Majid Ahmad after completing his post-graduation in management studies in 2018 raised a loan of Rs 20 lakh from a bank for starting a small manufacturing unit. Two years down the line he is now looking for a job in New Delhi.
“Running a startup in Kashmir is risky, but somehow I was managing things till August 2019. Then all of a sudden my unit remained closed for four months in the wake of abrogation of Article 370; my non-local skilled labourers fled leaving me in lurch,”
“The problem was further compounded by the accumulation of interest on the bank loan; I had no option than to wind up my business, and leave for New Delhi to find a job for myself to repay the loan,” he said.
Like Ahmad, there are hundreds of young and first generation entrepreneurs who had invested in private sector. But with situation taking an ugly turn, they could not bear the brunt of mounting losses.
Chairman, Kashmir Young Entrepreneurs Forum, Babar Chowdhary says the situation went from “bad to worse” for young entrepreneurs.
He says that KYEF used to organize brainstorming sessions for prospective
entrepreneurs and do little handholding to them till they started their units. However this exercise has been stopped post-August 5, last year, when the Central Government abrogated J&K’s special status and bifurcated it into two Union Territories.
“We used to motivate youngsters to start their own units, to be job-givers not seekers. But the situation post-August took an ugly turn. There are hundreds of young entrepreneurs who have closed their units and are seeking jobs, some in Kashmir, others have left for other parts of the country or abroad.”
“The Government should come up with a policy to rehabilitate the entrepreneurs and businessmen who have suffered due to none of their faults,” he said.
He said, “The situation is such that businessmen are being forced to sell their assets to repay bank loans. At the same time, hardly anybody from Kashmir is ready to make fresh investment.”
Mir Muneeb, owner of Other Side Café, which runs a chain of outlets, says the business is in distress. “We are not able to meet our maintenance and recurring expenses leave aside earning any profit. I know personally many young entrepreneurs who closed their units and are in New Delhi working as employees. It is painful thing to happen to any society,” he added.
“Earlier I used to advice youngsters to invest in Kashmir, but now I would think twice before recommending anybody to do so,” he said.
Pertinently, the business community here issued full-page advertisements in local newspapers several times seeking government’s attention to their plight. They have alleged that banks are harassing them for involuntarily defaulting repayment of loans.
