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Initiatives taken by Ministry of Skill Development and Entrepreneurship to promote a supportive entrepreneurship ecosystem

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Initiatives taken by Ministry of Skill Development and Entrepreneurship to promote a supportive entrepreneurship ecosystem

The Government of India has taken up various initiatives to create a more inclusive entrepreneurial ecosystem through entrepreneurship education, training, advocacy and easy access to entrepreneurship network.

The Ministry of Skill Development and Entrepreneurship (MSDE) has been working for promoting entrepreneurship development amongst women, marginalized communities, and individuals from lower socio-economic backgrounds in the country through its Autonomous Institutes, namely, National Institute for Entrepreneurship and Small Business Development (NIESBUD) and Indian Institute of Entrepreneurship (IIE). MSDE has taken up various initiatives in fostering a supportive entrepreneurship ecosystem comprising of interventions to build entrepreneurial mindset and capabilities and to help and grow enterprises.

As per the National Skill Development and Entrepreneurship Policy 2015, the entrepreneurship policy framework has been developed to create an enabling ecosystem of culture, finance, expertise, infrastructure, skills and business friendly regulations.

The Ministry has given special focus to the inclusion of Scheduled Castes (SC) and Scheduled Tribes (ST), minorities, differently-abled, across the country including rural areas, LWE areas, vibrant villages, North Eastern India and border areas in entrepreneurship programs. These groups are prioritized for delivery of entrepreneurship awareness and development programmes. Special initiatives have been taken up to build entrepreneurial capacity for women.

Special efforts are made to enroll incubators and mentors, catering to these groups in the Entrepreneurship Development Programmes (EDP) and Entrepreneurship Skill Development Programmes (ESDP) across the country.

The Government, through various EDP and ESDP programmes has enhanced the skills of participants through interventions such as Digital Marketing, Financial/Credit and Market Linkages and Industry connect.

For providing mentorship support, a national network of mentors from the field of industry, successful entrepreneurs, experts from the banking and financial institutions etc have been created. These mentors provide guidance and handholding support to budding entrepreneurs.

Startup India aims to build a strong and diverse startup ecosystem which includes various stakeholders. With a dedicated motive to fuel business, innovation, and economic growth, Startup India has facilitated beneficial bridges and long-term associations between startups, governments, and corporate which have helped nurture the expansion and development of startups. This includes enabling collaborations and engagements with corporates specifically with respect to organizing events, acceleration programs, innovation challenges, hackathons, and workshops on an ongoing basis for stakeholders to discover, connect and engage with each other. All collaborations are evaluated and undertaken depending upon the requirements of the ecosystem and the scope and effectiveness of the collaboration, keeping in view the larger objective of enabling greater outreach, visibility, market linkages, knowledge sharing, and co-creation amongst all stakeholders of India’s startup ecosystem.

The details of the various initiatives taken by MSDE to promote a supportive entrepreneurship ecosystem are at Annexure-I. Further, in addition to these initiatives, various Ministries/Departments of Government of India have taken several initiatives to promote entrepreneurship in the country. The details are at Annexure-II.

Annexure – I

 

Some of the key initiatives taken up by the Ministry of Skill Development and Entrepreneurship (MSDE) for creating a more inclusive Entrepreneurship ecosystem

1.         Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) – MSDE through its autonomous institutes – NIESBUD and IIE is implementing the skilling and entrepreneurship component of Pradhan Mantri Janjati Adivasi Nyay Maha Abhiyaan (PM-JANMAN), a scheme of the Ministry of Tribal Affairs for upliftment of Particularly Vulnerable Tribal Groups (PVTGs). The project is being undertaken as a Special Project under Pradhan Mantri Kaushal VikasYojana (PMKVY). The project is being implemented with support of Tribal Cooperative Marketing Development Federation of India (TRIFED) in 18 States and one Union Territory across the country.

