The grim fate of entrepreneurs in Manipur

Birendra Laishram *

Over 300 vehicles stranded in Senapati on March 10 2025 :: Pix - Chronicle News

The success of the start-up schemes initiated by the Planning Department of the Government of Manipur remains shrouded in uncertainty and is quite grim due to a multitude of disheartening factors that collectively undermine their potential.

Firstly, the transportation of raw materials along the National Highways suffers significantly from a series of persistent challenges. This includes constant extortion, acts of vandalism targeting trucks, and the imposition of illegal taxes by Kuki militants. These issues contribute to an overall increase in the costs of raw materials, which in turn raises the operating expenses for start-ups.

Moreover, there is a troubling pattern of frequent monetary demands imposed not only by militant organizations but also by various other elements in the region. This creates an environment where the financial stability of businesses is perpetually at risk.

The unfortunate pandemic caused by the Coronavirus that began in 2020 in the State has resulted in the displacement of a significant number of young individuals from their workplaces, particularly those working outside the State, leading to a troubling rise in unemployment within the State itself.

This challenging situation was further exacerbated by the violent clashes between the Meitei and Kuki communities that erupted in May 2023, which further contributed to instability in the region. Additionally, the outbreak of Dengue had a detrimental effect on the already struggling business activities, compounding the issues faced by local entrepreneurs.

The intermittent donations received from various sources, which were intended to provide some relief, ultimately dealt a severe blow to the overall business environment, making it exceedingly difficult for many to recover and sustain their operations amidst these persistent challenges.

In addition to this, the frequent power outages add another layer of complexity, hampering production processes and disrupting the workflows essential for efficient operations. The lack of a stable electricity supply is a significant impediment to the smooth functioning of start-ups.

The market scenario within the State has been significantly affected. Customers have been displaced, and inter-district movement has been unexpectedly halted, leading to the inability of many individuals to pay their Equated Monthly Instalments (EMIs) on bank loans and unable to pay the rents of the business premises.

The industrial products, though demanded by the customers from outside the State could not be transported. This not only affects personal financial stability but also dampens the overall economic activity in the region.

Compounding these issues is the reluctance of the workforce from outside the State to engage in employment within the ongoing conflict zones of Manipur. The challenges faced in such an unstable environment deter potential employees who might otherwise contribute their skills and expertise.

The situation is further exacerbated by the rising prices of essential commodities, which lead to an overall increase in the cost of living, placing additional pressure on the local populace and businesses alike. This inflationary trend complicates the financial planning necessary for start-ups trying to get off the ground.

Moreover, there have been disturbing incidents involving the killing of workers from outside the State by unidentified individuals. Such violence only heightens the sense of insecurity and deters skilled labour from coming to the region for employment opportunities and draining their expertise in the state.

The political climate in Manipur remains distinctly unstable. This ongoing turbulence fosters an atmosphere of fear and uncertainty, creating significant barriers for potential investors and entrepreneurs who might be considering market entry or expansion in the region.

Consequently, limited access to financial support and investment opportunities plagues local businesses, largely due to the heightened risks associated with operating in such a conflict-ridden area. This lack of financial backing stifles growth and innovation among start-ups.

On a related note, the insufficient development of infrastructure within the region has resulted in inadequate facilities essential for production and storage, further compounding the operational challenges that businesses face daily. The lack of necessary infrastructure hampers efficient movement and handling of goods, which is critical for start-up success.

Furthermore, underdeveloped supply chains contribute to the struggles faced by start-ups, as there are not enough local industries capable of providing the support services that new businesses require. This gap makes it even more difficult for entrepreneurs to effectively launch and sustain their operations.

The exodus of skilled labor from the region is yet another pressing issue. As individuals seek safer and more stable opportunities in other areas, the region faces an exacerbation of skill shortages that directly impact the workforce available to local businesses.

Moreover, there exists a notable deficiency in government incentives or support systems that could otherwise promote entrepreneurship in a more stable and conducive environment. Without these incentives, the motivation to start new ventures diminishes significantly.

The overarching perception of Manipur as an unfavorable business location, primarily due to the ongoing violence and unrest, acts as a deterrent to both local and external investments. Many potential investors are hesitant to commit resources in a landscape marked by instability. Many employees who were earning livelihoods have been terminated to save the business. Many entrepreneurs have shifted outside the State by closing their workplaces for their survival.

As the landscape changes, entrepreneurship faces tough challenges. Many dreamers seek stability elsewhere outside the state, leaving behind lost hopes and fractured connections in our struggling community.

If the Indian Government, along with State authorities, can take effective measures to ensure the safety and security of courier services operating along National Highways as well as inter-village roads, and if they receive adequate support and assistance from Indian defense forces, there is a strong likelihood that normalcy will gradually return to the everyday lives of residents in these areas.

It may be mentioned that “Observer Research Foundation” report by Subir Bhaumik indicate that, between 2004–2005 and 2011–2012, strikes and blockades shut down one of NH-102 or NH-37 for a cumulative average of 129 days annually. Even when the roads are open, passengers and truckers along these roads contend with an extensive series of extortion checkpoints set up by the underground or army and police officials.

Fieldwork presented in a recent thesis by Sanabam Gunjait Mangang of the University of Calcutta claims the existence of 20 such checkpoints along each of NH-37 and the Imphal-Moreh stretch of AH-1, as well as another 15 along NH-102 from Imphal to the city of Dimapur in Nagaland.

Security officials use bribes and political connections to jockey for position along these routes, with Imphal-Moreh the most desirable, followed by Imphal-Dimapur. Insurgent extortion often occurs with the blessing, tacit or otherwise, of local officials” writes By Edmund Downie in The Diplomat.

In the highly competitive environment, we find ourselves in today, good transport and communication play a vital role in facilitating various essential business operations, fostering networking opportunities, building strong relationships, and driving innovation—elements critical for achieving global success in any trade, commerce and industry.

Politicians who lack a deep understanding of economic principles may fail to recognize that inadequate communication can result in significant isolation and missed opportunities, adversely affecting businesses, stability of prices and the overall economy. If the direct blows to young entrepreneurs continue to be ignored, it will inevitably lead to economic downturns and challenges for the state as a whole.

The state must understand that without providing meaningful employment opportunities with logistic supports to the younger generation, its economic viability will be severely destroyed. The state cannot expect to thrive by merely relying on financial assistance from the central government, as a sustainable future depends on empowering its youth and fostering an environment where they can contribute positively to the economy of the State by providing employment.