The Ministry of Skill Development and Entrepreneurship (MSDE) is driving the 'Skill India' agenda to converge existing skill training initiatives and to combine scale and quality of skilling efforts. MSDE launched the National Skill Development Mission (NSDM) to create an end-to-end implementation framework that provides opportunities for quality short and long-term Skill Development, leading to productive employment and career progression that meets the aspirations of trainees. After the launch of NSDM, SANKALP was conceived in August 2015 and formally became effective in January 2018 to support NSDM in achieving its full potential. It is a World Bank loan assisted program.
SANKALP has been conceptualized to operationalize Skill India Mission by setting in motion the sub-missions proposed under the NSDM. SANKALP shall address the ongoing challenges like universalization of National Skills Qualification framework (NSQF), standardization of certification and assessments, bringing about convergence, infusing quality in skill development programs and making them market relevant while ensuring private participation; all of these specifically in the context of short-term training. In order to strengthen institutional mechanisms for skill development and increase access to quality and market-relevant training for youth across the country. Three key result areas have been identified under SANKALP (i) Institutional Strengthening; (ii) Quality Assurance; and (iii) Inclusion.
The ‘Skill Hub Initiative’ under the PMKVY 3.0 scheme focuses on the introduction of skill training programs in both the skill and education ecosystems. The proposed Small Business Development Units (SBDUs) Project will work in identifying small informal businesses, building their capacity, handhold them, and attaching them with the state skill department for their growth and development.
Considering the importance of small businesses for employment generation, livelihood support, and boosting the national economy, it is imperative to create an ecosystem for promoting small businesses among potential entrepreneurs through proper support and handholding. There is a requirement to provide integrated support to small businesses, from identifying business ideas to handholding the businesses for survival and growth.
This project aims at creating 75 Small Business Development Units (SBDUs) in India under the Ministry of Skill Development and Entrepreneurship (MSDE) to mark India@75 years of Independence. The SBDUs created under the MSDE will help build the capability of small informal entrepreneurs to transform their enterprises into formal ones. The key objective of Small Business Development Units (SBDUs) is to help transform informal businesses into formal businesses through capacity development and handholding. Specifically, these SBDUs aim at identifying potential enterprises, building the capacity of small businesses, and pushing them on the path of sustainable development by creating enabling business ecosystem for them. To ensure the convergence with the existing schemes, SBDUs will be the upgradation of Skill Hubs under the Skill Hub Initiatives of PMKVY 3.0.
The key objectives of the Transforming Informal Businesses through Small Business Development Units (SBDUs) Project are to -
(i) Create small business development units (SBDUs) in academic/skill institutions across the country by upgradation of Skill Hubs under the Skill Hub Initiatives of PMKVY 3.0.
(ii) Create enabling environment for to help transform informal businesses into formal businesses through capacity development and handholding.
(iii) Provide business incubation services for managing and growing small businesses in the country. The integrated intervention will be helping the skill development of the potential entrepreneurs in starting a new venture and help them in survival and growth.