Startup

Aspire Scheme For Rural Area Entrepreneurship

07 Oct, 2019

Aspire Scheme for Promoting Rural Area Entrepreneurship

ASPIRE Scheme is also known as Scheme for promoting innovation, entrepreneurship, and agro-industry. This scheme is promoted by the Ministry of Micro, Small and Medium Enterprises^[1]. ASPIRE Scheme was made with the objective of promoting innovation, entrepreneurship, and agro-industry in the year 2014-15.

The main aim of the Government of India is to promote rural development. Continuous efforts have been made by the government to promote social well-being of the people in the rural area. Despite efforts made by the Government still the problem of poverty, unemployment and migration still exist. As still 56% of the population still depends on agriculture so there is a need to develop the agro-based industry. This scheme has been developed with the aim of creating employment opportunities in rural areas.

What is the main objective of the ASPIRE Scheme?

Increase employment opportunities.
Promote entrepreneurship in India.
Economic Development of rural areas.
Facilitate innovate a business
Value addition to agriculture produce.

NOTE: The ASPIRE Scheme has been granted 200 Crore Corpus by the Ministry of Finance.

Utilization of cash as granted to ASPIRE Scheme:

The cash granted under the scheme is utilized in following ways:

50 Crores granted to Livelihood Business Incubation: The main aim of granting fund to LBI is to impart entrepreneurship training to youth. The main focus of LBI is to create jobs at local level.
00 Crores granted to SIDBI: By granting 60.00 Crores to SIDBI they will use this money in innovative means of finance like Equity, Venture Capital Fund etc. They will convert this innovation into commercial enterprises.
00 Crores to the creation of business enterprise out of innovative ideas: The entire eligible incubator as seed capital shall be granted ₹ 1.00 Crore as one grant, they shall invest those amounts around ₹ 20.00 Lakhs in any Debt/Equity funding for start-ups. The return on this investment shall be plowed in Seed Capital Revolving Fund. 150 such ideas supported for enterprise creation will be equal to 30.00 Crore.
00 Crores granted to Support and setting-up of Incubation Centre: These assisting centers shall be of 2 types i.e. (a) Supporting existing incubation center (b) setting of incubation center in the agro-based industry.
50 granted to incubation of ideas: Each innovative idea shall be provided a financial support up to ₹ 3.00 Lakhs. 450 such ideas can be supported up to the inception stage so that shall be 450*3= 13.50 Crores.
00 Crores to be granted Accelerator Programme for Incubates: For creating successful business enterprises in the area of agricultural development and rural industrialization they have also been granted funds. 10 such workshops can be granted such fund and each workshop shall be granted ₹ 20.00 Lakhs.