Start-up Village Entrepreneurship Program

The Start-up Village Entrepreneurship Program is a sub componenet 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 SVEP’s ultimate goal is to empower rural communities by facilitating the establishment of up to 1 crore village enterprises, thereby offering direct employment opportunities to 2 crore individuals. This initiative aims to uplift the rural poor by assisting them in setting up sustainable enterprises and providing ongoing support until they become self-sufficient.
Initially, the SVEP will focus on validating its approach through the creation and reinforcement of approximately 1.82 lakh village enterprises. This pilot phase will be implemented across 125 Blocks in 24 States over a four-year period from 2015 to 2019.
The projected outcome of this first phase includes the generation of employment for around 3.78 lakh individuals, thus contributing to the economic growth and stability of targeted communities.

Objectives

The key objectives of SVEP are:

We want to help folks in rural areas start their own businesses. In our trial run, we’re going to create a plan that uses technology and training to support village entrepreneurs. This plan will include teaching skills, giving advice on running a business, and helping them get loans from banks or community groups.
These businesses can be run by individuals or groups, and they should cover a range of activities like making things, providing services, or trading goods. We want to focus on both traditional skills and new ones, and we’ll support businesses that meet the needs of the community, whether it’s something people already use or something new like projects related to government initiatives such as improving rural areas or promoting cleanliness.
We’re also going to train people from the local community to help out. These community members, called Community Resource Persons for Entrepreneurship Promotion (CRP EP), will get training to support entrepreneurs and work closely with organizations like the National Rural Livelihoods Mission (NRLM) and community savings groups to make sure things are running smoothly.
Getting money to start a business can be tough, so we’ll work with NRLM, savings groups, and banks, including a new bank called MUDRA, to help entrepreneurs get the financing they need.
Starting a business can be tricky, so we’re going to stick with these entrepreneurs for the first six months to make sure they’re on the right track. Our CRP EPs will visit regularly, and we’ll have a team of experts available to give advice when needed.

Features

This initiative provides financial assistance to rural startups, focusing on three main areas: finances, support during the early stages (incubation), and fostering skill development.
It encourages both individuals and groups to start ventures in manufacturing, trading, and services, aiming to boost economic activity in rural areas.
The program invests in empowering entrepreneurs with the skills and knowledge needed to run successful businesses. This includes understanding local market demands and adapting to the rural ecosystem.
Investments are also made in leveraging Information and Communication Technology (ICT). This includes creating user-friendly online learning materials to minimize technical barriers, such as preparing business plans and managing finances effectively.

Implementation

The success of the SVEP project hinges on the vital involvement of NRLM SHGs and federations. These grassroots organizations play a crucial role in identifying potential entrepreneurs and common resource persons (CRP-EPs). They also assist in assessing the creditworthiness of these individuals and oversee the work of CRP-EPs. Once the enterprise is launched and credit is extended, these community-based institutions continue to monitor its progress and repayment, alongside the CRP-EPs. The NRLM, operating through the State Rural Livelihood Missions, will spearhead the implementation of SVEP, ensuring that these community structures play a pivotal role in its success.

Key elements of the programme:

Establish a Block Resource Centre for Enterprise Promotion (BRC-EP), which will serve as a central hub for implementing the Scheme of Venture Capital Fund for Scheduled Castes (SVEP) at the block level.
Integrate the Block Level Federation (BLF) as part of the National Rural Livelihoods Mission (NRLM) to serve as a key institutional platform for the BRC.
Until the BLF is fully operational, the Cluster Level Federation (CLF) or Village Organizations (VOs) will function as the primary entities overseeing the BRC’s activities.
Ensure the BRC adopts a self-sustaining revenue model to support its operations independently.
Provide assistance to the BRC through the Community Resource Person for Enterprise Promotion (CRP-EP) and the Bank Coordination System, also known as Bank Mitra.
Equip the BRC with a range of resource materials, including videos, manuals, and other reference materials to aid entrepreneurs.
Facilitate access to bank finance for enterprises by utilizing tablet-based software for developing business feasibility plans, conducting credit appraisals, and monitoring business performance.
Utilize the Community Investment Fund (CIF) to offer initial seed capital for new businesses until they reach a stage where they require bank financing.
Implement SVEP at the block level through a structured approach, covering processes such as fostering new enterprise development, providing support to existing enterprises, organizing block-level activities, and managing other project-related tasks.