Ways to encourage local entrepreneurship

If a country is to sustain the economic development, local entrepreneurship should be encouraged, as without entrepreneurs a country cannot maintain development. Some of the policies to be adopted are:

i. If a project is to benefit people of only one village or town, the contract for the project should be given to a contractor from this village/town only.

ii. If no person from the village/town has sufficient money to invest, loans should be extended to willing entrepreneur on liberal terms. If no person has required knowledge or experience, such experts can always be employed by the entrepreneur

iii. Local people should be encouraged to set up partnership/private limited companies to undertake projects.

iv.If large project is likely to benefit a larger area and it is to cost much more than any person/group of persons from this area could afford to invest, the project could be given to any outsider, but local people should be associated by allotting some percentage of shares of the company.

v. the persons whose lands are to be used for the project should be allotted shares, in the investing company, instead of payment in cash, or the land owners should be paid for their land, partly by cash and partly by allotment of shares. This is in addition to providing employment to one or two members of the family of owners of the land.

These policies may affect a few communities and entrepreneurs from traditional business centres( large towns and states like Rajasthan, Gujarat etc)  by depriving some opportunities, but these policies may prod them to go for bigger projects than they were engaged hither to, thus compensating their loss of opportunities for small projects

These policies could be done away with, once entrepreneurship is developed widely.

 

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