Block Nodal Society for Enterprise Promotion (BNSEP) & Block Resource Centre (BRC)
The Block Nodal Society for Enterprise Formation forms one of the primary components of SVEP implementation. In Kerala the 3 tier Kudumbashree CBO structure is organized at the Local Self Government level. Hence a separate institution has been created at the block level for implementation of SVEP. This block level institution has representation from all CDS in that block. Since this institution will be working primarily for development of micro enterprises, it is known as ‘Block Nodal Society for Enterprise Promotion (BNSEP). The BNSEP monitors and manages the CRP-EPs/MECs, appraises SVEP loan applications and acts as the repository of enterprise related information in the block.
Block Resource Centre for enterprise formation (BRC) and MEC (Micro Enterprises Consultants) are coterminous, such that BRC becomes a physical space to be used by the MEC to provide the required enterprise-based support. BRC and MEC network works in creating a knowledge and consultancy ecosystem in the villages which are easily approachable. The services are paid which enables sustainability in the systems.
Rebuild Kerala Initiative (RKI) - Entrepreneurship Development Programme (EDP)
Kerala witnessed behemoth floods during the year 2018. The floods washed away not only assets but also hopes of multitudes. The following year also Kerala had to bear the wrath of floods again even if it was not in the same scale. To combat the devastation caused by the floods on life and property, the Government of Kerala with World Bank funding introduced Rebuild Kerala Development Program. Kudumbashree, a pioneer organization in providing livelihood opportunities to millions especially women, is also a partner in the Rebuild Kerala Initiative, along with other Government Departments. Kudumbashree envisaged to provide disaster relief to 2,00,000 beneficiaries and to create livelihood opportunities to 1,60,000 beneficiaries. Kudumbashree devised two programs to aid her members who were affected by floods –
I. providing disaster relief fund for immediate relief and
II. livelihood programs to provide a helping hand to those who lost their livelihood.
Under livelihood programs, Kudumbashree decided to implement Start-up Village Entrepreneurship Programme model project called RKI Entrepreneurship Development Programme (RKI EDP) as one of the project.
Start-up Village Entrepreneurship Programme (SVEP) is one of the flagship livelihood support programme presently implemented by Kudumbashree in 14 blocks across Kerala. The design of the programme helps in developing and sustaining nonfarm livelihoods for the poor. Based on the success of the implementing the SVEP and analyzing the results, it has been decided that SVEP model-based support will be appropriate for the post flood livelihood support in the identified blocks. Under this project, it is planned to roll out the RKI EDP in 14 flood affected blocks, which will lead to establishment of more than 16,800 new enterprises in both farm and nonfarm sectors. More than 300 micro enterprises consultants (MECs) will be identified and trained under the project, which will later own up the project.
SVEP - Enterprise Formation
Livelihood support for the NHG members forms one of the major objective of the SVEP. The project builds and supports early-stage rural enterprises by providing them with a range of critical services, such as business development support, mentoring, finance, as well as access to the banking system along with guidance for convergence and integration with other government schemes. All this is based on the conviction that SVEP will give a push to non-farm livelihoods, especially skill based work and small enterprises, thereby creating jobs and stimulating long-term economic growth and produce social benefits. Above all, the programme is so designed as to democratise entrepreneurship by putting funding decisions into the hands of community based organisations themselves.
Community Enterprise Fund (CEF) and access to Formal Banking Sector
Community Enterprise Fund (CEF) is designed to deliver soft loans to entrepreneurs to satisfy their entrepreneurial needs with very small interest rates. It will help to enhance credit worthiness of the village entrepreneurs and also showcase the ability of the community institution led enterprise capital provisions to demonstrate disciplined credit behavior. This will also enhance bank’s confidence in the unorganized sector. It is a dedicated fund which cannot be diverted to other uses.
Enterprise groups are also eligible for availing loan either singly or through the group mechanism against mutual guarantee, from the formal banking sector including the MUDRA loan.
Enterprise Formalization - SVEP
Enterprise formalization refers to a process that firms go through when formalizing their business. It has various dimensions like, Registration and licensing with the national, provincial and municipal authorities; Access to social security for the business owner and his/her employees: Compliance with the legal framework, including tax, social security and labor laws etc.
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