2.         Capacity Building Programme for Fair Price Shop Owners – MSDE, in collaboration with Department of Food and Public Distribution, Ministry of Consumer Affairs, Food and Public Distribution, has undertaken a project of Capacity Building Programme for Fair Price Shop (FPS) Owners. The programme will cover 3000 FPS owners at PAN India level in its first phase. The first batch of Capacity Building was conducted from 27th May to 31st May 2024. The project is being undertaken as a Special Project under PMKVY. The programme has been designed by NIESBUD in collaboration with Department of Food and Public Distribution to enable the FPS owners to run their businesses in consonance with the contemporary practices being adopted by Retail Entrepreneurs. The programme aims to equip the participants with in-depth knowledge of various facets of entrepreneurship, financial and digital literacy, and government support ecosystem.

3.         Strengthening Entrepreneurial Climate through Capacity Building, Incubation Support, Mentoring and Handholding under SANKALP Scheme – MSDE through NIESBUD and IIE has been working for the empowerment, upliftment and development of entrepreneurs including Scheduled Castes (SCs) and Scheduled Tribes (STs) across the country. The project is implemented for strengthening the entrepreneurship ecosystem of different marginalized sections of the society.

4.         Entrepreneurial Climate through Training of Trainers (ToTs) and Entrepreneurship Development Programme (EDP) in Jan Shikshan Sansthans (JSSs) – MSDE through NIESBUD is creating Entrepreneurial Climate through Training of Trainers (ToTs) and Entrepreneurship Development Programme (EDP) in Jan Shikshan Sansthans (JSSs). The project had different components as Training of Trainers Programmes for 2000 trainers of JSS and Entrepreneurship Development Programmes to impart training among 4000 JSS Trainees which was undertaken during the Financial Year 2022-23. The project was aimed at creating, fostering and promoting the spirit of entrepreneurship among the various target groups through Capacity Building, Incubation Support, Mentoring and Handholding.

5.         Rashtriya Udyamita Vikas Pariyojana on Pilot Basis for PM Svanidhi Beneficiaries – MSDE has collaborated with Ministry of Housing and Urban Affairs (MoHUA) to train PM-SVANidhi beneficiaries through pilot project- Rastriya Udyamita Vikas Pariyojana. The project is being implemented by NIESBUD and IIE. The project which had commenced from February 2024, has an outlay to train 2050 beneficiaries of PM SVANidhi and includes one week of classroom program and 21 weeks of mentoring and hand-holding support.

6.         Entrepreneurship Development among Jail Inmates – NIESBUD is implementing a project for “Promoting Entrepreneurship Development among Jail Inmates; which includes value added skill up gradation, product innovation & development; and Strengthening of Livelihood Business Incubation Centre at Jails. With the support of Ministry of Skill Development and Entrepreneurship, the spirit of entrepreneurship was promoted among the Jail Inmates through Capacity Building, Mentoring, Handholding and Incubation Support.

7.         STRIVE Project – Under the Skill Strengthening for Industrial Value Enhancement (STRIVE) project of MSDE, NIESBUD and IIE conducted Entrepreneurship Awareness, Entrepreneurship Development Programme, Mentoring, and Handholding of trainees (and future trainers) in Industrial Training Institute (ITIs) and National Skill Training Institute (NSTIs) across India. Both the institutes have conducted Entrepreneurship Awareness Programmes (EAP) and Entrepreneurship Development Programmes (EDP) for 96241 beneficiaries as of May 2024. They have also provided mentoring and handholding support after the completion of the EDP to support trainees for the establishment of their enterprises. Additionally, the Institutes continue to extend handholding support to the beneficiaries for a period of one year.

 

Annexure-II

Details of initiatives taken up by various Ministries/Department of the Government of India for promoting Entrepreneurship

1.         Department for Promotion of Industry and Internal Trade (DPIIT) under Ministry of Commerce and Industry – The Government with intent to build a strong ecosystem for nurturing innovation and encouraging investments launched the Startup India initiative on 16th January 2016. As per eligibility conditions prescribed under G.S.R. notification 127 (E) dated 19th February2019, entities are recognized as ‘startups’ under the Startup India initiative by the DPIIT. DPIIT has recognized 1,40,803 entities as startups as on 30th June 2024. For attaining specific objectives, various programs are implemented by the Government under the Startup India initiative. All the steps undertaken by the Government under the initiative are inclusive and are implemented across age-groups, States/Union Territories (UTs), cities, towns, and rural areas. The recognized startups have reported to have created over 15.5 lakh direct jobs. There are recognized startups from every State and UT of the country. The details of various programs undertaken by the Government to promote startups across the country are as under:

