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Startup Village Entrepreneurship Prog… — Govt Scheme for UPSC | Vaidra
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Startup Village Entrepreneurship Programme

Ministry of Rural DevelopmentactiveemploymentLaunched: 2016-01-01

About the Scheme

A sub-scheme under the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM) launched in 2016, aimed at supporting rural poor to come out of poverty by setting up their own enterprises. It focuses on promoting non-farm enterprises in rural areas.

Target Beneficiaries: 5 lakh rural poor households (75% women entrepreneurs, 82% from SC/ST/OBC categories) through SHG members and families setting up non-farm sector enterprises across 205 blocks in 160 districts

Implementing Agency: Ministry of Rural Development, Government of India through State Rural Livelihood Missions (SRLMs) and National Rural Livelihoods Mission (NRLM).

Official Website →

✦Key Features

  • Promotes non-farm enterprises in rural areas, fostering local economic development.
  • Leverages the existing network of Self-Help Groups (SHGs) under DAY-NRLM for outreach and implementation.
  • Provides financial support through a Community Enterprise Fund (CEF) and facilitates linkages with banks for credit.
  • Offers business management and technical advisory services through trained Community Resource Persons-Enterprise Promotion (CRP-EP).
  • Focuses on building local community cadres to provide sustained support for enterprise promotion and management.

✓Eligibility Criteria

  • Members of Self-Help Groups (SHGs) under DAY-NRLM.
  • Rural poor households, especially women and marginalized sections, aspiring to start or expand enterprises.
  • Individuals interested in establishing non-farm micro-enterprises in rural areas.

★Benefits

  • Access to capital for setting up and scaling enterprises, reducing financial barriers.
  • Skill development and capacity building for entrepreneurs in business management and technical aspects.
  • Mentorship and advisory support for business planning, execution, and problem-solving.
  • Improved market linkages for rural products and services, enhancing profitability.

▶Application Process

  • Identification of potential entrepreneurs by Community Resource Persons (CRPs) at the village level.
  • Preparation of detailed business plans with technical and advisory support from CRPs.
  • Submission of proposals to Block/District Level Project Management Units for approval.
  • Approval of proposals and disbursement of financial assistance from the Community Enterprise Fund (CEF) or through bank linkages.
  • Ongoing mentoring, monitoring, and support for enterprise growth and sustainability.

₹ Budget Allocation

Part of the overall budget allocated for the Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).

Funding Ratio (Centre:State): 60:40 (General States), 90:10 (NE and Hilly States)

UPSC Relevance

GS Paper: GS2

Prelims Relevance7%
Mains Relevance9%

Syllabus Tags

National Rural Livelihood Mission (NRLM)Rural DevelopmentSelf-Help Groups (SHGs)Poverty AlleviationInclusive GrowthWomen EmpowermentMicro, Small and Medium Enterprises (MSMEs)Skill India Mission

Historical Context

Launched in 2016 as a sub-component of the National Rural Livelihoods Mission to address the stagnation in rural farm incomes by promoting the non-farm sector.