The Role of Microenterprises in the Promotion of Rural Entrepreneurship in Assam

Dipanjan Chakraborty* and Ratan Borman**

Rural microenterprises ensure value addition to rural resources in rural areas engaging largely rural human resources. The basic rationale of developing microenterprises is that they provide additional employment opportunities and ensure more equitable distribution of income and better standard of living to the rural inhabitants. Global experience shows that the development of rural microenterprises is one of the most cost-effective ways of creating employment, scattering the industry, catalyzing research and development and allowing entrepreneurial talent to prosper. The present study is an attempt to analyze the socioeconomic characteristics of rural microentrepreneurs in the Sonitpur district of Assam. The study also highlights the problems encountered by these enterprises and suggests suitable measures to eradicate them. The findings of the study suggest that there is a need for concerted efforts by the government and rural masses to enhance the growth and prosperity of rural microenterprises.

Introduction
India is the fastest growing economy of the world, but still more than 70% of its population resides in villages. There exists a considerable discrepancy in the pace of development between rural and urban areas. Villages in India need to be empowered by enhancing the welfare of the rural people and unleashing the innovations of entrepreneurs, which in turn will make the huge leap forward possible. The northeastern region is characterized by violent conflicts, insurgency and an extra economic burden that the rest of the country has to bear. Assam, a part of north-east India, is one of the most culturally and geographically distinct parts of the country. 86% of Assams population lives in villages. Agriculture accounts for more than one-third of Assams income and employs 69% of the workforce. Average literacy rate in rural areas is 70.44%. The unemployment problem is more pronounced in the rural areas of Assam as there is a gradual increase in educated unemployed. Rural microenterprises ensure value addition to rural resources in rural areas engaging largely rural human resources. Since the word micro represents small, the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006 defines it as the enterprise engaged in the manufacturing
* Research Scholar, Department of Commerce, Assam University, Diphu Campus, Karbi Anlong, Assam, India. E-mail: dipjan_2005@rediffmail.com * * Associate Professor, Head, Department of Commerce, Assam University, Diphu Campus, Karbi Anlong, Assam, India. E-mail: rborman62@gmail.com 2012 IUP. All Rights Reserved. The Role of Microenterprises in the Promotion of Rural Entrepreneurship in Assam 7

