Risk fund mooted for micro-enterprises

Our Bureau Thiruvananthapuram | Updated on March 12, 2018 Published on January 11, 2012


Kudumbashree aims to create 1 lakh micro-enterprises by 2014

A risk fund would be placed with State Livelihood Missions to reimburse banks in case proposed micro-enterprises based on the Kudumbashree model failed.

This was stated by Mr T. Vijaykumar, Joint Secretary, Ajeevika (formerly National Rural health Mission), while speaking at an orientation workshop here last week.


Mr Vijaykumar also said the seven participating States in the Kudumbashree Micro Enterprise Consultant (MEC) model could tap capacity-building funds available to them in the State Budgets.

Stressing the importance of bank credit in unlocking entrepreneurial energy, he said he would like banks to set up extension/processing counters that could directly lend to the entrepreneurs.

Kudumbashree, the women empowerment and poverty eradication mission of the State Government, aims to create one lakh micro-enterprises by year 2014.

This apart, it will also aim to strengthen already existing units of an equal number by the end of the next three-year period. The MEC model was borne out of Kudumbashree's efforts to remedy problems associated with micro-enterprises in the State of Kerala.

It comprises of a cadre of community professionals trained to support entrepreneurship by identifying, selecting and supporting enterprises This is sought to be achieved through replication of the MEC model in seven States of the country. These are Andhra Pradesh, Bihar, Jharkhand, Gujarat, Maharashtra, Orissa and Rajasthan.

They had expressed their willingness to adopt the model at the orientation workshop camp. Chhattisgarh, another State participating in the workshop, too had expressed its interest but promised to revert after discussions at the State-level.


Jointly organised by Union Ministry of Rural Development (MoRD) and Kudumbashree, the workshop was designed to orient and inform States on the MEC model.

It was the MoRD that had recognised the MEC model and recommended it for replication in other States.

Speaking at the workshop, Ms Sarada Muraleedharan, Executive Director, Kudumbashree, said micro-enterprises had a tough time identifying beneficiaries, finances, market, scale and technology.

She also spelt out Kudumbashree's response of integrating enterprise promotion strategies with local economic development.


The workshop also discussed plans and modalities for rolling out Crest (Community-based Resources for Enterprise Support and Training).

Crest is a multi-stakeholder intervention that aims at creating resident locals and trained business management consultants to initiate, sustain and nurture micro-enterprises.

In the first phase of implementation of the new projects, each State would choose two districts within which two particular blocks would be identified for the launch.

>[email protected]

Published on January 11, 2012
This article is closed for comments.
Please Email the Editor