Entrepreneurship for Social Change, Tribal Entrepreneurship and a Holistic Strategy (October 2021)

⪻ Articles ⪼

Entrepreneurship for Social Change

  • The young generation of the country particularly the rural youth could play an important role in bridging the rural-urban economic divide through the establishment of rural enterprises.
  • Most of the developed countries of the world face the risk of an ageing workforce.
  • Nearly 62 % of total population of India is in working age group (15 - 59) years, more than 54 % of the total population is below 25 years of age.
  • In 1950 - 51, the net national income at constant prices was of ₹ 2,69, 724 crores
  • Per capita national income increased from ₹ 7,513 to ₹ 86,456 witnessing annual compound growth rate of 3.55 % .

Trends in Net National Income and Per Capita NNI at Constant Prices

Trends in Net National Income

Source: Economic Survey: 2020 - 21

Economic Inequalities in India

  • During the last seven decades, primary sector witnessed a meager growth rate (3.99 %) as compared to secondary (6.51 %) and tertiary (6.36 %) sectors as far as the sector wise trends in the growth of Real Gross Value Added at factor cost is concerned.
  • It creates inequalities among different social groups particularly the marginalized sections of society like SC/ST/OBC, minorities, women, and children in terms of limited and unequal access to resources, education, skill, training, healthcare, and employment.

Real Gross Value-Added Factor Cost (₹ in Crores)

Real Gross Value Added Factor Cost

Source: Economic Survey: 2020 - 21

Role of Entrepreneurship

  • A key instrument in the process of industrialization.
  • Acts as a driving force for new innovations.
  • Catalyst for social change through ameliorating the economic lot of vast majorities of people living in rural and backward areas.
  • Rural areas provide abundant raw material from agricultural, horticultural, and animal produce.
  • Rural enterprise provides job opportunities to the unemployed and underemployed youth, full utilization of agricultural produce, balanced regional development.

Percentage of Households with Computers and Internet Facility in India (2018)

Households with Computers and Internet Facility in India

Source: NSSO, Household Social Consumption on Education Survey, 2020

Initiatives to Promote Entrepreneurship

  • On 31st July 2014, Govt. of India formed Department of Skill Development and Entrepreneurship.
  • Setting up of Ministry of Skill Development and Entrepreneurship on 10th November 2014.
  • On July 15th, 2015, National Skill Development Mission was launched on World Youth Skills Day.

Project USTTAD

  • A centrally sponsored project for Upgrading Skills and Training in Traditional Arts/crafts for development.
  • Launched on May 14th, 2015 by the Ministry of Minority Affairs.
  • Aims at capacity building and updating the traditional skills of master trainers/artisans belonging to minority communities and BPL families.
  • The trainees should be between 14 to 45 years of age and at least class V pass.
  • Preserving and promoting the rich heritage of traditional arts and crafts like wood and bone carving, zari work, phulkari, tie & dye, gems & jewellery, patch work, embroidery, durry making, bloc printing, etc.
  • This project is expected to bring minorities to the mainstream.

Swachhta Udyami Yojana (SUY)

  • Launched on 2nd October 2014.
  • Objective of achieving the goal of Swachh Bharat Mission and creating the spirit of entrepreneurship among ‘Safai Karmacharis’ .
  • Loans up to ₹ 25 lakh at concessional rate of interest of 4 % per annum for the construction, maintenance, and operation of community toilets on Public Private Partnership (PPP) mode.

Venture Capital Fund

  • For Scheduled Castes.
  • The initial capital of ₹ 200 crore was launched by Ministry of Social Justice and Empowerment.
  • Concessional finance up to ₹ 15.00 crore for a maximum period of 6 years is provided to aspiring entrepreneurs belonging to SC category.

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

  • Launched by the GOI under the National Skill Development Mission on 15th July 2015.
  • The target groups of the PMKVY are the school/college dropouts and unemployed youth.
  • Industry relevant short-term skill training is provided to the youth to enable them to secure a better livelihood.
  • Training in soft-skills, entrepreneurship, financial and digital literacy.
  • Placement assistance to the training partners.
  • The Government pays the entire training and assessment fees after the successful completion of an approved skill training programme.
  • Against the target of 1.32 crore under PMKVY, as on July 10th, 2021 around 1.29 crore candidates were trained/oriented across the country.