or production of goods, whose investment in plant and machinery does not exceed 25 lakh, and enterprise engaged in providing or rendering of services, whose investment in equipment does not exceed 10 lakh. Rural small-scale enterprises are those industrial and business undertakings where owners, individuals, friends or relatives supply capital; they operate locally, and the size of business as well as management is small. Small manufacturing and service enterprises such as brick kiln industry, stone crushing industry, bakery, steel fabrication, cane and bamboo, washing soaps, food products, beauty parlors, tailoring and embroidery, jewelry designing, supari processing are some of the examples of rural microenterprises. In India, where about 72% of the population lives in rural areas, the development and progress of the country lies in the development of its villages. Any progress in growth and development that does not fulfill the needs of rural area and its people, especially the poor, cannot be claimed as development in India (Sinha, 2010). Development of a country is a choice loaded on its people, whether urban or rural. It is the individuals who shape a society and decide its progress and performance. Urban and rural are the two sides of the same coin of economic development. While the urban sector has witnessed phenomenal growth and development, fueled by the post-independence era of industrialization, the rural sector saw little corporate growth (Srivastava, 2006). It is now recognized that development planning in India has to concentrate on generation of more employment, as it is the only effective way of poverty alleviation, reduction of inequity and meaningful growth (Kamalakannan, 2006). The unemployment problem in rural India, involving 70% of the Indian labor force, can never be solved by industrialization and globalization. The answer to this problem lies only in the creation of massive number of jobs where rural Indians can be gainfully employed. Such jobs can become a reality only if small business and microenterprises emerge intensively all over rural India (Santana and Jegadeesan, 2008). The existing industrial profile of Assam presents a very gloomy picture. Assam has about 1,911,431 unemployed persons as per the live register of employment exchanges in 2010. Acute unemployment, especially educated unemployment, continues to be a serious problem in the state. As per the data available from the employment exchanges of the state, it is revealed that the number of educated job-seekers on the live register of employment exchanges stood at 14 lakh in 2010 (Economic Survey, Assam, 2011-12). Development of rural microenterprises in Assam plays a vital role in accelerating the balanced regional development of this backward state. The agriculture sector is not sufficient to remove rural unemployment. Even in agricultural enterprises, total employment in Assam accounts for only 2.3%. Another aspect is also observed that the state is characterized by subsistence occupational pattern and restricted consumption norms. Hence, neither the local supply of resources nor any demand force operates effectively to take the risk to promote industrialization. Hence, entrepreneurial activities are very less in the region (Hazarika and Singaiah, 2007). Deolankar (1984) conducted a study on 264 small-scale units to understand entrepreneurship development in the developed, developing and backward states of India. In spite of the
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abundant natural resources, industrial development was slow mainly due to the untapped entrepreneurial talent rather than due to lack of basic facilities and financial support. The study suggested timely action of the government to accelerate the process of entrepreneurship development in India. Giriappa (1996) analyzed the employment as well as income potential from fish as well as cashew and apple processing. He also mentioned that India is among the five major producers of at least a dozen agricultural commodities in the world. These include sugar, tea, tobacco, spices, fruits and vegetables, cotton, jute, milk and milk products, rice and wheat. Yet its contribution to the international trade in farm products is less than 0.5%. Even in domestic market, agro-processing is not a strong economic activity. It is estimated that 5% increase in the processing of agricultural commodities can help to generate 65 million jobs for the rural people. Apart from this, branded products can bring more value to the economy. The study by Kanitkar (1994) was aimed at understanding the emergence of successful entrepreneurs and owners of microenterprises in rural India. Based on the case studies of 86 village-based entrepreneurs drawn from different regions of India, the study examined the socioeconomic profile of the entrepreneurs, their motivation for shifting from an agriculturebased occupation to a non-farm activity, their approach in raising resources for their enterprises, and the factors that facilitated entry of the village-based entrepreneurs into a business activity. Ramalingam and Gayatri (2006), in their paper, suggested the use of innovation as a strategic tool for development of rural entrepreneurship. Since most of the Indian population reside in rural areas, entrepreneurship awareness has to be created among them. The multidimensional aspects of rural entrepreneurship were studied with the help of a small sample size. The findings suggest that a small innovation in the rural area would definitely help most of the population to catch up, which would lead to improvement in the quality of life of many people in the country. Andersan (1995), in his thesis, attempted to understand what it is that rural entrepreneurs do within the rural context. The central argument of the thesis was that in order to understand the entrepreneur, we must place his entrepreneurial action in its social context, i.e., we must study the process of entrepreneurship. This study therefore endeavored to investigate the actions of the entrepreneur in one context, rurality. Consequently, this study was a detailed examination of the rural environment and the interrelationships of this environment and entrepreneurs. Its purpose was to try and establish the nature of the relationships between rurality and to specify the conditions of the entrepreneurial process. Ramakrishna (2008), in his paper, encompassed the present scenario of khadi and village industries in the northeastern states, particularly Arunachal Pradesh, in relation to growth, development, problems and solutions. The author opined that top priority should be given to small-scale industries like khadi and village industries which need light machine tools and other equipments in order to produce qualitative products because today, a states progress is measured by the quality of goods it produces.
The Role of Microenterprises in the Promotion of Rural Entrepreneurship in Assam 9

