Rural Non-Farming Entrepreneurship Development Program in Cachar District, Assam

By Biswajit Choudhury

As rural economies in Assam continue to diversify, the focus has shifted from traditional agriculture to non-farming entrepreneurship as a sustainable solution to job creation and livelihood generation. In the Cachar District, innovative Rural Non-Farming Entrepreneurship Development Programs aim to build capacity, provide financial assistance, and create a thriving ecosystem for rural entrepreneurs. This blog delves into the model and its impact, backed by statistics, real-time data, and government initiatives.

The Rural Non-Farming Opportunity in Cachar District

The Cachar District, located in southern Assam, has a population primarily engaged in agricultural activities. However, with growing interest in non-farming sectors like local craftsmanship, small-scale industries, and service-based businesses, the district offers tremendous potential for rural entrepreneurship. According to recent government reports, over 25% of the district's working population is now engaged in non-agricultural sectors, creating a new avenue for employment.

Key Challenges for Rural Entrepreneurs

• Lack of access to formal credit and financial institutions.
• Inadequate infrastructure, such as electricity, roads, and digital connectivity.
• Limited market access for locally produced goods and services.
• Low levels of entrepreneurial skills and business acumen.

To address these challenges, the Government of Assam has introduced several Development Programs to promote non-farming enterprises.

Government Initiatives Driving Rural Non-Farming Entrepreneurship

The Government of Assam, in collaboration with the National Rural Livelihood Mission (NRLM) and other state programs, has launched a series of initiatives to support rural non-farming entrepreneurship:

• Swabalamban Scheme: This initiative provides financial assistance to small businesses and self-help groups (SHGs) in the district, offering up to INR 1 lakh in interest-free loans.
• PMEGP (Prime Minister’s Employment Generation Program): This central government scheme provides subsidies up to 35% for rural enterprises, focusing on cottage industries, food processing units, and handicrafts.
• Skill Development Programs: Vocational training programs under Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) offer entrepreneurship development training and mentorship to youth and women in rural Cachar.

Real-Time Data: Growth in Non-Farming Sectors

According to the 2023 Rural Employment Survey, the non-farming sector in Cachar District has grown by 18% over the last five years, employing more than 12,000 people in small businesses, including tailoring, handicrafts, and micro-enterprises. The introduction of government schemes has seen a 30% increase in the number of rural entrepreneurs receiving financial assistance through loans and subsidies.

Innovative Model for Rural Non-Farming Entrepreneurship

To boost sustainable entrepreneurship in Cachar, we propose an innovative, community-based business model that can be scaled across other districts:

The Cluster-based Entrepreneurship Development Model

This model is designed to leverage local resources, talent, and government support while fostering cooperation among rural entrepreneurs. Here's how it works:

• Formation of Entrepreneurial Clusters: Group local entrepreneurs in common industries (e.g., handicrafts, small-scale manufacturing, service businesses) to share resources, reduce costs, and benefit from collective bargaining power.
• Access to Shared Infrastructure: Establish shared production and distribution centers that provide electricity, equipment, and logistical support. These centers can be built with the help of government subsidies and partnerships with NGOs.
• Skill Development Hubs: Create community-based training hubs where entrepreneurs can receive vocational training, digital literacy workshops, and business management mentorship, ensuring a skilled workforce.
• Financial Co-operatives: Form self-help groups (SHGs) that can pool resources and negotiate better terms for loans, insurance, and credit facilities. Government-backed microfinance options can be provided to these SHGs.
• Market Linkages: Develop digital platforms that connect rural entrepreneurs with buyers from larger markets, ensuring direct market access and reducing dependence on intermediaries.

Sustainability and Long-Term Impact

This cluster-based model not only promotes entrepreneurship but also ensures sustainability by fostering collaboration, reducing costs, and creating a network of support. By scaling this model, Cachar District could see a significant reduction in rural unemployment, with a projected growth of 22% in non-farming job creation over the next five years.

Conclusion

The future of rural non-farming entrepreneurship in Cachar District lies in innovative models and robust government support. With the right blend of training, financial assistance, and infrastructure, rural entrepreneurs can lead the way in transforming the economy of the region. As this sector grows, it will not only provide jobs but also empower local communities, making Cachar a model district for sustainable rural development.

For more insights on rural entrepreneurship in Assam, visit my blog: Rural Assam - Promoting Sustainable Rural Non-Farm Employment Opportunities.