Year of Enterprises 2.0
The Government of Kerala declared the year 2022-23 as the year of entrepreneurship to start one lakh micro small and medium enterprises (MSME) in the state. The project achieved its target within 245 days. As of 31st March 2023 there were 139,837 new MSMEs established in the state with an employment generation of 300,020. The Entrepreneurship Year 2.0 aims to launch one lakh new enterprises in the next financial year (2023-24) following the same model.
The Year of Enterprises 2.0 has the following objectives:
- To create one lakh new MSMEs in the state of Kerala in the financial year 2023-24.
- To provide financial and marketing support to MSMEs.
- To enhance the skills and knowledge of entrepreneurs and build their confidence.
The following activities will be carried out in the financial year 2023-24 to achieve the objectives of the Year of Enterprises 2.0:
1. Planning and Awareness (April – June 2023):
District-wise target setting will be done through bottom-up planning. Monitoring Committee meetings will be conducted at district and local body levels to review the performance of the previous year. A detailed action plan will be formulated for the financial year 2023-24. Public orientation campaigns will be conducted for entrepreneurs in all local bodies.
2. Loan, License, and Subsidy Campaign (July – Sept 2023):
A campaign will be launched in all local bodies to provide information and support regarding loans, licenses, and subsidies available for MSMEs.
3. Marketing Campaign at Local Body Level (Oct – Dec 2023):
A marketing campaign will be conducted in all local bodies to promote the products and services of MSMEs. The campaign will use various media such as print, electronic, and social media.
4. Mentoring, Networking, and Confidence Building (Jan – Mar 2024):
A mentoring system will be launched where mentors and MSMEs will be registered. An MSME Networking Portal (Kerala Global Linker) will be introduced where MSMEs (new and existing) of all local bodies will be registered. MSME meets will be conducted regularly to provide a platform for MSMEs to network and share their experiences.
The Year of Enterprises 2.0 aims to create one lakh new MSMEs in the state of Kerala in the financial year 2023-24. The government is committed to providing financial and marketing support to MSMEs and enhancing the skills and knowledge of entrepreneurs. Through the implementation of the action plan, the government aims to build a vibrant entrepreneurial ecosystem in the state.
Ensuring Sustainability of Enterprises in Kerala
The Kerala government launched the Entrepreneurial Year scheme in 2022-23 with the aim of creating one lakh new enterprises in a year. The scheme has been highly successful, with 139,837 new MSMEs created and 300,020 jobs generated as of March 31, 2023. The next step is to ensure the success and sustainability of the newly formed enterprises.
The government plans to implement the MSME Sustainability Plan in FY 2023-24 with the following objectives:
- Ensure sustainability of enterprises formed as part of the Entrepreneurial Year scheme
- Ensure that at least 70% of the new MSMEs in the state operate successfully
- Ensure 5% growth rate in turnover of new MSMEs in the state
In order to achieve the above objective, both short term and long-term activities are envisaged to be undertaken.
Short term activities
The short-term activities proposed to be implemented in the financial year 2023-24 include the following major steps:
- Current Status Assessment & Need Assessment Survey of MSMEs:
At this stage, the situation of newly formed enterprises will be mapped, and a needs assessment survey will be conducted. The information gathered will be recorded in a sustainability portal specially developed for this purpose. The survey will gather information on the operational status of the enterprise, challenges/problems faced, reasons for closure, plans for revival of non-functional units, assistance required/other special needs.
- Special campaigns:
Special campaigns will be conducted for MSMEs based on the findings of the needs assessment survey. Refresher sessions of general orientation trainings will be conducted which will include classes on finance, marketing, technology, licensing, industry prospects, potential for cluster development, new and innovative business ideas, etc. Campaigns to expedite loan applications of MSMEs in coordination with banks and financial institutions Marketing campaigns aimed at enabling MSMEs to position their products/services in the market. A special drive will be undertaken to locate and enroll supermarkets and civil supplies outlets in each local body to facilitate installation of MSME products.
- Capacity building:
Training sessions on finance, marketing, technology, quality control, and regulatory aspects of business will be provided to MSMEs based on the feedback from the needs assessment survey. Special trainings/workshops on innovative business ideas, potential business opportunities in various sectors, etc. will be conducted at taluk level. Campaigns will be conducted to create awareness among MSMEs about the benefits of doing business in partnership mode.
- Mentorship and Networking:
A statewide network of mentors from the business community will be developed to mentor the next generation of entrepreneurs. A mentorship portal will be developed where existing MSMEs and people interested in becoming mentors can register and connect with each other. Promotion of the portal will be done through industrial associations. District/Taluk wise conclaves of new and existing entrepreneurs will be conducted for networking. Documentation and publication of case-studies on MSME success stories will be done. Monitoring committee meetings will be held at state, district and local body levels to review sustainability activities.
Long term activities
The Long-term activities to ensure sustainability of MSMEs include:
- Automated System for MSME Performance Monitoring:
An online portal will be developed to analyze various performance indicators of MSMEs like GST bill and utility payments and identify MSMEs facing problems in their performance. This information will be used to develop appropriate intervention measures to prevent MSMEs from going out of business.
- State level networking cluster:
A state-level networking cluster will be created to promote collaboration and partnership among MSMEs.
- Permanent marketing infrastructure at taluk level:
Permanent marketing infrastructure will be created at taluk level to promote MSME products and services.
- MSME Networking Portal (Global Linker Model)
An MSME networking portal based on the Global Linker model will be developed to provide a platform for MSMEs to connect, collaborate and grow their businesses.
- Special incentives
Special schemes like financial assistance for patents and trademarking, interest-free loans, SGST exemption for 3 years, stamp duty and registration charges reimbursement and power tariff subsidy for 5 years, etc. will be introduced.