Pradhan Mantri Gramin Digital Shiksha Abhiyan (PMGDISHA)

  • To promote digital awareness and education in rural areas.
  • Launched on 7th October, 2017.
  • To empower at least one person per rural household with crucial digital literacy skills.
  • To bridge the rural-urban digital divide.
  • Targeting the marginalized sections of the society like SC/ST, minorities, BPL families, women and differently-abled persons.
  • Rural people between the age group of 14 to 60 years are being trained without any fees to operate computers, tablets, smart phones, etc.
  • Access government e-services, undertake digital payment, compose e-mails using internet.
  • Making around 40 % of rural households digitally literate by March 2020.

Samagra Shiksha Scheme

  • Launched by GOI in 2018.
  • Aims at enhancing the learning outcomes at the school level.
  • Use of technology to empower both teacher and taught.
  • Unifying learning from pre-school to class XII.
  • Subsumes the previous three schemes:
    • Sarva Shiksha Abhiyan (SSA)
    • Rashtriya Madhyamik Shiskhsa Abhiyan (RMSA)
    • Teacher Education (TE)
  • Equal and adequate opportunities for rural youth to participate in technology based educational and training programs.
  • Also focuses on promoting vocational education to make it more job-oriented.
  • Scheme has been extended for the period from 1st April, 2021 to 31st March, 2026 with an outlay of ₹ 2,94, 283.04 crore which includes Central share of ₹ 1, 85,398, 32 crore.

Way Ahead

  • The combined expenditure on social services by the Centre and State Governments as a proportion of GDP has increased from 7.5 % in 2019 - 20 (RE) to 8.8 % in 2020 (BE) .
  • Atal Innovation Mission aims to develop new programmes and policies for fostering innovation in different sectors, provide platforms and collaboration opportunities to different stakeholders.
  • Impetus on creating scientific temper and fostering innovative spirit among the rural youth is important to attract unemployed educated youth into agribusiness and agri-preneurship.
  • Focus on public investment in human capital is required.
  • Public expenditure on social infrastructure is also needed.
  • Uplifting the socially and economically backward sections of the society is of paramount importance.

Tribal Entrepreneurship and a Holistic Strategy

  • TRIFOOD Scheme is being implemented by MoTA and Ministry of Food Processing Industries (MoFPI) for promoting value addition to Minor Forest produce (MFP) .
  • Addressing challenges of inadequate financial linkages and market access:
    • Institutional Support for Development and Marketing of Tribal Products/Produce
    • Marketing of Minor Forest Produce (MFP) through Minimum Support Price (MSP)
    • Development of Value Chain for MFP
    • Tribes India E-Marketplace
  • Telangana govt. recently announced Dalit Bandhu Scheme for empowering Dalit families and enabling entrepreneurship among them through a DBT of ₹ 10 lakh per family.
  • The Gujarat Govt. signed an MoU with Amazon to support tribal entrepreneurs.
  • By providing necessary support and guidance to both existing and aspiring tribal entrepreneurs, the Dalit Indian Chamber of Commerce and Industry (DICCI) must play a proactive role.
  • STs constitute 8.60 % of total population as per 2011 census.

National SC/st Hub Scheme (NSSH)

  • To promote SC/ST entrepreneurs and improve their participation in Govt. procurement processes.
  • It would hand-hold entrepreneurs with market access/linkage, monitoring, capacity building, financial support schemes and industries best practices.
  • Provides skill training, subsidy for procurement of plant and machinery, subsidy for participation in domestic and international trade fairs, reimbursement of membership fees of Export Promotion Councils, subsidy on registration fees under single point registration fees of NSIC and so on.
  • Four percent annual procurement mandated by Central Ministries/Departments and Public Sector Undertakings from SC/ST enterprises.

Pradhan Mantri Van Dhan Yojana (PMVDY)

  • By the MoTA is a market-linked Entrepreneurship Development Programme.
  • Forming cluster of tribal SHGs and strengthening them into Tribal Producer Companies.


  • Technological Interventions for Tribal Empowerment.
  • A grant-in-aid scheme of the Department of Science and Technology under Tribal Sub Plan.
  • Aims at improving living conditions and empowering scheduled tribes based on sustainable science and technology activities/application.
  • All the selected beneficiaries would get smartphones and Internet access by Facebook for one year, getting training on Digital Literacy, Life Skills and Leadership and Entrepreneurship.
  • This program would also create awareness amongst tribal beneficiaries about various schemes initiated by Central and State Governments for the welfare of STs including their fundamental duties.


  • Going Online as Leaders.
  • Aims to provide mentorship to tribal youth through digital mode.
  • Operates through a meeting portal for mentor and mentee.
  • Support tribal youth and women to help them acquire skills and knowledge through mentorship in various sectors:
    • Horticulture
    • Food processing
    • Bee keeping
    • Tribal art and culture
    • Medicinal herbs, etc.

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