Jharkhand is a state known not only for its natural resources but also for its tribal heritage. This state has a lot of potential to develop micro, small, and medium enterprises (MSMEs) and sustain their business. More than 26% of the people in this state are from the Scheduled Tribes(STs), due to which the demography of Jharkhand becomes even more unique, and due to this, both challenges and opportunities have to be faced by tribal MSMEs to develop their business. If the people of Scheduled Tribes want to establish their business as an MSME and want to get the benefits given by the Government of India, then first of all, they have to register their business from the Udyam Registration Portal. Udyam Registration was launched by the Ministry of Micro, Small, and Medium Enterprises in July 2020. It is a simple, paperless, online portal in which, by registering, one can get a lot of financial assistance, loans at low interest rates, subsidies, and incentives.
Through this article, we will learn about the challenges faced by tribals of Jharkhand when they register their MSMEs in Udyam registration and opportunities of Udyam registration for their businesses.
What is the meaning of Udyam Registration?
Udyam Registration is an online process launched by the Ministry of Micro Small and Medium Enterprises with the sole purpose of simplifying the registration process of the entrepreneur's business. Apart from this, it provides official recognition to the business and some benefits such as:
- Availability of government schemes and subsidies
- Low interest rate on loans
- Priority sector lending
- Protection under the MSME Act
The tribals entrepreneurs in Jharkhand can take advantage of all the benefits of Udyam Registration, but often they have to face challenges, so first of all, these challenges have to be addressed.
Challenges faced by tribal MSMEs in Jharkhand
1. Lack of digital literacy and awareness
Many tribal entrepreneurs living in Jharkhand do not have information about the Udyam registration process and all the benefits they get through it. As the registration process is completely online, due to lack of digital literacy, they face difficulties in completing the registration process.
2. Limited access to internet and technology
There are many rural and tribal areas in the state of Jharkhand where internet connectivity is very poor and there is also a lack of digital infrastructure. Due to this, many entrepreneurs face difficulties in getting access to the Udyam registration portal and due to this their registration process also gets delayed.
3. Financial constraints
Many tribal MSMEs start their business with very little capital as they face difficulties in getting funds. If they do not get proper financial support, they hesitate to register formally as they fear that they will be charged additional cost or any financial scam will happen while registering the enterprise.
4. Documentation and bureaucratic hurdles
Tribal MSMEs often lack essential documents such as Aadhaar card linked to mobile number, PAN card or bank account details. And they have to face a lot of bureaucratic procedures to prepare all these documents because very little information is provided about the legal and regulatory framework in their area.
5. Language Barrier
As the Udyam Registration Portal can be operated only in English and Hindi language, which is not accessible to many tribal entrepreneurs, especially those who always know or speak regional languages like Santhali, Mundari etc.
Opportunities for Tribal MSMEs through Udyam Registration
Despite these challenges, Udyam Registration has opened many doors for tribal MSMEs located in Jharkhand. Here are some of the key opportunities:
1. Access to government schemes and financial support
Once tribal MSMEs register their business on the Udyam registration portal, they can avail of the benefits of several government schemes, such as
- Pradhan Mantri Employment Generation Programme
- Mudra Loan Scheme
- Stand Up India Scheme
- Subsidies under Jharkhand Industrial Policy
This initiative provides them with financial support in the form of loans and subsidies at low interest rates, which help them expand their businesses further.
2. Skill development and capacity building
The Government of Jharkhand and the MSME Ministry have implemented skill development programmes that help tribal entrepreneurs enhance their business knowledge, digital literacy, and marketing scale. Some programs, like Skill India and the MSME Training Program, empower business owners with essential skills.
3. Ease of doing business operations and tax benefits
After getting the MSMEs registered, many rules and norms get simplified even more. The registered MSMEs get exemption in many direct taxes and get concessions in GST filing; apart from this, they also get preference in government procurement. Due to this, the financial burden is reduced, and profitability increases even more.
4. Increase in market reach through e-commerce and digital platforms
The government has provided a lot of help to increase the market reach of registered MSMEs. Registered MSMEs get access to e-commerce platforms such as Government e Market Portal, Amazon Karigar, and Flipkart Samarth to sell their products nationwide. Apart from this, the government also gives more preference to the products made by MSMEs. This helps them to widen their customer base and increase their revenue.
5. Encouragement for Women and Self-Help Groups
Many tribal MSMEs are started by women entrepreneurs and self-help groups which bring people from all walks of life into formal employment. Udyam registration helps women-led businesses to get specialized funding and training programs.
Steps to register under Udyam Registration for tribal entrepreneurs
If you are a Tribal entrepreneurs and want to register your business in Udyam, just follow these simple steps and get registered quickly.
- First of all, search Udyam Registration Portal on your web browser.
- After the website opens, click on New Udyam Registration.
- The Udyam Registration form will be visible on the screen. Fill in all the information asked in it properly. In the form, you will be asked for some of your details, your business address, Aadhaar PAN number, bank account number, etc.
- After filling in all the information, a verification code will be visible on your screen. Fill that verification code correctly in the box given below and tick mark the terms and conditions and declaration box.
- Finally, click on Submit Application.
After paying some nominal charges, your registration process will be completed, and within 24 hours, you will receive the Udyam Registration Number on your registered email ID.
Government Initiatives to Support Tribal MSMEs in Jharkhand
The Government of Jharkhand and the MSME Ministry have launched several initiatives to promote tribal entrepreneurship, such as
- Jharkhand Industrial Policy 2021: This policy helps MSMEs by providing subsidies and incentives to their businesses
- Jharkhand State Livelihood Promotion Society: The scheme supports tribal businesses and self-help groups
- Tribal Cooperative Marketing Development Federation: This scheme promotes tribal products in the national and international markets
- Skill Development Programme: This programme conducts training and workshops for tribal entrepreneurs
Conclusion:
Udyam registration is the key to the lock that allows tribal MSMEs located in Jharkhand to get official recognition, financial assistance, and help in expanding their businesses. Although there are many challenges in this, such as digital literacy, documentation issues, etc., the government's constant effort is to remove all the problems and ensure that the benefits of all schemes reach tribal MSMEs. If tribal MSMEs get their business registered as Udyam, then they will be able to overcome all the barriers and will be able to expand their business even more in this competitive market.
