SUBSTANTIVE IMPACT OF RANDOM SHOCK ON NON-INSTITUTIONAL CASH TRANSFER IN SPATIAL INFORMAL BUSINESS CLUSTERS

Abstract

The present paper is an effort to examine the consequences of Demonetization particularly on small entrepreneurship and businesses in spatial structures in India, disjunctive in production, employment and exchanges with formal industrial clusters not being adjacent much with formal institutional banking network, henceforth cohering their own informality allowing majority of the exchanges in pure cash transfer processes for their business purposes. The significance of the study lies in selecting a region, namely Sakchi near Jamshedpur in Jharkhand, dominated with small informal entrepreneurship and businesses which suffered the most immediately after the event of Demonetization due to their heavy dependence upon liquid cash transfer processes. Our paper is a mere effort to detect sudden losses in their businesses in absence of liquid cash rendering severe hydrants in their day-to-day transactions. The study is based upon primary data collected through purposive random sampling, then compared and analyzed in order to refer the influences of Demonetization on a small semi-urban informal regional economy.