The North East Venture Fund (NEVF) represents a significant step towards fostering entrepreneurial growth in India’s North Eastern Region. Established in September 2017 by the North Eastern Development Finance Corporation Ltd. (NEDFi), the NEVF operates under the guidance of the Ministry of Development of North Eastern Region (MDoNER). It stands as the first and only venture fund dedicated exclusively to this part of the country, with a focus on supporting enterprises and start-ups that are based there. The core objective of the NEVF is to stimulate enterprise building within North East India, which has historically been an area with less economic development compared to other regions.
Overview of North East Venture Fund
The NEVF was created to address the unique challenges faced by entrepreneurs in the North Eastern states of India. By providing financial assistance and support, the fund aims to enable start-ups and businesses to overcome barriers to growth and become competitive entities in the market. As the region’s inaugural venture fund, the NEVF plays a pivotal role in nurturing the local entrepreneurial ecosystem and encouraging innovation.
Funding and Support for Start-ups
Since its inception, the fund has made considerable strides in backing new ventures. With a total sanction of Rs.6,631 lakh, the NEVF has extended its support to 31 start-ups over a span of three years. This financial aid has been crucial for these young companies, which often struggle to secure funding from traditional lending institutions due to the perceived high risks associated with start-up investments.
Impact on the North Eastern Region
The infusion of capital by the NEVF has had a positive impact on the economic landscape of North East India. By financing a diverse array of start-ups, the fund has contributed to job creation, fostered innovation, and promoted the development of local industries. This is particularly important for the North Eastern Region, which has tremendous potential for growth in sectors such as agriculture, horticulture, handicrafts, tourism, and information technology.
Administration and Governance of NEVF
The administration of the NEVF is managed by NEDFi, which ensures that the fund operates efficiently and aligns with the broader goals of MDoNER. The governance structure is designed to maintain transparency and accountability, with a focus on delivering results that can be measured against the fund’s objectives. This systematic approach is essential for maintaining investor confidence and ensuring that the fund meets its mandate to drive regional development.
Future Prospects for Entrepreneurs
The success of the NEVF has opened doors for future entrepreneurs in North East India. With continued support and investment, the region can expect to see a burgeoning start-up scene that contributes significantly to the national economy. The fund’s ongoing efforts to identify and back promising ventures will likely encourage more individuals to consider entrepreneurship as a viable career path, leading to a more dynamic and resilient economy in the North East.
In summary, the North East Venture Fund has been instrumental in promoting enterprise building and supporting start-ups in the North Eastern Region of India. With financial sanctions amounting to Rs.6,631 lakh for various enterprises over the past three years, the NEVF has demonstrated its commitment to nurturing the entrepreneurial spirit in this region. Through its focused approach and dedication to fostering economic growth, the NEVF continues to play a vital role in shaping the future of North East India’s economy.