 

3. Ministry of Rural Development (MoRD) – Start-up Village Entrepreneurship Programme (SVEP), a sub-scheme under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) programme supports the Self-Help Groups (SHGs) and their family members to set-up small enterprises in the non-farm sector. SVEP develops an eco-system for enterprise development in rural areas, with SHG households, which includes Community Enterprise Fund (CEF) (a dedicated fund for providing loans to entrepreneurs) and Cadre of Community Resource Persons-Enterprise Promotion (CRP-EP) for providing Business Support Services. Under SVEP, theproject cost for one block is Rs 6.50 Crore (inclusive of Government of India and State Share) out of which Government of India (GoI) share is 90% for North Eastern Region (NER) and Hilly states while it is 60% for the remaining States.

 

 

 

Senior-care Ageing Growth Engine (SAGE) component of AVYAY-CS scheme is implemented to promote out-of-the-box and innovative solutions for the commonly faced problems, innovative start-ups are identified and encouraged for developing products, processes and services for the welfare of the elderly. The selected start-ups/Start-up ideas are provided equity support of up to Rs. 1 Crore per project while ensuring that the total Government equity in the start-up does not exceed 49%. The initiative is implemented through IFCI Venture Capital Funds Limited (Investment Manager).

 

 

TRIFED provides backward & forward linkages to tribal artisans / suppliers for marketing of tribal products of various categories like metal craft, textile, jewellery, painting, cane & bamboo, terracotta & pottery, organic & natural food products etc. through online and offline platforms. In addition, TRIFED also organizes and participates in festivals, melas etc. to provide platforms to the tribal artisans to showcase their products and connect them to the potential buyers giving thereby an opportunity to enhance their entrepreneurship activities.

 

National Scheduled Tribes Finance and Development Corporation (NSTFDC), a Central Public Sector Enterprise (CPSE) under the Ministry of Tribal Affairs, provides credit linkage by extending concessional loans to the eligible Scheduled Tribe persons for undertaking income generation activities/ self-employment thereby instilling the spirit of entrepreneurship. The prominent schemes of NSTFDC are given as under:

 

 

8. Ministry of Food Processing Industries (MoFPI) – MOFPI is implementing a Centrally Sponsored Scheme namely Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) that is designed to address the challenges faced by the micro enterprises and to tap the potential of groups and cooperatives in supporting the upgradation and formalization of these enterprises. The Scheme has a Capacity Building component, which envisages providing 24 Hours/ 3 Days, Food Processing EDP (Entrepreneurship Development Programme) Training for, all applicants viz individuals and Groups (SHGs/ FPOs/ Cooperatives) recommended for availing credit linked grant by District Level Committee (DLC) and 8 hours/1 day training to SHG beneficiaries of Seed Capital under PMFME scheme engaged in micro food processing.

 

9. Department of Financial Services – Pradhan Mantri Mudra Yojana (PMMY) was launched on 08.04.2015 to extend collateral free credit up to Rs.10 lakh by Member Lending Institutions (MLIs), i.e., Scheduled Commercial Banks (SCBs), Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs). Any individual, who is otherwise eligible to take a loan and has a business plan for small business enterprise can avail loan under the Scheme for income generating activities in the manufacturing, trading, service sectors including activities allied to agriculture across three loan categories, viz. Shishu (loans up to Rs. 50,000/-), Kishor (loans above Rs. 50,000/- and up to Rs. 5 lakh) and Tarun (loans above Rs. 5 lakh and up to Rs. 10 lakh).

 

This information was given by the Minister of State (Independent Charge), Ministry of Skill Development, and Entrepreneurship Shri Jayant Chaudhary in a written reply in the Rajya Sabha today.

