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Post at: Apr 28 2022

Start Up Village Entrepreneurship Programme

Why in News

  • On 7th of March, 2022 National Institute of Entrepreneurship and Small Business Development (NIESBUD) — an autonomous organisation under the Ministry of Skill Development and Entrepreneurship (MSDE) signed a Memorandum of Understanding (MoU) with the Ministry of Rural Development (MoRD) to develop a sustainable model for promoting entrepreneurship at the grass roots by initiating the Start-up Village Entrepreneurship Programme (SVEP).
  • The Start up Village Entrepreneurship Program is a sub component of Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) of the Ministry of Rural Development. 
  • SVEP aims to support entrepreneurs in rural areas to set up local enterprises.

Vision and Scope

  • The long term vision of the SVEP is to provide support for start-up to 1 crore village enterprises and provide direct employment to 2 crore people. The SVEP shall help the rural poor come out of poverty by helping them set up enterprises and provide support till the enterprises stabilize. The programmatic intervention will address all three missing ecosystems – Knowledge, advisory and finance ecosystems.
  • In its first phase of validating the concept, SVEP is expected to support creation and strengthening of about 1.82 lakh village enterprises in 125 Blocks across 24 States in the targeted four years i.e. 2015-19. This is expected to create employment for about 3.78 lakh persons.

The key objectives of SVEP are:

  • To enable rural poor to set up their enterprises, in its proof of concept phase, by developing a sustainable model for Village Entrepreneurship promotion through integrated ICT techniques and tools. 
  • For training and capacity building, enterprise advisory services.
  • To provide loans from banks/SHG & federations. 
  • These enterprises may be individual or group enterprises and should cover manufacturing, services and trading. These enterprises should cover traditional skills as well as new skills. 
  • They should also cover existing consumption and production of rural areas including the new consumption driven by government's priorities like RURBAN mission, Swachh Bharat Abhiyan, etc.
  • Develop local resources by training a pool of village level community cadre (CRP EP) and build the capacity of the NRLM and SHG federations to monitor and direct the work of the CRP-EPs.
  • Help the rural entrepreneurs to access finance for starting their enterprises from the NRLM SHG and federations, the banking systems including the proposed MUDRA bank.
  • Handhold the rural entrepreneurs/ enterprises in the initial six months of start-up, with visits from the CRP-EP's supported by guidance from an advisory panel of experts for the relevant enterprise.
  • The SVEP would also work with the input and output supply chains for farm produce, artisanal products and other goods & services to help increase rural incomes.

Beneficiaries

  • Any Rural poor who is willing to be entrepreneurial and self reliant is eligible to be part of this programme. Highly vulnerable beneficiaries under MGNREGA, marginalized sections, women, SC and ST communities and rural artisans will be given specific preference in selection, as part of this programme.

Implementation

  • The NRLM SHG's and federations are a critical pre-requisite for the implementation of the SVEP project. These community based institutions provide help in the identification of the potential entrepreneurs and the Common Resource Persons (CRP-EP), help in doing the due diligence for their credit worthiness and also monitor the work of the Community Resource Persons (CRP-EP's). 
  • Post the starting of the enterprise and providing credit to it, the community based institutions also monitor the progress of the enterprise and its repayment along with the CRP-EP.
  • Implementation of SVEP shall be managed by NRLM through the State Rural Livelihood Missions.

Key elements of the programme

  • Create a Block Resource Centre – Enterprise Promotion (BRC-EP); The BRC should act as a nodal centre to implement SVEP. 
  • Block Level Federation (BLF) to come up under NRLM could be one of institutional platforms for BRC.
  • Cluster Level Federation (CLF) /VOs shallhold the entity till BLF comes into existence. BRC should follow a self-sustaining revenue model.
  • BRC to be assisted by CRP-EP and the Bank Coordination System (Bank Mitra). BRC to provide resource and reference material including videos, manuals etc.
  • Help enterprises get bank finance using mobile based software for making the business feasibility plan, doing credit appraisal and tracking business performance.
  • Use the Community Investment Fund (CIF) to provide seed capital for starting the business till it reaches a size where bank finance is needed.

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