6.2 Identification of Entrepreneurs and Enterprise Setup

The process of identifying entrepreneurs is broadly classified into the following steps.

Triggering Meeting

The purpose of a triggering meeting is idea generation for potential entrepreneurs. This meeting is conducted for SHG members who show interest in starting an enterprise during the SHG orientation.

The purpose of a triggering meeting is to brief the members on SVEP and generate ideas. 

• The triggering meeting is conducted in one day at the village level. 
• The meeting is held on the basis of the response received during the SHG orientation.
• CRPs-EP conduct the meeting. 
• BPM SVEP and Mentor support the CRPs-EP in preparing the sessions of the orientation.

(To see the session notes on conducting a Triggering Meeting, refer to the Annexure 5.13)

General Orientation Training (GOT)

The purpose of a GOT is to orient the entrepreneur on various aspects of running an enterprise through success stories and brief them on the support systems available to them in SVEP. A plan of action for the upcoming period is also prepared in this meeting, along with list of potential entrepreneurs. 

• GOT is conducted in one day at the block level.
• The training is held on the basis of the willingness shown by entrepreneurs during the triggering meeting.
• GOT is also conducted by the CRPs-EP. 
• BPM SVEP and Mentor support the CRPs-EP in preparing the sessions of the orientation.

(To understand the session notes on conducting GOT, refer to Annexure 5.14)

Credit Appraisal of Entrepreneurs

This is done to check the credit-worthiness of the entrepreneurs from their respective SHG and VO. An entrepreneur gets a certificate from the SHG as well as the VO. 

• This is a half day activity.
• It is done for those entrepreneurs who have attended GOT. 
• Only those entrepreneurs who are appraised and deemed fit by their SHG or VO are involved in the upcoming step

Entrepreneurship Development Programme (EDP)

The purpose of EDP is to give the entrepreneur the necessary knowledge on how to start and run a business and the importance of record-keeping in a business. It also provides awareness about the services provided by the BRC-EP and the roles of CRPs-EP. 

• EDP is a two-day activity organized at the block level.
• CRPs-EP anchor the programme.
• Only those entrepreneurs who have been appraised by SHG and VO are eligible to attend EDP. 

(To understand the session notes on conducting EDP, refer to the Annexure 5.15)

Domain Specific Skill Training

Training in domain-specific skills helps improve the way businesses are taken up by people. 

For any existing entrepreneur skill up-gradation can result in improved performance, diversification, and growth of the business.

Whereas for new entrepreneurs, it enhances their confidence and knowledge in the area of business, which again leads to improved performance and fewer chances for mistakes. 

(Refer to Annexure 6.3 for steps to be followed in BRC for conducting Skill training)

The process of Enterprise Set up includes the steps mentioned below.

1.0 Viability Study and Business Plan Preparation

CRPs-EP conduct the viability study to check how well the proposed business idea reflects the following aspects.

• Identification of customers
• Understanding of competitors
• Understanding of cost and profitability
• Assessment of capabilities
• Understanding of the environment in which the business is going to be set up. 

Once a business idea is found to viable, the CRP-EP makes a business plan for the business. The profitability aspect of the business is checked in a business plan, and the take-home income of the entrepreneur is assessed against the aspirational income.  

CRPs do the viability study and prepare a business plan on the basis of information gathered from the entrepreneur. 

For existing entrepreneurs, it is suggested to conduct a diagnostic study to understand the status and the requirements of the business. Business Plan can then be prepared on the basis of this study. 

(Refer to annexure 6.4 for understanding the format to do a viability study, and Annexure 6.5 to see the format for a business plan)

2.0 Credit Linkage Support

One of the objectives of SVEP is

‘To help the rural first-generation entrepreneurs get access to finance for starting their enterprises from the NRLM SHG and federations and the banking system, including the proposed MUDRA loan.’ 

Availing bank loans is not easy for the new enterprises; banks ask for good credit scores. Also, the process of getting bank loans is complex and requires effort at various levels to build rapport. 

To facilitate credit access, Community Enterprise Fund (CEF) has been allocated in SVEP, which is meant for giving loans to micro-enterprises. The loan from the CEF is also meant to help the entrepreneurs build their credit scores. 

Once the credit-worthiness of the entrepreneurs builds over a period of time, loans from banks can be explored.

Refer to Annexure 6.6 for activities suggested to be conducted at various levels such as SMMU, DMMU, BMMU, BRC, and CRP-EP to facilitate the bank loan process.

3.0 Start Up Support

BRC provides a set of services under SVEP to the entrepreneurs to help them start their businesses. BRC is required to provide these services through CRPs-EP. 

These services vary based on the nature and the requirement of the business. 

Let us look at some of the services provided to the new businesses.

• Support in identifying sources of raw materials,
• Support in preparing a banner and other promotional activities
• Help with registration on Udyam’s portal (This is the only government portal for MSME registration)
• And more

(Refer to Annexure 6.7 for a list of suggested start up support activities with details and documentation required)