • In 2004-05, at the rural level, only State of Tripura is showing unemployment at a rate higher than all India average. Other states in NER were better placed than those across India. In 2009-10, the performance of Tripura continues to be bad and the State of Nagaland has also shown unemployment rate registering higher than all India average.
  • In 2004-05, at the urban level also, the State of Tripura is showing unemployment at a rate higher than all India average. Assam's unemployment rate is marginally higher than all India average. In 2009-10, the performance of Tripura continues to be bad, though there is improvement from 2004-05. The doubling of unemployment rate of Nagaland in 2009-10, compared to that in 2004-05, is a cause for concern.
Caselets

Consumer Packaged Goods

Tea: Green Gold (Assam) Pvt. Ltd.

Originally, tea is indigenous to the Eastern and Northern parts of India, but the tea industry has expanded and grown tremendously over the years, making India the largest grower and producer of tea in the world.

The tea production in India was 979,000 tons as of 2009.1 In terms of consumption, export and production of tea, India is the world leader. It accounts for 31% of the global production of tea. India has retained its leadership over the tea industry for the last 150 years. The total

turnover of this industry is roughly 10,000 cr. Since 1947, the tea production in India has increased by 250% and the land used for production has increased by 40%.

Even the export sector of India has experienced an increase in the export of this commodity. The total net foreign exchange in India is roughly 1,847 cr per annum. The tea industry in India is labor-intensive, meaning it depends heavily on human labor instead of machines. This industry provides employment to more than 1.1 million Indian workers, and almost half the workforce constitutes women.

There is a wide variety of tea offered by India: from Green tea to CTC tea to the aromatic Darjeeling tea and the strong Assamese tea, the range of tea available in India is unparalleled. Indians take a lot of pride in their tea industry because of the pre-eminence of the industry as a significant earner of foreign exchange and a significant contributor to India's GNP.

The three prominent tea-growing regions in India are Darjeeling, Assam and the Nilgiris. While Darjeeling and Assam are located in the North-East regions, the Nilgiris is a part of the southern region of the country.

The place-of-origin effect is very strong with respect to tea. Good quality tea is synonymous with Assam tea. Assam tea is renowned for its rich, full-bodied bright liquor. For those who favor a cup of tea with a punch, Assam is the answer. Of the agriculture-based industries, tea occupies an important place in Assam. In Assam, tea is grown both in the Brahmaputra and Barak plains. Tinsukia, Dibrugarh, Sibsagar, Jorhat, Golaghat, Nagaon and Sonitpur are the districts where tea gardens are mostly found. Assam produces 51% of the tea produced in India and about 1/6th of the tea produced in the world.2

The area under tea cultivation in 2011-12 of Assam was 322.21 th. hectares and produced 581 million kilograms. This was about 53% of India's total tea production in 2011-12.3

The number of tea gardens in Assam is 64,597.4

Tea industry has contributed substantially to the economy of Assam. About 17% of the workers of Assam are engaged in the tea industry.

In 1970, the Guwahati Tea Auction Center was established for better marketing of the tea produced in the region. This is the world's largest CTC tea auction center and the world's second largest in terms of total tea. It now auctions more than 150 million kg of tea valued at more than 550.00 cr annually. Conventionally, tea is sold in the auction centers; it was highly unorganized, and this need gap was recognized by Green Gold (Assam) Private Ltd.

Company Facts

Company Name: Green Gold (Assam) Pvt. Ltd.: Korangani Tea

Year of Establishment: 1985

Nature of Business: Manufacturer, Exporter

Number of Employees: 101 to 500 People

Turnover: 4.50 cr

History

  • It was back in 1926 that the late Jadav Prasad Chaliha, freedom fighter and a pioneer tea planter of Assam, undertook the daunting task of clearing a densely forested grant of land locally known as 'Korangani', due to the abundance of the 'Koranga' tree and refilling the plot with tea plants. Battling the hardships of a severe environment and colonial harassments, his determination bore fruit and the young plantation began to flourish.
  • Between 1953 and 1970, the reins of administration of the plantations, which by then included the neighboring Azizbagh Tea Estate, fell into the hands of his wife, late Debabala Chaliha, whose single-handed toil and devotion established Korangani Tea Estate as a producer of high quality tea at the Tea Auction Center at Calcutta.
  • Two generations later, Korangani tea estate produces about one million kilograms of tea annually, while continuing to uphold the values of quality and consistency.
  • Korangani tea was introduced in packaged form in 1994 with its maiden venture in Maharashtra.
  • In 1997, its products were launched in the North-East through its distribution unit, DKD Marketing under the management of Green Gold (Assam) Pvt. Ltd., its turnover reached 11 cr (2010-11).
  • Korangani tea brand's packaged tea products are now a household name in the major markets of the North-East and parts of Eastern India having sales of approximately 3,50,000 kilograms annually with a turnover of 4.50 cr (2010-11).
  • Blending, tasting and packaging operations are carried out under the personal supervision of the management at Korangani tea estate and at the registered office of the company at Guwahati, Assam.

