Entrepreneurship Development Programs in India-An Overview

ABSTRACT

The Indian economy is currently valued at around 3 billion USD and the government aims to be a Five Trillion USD by 2025. This aim can be achieved only if we are increasing economic activities and promote new business, ideas and provide industrial opportunities that form a basis for development. Besides, it will require factors like entrepreneurship, Skill development, Skilled Human resource, modern technologies, knowledge and innovation etc. this is because these modern business and industries are acting as a catalyst in promoting this aspiration amongst us towards that path. Or it can also be said that India, with its Unity in Diversity, is looking at entrepreneurship and skill development as those factors which will help in achieving National Integration via Economic Development. But for this purpose, we need skilled work force as any business will depend upon them for its uninterrupted operations and for providing goods and services as per the need and requirement of the customers. Entrepreneurship development programs helps the entrepreneurs to enhance their organising and managerial abilities so that they can run their enterprise efficiently and successfully. In this article we will analyse the different programmes available to entrepreneurs for providing skill development and financial assistance. The article briefly discusses about the benefits of each program. The literature review was based on central sector schemes available in India for the entrepreneurs.

Introduction:

Entrepreneurship and entrepreneurs have become increasingly important worldwide, considering the positive impact on employment, productivity, innovation and economic growth, by analysts, economic theoreticians and researchers. The entrepreneurship concept assumes different definitions regarding its evolution. It is defined as a systematic innovation (Drucker 1985), which consists of a purposeful and organized search for changes, and it is the systematic analysis of the opportunities, in which such changes might offer economic and social innovation. It is the mindset and process to create and develop economic activity by blending risk-taking, creativity, and innovation with sound management within a new or an existing organization. In India the Macro and small firms play a crucial role in economic growth. The micro, small and medium enterprises are considered as priority sector. In this connection to boost the entrepreneurship across macro and small firms Government of India has developed several Entrepreneurship Development Programs.

Objectives of Entrepreneurship Development Programs:

The objective of Entrepreneurship Development Program is to motivate an individual to choose the entrepreneurship as a career and to prepare the person to exploit the market opportunities for own business successfully. These objectives can be set both in the short-term and long-term basis.

Short-term objectives: These objectives can be achieved immediately. In the short-term, the individuals are trained to be an entrepreneur and made competent enough to scan the existing market situation and environment. The person, who would be the future entrepreneur, should first set the goal as an entrepreneur. The information related to the existing rules and regulations is essential at this stage.

Long-term objectives: The ultimate objective is that the trained individuals successfully establish their own business and they should be equipped with all the required skills to run their business smoothly.

The overall objectives of EDP are mainly to help in the rapid growth of the economy by supplying skilled entrepreneurs. This programme primarily aims at providing self-employment to the young generation

Programmes to promote Macro and Small firm through Entrepreneurship include:

• Agri-Clinics and Agri-Business Centers (AC&ABC) Scheme
• Rashtriya Krishi Vikas Yojana
• ASPIRE
• MUDRA Bank
• Multiplier Grants Scheme
• Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)
• Credit Guarantee Scheme for Startups (CGSS)

Agri-Clinics and Agri-Business Centers (AC&ABC) Scheme

MANAGE has been implementing 45 days free residential certificate training in Agri-entrepreneurship development for eligible agricultural/allied sciences/life sciences graduates, diploma holders and intermediates etc., in their respective states through a network of 139 Nodal Training Institutes (NTIs) across India. After the training, one-year handholding support is given by the NTIS to the trained candidates for establishing Agri- ventures. The trained agripreneurs are also assisted through start-up loans and credit-linked back-ended composite subsidy through banks and NABARD. The objectives of Agri-Clinics and Agri-Business Centers (AC&ABC) Scheme is to provide self-employment opportunities and make doorstep agri-advisory affordable.

RashtriyaKrishiVikasYojana (RKVY)

RashtriyaKrishiVikasYojana (RKVY) is an umbrella scheme which was initiated in 2007 for achieving a holistic development in the field of agriculture and allied services. On 1st November 2017, the Government revamped RashtriyaKrishiVikasYojana as RashtriyaKrishiVikasYojana – Remunerative Approaches for Agriculture and Allied Sector Rejuvenation (RKVY – RAFTAAR). This scheme aims at promoting agripreneurship and agribusiness. It promotes in helping for the betterment of agricultural activities by providing financial support and nurturing the incubation ecosystem to the agribusiness.

This scheme encourages individual/s to set up a business related to agriculture or become an entrepreneur in the field of agriculture. The incubators provided under this scheme will guide the agripreneurs through the various phases of the business life cycle and provide them with an opportunity to generate innovations in agricultural activities and allied agricultural services.

Under the innovation and agriprenurship component of RKVY, the Ministry of Agriculture is funding startups for the year 2020-21. The startups can belong to various industries like agro-processing, digital agriculture, farm mechanism, fisheries, dairy, artificial intelligence etc. The scheme offers the benefits of Agripreneurship Orientation, Seed-stage funding of RKVY – RAFTAAR Agri-Business Incubator and Idea/Pre-Seed Stage Funding of Agripreneurs.