Srivastava and Syngkon (2008) conducted an in-depth analysis of the development of Small-Scale Industrial (SSI) sector in the rural areas of the states of northeastern region of India. The study also focused specifically on the role and profile of entrepreneurs. The findings reveal that the manufacturing, assembling and processing activity is the dominant group among the various SSI activities in the northeastern states in both rural and urban areas. It is observed that in most of the northeastern states, concentration and growth of SSI activities is higher in rural areas than in urban areas. The study also brings to light the rising number of women and tribal entrepreneurs in the region. Khanka (2009) conducted a survey of 248 first-generation entrepreneurs in Assam to understand their entrepreneurial motivation. The study clearly showed that the entrepreneurs were primarily motivated by the need for economic achievement, personal growth, autonomy and recognition. The desire to contribute to the community was not found to be an important reason to become an entrepreneur. The study did not reveal any significant difference in the motivations of men and women entrepreneurs. Barua and Mali (2011), in their study, found that the micro, small and medium enterprises in Assam had registered an average growth of 20.63% per annum from 1987-88 to 2006-07. This was accompanied by an average annual growth of 45.3% in investment and 89.5% in output. However, there was an element of upward bias in estimates of growth in investment and output as price rise over the years had significantly inflated their values. The whole study was based on secondary data. It can be concluded from the study that entrepreneurial performance indicated by the output is largely affected by the quantum of investment rather than the level of employment. The review of literature showed that many studies were conducted on rural entrepreneurship, but no study on rural microentrepreneurship has been conducted till now on Assam in general and Sonitpur district in particular. There is a need for many more micro studies because of variations in geographic, social, cultural, political and economic conditions from state to state and from region to region within a state. Further, there is a need to throw light on the factors that motivate the rural microentrepreneurs to establish their units, socioeconomic profile of such microentrepreneurs and the problems faced by the microentrepreneurs in operating their units. This study attempts to sketch the role of microenterprises in transforming the lives of the rural folks in the Sonitpur district of Assam. The study was restricted to Sonitpur district and 60 microentrepreneurs from two blocks of the district. The focus was on the role played by microenterprises in promoting rural entrepreneurship, the socioeconomic background and the problems faced by the microentrepreneurs. The study covers a period of two years, 2009-10 and 2010-11.

Objectives of the Study

The specific objectives of the study are: 1. To study the socioeconomic background of the rural microentrepreneurs. 2. To identify the operational problems encountered by the rural microentrepreneurs. 3. To offer suggestions for fostering rural entrepreneurship.
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Methodology
Keeping the above objectives in mind, a sample of 60 rural microenterprises of the district was selected for the study. The design of the study was exploratory and the data were collected from primary and secondary sources. Primary data were collected through personal interview schedules, while secondary data were collected from DICC Assam, KVIB, banks, research papers, government bulletins, Internet, etc. To find out the problems faced by rural entrepreneurs simple percentage analysis was administered. Percentage and rank analysis was also used to find out the demographic profile of rural entrepreneurs and to draw inferences.

Brief Profile of the Study Area

The Sonitpur district is an administrative district of Assam. The district headquarter is located at Tezpur. As of 2011, it is the third most populous district (out of 27) of Assam. According to the 2011 census, Sonitpur district has a population of 1,925,975. The district has a population density of 365 inhabitants per square kilometer. Its population growth rate over the decade 2001-2011 was 15.67%. There are 1,876 villages in the district with a rural population of 1,754,835. Agriculture is the prime occupation of the people of the district; traditional dependence on agriculture is one of the reasons for lack of entrepreneurship among the educated youth. They are mostly concentrated in white-collared jobs. The absence of major industries in the district is also partly responsible for lack of entrepreneurial activities (www.sonitpur.nic.in).

Rural Entrepreneurship and Microenterprises in Assam

The microenterprise sector is one of the fastest growing industrial sectors all over the world. It has shown an outstanding performance over the past five decades as a highly vibrant and dynamic sector of the Indian economy. The microenterprises are important not only as a means of creating employment for the people and raising their income as well as the real income of the nation, but also because they contribute directly to the development of agriculture and indirectly to the development of the urban industries. Rural industries help in value addition to agricultural produce and enable farmers to augment their income. The State of Assam is endowed with a vast deposit of mineral resources like petroleum, natural gases, coal, limestone, forest and water resources, but it has been considered as an A category industrially backward state of India. The existing industrial profile of Assam shows a lopsided picture (Neeitco Survey, 2001). Table 1 exhibits the number of registered Micro and Small Enterprises (MSEs) in the state. Besides, it also indicates the year-wise growth of the permanently registered MSEs in the state. It is clear from Table 1 that the number of MSEs registered every year keeps on fluctuating. However, with the announcement of the North-East Industrial Policy (NEIP) in 1997, the number of new units registered in the consecutive years stabilized due to the expansion of a number of schemes and concessions that benefited this sector.
The Role of Microenterprises in the Promotion of Rural Entrepreneurship in Assam 11

Table 1: Growth of Micro and Small Enterprises in Assam

Year 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Number of MSEs Registered 2,193 2,224 1,821 2,116 2,528 2,246 2,364 2,067 2,082 2,172 Annual Growth in Registration 9.79 1.41 18.12 16.12 19.47 11.16 5.3 12.6 0.73 4.32 Total Number of MSMEs as on March 31 34,258 36,482 38,303 40,419 42,947 45,193 47,558 49,625 51,707 53,879

