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 wasmanaging things till August 2019. Then all of a sudden my unit remained closedfor four months in the wake of abrogation of Article 370; my non-local skilledlabourers fled leaving me in lurch,” Ahmad told Greater Kashmir.
“The problem was further compounded by the accumulation ofinterest on the bank loan; I had no option than to wind up my business, andleave for New Delhi to find a job for myself to repay the loan,” he said.
Like Ahmad, there are hundreds of young and first generationentrepreneurs who had invested in private sector. But with situation taking anugly turn, they could not bear the brunt of mounting losses.
Chairman, Kashmir Young Entrepreneurs Forum, Babar Chowdharysays the situation went from “bad to worse” for young entrepreneurs.
He says that KYEF used to organize brainstorming sessionsfor prospective
entrepreneurs and do little handholding to them till theystarted their units. However this exercise has been stopped post-August 5, lastyear, when the Central Government abrogated J&K’s special status andbifurcated it into two Union Territories.
“We used to motivate youngsters to start their own units, tobe 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 areseeking jobs, some in Kashmir, others have left for other parts of the countryor abroad.”
“The Government should come up with a policy to rehabilitatethe entrepreneurs and businessmen who have suffered due to none of theirfaults,” he said.
He said, “The situation is such that businessmen are beingforced to sell their assets to repay bank loans. At the same time, hardlyanybody from Kashmir is ready to make fresh investment.”
Mir Muneeb, owner of Other Side Café, which runs a chain ofoutlets, says the business is in distress. “We are not able to meet ourmaintenance and recurring expenses leave aside earning any profit. I knowpersonally many young entrepreneurs who closed their units and are in New Delhiworking 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-pageadvertisements in local newspapers several times seeking government’s attentionto their plight. They have alleged that banks are harassing them forinvoluntarily defaulting repayment of loans.