The following post is a sponsored post.
The purpose of Rajiv Gandhi Udyami Mitra Yojana (RGUMY) is to provide hand holding support and assistance to the potential first generation entrepreneurs, through the selected lead agencies i.e. ‘Udyami Mitrasâ€™, in the establishment and management of the new enterprise, in dealing with various procedural and legal hurdles and in completion of various formalities required for setting up and running of the enterprise.
The Rajiv Gandhi Udyami Mitra Yojana (RGUMY) was established to enable first-generation entrepreneurs to establish and manage their new enterprises through support and assistance provided by lead agencies that function as Udyami Mitras.
The Yojana was aimed at helping entrepreneurs deal with procedural formalities and legal issues involved in setting up a new enterprise from scratch and running the same in an efficient manner.
Revamping RGUMY into BASP
In a bid to enhance its effectiveness as a tool for promotion of MSMEs in India, the RGUMY has been revamped and restructured into the Business Accelerator and Start-up Programme (BASP). The revamped plan is designed to boost the MSME sector and enhance the employment generation capacity of this sector in India.
The BASP is being implemented on a pilot basis in the 12th 5-Year Plan, with the government retaining the option of expanding this program further on the basis of its potential impact on the MSME sector in India.
Overview of BASP
The Business Accelerator and Start-up Programme seeks to build upon the work done by the Udyami Mitras by helping first-generation entrepreneurs proceed ahead with the task of establishing competitive micro or small enterprises. Further, existing MSEs will get mentoring and advisory support to improve efficiency and to boost employment generation.
Advisory support provided by BASP shall cover areas like:
- Registration of establishments
- Efficient production
- Functional marketing and sales strategy
- Access to SME finance, and
- Compliance with statutory provisions
The Udyami Mitras shall be replaced by entrepreneurs or industrialists who will function as business mentors for the micro and small enterprises. Mentoring support will be provided for a period of five years, and the SMEs shall enjoy access to more lenient small business funding sources and technology support throughout this period. The National Small Industries Corporation shall function as the Nodal Agency for BASP.
Impact on MSME Sector
The RGUMY was introduced in 2008-09. The new scheme seeks to build upon the numerous changes and improvements in the world of technology, as well as the increase in financing options for the MSME sector in India. Encouraging entrepreneurs to setup micro and small units, which make significant contribution to the growth of the Indian economy, will help the individual as well as the economy enjoy significant increase in competitiveness, growth, and profitability.
The revamping of the RGUMY ensures its fundamental goal is achieved even as the transition of an individual from an entrepreneur to the owner of a micro or small enterprise takes place in a smooth manner.
This post has been contributed by SMEcorner â€“ Indiaâ€™s first Online Loan Application Platform.