Source: Directories of Industries & Commerce, Government of Assam

Major Findings
Socioeconomic Status of the Sample Entrepreneurs
Age of the Respondents
The respondents were classified on the basis of their age at the time of survey to know which age group participated more vigorously in entrepreneurial activities. The data collected in this regard is presented in Table 2. A majority (51.67%) of the total respondents were in the age group of 31-40 years, followed by 25% in the age group of 21-30 years and 16.66% in the age group of 41-50 years. Only 6.67% of respondents were above 50 years of age. It may be interpreted that microenterprise has facilitated rural entrepreneurs in different age groups. Table 2: Age-Wise Classification of the Entrepreneurs
Age (Years) 20-30 31-40 41-50 Above 50 Total Number 15 31 10 4 60 Percentage 25.00 51.67 16.66 6.67 100.00

Caste Origins of Respondents

Caste-wise classification of sample entrepreneurs is given in Table 3. The table reveals that 50% of entrepreneurs belonged to the general category, followed by 28.33% belonging to the other backward castes, 15% scheduled castes, 5% schedule tribes, and the remaining 1.67% belonged to other castes. Thus, it is observed that the weaker section and depressed class people are less involved in business.
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Table 3: Caste-Wise Classification of the Sample Entrepreneurs

Category General SC ST OBC Others Total Number 30 9 3 17 1 60 Percentage 50.00 15.00 5.00 28.33 1.67 100.00

Educational Qualification of the Respondents

Education and training are the important factors influencing the development of rural entrepreneurs. The education-wise classification of sample entrepreneurs is presented in Table 4. From the table, it is clear that 41.67% of the entrepreneurs have matric-level education, while 28.33% have below high school level education and 10% up to higher secondary level education. 10% are graduates and 3.33% are postgraduates, while 6.67% are illiterates. Thus, it can be interpreted that there are few entrepreneurs with postgraduate qualification. Table 4: Education Level of the Sample Entrepreneurs
Category Uneducated Below High School Matric Higher Secondary Graduate Postgraduate Total Number 4 17 25 6 6 2 60 Percentage 6.67 28.33 41.67 10.00 10.00 3.33 100.00

Gender of the Respondents

The gender of the respondents indicates the proportion of male and female entrepreneurs participating in entrepreneurial activities in the district. The data are shown in Table 5. 66.67% of the respondents were males, while 33.33% of the respondents were females. It should be added that more encouragement needs to be given to women to take up entrepreneurial ventures. Table 5: Gender of the Respondents
Gender Male Female Total Number 40 20 60 Percentage 66.67 33.33 100.00
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The Role of Microenterprises in the Promotion of Rural Entrepreneurship in Assam

Past Occupation of the Sample Entrepreneurs

Previous occupation in the related field was found to be one of the most important motivating factors for entrepreneurs. Hence, information about the occupation pursued by the respondents before entering into the industry was collected and is presented in Table 6. Out of the 60 respondents, 50% were engaged in business before becoming an entrepreneur, 8.33% were in service, while 41.67% had no occupation earlier. It may be inferred that previous occupation is not a significant factor among the present sample. Table 6: Past Occupation of the Sample Entrepreneurs
Category No Occupation Business Agriculture Service Total Number 25 30 Nil 5 60 Percentage 41.67 50.00 Nil 8.33 100.00

Marital Status of the Respondents

The marital status of the respondents was ascertained and is presented in Table 7. A large majority of the respondents (71.67%) were married, while the remaining 28.33% were unmarried. It is clear that a majority of the respondents were carrying out the entrepreneurial activity as a means of their livelihood. Table 7: Marital Status of the Respondents
Marital Status Married Unmarried Total Number 43 17 60 Percentage 71.67 28.33 100.00

Community of the Respondents

It has often been suggested that certain communities encourage the growth of entrepreneurial ability. The protestant ethic of the west was considered to have significantly contributed to the emergence of a new class of industrialists. In Japan, it was the samurai who turned to Table 8: Community of the Respondents
Community Assamese Bengali Marwari Bihari Others Total
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Number 22 19 6 8 5 60

Percentage 36.67 31.67 10.00 13.33 8.33 100.00

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industry and kept their social structure intact by adopting vigorous young businessmen or taking them into family through marriage. Hence, an attempt has been made in this study to ascertain the community background of the respondents. This data is presented in Table 8. It was found that 36.67% of the respondents were from Assamese background, 31.67% from Bengali community, 13.33% Biharis, 10% from Marwari community, and 8.33% represented other communities.

