In an effort to bolster entrepreneurship at the grassroots level, the National Institute of Entrepreneurship and Small Business Development (NIESBUD) recently signed a Memorandum of Understanding (MoU) with the Ministry of Rural Development (MoRD). This partnership aims to create a sustainable model for fostering entrepreneurship through the initiation of the Start-up Village Entrepreneurship Programme (SVEP).
Empowering Rural Entrepreneurs
The joint venture is set to provide rural entrepreneurs with access to banking systems, enabling them to receive financial support for the establishment of their businesses. This includes backing from MUDRA bank. The collaboration will also introduce the use of integrated ICT techniques and tools for training purposes, capacity building and enterprise advisory services. This will serve to augment India’s village entrepreneurship ecosystem.
Beneficiaries of the Partnership
Beneficiaries of the project will largely come from the Self-Help Group (SHG) ecosystem of DAY-NRLM. The scheme will support both existing and new enterprises. This assistance will extend from helping rural communities establish their trades to providing complete sustenance until they are stabilized.
About the Start-up Village Entrepreneurship Programme (SVEP)
The SVEP, initiated in 2016, is a sub-scheme of the Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM), Ministry of Rural Development. Its primary aim is to assist the rural poor in overcoming poverty by providing self-employment opportunities coupled with financial aid, training in business management and soft skills. The initiative also aims to create local community cadres to promote enterprises.
Key Features of SVEP
The SVEP addresses three vital pillars of rural start-ups: finances, incubation, and skill ecosystems. It encourages individual and group enterprises in manufacturing, trading, and service sectors. The program also focuses on enhancing entrepreneurs’ capacities to profitably run their businesses, taking into account local demands and ecosystems.
SVEP Activities
Activities under the SVEP are strategized to promote rural enterprises. Key focus areas include developing a pool of Community Resource Persons-Enterprise Promotion (CRP-EP) to support the establishment of rural enterprises. Another key area is the promotion of the Block Resource Center (BRC), which monitors and manages community resource persons, appraises SVEP loan applications, and acts as a repository of enterprise-related information.
Achievements of SVEP
A mid-term review conducted by Quality Council of India in September 2019 revealed that about 82% of sampled entrepreneurs across various blocks belonged to the SC, ST, and OBC categories. Furthermore, around 75% of these enterprises were owned and managed by women. The average monthly revenue of these enterprises ranged from Rs.39,000 to Rs.47,800 in manufacturing, Rs.41,700 in services, and Rs.36,000 in trading. Impressively, about 57% of the total household income of the entrepreneurs was generated by SVEP enterprises.
The National Rural Livelihood Mission and Rural Economy
The National Rural Livelihood Mission is instrumental in improving the livelihood options of the rural poor. This is achieved by strengthening self-help groups, providing skill development and not by setting up new manufacturing industries or agribusiness centres in rural areas, nor by supplying seeds, fertilizers, diesel pump-sets and micro-irrigation equipment free of cost to farmers.
Last Modified: February 15, 2024