ASPIRE

A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE) was launched to set up incubation centers and network of technology centers to accelerate entrepreneurship and to promote startups for innovation in agro-industry.

This scheme helps and encourages the entrepreneurs and startups in the agro-industry by providing incubation facilities to their business, funds and making available a network of technology. The components of ASPIRE are Livelihood Business Incubators, Technology Business Incubators, and a fund to be managed by Small Industries Development Bank of India (SIDBI).

The funds under this scheme are managed by SIDBI, Coir, Khadi industries, etc. as the projects undertaken in this scheme are prominent means of livelihood for millions of people in India. Livelihood Business Incubators creates employment at the local level and aims to reduce unemployment. Technology Business Incubators concentrate on increasing centres which helps to build technology networks. SIDBI plays an important role in managing this scheme as a whole and provides support to other components of this scheme which in turn helps to generate income to the people by increasing employment opportunities.

MUDRA Bank

Micro Units Development and Refinance Agency Bank (MUDRA Bank) or Mudra Loan, is a new financial institution set up by the Government of India. It is set up under the guidelines of Pradhan Mantri MUDRA Scheme (PMMY). The purpose of Mudra Bank is the development of micro-units and providing refinance to the Micro Finance Institutions. The loans are provided to encourage entrepreneurship and startups. The mudra loans are given to small manufacturers, small entrepreneurs, farmers, start-ups, individuals, shopkeepers, vendors, restaurants and bakeries etc.

The interest rates of the mudra loans are not fixed, it is based on RBI’s policy which decides every quarter. The interest rates are generally between 8.40% and 12.45% for 1 to 5 years accordingly. Three products, i.e. Shishu, Kishor and Tarun, are launched by the mudra banks which signify the stage of growth and funding needs for the micro-units, entrepreneurs or startups. Loans up to a limit of Rs.50,000 is provided under Shishu. Kishor offers loans from Rs.50,000 to Rs.5,00,00. Loans from above Rs.5,00,000 up to Rs.10,00,000 are provided under Tarun.

Multiplier Grants Scheme

The Multiplier Grants Scheme is implemented by the Department of Electronics and Information Technology. This scheme encourages R&D development in the country. The aim of this scheme is encouraging collaborative R&D between the industries and academics or R&D institutions for the purpose of development of products and packages. This scheme encourages industry-oriented R&D at institutes. It helps to bridge the gap between R&D and commercialisation of a product/package.

Under the scheme, if the industry supports the R&D for development of a product which can be commercialised at an institution level, then the Government will also provide financial support to that product. The Government will provide financial support of up to twice the amount provided by the industry. The industry and institutions jointly submit proposals for getting financial support under this scheme. The total outlay of this scheme is Rs.36 Crores with the Department of Electronics and Information Technology contribution of Rs.24 Crore. The Technology Development Council budget head is used for the implementation of this scheme.

Support for International Patent Protection in Electronics & Information Technology (SIP-EIT)

SIP-EIT provides financial support to MSMEs and Technology Startup units in the field of patents. This scheme supports MSMEs in international patent filing procedure for encouraging innovation and recognising the values and capabilities of a global international patent. This scheme is established to help MSMEs and Technology Startup Units for the international patent protection of their innovative works.

It is an initiative of Department of Electronics & Information Technology, MEITY, Government of India for facilitating MSMEs and Technology Startup units for filing international patents by providing financial support to them. It also helps in capturing growth opportunities in the Information Communication Technology & Electronics sector.

Credit Guarantee Scheme for Startups (CGSS)

Credit Guarantee Scheme for Startups functions under the trusteeship management of the National Credit Guarantee Trustee Company. To give a boost to the startup industry, the Government of India announced this scheme. It is not easy for an entrepreneur to set up a business/company. The two significant difficulties faced by them is lack of adequate funding and high-risk perception of the banks towards them. To ease the challenges faced by them, the Government launched this scheme.

This scheme is launched with a contribution of Rs.2000 crore, to enable the startups to obtain collateral-free loans to start their business. A guarantee cover is provided under this scheme for an agreed period upon the credit facility. A credit guarantee of maximum Rs.5 crore is offered to every eligible beneficiary, which includes assistance such as working capital, debentures, term loan, venture capital, etc.

CONCLUSION:

Therefore, Entrepreneurship and Skill Development programs not only make Macro and small firms self-reliant but also provides them confidence, Managerial Skills, power of decision Making and innovating goods and services so that a dignified life can be reaped out by producing and distributing them. These new ventures are giving pace to economic activities in our country and providing employment. Also, they are inculcating confidence and positive outlook regarding self- employment and entrepreneurship among common people as these small ventures are proving an important cog in the entire supply chain machinery.