Occupation of the Respondents Fathers

Parental occupation is also one of the factors that have a bearing on the emergence of entrepreneurship. Table 9 shows the parental occupation of the respondents fathers. The fathers of a majority of respondents (66.67%) were businessmen. While the fathers of 18.33% of the respondents were agriculturists, 15% were government employees. It is clear that a majority of the present respondents come from business background. Table 9: Occupation of the Respondents Fathers
Category Agriculture Business Government Employee Total Number 11 40 9 60 Percentage 18.33 66.67 15.00 100.00

Type of the Family

One of the important factors influencing the success of an entrepreneur is the support that he gets from his family, which in turn depends upon the structure and economic status of the family. Membership of a resourceful family belonging to a resourceful community facilitates entrepreneurship. The data regarding the type of family is shown in Table 10. It was found that a majority of the respondents, i.e., 73.33%, belonged to joint families, while the remaining 26.67% belonged to nuclear families. It can thus be said that joint family system is still an important determinant of entrepreneurship. Table 10: Family Structure of the Respondents
Category Joint Nuclear Total Number 44 16 60 Percentage 73.33 26.67 100.00

Type of Activity of the Respondents

The MSMED Act, 2006 distinguishes the enterprise as manufacturing or services on the basis of its investment criteria The data collected from the respondents classifying their activities as manufacturing or servicing are shown in Table 11. A majority of the respondents (63.33%) are from service enterprise, while the remaining (36.67%) are from manufacturing enterprise. It may be interpreted that entrepreneurs like to invest more in service enterprises in comparison to manufacturing enterprises.
The Role of Microenterprises in the Promotion of Rural Entrepreneurship in Assam 15

Table 11: Type of Activity of the Respondents

Category Manufacturing Servicing Total Number 22 38 60 Percentage 36.67 63.33 100.00

Nature of Business Organization

Table 12 shows the different forms of business organization chosen by the respondents. Sole proprietorship was the preferred form of business organization in the district under reference, 91.67% of the respondents opted for it, followed by partnership that constituted 8.33%. The microentrepreneurs preferred proprietorship form of business organization. Table 12: Nature of Business Organization
Gender Sole-Proprietorship Partnership Total Number 55 5 60 Percentage 91.67 8.33 100.00

Influencing Factors
Data have been collected regarding the people/institution that influenced the respondents in starting the enterprise and the results are presented in Table 13. A majority (36.67%) were influenced by parents, followed by 30% of respondents who were influenced by self; 13.33% were influenced by their life partners, 11.76% by financial institutions, 6.67% by friends, and 1.67% by others (uncle, brother, etc.). Table 13: Persons Influenced to Start Business
Category Parents Self Spouse Financial Institutions Friends Others Total Number 22 18 8 7 4 1 60 Percentage 36.67 30.00 13.33 11.76 6.67 1.67 100.00

Motivating Factors
The factors that motivated the respondents to take up entrepreneurship have been identified and presented in Table 14. A majority (38.33%) of the respondents took up entrepreneurship for earning and to lead an independent life. While 15% respondents pursued entrepreneurship to combat the problem of unemployment, another 13.33% stated that the training received in this regard was the motivating factor. While 8.33% respondents opted for entrepreneurship
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to utilize their technical knowledge, 6.67% did so to remain their own boss. 5% respondents each took up entrepreneurship for using their spare time, because of government incentives, and because they had no other alternative for employment. Finally, the family environment prompted 3.33% respondents to take up entrepreneurship. Table 14: Factors Prompted to Start Business
Category Use spare time Self-earning and independence Utilize technical know-how Government incentives Overcome unemployment Need to be ones own boss No other alternative for income Family environment Training Total Number 3 23 5 3 9 4 3 2 8 60 Percentage 5.00 38.33 8.33 5.00 15.00 6.67 5.00 3.33 13.33 100.00 Rank 6 1 4 6 2 5 6 7 3