Product range includes green tea, premium Assam blend, Korangini Gold (Masala tea/chai), Organic tea (these teas have been grown naturally without the use of any chemical pesticides or weedicides. Vermiculture helps in aerating the soil and thus helping in increasing the fertility of the soil), Darjeeling Golden Tip, CTC Orthodox Blend, 100% CTC Blend (premium quality CTC tea from Korangani tea estate).

Gift Packs

  • Whole Leaf Orthodox: 200 grams of premium quality Assam Whole Leaf Orthodox tea is packed in a beautiful handcrafted wooden chestlet.
  • Ethnic: Korangani tea has created exclusive gift packages made from material available nowhere else in the world but in Assam-Muga, Mulberry and Endi silks. Three types of high quality tea-CTC Brokens (Grade-BOP), Whole Leaf Orthodox and Green tea, are wrapped in these silk pouches.
    The outer casket has been inspired by the 'Paari' designs in the Mekhela Chaddarthe traditional dress of the Assamese woman.
    These packages are the result of Korangani tea's modest effort in highlighting the artifacts from the land and people of Assam.
  • Heritage Pack: In the heritage series, they offer a fragment of the history of the exotic State of Assam. Srimanta Sankardev (1449-1568) is part of Assam's heritage. In tribute to the legend and in appreciation of the rich Assamese culture, Korangani tea offers 100% garden-fresh Assam tea wrapped in three varieties of pure Assam silk in a unique hand-made terracotta casket.
  • Bamboo and Khadi Packs: Bamboo is an integral part of Assamese society and coexists in perfect harmony with tea. Environment-friendly, graceful and versatile, the elegant bamboo is inspiration for these delicate souvenir packs'a memento of timeless Assam tea.

Korangani - The Brand: Korangani tea brand's packaged tea products are now a household name in the major markets of the North-East and parts of Eastern India. It is one of the most trusted beverage brands in the region. The sale is of approximately 3,50,000 kilograms annually with a turnover of 4.50 cr (2010-11). It has established itself as a market leader. Korangani's unique packaging strategies for gifting gives it a competitive advantage.

Since its establishment, it has continuously striven to innovate. Recent development is green tea, white tea, ready-to-drink range, event sponsorships, modern trade and youth-centric activities. Korangani is one of the oldest organized players in the regional market.

Entrepreneurial Opportunity: The study of Korangani case shows us that if a need gap is seen and worked on, a successful business can be established. There are opportunities like 'New Product Development' such as fruit and herbal teas. This segment has not yet been tapped by any of the tea companies.

Rural Market: There is a large untapped rural market which needs to be exploited and has 'Export Potential'. However, there are not too many entry barriers put by policy makers and this makes the Indian tea market extremely fragmented and unorganized. There are many regional players who hold small chunks of markets. Also, with the advent of globalization, MNCs are entering the market. This has led to a decrease in the share of market and thus profits.

Food Products: Bhogali Food Products Pvt. Ltd.
Established in the year 1997 as Bhogali Food Products, Bhogali Food Products Pvt. Ltd. derives its name from bhogali bihu. 'Bhogali Food Products Pvt. Ltd. realized that it would be a great gift to the people of Assam if they popularize the concept of producing home-made natural and traditional delicacies in proper hygienic conditions at a large scale. Therefore, all bhogali products are available in various plastic pouches that keep the products pure and fresh.

The food products under "Bhogali Food Products Pvt. Ltd." are genuine Assamese traditional food. Utmost care is taken during the preparation of these food products in a scientific manner in a hygienic atmosphere. No artificial color, flavor or preservatives are added to it, making it a safe food for everyone. Each of the products is unique in its own way and has individual traits of its own.

The unique selling propositions are it is economical, they deal with organic foods, all items are 100% vegetarian, products are local traditional foods, production system is domestic and hygienic and no artificial color, flavor, preservatives added.

