How Does SVEP Propel Enterprises in Rural Areas?

SVEP has extended business support services and capital infusion to 153 blocks of 23 states. As of August 2020, around 1 lakh enterprises are being supported out of which 75 percent are owned and managed by women

How Does SVEP Propel Enterprises in Rural Areas?

Start-Up Village Entrepreneurship Programme (SVEP) is implemented by Deendayal Antyodaya Yojana –National Rural Livelihoods Mission (DAY-NRLM), a flagship rural livelihood mission of Ministry of Rural Development, as a sub-scheme since 2016. With an objective to support the rural poor come out of poverty, supporting them setting-up enterprises and providing support till the enterprises stabilise, SVEP focusses on providing self-employment opportunities with financial assistance and training in business management and soft skills while creating local community cadres for promotion of enterprises.

SVEP addresses three major pillars of rural start-ups namely – finance, incubation and skill ecosystems. Activities under SVEP are strategically designed to promote rural enterprises, one of the key areas is to develop pool of community resource persons – enterprise promotion (CRP-EP) who are local and support entrepreneurs setting-up rural enterprises. Another key area is to promote the block resource centre (BRC) in SVEP blocks, to monitor and manage the community resource persons, appraise SVEP loan application and acts as the repository of enterprise related information in the concern block. BRCs play the role to support sustainable revenue model to operate effectively and independently.

During the initial years of implementation, the SVEP focused on mobilising rural communities to set up and strengthen the institution structures, invest on training and capacity building on business management aspects for the BRC members, created pool of CRP-EPs and provided them training, supported the entrepreneurs to scale up their existing enterprises as well as establish and support the new enterprises.

Over the years the SVEP has made an impressive progress and has extended business support services and capital infusion to 153 blocks of 23 states as of August 2020. Around, 2,000 trained cadre of Community Resource Person-Enterprise Promotion (CRP-EP) are providing services to rural entrepreneurs and around 100,000 enterprises are supported by them. Entrepreneurship Development Institute of India (EDII), Ahmedabad is the technical support partner of SVEP.

A mid-term review of SVEP which was conducted in September 2019 by Quality Council of India shows about 82 percent of the sampled entrepreneurs across the blocks reported being from SC, ST and OBC categories which signifies social inclusion – one of the pillars of NRLM. 75 percent of the enterprises were owned and managed by women and average monthly revenue of enterprises was Rs.39,000 – Rs.47,800 in case of manufacturing, Rs.41,700 in case of services and Rs.36,000 in case of trading. The study also shows that about 57percent of the total household income of the entrepreneurs is through SVEP enterprises.

SVEP promotes both individual and group enterprises, set-up and promote enterprises majorly on manufacturing, trading and service sectors. The programme invested largely on building the capacities of the entrepreneurs to run the businesses profitably based on the local demand and eco-system. The CRP-EPs are certified and provides business support services to the entrepreneurs. Investments are also made under SVEP on use of ICT to create standard e-learning modules for minimising the transmission loss in technical aspects like business plan and profit and loss account preparations.

The Changing Face of Rural India