Assessing the Start-Up Village Entrepreneurship Programme (SVEP) in Kerala: Implications for Rural Enterprise Development and Inclusive Growth

Abstract

Rural entrepreneurship is increasingly recognised as a key driver of inclusive economic development, particularly in regions where agriculture alone can no longer provide sustainable livelihoods. In India, the Start-Up Village Entrepreneurship Programme (SVEP), implemented under the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), was introduced to strengthen rural enterprises by combining financial support with capacity building, business mentoring, and institutional facilitation. Kerala presents a distinctive case for examining the programme because of its strong decentralised governance system and the extensive community-based network of Kudumbashree, which has played a pivotal role in promoting women's entrepreneurship and local economic development.
Drawing on secondary data from government reports, policy documents, and peer-reviewed literature, this paper examines the contribution of SVEP to rural enterprise development and inclusive growth in Kerala. Rather than limiting the assessment to the number of enterprises created, the study explores broader outcomes such as employment generation, women's economic participation, enterprise sustainability, and the strengthening of local entrepreneurial ecosystems. The analysis suggests that the convergence of SVEP with Kudumbashree has expanded entrepreneurial opportunities for rural households, particularly women from socially and economically marginalised communities. However, challenges related to market integration, digital adoption, access to advanced business services, and long-term enterprise sustainability continue to influence programme outcomes.
The paper argues that entrepreneurship programmes are most effective when they are embedded within supportive local institutions that provide continuous mentoring, market linkages, and collective learning opportunities. Kerala's experience demonstrates that community-based entrepreneurship can contribute to inclusive rural transformation, but sustaining these gains requires stronger policy support for enterprise growth, innovation, and competitiveness. The findings contribute to the broader discussion on rural entrepreneurship as a strategy for inclusive development in emerging economies.

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