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Year of Enterprises 2.0

Year of Enterprises 2022-23: One Lakh Enterprises

Year of Enterprises 3.0

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Year of Enterprises 3.0

The 'Year of Enterprises 3.0' is the third edition of the flagship initiative by the Department of Industries, Government of Kerala. This ambitious program aims to establish at least 1,00,000 enterprises in the state during the financial year 2024-2025. Building on the successful systems established over the past two years, this initiative envisages to further strengthen enterprise facilitation and introduce various attractive support measures to foster a thriving entrepreneurial ecosystem in the State. As of 31st March 2024 there were 2,43,435   MSMEs established in the state with an employment generation of 5,18,228. The Entrepreneurship Year 3.0 aims to launch one lakh new enterprises in the next financial year (2024-25) following the same model.

The Year of Enterprises 3.0 has the following objectives:

  • To create one lakh new MSMEs in the state of Kerala in the financial year 2024-25.
  • 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 2024-25 to achieve the objectives of the Year of Enterprises 3.0:

  1. Planning and Awareness (April – June 2024):

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 2024-25. Public orientation campaigns will be conducted for entrepreneurs in all local bodies.

  1. Loan, License, and Subsidy Campaign (July – Sept 2024):

A campaign will be launched in all local bodies to provide information and support regarding loans, licenses, and subsidies available for MSMEs.

  1. Marketing Campaign at Local Body Level (Oct – Dec 2024):

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.

  1. Mentoring, Networking, and Confidence Building (Jan – Mar 2025):

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 3.0 aims to create one lakh new MSMEs in the state of Kerala in the financial year 2024-25. 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 2,43,435 new MSMEs created and 5,18,228 jobs generated as of March 31, 2024. 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 2024-25 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 2024-25 include the following major steps:

      1. 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.

     2. 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.

     3. 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.

     4. 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:

     1. 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.

     2. State level networking cluster:

A state-level networking cluster will be created to promote collaboration and partnership among MSMEs.

     3. Permanent marketing infrastructure at taluk level:

Permanent marketing infrastructure will be created at taluk level to promote MSME products and services.

     4. 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.

     5. 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.

Initial Research & Background works

  • July 2024 –Campus Industrial Parks - Scheme Launch +

    Campus Industrial Parks Scheme launch

    On 24th July 2024, the Government of Kerala launched the Campus Industrial Parks scheme which aims to establish industrial parks within educational institutions across the state to addressthe dual issues of limited industrial land and the disconnect between academia and industry.

    Shri. P Rajeeve, Hon’ble Minister for Law, Industries and Coir inaugurated the State Industries Department's programme held at the Hotel Residency, Thiruvananthapuram. He called the launch as an historic step that would significantly impact the future of industries in Kerala.

    The decision to launch the Campus Industrial Parks scheme was taken as a collaborative effort between the Department ofIndustries and Department of Higher Education, based on the survey reports which revealed that many educational institutions in Kerala possess excess land beyond the required area set by governing authorities."In Kerala, the non-availability of land and its high cost are hindrances to the development of industrial infrastructure. So, we explored ideas to find land and came up with the concept of starting campus industry parks," Hon’ble Minister said.

    The campus industry parks aim to strengthen academic frameworks by providing students with practical, hands-on training directly related to their courses.To support the development of Campus Industrial parks, the government will offer infrastructure development incentives amounting to Rs.1.5 crore per institution.

    Shri. Mohammed Haneesh IAS, Principal Secretary (Industries), Shri. S Harikishore IAS (Director, Industries and Commerce) were also present at the event.

  • September 2024 –RAMP scheme Roll Out Workshop +

    State-level rollout workshop on the RAMP programme

     The state-level rollout workshop on the World Bank-supported Raising and Accelerating MSME Performance (RAMP) programme being implemented by the Ministry of MSME, Government of India, for scaling up MSMEs across the countrywas held on 04thSeptember 2024 at the Uday Palace Convention Center, Thiruvananthapuram.

    The RAMP scheme aims to scale up the implementation capacity and coverage of MSMEs in the States, with impact enhancement of existing schemes. The programme envisages fostering innovation, encouraging ideation, and incubating new business and entrepreneurship by developing quality standards, improving practices and processes, enhancing market access, deploying technological tools, and Industry 4.0 to make MSMEs competitive and self-reliant. An amount of Rs.107 Crore has been approved by the Centre as grant to be provided to the State for undertaking various activities under the RAMP scheme.

    The workshop was inaugurated by the Hon’ble Minister for Industries, Law and Coir, Shri. P Rajeeve. The presidential address was made by Shri. S. Harikishore IAS, Director Industries & Commerce.Dr. K R Rajeshwary, Deputy Director, Ministry of MSME, and Dr. Milan Sharma, National PMU Head, RAMP made presentations on RAMP scheme.Shri. Shabeer M, Deputy Director (TC), Directorate of Industries and Commerce made a presentation on the implementation of the RAMP project in Kerala.

    While Shri. Manesh Mohan,Business Facilitator, GeMmade a presentation onthe government e-market place, Shri. Premraj P, Deputy Director (FC), Directorate of Industries and Commerce made a presentation on Kerala Industrial Policy and incentives.

    Shri. Harikrishnan R, KSIDC Executive Director, Shri. Rajeev G,Additional Director (G), Directorate of Industries and Commerce and Shri. K S Kripakumar,Additional Director (T), Directorate of Industries and Commercewere also present in the event.

    A three-year timeframe has been set for the implementation of the RAMP scheme by DI&C. The Ministry of MSME, Govt. of India will provide the funds for continuing the program after evaluating the progress of the project.

  • October 2024 –RAMP SPIU onboarded +

    State Programme Implementation Unit onboarded under the RAMP programme

    The State Programme Implementation Unit (SPIU) for monitoring and evaluating the activities under the Raising and Accelerating MSME Performance (RAMP) programme being implemented by the Ministry of MSME, Government of India in the State of Kerala has been onboarded at the Directorate of Industries and Commerce (DI&C) from October 01, 2024.

    The RAMP scheme aims to scale up the implementation capacity and coverage of MSMEs in the States, with impact enhancement of existing schemes. The programme envisages fostering innovation, encouraging ideation, and incubating new business and entrepreneurship by developing quality standards, improving practices and processes, enhancing market access, deploying technological tools, and Industry 4.0 to make MSMEs competitive and self-reliant. An amount of Rs.107 Crore has been approved by the Centre as grant to be provided to the State of Kerala for undertaking various activities under the RAMP scheme.

    The key scope of work of the SPIU shall be as follows:

    1. Support in implementation of activities as approved by the Ministry of MSME in the Strategic Investment Plan (SIP) submitted by the State.
    2. Facilitate convergence of State and Central Government Programs for MSME development.
    3. Performance monitoring for activities approved under SIP by the Ministry of MSME.

    A three-year timeframe till March 2027 has been set for the implementation of the RAMP scheme by the Ministry of MSME, Government of India and DI&C.