  1. Startup India Action Plan: An Action Plan for Startup India was unveiled on 16th January 2016. The Action Plan comprises of 19 action items spanning across areas such as “Simplification and handholding”, “Funding support and incentives” and “Industry-academia partnership and incubation”. The Action Plan laid the foundation of Government support, schemes and incentives envisaged to create a vibrant startup ecosystem in the country.
  2. Startup India: The Way Ahead: Startup India: The Way Ahead at 5 years celebration of Startup India was unveiled on 16th January 2021 which includes actionable plans for promotion of ease of doing business for startups, greater role of technology in executing various reforms, building capacities of stakeholders and enabling a digital Aatmanirbhar Bharat.
  3. Startup India Seed Fund Scheme (SISFS): Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise. The capital required at this stage often presents a make-or-break situation for startups with good business ideas. The Scheme aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. Rs. 945 crore has been sanctioned under the SISFS Scheme for period of 4 years starting from 2021-22.
  4. Fund of Funds for Startups (FFS) Scheme: The Government has established FFS with corpus of Rs. 10,000 crore, to meet the funding needs of startups. DPIIT is the monitoring agency and Small Industries Development Bank of India (SIDBI) is the operating agency for FFS. The total corpus of Rs. 10,000 crore is envisaged to be provided over the 14th and 15th Finance Commission cycles based on progress of the scheme and availability of funds. It has not only made capital available for startups at early stage, seed stage and growth stage but also played a catalytic role in terms of facilitating raising of domestic capital, reducing dependence on foreign capital and encouraging home grown and new venture capital funds.
  5. Credit Guarantee Scheme for Startups (CGSS): The Government has established the Credit Guarantee Scheme for Startups for providing credit guarantees to loans extended to DPIIT recognized startups by Scheduled Commercial Banks, Non-Banking Financial Companies (NBFCs) and Venture Debt Funds (VDFs) under SEBI registered Alternative Investment Funds. CGSS is aimed at providing credit guarantee up to a specified limit against loans extended by Member Institutions (MIs) to finance eligible borrowers viz. DPIIT recognised startups.
  6. Regulatory Reforms: Over 55 regulatory reforms have been undertaken by the Government since 2016 to enhance ease of doing business, ease of raising capital and reduce compliance burden for the startup ecosystem.
  7. Ease of Procurement: To enable ease of procurement, Central Ministries/ Departments are directed to relax conditions of prior turnover and prior experience in public procurement for all DPIIT recognised startups subject to meeting quality and technical specifications. Further, Government e-Marketplace (GeM) also facilitates and promotes procurement of products and services by the Government from startups.
  8. Self-Certification under Labour and Environmental laws: Startups are allowed to self-certify their compliance under 9 Labour and 3 Environment laws for a period of 3 to 5 years from the date of incorporation.
  9. Income Tax Exemption for 3 years: Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The recognized startups that are granted an Inter-Ministerial Board Certificate are exempted from income-tax for a period of 3 consecutive years out of 10 years since incorporation.
  10. Faster Exit for Startups: The Government has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies.
  11. Exemption for the Purpose Of Clause (VII)(b) of Sub-section (2) of Section 56 of the Act (2019): A DPIIT recognized startup is eligible for exemption from the provisions of section 56(2)(viib) of the Income Tax Act.
  12. Support for Intellectual Property Protection: Startups are eligible for fast-tracked patent application examination and disposal. The Government launched Start-ups Intellectual Property Protection (SIPP) which facilitates the startups to file applications for patents, designs and trademarks through registered facilitators in appropriate IP offices by paying only the statutory fees. Facilitators under this Scheme are responsible for providing general advisory on different IPRs, and information on protecting and promoting IPRs in other countries. The Government bears the entire fees of the facilitators for any number of patents, trademark or designs, and startups only bear the cost of the statutory fees payable. Startups are provided with an 80% rebate in filing of patents and 50% rebate in filling of trademark vis-a-vis other companies.
  13. Startup India Hub: The Government launched a Startup India Online Hub on 19th June 2017 which is one of its kind online platform for all stakeholders of the entrepreneurial ecosystem in India to discover, connect and engage with each other. The Online Hub hosts Startups, Investors, Funds, Mentors, Academic Institutions, Incubators, Accelerators, Corporates, Government Bodies and more.

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