Product range includes Milky Sandah, Masur Guri, Milky Jalpan, Til Pitha, Malbhog Cheera, Sandah, Pithaguri, Akhoigur, Akhoi and Boka Cheera.

Entrepreneurial Opportunities: Bhogali believes in tradition, this is evident from their present product range. It has a strong place-of-origin effect. The products are deep rooted in the tradition of Assam. This is yet to be popular among the masses, so there is a lot of entrepreneurial opportunity which can still be explored. Some avenues are-Rural Market. There is a large untapped rural market which needs to be exploited. This sector is characterized by a large unorganized sector and local players rule the roost in these markets. Some trends seen in the urban markets of the North-East are national expansion of MSMEs, advent of modern trade and institutional sales, mergers and acquisitions with national and global brands.

Handicrafts and Handloom Industry

Handicraft: Fuzion Crafts Pvt. Ltd and Fuzion Crafts International

The North-Eastern (NE) states of India have a rich culture and crafts of various forms. There are more than 100 different tribes in the NER and they all have unique and traditional crafts. Also, NE India is rich in natural resources like bamboo, jute, cane and water hyacinth. According to statistics, about 43% of the handicraft industry is in the unorganized sector. There are 128 different tribes in the North-East and all of them have different clothing and identity. There is a lot to explore in this area. It is difficult to market products by the individual artisans. There is high demand and low supply. Also, there is high demand for new designs (Table 3).

The Place-of-Origin Effect Is Very Strong with Respect to Bamboo, Cane and Jute: Assam is rich in sylvan resources and most of its forests are richly stocked with bamboos and canes of various species. Bamboo is a raw material of great versatility and forms an integral part of the lifestyle and economy of the North-East. No definite records are available to establish the antiquity, history and origin of this craft in the North-East. However, it can be safely assumed that the craft was practiced since the misty past during the very dawn of civilization.

These products are readily available and transportation costs will not be there as it grows in ample quantity all over the North-East. It is a good source of raw materials for making handicraft products. India is the second richest country in bamboo genetic resources after China. These two countries together have more than half the total bamboo resources globally. The forest area, over which bamboos are spread across in India, on a conservative estimate, is 9.57 million hectares, which constitutes about 12.8% of the total area under forests (Bahadur and Verma, 1980). The annual production of bamboo in India is about 4.6 million tons; about 1.9 million tons are used by the pulp industries (forest department).
The Company Facts

Company Name: Fuzion Crafts Pvt Limited and Fuzion Craft International

Year of Establishment: 2011

Nature of Business: Manufacturer, Exporter

Number of Employees: 788 persons trained till date

History

Fuzion Crafts Pvt. Ltd is a handicrafts manufacturer and dealer. Fuzion Crafts International is a non-profit organization which provides holistic support to rural and marginalized people in remote villages in Assam and other North Eastern states.

"We started Fuzion Crafts in 2011 with the vision to build a system of sustainable livelihood. Most of the workers are women who helped us, who took step to earn themselves by making handicraft products taking training from us. Our motto is from waste to wealth creation. The raw material that we use for manufacturing our product is mainly water hyacinth which is easily available", said the founder and CEO of Fuzion Crafts Pvt Limited, Abdur Mukit Bin Rouf, who hails from a small town called Goalpara in Assam.

His setup is in Goalpara district of Assam. This organization has trained more than 788 people from remote villages and made them skilled labors. The workers who were earning 30 per day now earn around 100-150. Presently, there are 21 centers of Fuzion crafts in various parts of Goalpara district.

Their business process starts from collecting the water hyacinth from various parts of the district. 6.25% of the production cost provides for indirect labor. They pay 55.5% of the production cost to the artisans and 18.2% goes for indirect employment. They believe in women empowerment and more than 50% of the artisans working there are women.

Fuzion Crafts International is a handicraft manufacturing organization. It was originally a proprietorship firm and now there is an NGO which looks after the training and support needed by the artisans. Fuzion Crafts Pvt Ltd. looks after the marketing part and helps the artisans market their products. The company is also carrying out its CSR part as well as empowering women very well. The artisans are mainly women who are either homemakers or who usually did some unskilled labor. They are trying to give a better livelihood to the people and generate as much as employment as possible; they are training the specially-abled people also so that they can be independent. Mainly, they are working towards rural upliftment. Product range includes lamp shades, bamboo products, cane furnitures and cane utilities, stone utensils, wooden products, ladies bags, sital pati products, flowers and paper crafts.

