Business becoming the buzzword for tribal youth in Gujarat

Dang, Gujarat

Though tribal youngsters are increasingly looking to start their own businesses, they face several challenges along the way. Providing the right support and guidance is helping them become successful entrepreneurs in Dang, Gujarat.

Arvindbhai of Dhangadi village in Dang district of Gujarat proudly displays the bamboo craft items that he has made in his business unit. But he wasn’t always a bamboo artisan. Arvindbhai used to work as an art teacher in a primary school. But he lost his job during the Covid-19 pandemic. He had no job for six months. 

Then he found work at a bamboo workshop. In two years he gained the necessary craft skills. He dreamed of starting his own bamboo enterprise. But his biggest challenge was that he didn’t have the necessary initial capital.

Then the Aga Khan Rural Support Programme India (AKRSPI) helped him establish the bamboo enterprise in January this year. Today he is providing employment to five people at his workshop and his monthly turnover has crossed Rs 70,000.

When it comes to enterprises such as Arvindbhai’s, the number of people from the Scheduled Castes and Scheduled Tribes who own them is very less. Their share in the workforce is also very low.

Do tribes own businesses?

The Scheduled Tribes constitute 7.7 percent of the nation’s population. But they own only 3.7 percent of non-farm enterprises, employing 3.4 percent of the non-farm workforce. Enterprises owned by tribal communities are mostly of micro level. 

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Arvindbhai, a former art teacher, has started a successful bamboo enterprise (Photo by Mihir Bhavsar)

Even today there is a need to focus on tribal entrepreneurship as they are way behind the other communities, with most of them struggling to make ends meet. Factors such as socioeconomic and geographical background, illiteracy, lack of awareness, inadequate marketing skills, distress migration and debt trap are some of the reasons for tribal people not becoming entrepreneurs. But there is a slow change happening in Dang district in southern Gujarat.

Underdeveloped Dang

Dang district, which has a predominant tribal population, is blessed with natural resources. This is the only hill district of Gujarat. The district shares its border with Maharashtra and major cities of Gujarat. 

The bamboo craft products that Arvindbhai makes in his workshop (Photo by Mihir Bhavsar)

Though it has enough resources and potential, Dang is one of the most backward districts of the country. There are historical and topographical reasons behind its sorry condition. 

The villages in Dang are scattered. The average population of each village is 394, and agriculture is their major livelihood. Though Dang receives more than 2,500 mm rainfall yearly, people hardly have water for irrigation after the monsoon subsides. Practising subsistence agriculture pushes people to migrate for survival. 

Challenges in launching businesses 

Though the tribes in Dang have been migrating for long, the situation is quite different now. The youth don’t want to move to other places. Their aspirations are also changing. They look for dignified work. So, with this aspirational change, the youngsters in Dang are trying to establish their own businesses.  

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The youngsters in Dang are trying to establish their own businesses (Photo by Mihir Bhavsar)

They largely face four challenges in this – coming up with an idea, getting proper guidance in assessing potential, initial investment to set up the business and market linkage. And the added challenge is poor entrepreneurial attitude. 

Since they have been working as labourers or farmers, they are yet to develop an entrepreneurial way of thinking. Many who started a business could not continue for this reason. 

People from tribal belts cannot afford financial losses in their business. But with the right support they can become successful entrepreneurs.

Achieving success in businesses 

Bhartiben of Galkund village used to be a daily wage labourer. Since she knew how to stitch, she wanted to start her tailoring enterprise. But she lacked the money to start a business. AKRSPI helped her set up her enterprise and today she earns more than Rs 25,000 per month.

Nareshbhai of Chichpada runs an eco-tourism enterprise (Photo by Mihir Bhavsar)

Nareshbhai of Chichpada runs an eco-tourism enterprise. More than 2,000 tourists visit Dang during monsoon. To get the maximum number of tourists, hotels use middlemen to bring tourists and pay them commission on every room booked. Nareshbhai used to assist hotels in getting tourists and used to get commission. 

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He wanted to start his own tourism business but poor financial condition and market linkages were the challenges he faced. AKRSPI not only supported him with an initial investment but also helped him with market linkages. Today his monthly turnover is Rs 65,000 and he employs seven people at his eco-tourism site.

The examples of Arvindbhai, Bhartiben and Nareshbhai prove that with the right kind of support and guidance tribal youth can run businesses successfully.

Gulshan Bhatt is a development professional working for poverty eradication through enterprise development.