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Bureaucratic bottlenecks choke entrepreneurs

Non availability of land, corruption killing enterprise

Ajit John / The Goan | FEBRUARY 16, 2013, 08:36 PM IST

Prospective investors are unable to set up medium scalebusinesses in the state due to their inability to get land.  Authorities at the Centre of Innovation andBusiness Acceleration (CIBA) claim the situation is quite depressing given thedifficulties involved in trying to convince people to start a business.

Since the centre commenced operations in 2000, the authoritiesmentored 3500 entrepreneurs in various sectors of the economy like small scalemanufacturing ventures, bakeries, catering house, units creating imitationjewelry and helping women set up small businesses. 

The state however has now tried to change its strategy bytrying to encourage would be entrepreneurs to start micro-enterprisedevelopment and innovation. The department focusing on innovation is looking atIT, Solid waste management and Food Processing. The centre has increased interactions with colleges, engineeringcolleges and even started visiting schools to talk to students in the 8th, 9thand 10th standard to give them an idea of the facilities available to set up abusiness. The centre plans to help set up 200 micro enterprises in the nextfour years.

As facilitators, CIBA has a panel of mentors and consultantswho assist the entrepreneurs admitted to the centre. To help with marketing thecentre has an MOU with the centre for Innovation, Incubation andEntrepreneurship (CIIE), IIM- Ahmedabad for providing support.     

JM Noronha, CEO at the centre said  “There are several schemes available to helpstart a business  and we are trying topublicise them so that people are encouraged to take up take upentrepreneurship”.

The state has disbursed Rs. 19.11 crores to 650beneficiaries under the CM Rojgar Yojana scheme and approximately Rs. 294.78lakhs to 133 beneficiaries under various schemes conducted by the DIC, KVIB andKVIC.

However, some officials from the centre, who did not want tobe named, claimed that problems like acquisition of land and corruption werecreating hurdles. This official claimed that if a Goan went there was thepossibility of the papers being signed for a minimum of Rs. 100 but if someonespoke English there was a good chance he or she would have to pay Rs. 500 andpossibly Rs 1000 or more if they spoke Hindi. 

Asked what his reaction was to these claims, the CEO said itwas up to the head of the concerned department to set an example and initiateaction if such information was brought to his notice. Entrepreneurs who spoketo this reporter said that they had taken a decision not to pay a bribe andwere willing to wait a little longer to start his or her business. They claimedthat the state did not have a single window system which further hampered theirdesire to start an enterprise.     

Responding to a question on the quality of graduatesentering the market, Noronha felt that it was important for increase the levelof competition in the academic system. Today, he felt that anyone aspiring toget into the science stream was being admitted even after scoring 60%.  The need, he said was to increase the numberof those aspiring to get into the science stream thus increasing standards.This would then have long term effects on the kind of people entering the jobstream and also get a certain kind of individual interested in being anentrepreneur. This will help when entrepreneurs look for trained staff in thestate which is lacking presently. 

As Rahul Vernekar who is keen on starting a pastry businessin Vasco, said “It’s not smooth but we have to hang on. There is money here andyes I want to make my mark”.   

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