Fuzion Crafts: The Brand

Fuzion Crafts Pvt Ltd. is an emerging player in the field of handloom and handicraft industry. It was awarded PRERAK title by IIM Lucknow under Prerna Fellowship. The marketing channels used by Fuzion Crafts is mainly through national and international trade fairs (4 nos), personal selling in hotels and resorts, through own website fuzioncrafts.com and through tie- ups with craftsvilla.com and Alibaba.com at 15% commission. The company also has an international counterpart called the Fuzion Crafts International.

The products are authentic, handmade, traditional, tribal art and also fusion of contemporary designs with traditional essence and looks. They are trying to bridge the gap between the resources of nature and resources of art and craft of the people and link them with the market all across India and the world.

Entrepreneurial Opportunity: The case of Fuzion Crafts shows us that innovation is the key to the making of an entrepreneur. Fuzion Crafts created their own resources from the indigenous products readily available in the North-Eastern states. There is still great scope in the field of handicraft. The market is unorganized and is unsaturated. Product innovation can be a major area, which new entrepreneurs can work on. Also, like Fuzion Crafts used water hyacinth for its production, other natural resources can be utilized and worked on for making new product. Tourism is one of the best attractions of the North-East and people who visit the region always search for some mementos to take back with them as memories. If shops are opened at tourist destinations, it can be a source of income generation and employment as well. Another young entrepreneur, R K Ongbi Purnima Devi from Manipur received Young Women Entrepreneur Award for her amazing work on handloom and handicraft.

Handloom: Silkalay

Handloom and handicrafts is the second largest industry in the North-East region and employs a large number of artisans. To the rural population of the North-Eastern region of India, handloom forms an essential part of their everyday life. A variety of handloom products are produced in the North-East by succeeding generations of weavers reflecting the creative urge, aesthetic sense and hopes and aspirations of the people.

Handloom industry is the outcome of mainly hereditary occupation. Some of the handloom products known for their excellent craftsmanship are carpets of Arunachal Pradesh, muga silk products of Assam, lashingphee of Manipur, and shawls of Nagaland and Mizoram.

Other common handloom products such as bedsheets, chaddar, scarf and jackets are found in almost all the states of the region.

History

Silkalay was conceptualized way back in 1976 and was a modest beginning in Jorhat (a town in upper Assam, India). At that time, very few non-Assamese business concerns showed interest in doing business in Assam silk. However, the management of Silkalay had the determination to carve out a niche in this line of business and eventually it did.

Silkalay deals with products symbolizing Assamese tradition. 'Mekhala Chadar', a local dress, is one of the most sought-after products by the Assamese community. These are available in varieties of fabrics such as Assam Pat Silk, Assam Muga Silk and cotton along with other mixed fabrics. Assam silk saree (both Pat and Muga) is another attractive product that links Assamese design on a silk saree. These products are designed/manufactured at Sulakuchi (about 30 km from Guwahati City) by local inhabitants. The management of Silkalay takes great pain to contact the weavers and design products as per the latest trend and eventually makes it available to the customers in India and abroad.

Apart from these products, they are also in the process of integrating other accessories such as salwar suit/shirting pieces, shawls, Assamese Gamcha (towels), etc. Today, Silkalay is selling Assam's finest silk yarn to both domestic and international customers. Silkalay also has its own website through which it markets its products to the United States, Canada, Australia, New Zealand and several European nations (The Silkalay).

The product range includes salwar suit, shirting pieces, shawls, Assamese Gamcha (Towels) and Assam silk saree (both Pat and Muga).

Entrepreneurial Opportunity: The case of Silkalay shows us that anything is possible if a little effort and a little creativity is put into it. Sualkuchi is the most popular destination for Assam silk for the local people and for the tourists as well. Most of the houses in Sualkuchi have their own looms and weave a variety of products like chadar mekhela and sari. There is ample scope for business in the international as well as national field. Umbrella made of muga silk is very popular outside India, as it is believed to be the best protector against UV rays of the sun. Innovative products like western wear or the traditional dresses of other states can be made from the indigenous silk, which will provide a great platform to budding entrepreneurs to start their own business.

