Good Business Sense

A Mercy Corps report explores what shackles Kashmiri youth's entrepreneurial spirit, and how to set it free

BILAL HUSSAIN

By coming out with a report, Youth Entrepreneurship in Kashmir - Challenges and Opportunities, international developmental organisation Mercy Corps has made a laudable attempt to explore entrepreneurship in conflict-ridden Kashmir.

The report – a politically correct document which takes care not to ruffle any feathers on any side of the political divide by being critical, as well soft, at times -- not only identifies the problems faced by Kashmir’s young entrepreneurs, but also suggests some concrete measures to redress those.

The report mentions that of the total number of job seekers in the valley, only a minuscule 2,281 have enrolled for JKEDI's entrepreneurship training programme as of June 2011. This, the report suggests, speaks volumes about the quality of the programme. “While these figures are by no means a measure of youth entrepreneurial activity in Kashmir, it is suggestive of a trend.”

TRANSITION FROM EDUCATION TO WORK
“It is important to recognise that for most young people in Kashmir, the transition from education to work is not a single step of leaving the educational system and entering the world of work,” the report says. “It is also useful to recognise that for youth in Kashmir, this transition occurs over a slightly longer period of time than it does in other societies. Reasons include the small size of the private sector in Kashmir, difficulties associated with getting a job given the scarcity of employment opportunities, and a lack of enterprise education opportunities.”

“The disruptions caused by the conflict and instability have also been a contributing factor. These factors all affect the process of youth gaining business skills, exposure and experience and delay the overall development of youth entrepreneurs in Kashmir,” the report adds.

This problem needs collective action to remedy: by helping reorient the mindset of the youth and make them realise that no job is menial and that one needs to immediately take up some work after completion of their education, irrespective of the nature of assignment, except, of course, the illegal and immoral activities.

BARRIERS AND DE-MOTIVATORS
The report provides an insight into how Kashmiri youth perceive the overall process of becoming an entrepreneur and what perceived barriers and de-motivators affect youth entrepreneurship in Kashmir. The report notes that 90% of all youth surveyed for the study think that becoming an entrepreneur is either challenging (58%) or very challenging (32%); 10% of all youth surveyed think becoming an entrepreneur is easy (9%) or very easy (1%).

The challenge for the elected officials, government machinery and non-governmental organizations, including Mercy Corps, therefore is to make entrepreneurship easier for youth so that they come forward enthusiastically.

RESOLUTION OF CONFLICT
During its interactions with the youth, Mercy Corp found out that a majority of them believe resolving the conflict was the only way to lasting economic progress in Kashmir. “Conflict has ruined our economy and destroyed our lives. We are totally fed up and want a lasting solution,” the report quotes a youth as saying.

Another adds, “The Kashmir conflict is a major hindrance to the development of Kashmir and to the introduction of entrepreneurship. There is fear and uncertainty among businessmen and they hesitate to invest here.”
However, the resolution of the Kashmir dispute should not act as a barrier to prospective entrepreneurs. This in no way means that a political solution is not needed, but that while that solution is found, entrepreneurs should not sit home, nor should enterprises be locked.

OUTDATED UNIVERSITY CURRICULUM
According to the report, the current information on the local business environment is absent in most degree programmes, including MBA courses. Many Kashmiri youth feel defeated by the current educational system and acknowledge a gross mismatch between outdated university curriculum and the demands of local employers. They are frustrated by the lack of job opportunities or even opportunities like internships and apprenticeships to gain business experience and build skills needed in the market.

Unfortunately, young people in Kashmir lack business-mentoring networks and professors are often unable to fill this mentoring role, the report mentions.

So, what is needed is industry exposure at all levels of an educational programme and accordingly devising the curriculum so as to bridge the gap between industry demand and supply from the educational institutions.

ACCESS TO FINANCE
Most of the youth surveyed for the report perceived access to finance as the second most significant barrier to entrepreneurship. While the government never tires of talking about single-window clearance systems, it is never put to practice, the report notes.
The report also notes that lack of awareness on behalf of the officers and officials who are supposed to implement the schemes and provide the financial services at the grassroots equally appears to be a major constraint in Kashmir.

While researching the potential financial services available to start-ups in Kashmir, the report says, “We spoke to many government officers at the grassroots to enquire and learn more details about various public sector funding schemes. Across departments and institutions in Kashmir, we found an acute lack of detailed awareness about the schemes. In some cases, we found that officers were not even aware of the existence of the schemes and programs they are responsible for implementing.”

To a large extent, financial institution in the state are to be held responsible for making it difficult for youth to avail finances for their ventures. Yes, there is a risk involved in new initiatives but historical data also suggests that even established business can be risky to be funded. Here the role of the state’s finance ministry becomes significant: it should intervene and come down heavily on such institutions so that they fall in line and provide easier finances to the youth.

CONFRONTATION WITH CORRUPTION
“You are confronted with corruption each time you enter a government office. Whether you want a license or an electricity connection or you are competing for a major tender, you are either directly asked or indirectly expected to offer a bribe,” the report quotes a young entrepreneur as saying.

Every youth we spoke to expressed anger and frustration on the issue of corruption, the report says, adding “as one youth put it, ‘The economy of Kashmir has been totally crippled by dishonesty and corruption. Corruption has been institutionalized in Kashmir’.”

In a nutshell, the report is a decent attempt as far as research on entrepreneurship in Kashmir is concerned. It is high time for the policy makers to look into, and for once incorporate some doable valid measures from the report in their polices to help our young entrepreneurs.