Factors Inducing Entrepreneurship: A Study of MSMEs in Aizawl District, Mizoram

Abstract

Micro, small and medium enterprises (MSMEs) play a predominant role in the socio-economic development of the country. They are considered to be the growth engine that triggers developmental process. Besides solving the problems of unemployment and poverty, this help generates additional family income. Mizoram is one of the most industrially backward states in India. Though some progress in industrial development was experienced and the MSME sector gradually gained momentum especially service industries, the growth of industry and industrial development in the state is relatively slow owing to its topographical and geographical disadvantages. Mizoram is predominantly an agricultural economy and lags far behind than the rest of the country as far as industrial development is concerned. The entire state has been notified as backward and is categorised as ‘no industry state’ due to nonexistence of large and medium enterprises. Mostly MSMEs exist while big enterprises are almost absent. Development of industries in the state is an uphill task as the investors remain fearful to invest due to its topography, small size market, entry restrictions, low-end infrastructure and such other related factors. In this context, MSMEs play an important role in the industrial scenario of the state. This article, based on a study of 406 MSMEs in Aizawl district, Mizoram, attempts to trace out the factors which induced the entrepreneurs to start business activities.