Tourism and Hospitality Industry

Intensifying marketing wars to gain space in tourism, inward investments and export sales are the order of the day. And the NER is still in the stage one of development of tourism and hospitality. The absence of strong brands is a cause for concern. Destination branding is also a must-have initiative for the tourism industry. Tourism creates 78 jobs for every million rupees invested in it. This is significantly higher than agriculture or industry, which creates 45 or 18 jobs, respectively, for the same amount of investment.

As said by Sandeep Budhiraja, CSO and partner, BrandNomics in FICCI - North-East Marketing Conclave, 2013, North-East is a paradise unexplored with attributes like exotic, natural, musical, different ethnic cuisines, friendly, etc. And it is about time that it was explored and put on the tourism map of India. 93% of respondents (North-East India Image Managers, NEIim, a voluntary group conducted research amongst the people in rest of India) wished to know about North-East India.

Here, the authors would like to cite some cases:

Natural Resort: IORA, Kaziranga

Nestled amidst rolling hills of lush green tea gardens and conveniently located just off National Highway 37, IORA is a luxury resort at Kaziranga, a perfect blend of the tranquility of Assam and the comforts of a modern luxury resort. IORA offers a serene, rejuvenating experience with liberal doses of warm Assamese hospitality and supported by the best in stateof- the-art amenities. This 20 acre resort with 4-star amenities, landscaped gardens, and a small tea garden for the "tea" experience, is a perfect example.

Since its operation, it has emerged as a very popular brand not only in season time but off season too. Whether it is a holiday retreat, destination for wedding or parties, IORA has made its mark. They exude high place-of-origin effect; with Kaziranga being the wild life sanctuary, the location itself speaks volume about the regional advantage. Along with this, they have blended other attributes like folk dance around bonfire, Assamese specialty restaurant Bhatbaan, room ambience, a souvenir shop where each item is produced by locally available raw materials, etc.

Eco Resorts

Potasali Nameri Eco-Cam, Nameri National Park, Assam

Situated beside the Jia-Bhoroli River where it comes out from its journey in the Himalayas, Nameri Eco-Camp is a delightful deluxe cottage and camp-styled property which is run by the Assam Angling Association and is surrounded by the thick forests of Nameri National Park. Like most of the wildlife areas north of the north bank of the Brahmaputra river, the park forms a part of the Eastern Himalaya Biodiversity hotspot. A stay in the camps provides a great opportunity to be amidst incredible bird and mammal life, especially in the nights when elephants routinely cross the camps that have been set up.

La Maison De Ananda, Location: Majuli Island, Assam

There is not much to boast about the property and that is what makes it blend in with the island's culture. A tribal-styled cottage with comfortable but basic amenities and built by a French couple who fell in love with the island. Staying in the hut is an ambient experience unlike any other. The couple who built it has gifted it to a local tribal family, who now run it with tenderness, remarkable hospitality and a smile ever upon their face.

The island is home to numerous xatras, which are Assamese monasteries where monks young and old learn a unique form of traditional arts, drama, music, dance and philosophy; visiting these establishments is an incredible experience.

Homestays with the Monpa Tribe, Thembang, Western Arunachal Pradesh

In a secluded hilltop in the eastern Himalayan landscape, at a height of 2,300 meters, is the village of Thembang of the Monpa Tribe. The village was once ruled by a powerful grandson of the king of Potala who fortified the village with stones-out of which two stone walls still exist in the two entrances to the village. Interestingly, the village is also a part of the Community Conserved Area (CCA) initiative started by WWF-India. The aim of the project is to conserve the surrounding forests and wildlife under the ownership and participation of the local Monpa community. Additionally, to improve the livelihood of the locals, the project also promotes community-based village tourism. For the few responsible travelers who manage to reach this hidden village, homestay facilities have been set up to ensure that visitors get a chance to closely interact with the Monpa culture and at the same time make a positive contribution to the community. The facilities are basic but comfortable, and the experience of adopting a remote Himalayan lifestyle makes the visit to Thembang very worthwhile.

Tree House and Tribal Homestay with the Khasi Tribe, Location: Mawlynnong, Meghalaya

Mawlynnong, located in forested foothills overlooking the plains of Bangladesh, in the state of Meghalaya, is known to be Asia's cleanest village, and a very delightful one. Discovered by the outside world only in the recent few years, the village got popularity after a feature by BBC. The village has a very effective community tourism initiative in place which ensures that tourists play a positive role-as a source of livelihood and in conserving the nearby forests. Overnight visitors to the village get a chance to stay either in the delightful village tree house or with one of the families in a cozy homestay. The credit for the village's sustainable success and to the cleanliness goes to the residing Khasi tribe. With a hundred percent literacy rate, the villagers are all educated, smart, charming, well-mannered, and have a remarkable passion to keep their society clean and healthy. Though one may not find all the luxuries of the modern world in the village, the highlight of a trip to Mawlynnong is the genuineness of the Khasi culture and their concern for better livable places. Life in the village is an easy going affair and the people all seem happy.

