Jobs: New demand-driven scheme in the works to create more entrepreneurs – The Economic Times

Clipped from: https://economictimes.indiatimes.com/jobs/new-demand-driven-scheme-in-the-works-to-create-more-entrepreneurs/articleshow/79958336.cms

SynopsisThe plan is to impart entrepreneurship development training to aspiring and existing entrepreneurs for setting up and scaling up their enterprises through 610 entrepreneurship development centres at district levels.

New Delhi: The government is readying a scheme to help create entrepreneurs and handhold young enterprises that are struggling, as it foresees the Covid pandemic taking a toll on the job market. The plan is to train more than 300,000 youth to become entrepreneurs over the next five years, facilitate loans to them and connect them to appropriate markets.

These entrepreneurs could also become job providers. The draft of the scheme, PM Udyam Mitra for Excellence in Entrepreneurship Development (PMUmeed), proposed by the skills development ministry, is being discussed among stakeholder ministries and could be finalised soon, A top government official told ET. “This will be a demand-driven scheme and states will have to pitch in to identify potential entrepreneurs and ventures that would be extended support,” the official said.

The support will be extended for 18 months after the completion of a two-month entrepreneurship development training. Once approved by the Cabinet, a steering committee will be set up for laying out the broad policy direction and operational guidelines. An executive committee will be responsible for overseeing the functioning of the scheme and approving related proposals.

The draft has been circulated among concerned ministries and one round of discussions had happened last month. The scheme could be launched next financial year starting April and would extend till 2025-26. There is a consensus that the repercussions of Covid-19 on the economy may further affect the prospects of employment generation, the official said, adding: “Hence, the need to help create an enabling ecosystem for budding and existing entrepreneurs so that new businesses can absorb the unemployed as well as new entrants in the job market.”

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The plan is to impart entrepreneurship development training to aspiring and existing entrepreneurs for setting up and scaling up their enterprises through 610 entrepreneurship development centres at district levels. Three-fourths of those selected will be new entrepreneurs, while the rest will be people who already have set up businesses but are struggling to scale up.

After two months of training, these entrepreneurs will be linked to markets and credit institutions for raising funds, and connected to a digital aggregator platform for availing of entrepreneur-related services. The Centre will facilitate market linkage with supply and value chain while monitoring the setting up and sustenance of these enterprises.

Data from the Centre for Monitoring Indian Economy showed 121 million workers had lost jobs in the first month of the lockdown. However, a huge part of these lost jobs has been recovered since then. India’s unemployment rate was 7.8% for the week ended November 22 as per the CMIE, while the government’s periodic labour force survey has pegged it at 5.8% for 2018-19.

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