Entrepreneurship Ecosystem Overview

Nagaland

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Levers of change – Entrepreneurship

Following are the key levers of change which determinewhether a state’s policy, education, legal framework, financialsystems, business markets, cultural and social ethos areaugmenting Entrepreneurship Growth:

1. The Entrepreneur

2. Govt. & Regulatory Support

3. Access to Finance

4. Educational & Cultural Preparedness

5. Mentoring & Networking

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The Entrepreneur

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Nagaland ranks #28 in India on ‘Ease of Doing Business’ index

2017-18 according to the Department of Industrial Policy and Promotion's(DIPP). It has improved from being on 31 in 2015.

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Govt. & Regulatory Support

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Govt. Regulatory Bodies:

• Nagaland Industrial Development Corporation• NEDFi

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Nagaland Industrial Development Corporation

• NIDC is responsible for the development of industrial infrastructure inthe state.

• Besides funding long-term needs of industrial ventures by way of loansand capital infusion, NIDC is instrumental in development ofinfrastructure, providing technical and commercial know-how toentrepreneurs.

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http://industry.nagaland.gov.in/nagaland-industrial-development-corporation-ltd-nidc-dimapur/

NEDFi

NEDFi has a special focus on development of entrepreneurs in the region.Entrepreneurship in the real sense is still at its nascent stage in the NE. NEDFihas started Business Facilitation Centre (BFC) for providing consultancy andsupports in setting up a business enterprise. BFC helps in preparing projectreport and provides information about various incentives available in theregion. http://www.nedfi.com/?q=industry-policies-of-north-eastern-states-archive

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Access to Finance

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Schemes:

• NEDFi Schemes• North-East Venture Fund (NEDFi-DONER)• Nagaland Industrial Policy 2004

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NEDFi Schemes• Rupee Term Loan (RTL) Scheme: To provide medium to longterm financial assistance for setting up of new, expansion,diversification or modernization projects in variousmanufacturing or services sector. The assistance shall be inthe form of Rupee Term Loan.

• Equipment Finance Scheme: For financially sound companies,loans are provided for the purchase of equipment.

• Corporate Finance Scheme: For providing finance such asnormal capital expenditure, working capital margin, shortfallin working capital, repayment of high cost debt and generalcorporate purpose like funding of business acquisition or forbrand building etc. where no tangible asset creation may beenvisaged.

• Working Capital Term Loan Scheme (WCTL): Upto aMaximum of 75% of the working capital requirement ofbusiness for one cycle of operation is provided to deservingunits in the form of working capital term loan.

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• NEDFI Equity Fund Scheme: To invest in projects promoted byentrepreneurs in North-Eastern Region having sound businessideas with potential for high growth and more than normalreturns on investment.

• NEDFi Opportunity Scheme For Small Enterprises : To providelong term financial assistance for setting up a new industrial andinfrastructure projects as well as for expansion, diversification ormodernization of existing industrial enterprises excludingCommercial Real Estates.

• North East Entrepreneur's Development Scheme [NEEDS]: Theobjective of the scheme is to help first generation entrepreneurswho are short of equity.Benefits can be extended toProprietorship & Partnership Concerns and Companies. Technicalqualification of the promoter in the relevant field is a pre-requisite.

• Women Enterprises Development Scheme: It aims to providefinancial assistance in the form of Term Loan to womenentrepreneurs for taking up business ventures

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North East Venture Fund

• North East Venture Fund is a dedicated venture capital fund for theNorth Eastern Region with a corpus of 100 Crores.

• The primary objective of North East Venture Fund (NEVF) would be toinvest in enterprises focused on and not limited to Food Processing,Healthcare, Tourism, Aggregation of Services and IT&ITES located inthe NER and to provide resources for entrepreneurs from the regionto expand throughout the country.

• Investments will typically be in startups, early stage and growth stagecompanies with new products and technologies or innovativebusiness models.

http://www.nedfi.com/node/120713

Nagaland Industrial Policy 2004The policy has provisions for developing small services and businesssectors by providing skills training and incentives to the localentrepreneurs. It also aims to reduce the procedural bottlenecks to start anew business in the state thus helping the gainful employment of localwork force. The incentives under the policy are:-

• Power subsidy: Subsidy on power tariff @ 30% & 25% given for connectedloads upto IMW & above 1MW respectively for a period of five years fromthe date of commercial production.

• Drawal of power line: Cost of drawal of 33/11 KV line to eligible unitsloaded outside the notified areas shall be reimbursed for one time onlysubject to ceiling of Rs. 2 lakh.

• Subsidy for feasibility study cost: Subsidy @ 50% of the cost of DPRsubject to a ceiling of Rs. 1 lakh is eligible for new units with investment inplant & machinery above Rs. 25 lakh.

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• Subsidy for quality control measures: Cost of laboratory equipment forthe purpose of quality control and ISI/BIS/ISO 9000 certification isreimbursed subject to a maximum ceiling of Rs. 50,000 in case of smallscale and Rs. 1 lakh in case of medium and large units.

• Stamp duty exemption: 50% stamp duty and registration fee for securingloans from financial institutions including mortgage of fixed assets areexempted from the Stamp Duly Act for a period of five years.

• Stipendiary Support for EDP: Rs.500 p.m. per trainee is provided from 100youths annually for training period not less than 3 months duration.

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http://industry.nagaland.gov.in/state-industrial-policy-2000-revised-2004/

Education & Cultural Preparedness

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Educational Institutions Promoting Entrepreneurship

• Global Open University Nagaland: The institute offers 2 years DistanceLearning Master of Science (M.Sc.) in Entrepreneurship.https://nagaland.net.in/maentrepreneurship.htm

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Mentoring & Networking

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Startup Incubators, Co-Working Spaces

• Youth-Net: YouthNet in partnership with Dept. of Youth Resourcesand Sports, Government of Nagaland has initiated a 5-yearcampaign called Impact 5000 by 18 which aims to positively impact5000 young people involved in the private sector by the year 2018.

• YouthNet launched Centre of Excellence for entrepreneurship -a one stop centre for entrepreneurs is first of its kind in the state.http://www.youthnet.org.in/category/who-we-are/

• Nagaland tool room and training center is a common facility centre)where the specialized Tools, Dies, Moulds, Jigs, Fixture are designedand manufactured. These tools are used for mass production for allPlastic components, Aluminium or any casting parts from kitchenutensils to space components, automotive, agriculture & industrialcomponents, etc. http://nttcdimapur.org.in/training/

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• NE8x- The objective behind starting the platform lies in addressing start-ups and entrepreneurship at the grassroots level in Northeast India acrossthe eight states. StartupNE is Northeast India's first exclusive initiativeundertaken by NE8x to promote entrepreneurship at grassroots level withpublic-private partnership campaigns that aims to reach the eightNortheastern states of India. http://ne8x.in/

• Nagaland Startups: It’s an online community of local entrepreneurs whichhelps existing and aspiring entrepreneurs.https://nagalandstartups.wordpress.com/

• Entrepreneurs Associates: is an organization of First GenerationEntrepreneurs (FGEs), passionately committed to developingentrepreneurship, sustainable livelihoods, economic development,creation of jobs, social justice. http://www.eanagaland.com/

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