All the above cases show an immense potential in the region when it comes to tourism due to natural endowment.

Conclusion

The above analysis and caselets provide enough information on the scope of entrepreneurship in the NER pertaining to indigenous products.

There is no dearth of opportunities when it comes to setting up rural enterprise in North- East. There are huge species of ornamental fish and scope for expansion of floriculture, rubber plantations, mushroom cultivation and handloom industries. Not only that, but North-East India also has a huge capacity for hydro-electricity projects, which, if tapped, can be used to satisfy one-third of India's power requirement. Vast amounts of coal, petroleum and natural gas reserves also exist in the region. Almost all states share border with other countries providing scope for trade through land.

The World Wide Web has also turned the whole world into a marketplace. So the entrepreneurs should forage into this arena for more profits. Projects like Fuzion, Impulse, Bhut-Jolokia, Axomia Gohona, traditional jewelry, etc. are setting waves in the space.

Other examples of setting up place-of-origin speciality products and services outside NE are Bihu Bazaar in Delhi, etc. Service industry also has enough examples in NER's success, especially in travel, restaurants and hotel ventures like Paradise, Delicacy, Nagamese, O Maa Go, Jungle Travels, Bramhaputra Ashok, Pragati Manor, Prag Continental, Polo Towers, Center Point, etc.

Hence, we can say that there is no dearth of scope for self-employment in NE; all one needs is risk-taking ability and planned process to establish themselves as entrepreneurs. To further understand the opportunities, let us look at the incentives provided by the Government of India.

Incentives Available for Encouraging Entrepreneurship Under Different Schemes of Government of India (Section from NEDFi)

  • Agricultural and Processed Food Products Export Development Authority (APEDA) mission is to develop agricultural commodities and processed food to promote exports. APEDA provides financial support for packaging development, export promotion and market development, etc.
  • Ministry of Food Processing Industries (MoFPI) covers setting up technology upgradation, modernization of food processing industries in fruits and vegetables, pulses, etc. The scheme provides 25% of the cost of plant and machinery and technical civil works subject to a maximum of 50 lakh in general areas and 33% up to 75 lakh in difficult areas like NER.
  • National Horticulture Board (NHB) provides financial support for land development, cultivation expenses, poly house or shade nets, farm tools, etc.
  • Ambedkar Hastshilp Vikas Yojana (AHVY) wherein the main thrust is on a projectized, need-based approach for integrated development of potential handicrafts clusters with participation of the craft persons at all stages for implementation of the scheme. AHVY extends financial support for development and supply of improved modern tools, design and technical development workshops, training, organizing seminar and exhibitions, etc.
  • Market Access Initiative (MAI) scheme is an Export Promotion Scheme formulated on focus product-focus country approach to evolve specific strategy for specific market and specific product through market studies/survey. MAI provides financial support for opening showrooms and warehouses, display in international departmental stores, publicity campaign and branch promotion, etc.
  • Tea Board extends support towards plantation, irrigation, transport vehicle, exhibitions, advertisement, etc. Coffee Board extends support towards replantation, water augmentation, quality upgradation, etc.
  • Coconut Development Board provides financial support for production and distribution of planting material, integrated farming for productivity improvement, market promotion, coconut palm insurance scheme, etc.
  • Coir Board provides financial support for skill upgradation, organizing workshop and seminars, exposure tour and quality improvement program. Mahila Coir Yojana (MCY) is the first woman-oriented self-employment scheme for giving subsidy of 75% of the cost of purchase of Ratt to trained women artisans.
  • Rubber Board provides financial support for production and distribution of planting material, integrated farming for productivity improvement, market promotion, etc.

Acknowledgment: This paper is made possible through the help and support of Assam Don Bosco University and Department of Commerce, Gawhati University and was also presented at the National Conference on Emerging Trends in Entrepreneurship Development in North East India (ETEDNEI) 2014 and to all the entrepreneurs who gave us insights of their industry.

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Reference # 26J-2020-09-02-01