Problems Faced by the Respondents in Operating Their Business

The different problems faced by the respondents are presented in Table 15. Ranking was done on the basis of intensity of the problems faced by the entrepreneurs in operating their business. A majority (66%) of the respondents faced the problem of paying high rent and rates on their property, electricity, etc. in running their units. 58% stated that high interest rate is a major problem. The bank demands high interest from small entrepreneurs for financing their business. 57% faced the problem of shortage of skilled labor, while 56% faced the problem of inadequate information on source of finance. Entrepreneurs in rural areas are not aware of the different types of finance offered by the banks and financial institutions due to lack of proper knowledge. 55% faced the problem of tough competition from the urban entrepreneurs as well as large-scale entrepreneurs. 54% of the respondents faced problem in procuring adequate amount of finance from different sources. Most of the time, the rural microentrepreneurs do not get the desired amount of loan from the bank to start their enterprises. Moreover, due to too many formalities of banks they are reluctant to take loan from banks. Marketing of products (48%) is another area where the rural microenterprises find themselves handicapped. As the units are resource-constrained, they do not have a separate marketing department. 46% of the respondents stated that they did not possess proper information on different markets for marketing of their products. While 40% of the respondents faced the problem of heavy taxation, 38% stated insufficiency of demand for their products. Lack of proper managerial talent was yet another problem faced by 28% of the respondents. Stringent government regulations posed a serious problem to 27% of the respondents. Another important problem faced by 20% respondents was delay in supply of raw materials to the enterprise. Apart from the problems mentioned above, there are numerous other problems that are faced by the rural microentrepreneurs in running and managing their units.
The Role of Microenterprises in the Promotion of Rural Entrepreneurship in Assam 17

Table 15: Problems Faced by the Respondents in Operating Their Business

Factors 1. 2. 3. 4. 5. 6. 7. 8. 9. High rent and rates High interest Lack of finance Inadequate information on source of finance Insufficient demand for products Inadequate information on markets Lack of marketing facilities Tough competition Shortage of skilled labor Percentage 66 58 54 56 38 46 48 55 57 28 27 20 40 Rank 1 2 5 4 10 8 7 6 3 11 12 13 9

10. Managerial difficulties 11. Strict government regulation 12. Delay in supply of raw materials 13. Heavy tax burden

Suggestions
On the basis of the above findings, we put forth some suggestions for the growth and development of rural microentrepreneurship in the backward region of the Sonitpur district of Assam. 1. The government needs to focus more on setting up of agro-based industries using the resources based on primary sector (agriculture) in the region and big industries to support ancillary small and micro units which will, in turn, boost micro units in this backward region under globalization. Industrial policy of the state should be strengthened to encourage the unemployed persons to seek entrepreneurial career by providing financial and non-financial assistance. Government agencies should ensure timely supply of raw material, steady flow of institutional finance at relatively lower cost and marketing facilities to the units. Reduction of interest rate and liberal payment policy are essential for encouraging entrepreneurship in rural areas, which in turn will usher in industrialization. One of the common problems faced by rural microenterprises is lack of marketing information and marketing of products. In this regard, the government and other agencies have to disseminate the information through database on the Internet. This can be undertaken by the market research firms and other established institutes. The social community dominant in the field of entrepreneurship in Sonitpur district was found to be general (forward caste) (50%), followed by other backward
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2.

3.

4.

5.

6.

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classes (28.33%). The government agencies at central and state level should encourage Scheduled Caste and Scheduled Tribe young graduates to take up rural entrepreneurship. Moreover, various incentives, schemes and subsidies available for them should be advertised. 7. The government should simplify the official formalities by organizing training programs, where the procedures of motivational training, selection and loan disbursement should be completed under a single roof. 8. The subsidy policy of the government needs to be rationalized on the basis of certain criteria like project viability, entrepreneurs experience and capacity, instead of getting subsidy on receiving credit. 9. Entrepreneurship development training program should be directed not only to motivate but also to instill confidence in the trainees. Entrepreneurship development program needs to be reoriented based on successful entrepreneurs from inside and outside the region for development of self-confidence. 10. Location of the industrial units should be so designed that they are closer to the sources of raw material, market place and other infrastructural facilities. 11. Introduction of entrepreneurship in school and college education can help foster entrepreneurial culture right from the beginning. Appropriate technological guidance will make the production process easier. 12. Entrepreneurship business development cell needs to be established at village level, and entrepreneurship guidance and counseling cell must function to motivate entrepreneurs in rural areas. 13. Appointment of SSI ombudsman and establishment of one-stop center for all needs of rural entrepreneurs are necessary. 14. Promotion of rural enterprises, both in farm and non-farm, needs the intervention of specialized support services. It could be provided by agencies like Small Business Development Centers (SBDC), designed and trained to work with rural people. 15. Rural saving potential has to be harnessed by using suitable strategies. Microfinance organizations, both governmental and cooperative ones, should be set up for providing concessional finance to rural entrepreneurs.

