The Ministry of Rural Development implements the Startup Village Entrepreneurship Program (SVEP) as a sub-programme under the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM) with the aim of helping the rural poor establish village-level enterprises in non-agricultural sectors. Project beneficiaries are drawn from DAY-NRLM’s self-help group (SHG) ecosystem. The project’s operating unit is Block. A maximum of 2,400 businesses can be supported in a block with the approved funds. It supports existing businesses as well as the creation of new businesses. In addition to helping rural entrepreneurs access finance, a cadre of Community Resource Persons for Enterprise Promotion (CRP-EP) is also being promoted to provide business support services. The maximum budget for a block under SVEP is Rs. 597.76 lakhs. The duration of the project is four years from the date of approval of the DPR. A total of 186,576 businesses in 23 states and union territories have been supported so far, said the Union Minister of State for Rural Development, Faggan Singh Kulaste said in a written response to the Rajya Sabha today.
In addition to boosting the entrepreneurial culture in India, 588 Rural Self-Employment Training Institutes (RSETI) are operating across the country and extending skills development and entrepreneurship training programs to unemployed rural youth to help them to employ themselves by starting self-employment units and activities. This Ministry reimburses the cost of the training provided by the RSETIs to rural youth through the State Missions on Rural Livelihoods (SRLM), added the Minister.
The Ministry of Skills Development and Entrepreneurship (MSDE) is implementing Pradhan Mantri-YUVA (Pilot) to create an ecosystem conducive to entrepreneurship development through entrepreneurship education and training in all the countries. The program covers 10 states and two union territories, namely Assam, Bihar, Kerala, Maharashtra, Meghalaya, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, West Bengal , Delhi and Puducherry, Kulaste further briefed the parliament.
For the development of group entrepreneurship in rural areas of the agriculture and related sector, DAY-NRLM facilitates the promotion of women-owned producer collectives, i.e. producer companies, farmers’ organizations (FPOs) and producer groups to help women farmer members access a better market. for their products through interventions such as aggregation, value addition and marketing. The idea is to develop a comprehensive business model to provide primary producers with end-to-end solutions, from establishing producer organizations to establishing marketing links, he said.
In addition, to strengthen technical expertise, to support the development of large-scale production enterprise promotion projects, the ministry set up a section enterprise 8 ‘Rural Value Chain Development Foundation (FDRVC)’ with support from TATA Trusts. It supports state units of DAY-NRLM to develop and implement value chain projects through the promotion of large-scale production enterprises. So far, 183 producer companies and 1.22 lakh producer groups have been supported under DAY-NRLM, Kulaste added.
The mid-term review of SVEP was carried out in 2018-2019 by the Quality Council of India (QCI); the main conclusions are as follows:
- 82% of entrepreneurs across all blocks reported being in the SC, ST and OBC categories.
- 75% of businesses were owned and managed by women.
- 57 percent of total household income comes from enterprises promoted under the SVEP.
- The average gross income of entrepreneurs is higher than the income they aspire to earn from the business at the time of the creation of the business.
- About 96% of entrepreneurs reported an improvement in their savings.
- 70% of entrepreneurs surveyed said it was easy to get loans from the Community Enterprise Fund (CEF).
Read more: Amazon India signs MoU with Karnataka to turn rural women into entrepreneurs across the state
MarketingRural.in is now on Telegram. Click here to join Rural Marketing on Telegram and stay informed with the latest news and updates on rural business and the economy.