STARTUP VILLAGE ENTREPRENEURSHIP PROGRAM

STARTUP VILLAGE ENTREPRENEURSHIP PROGRAM

Why in News?

• As of 30 June 2026, the Start-up Village Entrepreneurship Programme (SVEP) has supported 32 lakh rural enterprises across India.
• The programme has emerged as an effective model for grassroots entrepreneurship, poverty reduction, employment generation and rural economic development.

ABOUT SVEP

• SVEP was launched in 2016.
• It is a sub-scheme of the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM).
• The programme promotes non-farm rural enterprises by supporting Self-Help Groups (SHGs) and their family members in establishing small businesses.
• It provides:
  • Financial assistance.
  • Institutional support.
  • Business management training.
  • Soft skill development.
  • Business development services.

• It also facilitates:
  • Bank linkages.
  • Convergence with government schemes.
  • Community-based enterprise promotion.

OBJECTIVES

• Promote rural entrepreneurship.
• Support non-farm enterprises.
• Generate sustainable livelihoods.
• Create self-employment opportunities.
• Reduce rural poverty.
• Strengthen local economies through community institutions.

KEY FEATURES

Community-led Enterprise Promotion

• Funding and enterprise support are based on community-led decision-making.
• Community institutions identify entrepreneurs and provide continuous handholding support.

Financial Support

• Facilitates:
  • Bank credit.
  • Community Enterprise Fund (CEF).
  • Convergence with schemes such as Pradhan Mantri Mudra Yojana.

Institutional Support

• Provides:
  • Training.
  • Mentoring.
  • Business planning.
  • Enterprise management support.
  • Credit facilitation.

Digital Support

• Digital tools are used for:
  • Business planning.
  • Loan appraisal.
  • Enterprise tracking.

IMPLEMENTATION MECHANISM

State Rural Livelihood Missions (SRLMs)

• SVEP is implemented through State Rural Livelihood Missions (SRLMs).
• Financial provision:
  • ₹6.50 crore per block.
  • Average investment of ₹27,083 per enterprise.

Block Resource Centres–Enterprise Promotion (BRC-EPs)

• Coordinate programme implementation at the block level.

Community Resource Persons–Enterprise Promotion (CRP-EPs)

• Provide:
  • Technical assistance.
  • Mentoring.
  • Training.
  • Credit facilitation.
• At least:
  • 90% selected from SHG households.
  • 60% are women.
• Each CRP-EP supports up to 50 enterprises.

ROLE OF SHG

• Identify potential entrepreneurs.
• Facilitate enterprise establishment.
• Manage loans through the Community Enterprise Fund (CEF).
• Monitor enterprise performance.

BENEFICIARY SELECTION

• Entrepreneurs are selected based on:
  • Need.
  • Poverty status.
  • Entrepreneurial potential.
• Beneficiaries receive:
  • Training.
  • Mentoring.
  • Financial support.
• Programme mandates:
  • At least 60% women beneficiaries.
  • Representation of SC, ST, Minority communities and Persons with Disabilities (PwDs).

ACHIEVEMENTS

• 4.32 lakh rural enterprises supported.
• Around 86% of entrepreneurs belong to:
  • SC.
  • ST.
  • Minority.
  • OBC communities.
• Highest number of enterprises supported in:
  • Assam.
  • Bihar.
  • Jharkhand.
  • West Bengal.
  • Madhya Pradesh.

MONITORING

• Monitored through:
  • Quarterly reviews.
  • Periodic assessments.
  • Centralised Management Information System (MIS) for:
    • Enterprise performance.
    • Fund utilisation.
    • Programme progress.

IMPACT ASSESSMENT

Major Findings

• 99% of SVEP-supported enterprises were profitable.
• Enterprises contributed 57% of total household income.
• Average monthly enterprise revenue: ₹39,000.
• Manufacturing enterprises earned an average of ₹47,800 per month.
• 96% of entrepreneurs reported increased savings.
• 75% of enterprises were owned or managed by women.

Social Impact

• Promoted first-generation entrepreneurship.
• Improved confidence and livelihood security.
• Enhanced:
  • Education.
  • Nutrition.
  • Health.
  • Sanitation.
• Increased savings and long-term enterprise growth.
• Improved social status of beneficiaries.

ABOUT DAY NRLM

Deendayal Antyodaya Yojana–National Rural Livelihoods Mission

• One of the world’s largest livelihood programmes.
• Mobilises rural poor households into Self-Help Groups (SHGs), predominantly women.
• Focuses on:
  • Sustainable livelihoods.
  • Financial inclusion.
  • Skill development.
• As of mid-June 2026, more than 29 crore rural households had been mobilised into SHGs.

SIGNIFICANCE

• Promotes grassroots entrepreneurship and inclusive rural development.
• Generates local employment through non-farm enterprises.
• Empowers women and socially disadvantaged communities.
• Strengthens community-based institutions.
• Contributes to the vision of Atmanirbhar Bharat and a vibrant rural start-up ecosystem.

Note: Connect with Vajirao & Reddy Institute to keep yourself updated with latest UPSC Current Affairs in English.

Note: We upload Current Affairs Except Sunday.