Conclusion
The development of rural microenterprises on a planned basis can play an effective role in increasing production, productivity and economic wealth, and can give a broader and stronger base to the rural economy in general. A policy for promoting indigenous entrepreneurship has to be implemented through evolution of newer organizational forms with simple, low capital
The Role of Microenterprises in the Promotion of Rural Entrepreneurship in Assam 19

using technologies to augment such needs. Also, combined efforts of the government, family members and total involvement of the people at the grassroots level will go a long way in bringing about planned development of rural microenterprises.

References
1. Andersan Alistair R (1995), The Arcadian Enterprise: An Enquiry into the Nature and Conditions of Rural Small Business, available at www.emeraldinsight.com/Insight/View Content Servlet?Filename..html. Accessed on April 2, 2010. 2. Barua A Nissar and Mali Archana (2011), Entrepreneurship and Its Role in the Growth of Micro and Small Enterprises: A Case Study of Assam, Small Enterprise Development, Management & Extension Journal, Vol. 38, No. 2, pp. 69-83. 3. Deolankar Vivek (1984), Role of Entrepreneurship in Industrialisation, Southern Economics, Vol. 22, February 19, p. 14. 4. Economic Survey, Assam, 2011-12 , available at http://ecocstatassam.nic.in/ ads_economic%20survey.pdf. Accessed on May 25, 2012. 5. Giriappa (1996), Prospects of Agro-Processing Industry, pp. 1-43, Daya Publishing House, Delhi. 6. Hazarika Balin and Singaiah G (2007), Developing Entrepreneurial Traits and Competencies in North East: A Cross Cultural Perspective, Small Enterprise Development, Management & Extension Journal, Vol. 34, No. 4, pp. 1-16. 7. Kamalakannan K (2006), Rural Industrialisation and Poverty Alleviation, Kurukshetra, Vol. 54, No. 7, pp. 3-8. 8. Kanitkar Ajit (1994), Entrepreneurs and Micro-Enterprises in Rural India, Economic and Political Weekly, Vol. 29, No. 9, pp. 25-30. 9. Khanka S S (2009), Motivational Orientation of Assamese Entrepreneurs in the SME Sector, Journal of Entrepreneurship, Vol. 18, No. 2, pp. 209-218. 10. MSMED Act 2006, Ministry of Small Scale Industries, Notification, July 18, 2006, Government of India. 11. Neeitco Survey (2001), Industrial Potential Survey of Sonitpur District. 12. Ramakrishna Mandal (2008), Khadi and Village Industries in North East India with Special Reference to Arunachal Pradesh: Retrospect and Prospect, IUP, Hyderabad. 13. Ramalingam C and Gayatri R (2006), A Framework for Development of Rural Entrepreneurship in Tamil Nadu Using Innovation as Strategic Tool, available at http:/ /www.indianmba.com/Faculty_Column/FC995/fc995.html. Accessed on March, 13, 2010. 14. Santana Krishnan R and Jegadeesan G (2008), Entrepreneurship and Rural Development in India, IUP, Hyderabad.
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15. Sinha Harendra (2010), Block Administration Without Panchayat Raj Institutions: An Assessment into the Lunglei District of Mizoram, Kurukshetra, Vol. 58, No. 12, pp. 44-47. 16. Socio-Economic Profile of Sonitpur District, available at www.sonitpur.nic.in (Official Website of Sonitpur District). 17. Srivastava Ritu (2006) Collaborating for Overall Economic Development, Kurukshetra, Vol. 54, No. 8, pp. 3-7. 18. Srivastava Nirankar and Syngkon Rickey A J (2008), Emergence of Small Scale Industries and Entrepreneurship in the Rural Areas of Northeastern States of India: An Analytical Approach, The IUP Journal of Entrepreneurship Development, Vol. V, No. 2, pp. 6-22.

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