In the quest to explore the state of nano-entrepreneurship (defined as tiny businesses with a turnover of up to ₹20-25 lakh—there is no formalized definition of this term yet) in the temple towns of Maharashtra, we visited one of the most popular sites, Narsobachi Wadi. It is a small village located at the confluence of two rivers, Panchaganga and Krishna, in the Kolhapur district.
We visited the field in the second week of July, right before the real monsoon began in Maharashtra. Along with the rising water levels of the Krishna River, we noticed an increasing number of pilgrims and devotees visiting the temple. The site is particularly known for ‘Shri Nrusinha Saraswati,’ revered as the Purna Avatar of Lord Dattatreya (Dattatreya is the God who is an incarnation of the Divine Trinity—Brahma, Vishnu, and Shiva). It is believed that Nrusinha Saraswati stayed in Narsobachi Wadi for 12 years (in the middle age period probably 13th/14th century, according to Wikipedia). Devotees come here seeking growth and prosperity from across Maharashtra, Karnataka, and Andhra Pradesh. Hence, one can see flocks of young people and newly married couples arriving throughout the day.
Flooding as a Geographical Challenge
The timing of our visit is crucial to note because Narsobachi Wadi gets flooded every year. When the water enters the temple, a ceremony called the ‘Dakshin Dwar’ is performed, attracting many visitors. Yet, as soon as the water starts flooding the temple, locals are alerted, and except for the priests who maintain the temple or those with multi-story homes, everyone else must leave the town, depending on the flood level. In 2019 and 2021, this area experienced massive flooding. Although most small shop owners informed us that they received compensation of up to ₹50,000 (the amount may vary on a case-by-case basis) from the state government, their shops appeared makeshift or temporary, and some even lacked proper signage.
“We know this year also Wadi will be flooded, so we will have to close the shop. Anyway, our business depends on the devotees who come to Wadi. Our best business happens in December because of Dutta Pournima and in summer during vacations,” said one woman entrepreneur. She mentioned that her small variety shop selling toys, utility products, caps, and scarves can earn up to ₹1,500-2,000 daily during the normal season, with higher earnings during peak season.
According to official data shared by the Gram Panchayat, there are 167 registered businesses in Narsobachi Wadi. These include 40 pedha shops, 15 grocery stores, 30 stationery shops, 25 bakeries, 15 hotels/restaurants, 12 lodging facilities, and 10 marriage halls catering to events and travelers. An additional 20 miscellaneous businesses serve other community needs. However, this Gram Panchayat data appears outdated, and officials acknowledged that more businesses have started operating since the improvement in highway connectivity.
Challenges Faced by Nano-Entrepreneurs
A walk through the town reveals that marriage halls and ritual-based packages, including catering services, is one of the most in-demand businesses. As one approaches the temple, pedha shops become predominant. These shops sell various types of pedhas and other milk-based sweets, with basundi being a notable specialty. Travelers often enjoy these delicacies, with smaller, older shops near the temple. One could also observe that newer, larger outlets bearing the same brand names are located further from the temple.
Through interactions with shop owners, we learned that the pedha sellers have formed a strong community and established an association. They source milk from nearby villages, process it in Wadi, and produce their own products.
An advantage of Wadi’s economy is that most businesses are family-owned and have been passed down through generations, ensuring promising access to credit. Entrepreneurs shared that they typically seek small loans from cooperative credit institutions to meet the demands of the peak season in November and December each year. Loans of up to ₹50,000 or ₹1 lakh, with 12–14% interest rates, are commonly taken from such lenders. For larger amounts, nationalized or cooperative banks are preferred.
However, a prominent challenge, as highlighted by a famous pedha and basundi shop owner, is the lack of technological knowledge and skilled employees. A third-generation business owner explained, “We don’t have the knowledge or skills to implement food-grade packaging here. Our product, especially pedha and basundi, is of very high quality, but due to its low shelf life, our market remains limited to Wadi and nearby cities.”
While speaking to us, he instructed his helper to pack refrigerated basundi for visitors from Mumbai. He remarked, “We have great demand from Pune and Mumbai. A product like basundi may last 5 to 7 days with refrigeration, but that is neither sufficient nor reliable.”
Another challenge expressed by several business owners is the difficulty in finding young, skilled employees. Many young people from the surrounding areas migrate to bigger cities in search of better-paying opportunities. Those who remain often lack the skills needed for the tourism, hospitality, and food industries. Regular skilling programs and assured paid internships could help address this issue to some extent.
Being an agrarian-dominated village, men are largely engaged in agriculture, leaving women to run small shops, particularly those selling gift articles and other items. It would be worthwhile to explore the role of self-help groups (SHGs) and women-led businesses in temple towns like Wadi.
Recommendation to support Nano Entrepreneurs in Wadi
Based on several qualitative interactions with the entrepreneurs following are some of the recommendations that can help the nano businesses to explore more business opportunities.
- Providing technical training to the nano entrepreneurs about packaging and preservation of the milk based specialities.
- Providing soft marketing skills to market their products on social media
- Providing flood insurance to the businesses that may help them recovery and disaster management as well
- Creating more market based opportunities through Festivals by attracting more tourist
- Organize vocational training for youth in hospitality, customer service, and food processing skills to support the local tourism and food industries
- Provide training to local youth to launch guided tour packages that combine temple visits with local culinary experiences.
Aside from the monsoon, during which flooding is a recurring issue, Wadi has the potential to grow into a bustling temple town with increasing tourism and allied businesses. It can attract not only devotees but also travelers who can enjoy the scenic Krishna River, visit the ancient Khidrapur temple (17-20 km from Wadi), and the Audumbar temple on the riverbank. These tourist spots are well connected to cities like Sangli and Kolhapur. While Wadi may not fully operate as a ritual-based economy, it has the potential to transition into a tourism-based economy, providing opportunities for nano-entrepreneurs and youth in the region.
Neha Ghatpande is the Senior Program Officer at CEED.
