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Indian economy is characterized by low rates of growth, predominance of rural population, adverse land mass ratio, heavy dependence of rural population, adverse land-mass ratio, heavy dependence on agriculture, concentration of Industries in urban areas, highly skewed distribution of income and wealth, besides high incidence of poverty and employment. The last two viz; unemployment and poverty pose major challenges to the growth and prosperity of the country. Various attempts by government in the past have yielded only marginal success. In order to mitigate the problem of rural unemployment, some new avenues for employment generation will have to found with in the rural areas. It is also felt that generation of additional and adequate employment in rural areas will reduce poverty.
Components of Micro-enterprise developmentAmong micro-financial services, micro-credit has predominated, on the assumption that it will deliver higher incomes and increased assets to the poor through micro-enterprises. Injecting capital to the existing micro-enterprises or creating new ones, many enhance the risk that their poor owner’s face. Along with credit poor people need various other services/input viz. skill development training, information, insurance and market linkages which would minimize risk and enable them to generate income for their survival. By delivering micro-financial services at a scale and by mechanisms appropriate to them, micro-credit can reach poor people. By providing poor people with credit for micro-enterprise it can help them work their own way out of poverty. Poor people need access to so many financial services than just micro-credit, including a range of micro- savings and insurance products. Indeed, the first step for poor people on the path out of poverty cycle is social and economic security. Appropriate savings and insurance, as well as loans for emergency expenditures or basic assets such as housing and education can contribute significantly to such security, not least among poorer and more vulnerable households.These services can protect poor people from the impact of unforeseen crises and emergencies in their households or micro-businesses, from falling yet further into debt, and enable poor households to plan and manage their limited resource more effectively to meet their basic needs. Once poor household enjoying greater security, they may be able to access promotional micro-finance products that help them develop their livelihood. Micro- Enterprise Mission
FeaturesBISWA has promoted micro-enterprise among the target groups in its operational area irrespective of them being members in SHGs promoted by it or not. The salient features of the Rural/ Micro-Entrepreneurship development programmes of BISWA are:
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The economic condition of the state of Orissa is very poor, in fact, the poorest state in the country. 48 percent of the population resides below poverty line. Despite, being the state is endowed with various natural resources, the people of the state are reeling under object poverty. The reasons for the under-development and poverty are so many. More than 1o percent of the working population depends on agriculture and related activities. In rural areas, disguised unemployment prevails in agriculture sector,the practices are being traditional nature. Rural people have poor resource base, low level of capacity, limited access to financial and other support services. They do not have enough opportunities around them to utilize their limited skill and resources. BISWA envisaged providing them ample opportunities for creating income through income generating activities by linking them to micro-finance services and activities.