Start-up Village Entrepreneurship Programme (SVEP), Kerala

Detailed Project and Implementation Report

Parakode Block Pathanamthitta District

Prepared by:

Kudumbashree-NRO

For

Kudumbashree - State Poverty Eradication Mission (SPEM)

November 2016 Table of Contents

1. Executive Summary ...... 4 2. Context of the Block...... 5 2.1. Demographic and Socio-Economic Profile ...... 5 2.2. Literacy, Employment and Natural Resource Profile ...... 6 2.3. Access to Infrastructure and Facilities ...... 9 2.4. Status of Social Mobilisation and Institution Building under NRLM ...... 12 2.5. Summary of Poverty and Livelihoods Context of the Block ...... 13 3. Baseline and Assessment of Existing Enterprises ...... 14 3.1. Data on Existing Micro Enterprises ...... 14 3.2. Analysis of Existing Enterprise Environment and Entrepreneurship Factors ...... 21 4. Assessment of Potential for SVEP Enterprises ...... 28 4.1. Assessment of Potential Based on Household Consumption ...... 28 4.2. Enterprise Potential Based on Locally Available Resources ...... 34 4.3. Demand based on Government Schemes ...... 40 4.4. Existing Enterprises Supported under SVEP ...... 42 4.5. Potential for Enterprises under SVEP – Consolidated Information (type-wise) ...... 43 4.6. From Potential to Actual Enterprises ...... 45 5. Implementation of SVEP – Arrangements at Various Levels ...... 47 5.1. Description of Project Components ...... 47 5.2. Positioning of Personnel and Roles and Responsibilities of SRLM and PIA ...... 51 5.3. Roles and Responsibilities of Community Institutions ...... 52 5.4. Institutional / Contractual Arrangements to be made for Operations at the Block Level 53 5.5. Capacity Building ...... 55 5.6. Support Provisions at Block Level for Operations of SVEP ...... 56 5.7. Support from KS - State Mission and KS - District Mission for implementation of SVEP in the Block ...... 58 5.8. Responsibilities of PIA ...... 60 5.9. Relationship with Banks (branch-level, BLBC and DLRC), RSETI, DIC & NABARD ...... 60 6. SVEP Enterprise Formation and Support Processes ...... 61 6.1. Business Planning and Benchmarking ...... 61 6.2. Mobilization and Training of CBOs and Potential Entrepreneurs ...... 62 6.3. Process of Enterprise Support ...... 62 6.4. MEC Support to Enterprises ...... 64 7. Project Management for SVEP ...... 66 7.1. Framework ...... 66 7.2. Block-Level Arrangements ...... 76 7.3. State-Level Review, Monitoring, and Reporting ...... 77 7.4. Reporting to NMMU...... 77 8. Detailed Implementation Schedule and Budget ...... 78 8.1. Phasing of SVEP Implementation ...... 78 8.2. 4-year Budget for SVEP in the Block ...... 79 8.3. Financial and Physical Targets ...... 79 9. Annexures ...... 89 9.1. Annexure 1 - Detailed Information on Business Types from the Enterprise Census .... 89 9.2. Annexure 2 - Details of Steps Followed for DPR Preparation ...... 95 9.3. Annexure 3 – Detailed Implementation Schedule ...... 104

1. Executive Summary The Start-up Village Entrepreneurship Programme (SVEP) will be implemented in Parakodeblock, Pathanamthitta district, Kerala by the Kudumbashree - State Poverty Eradication Mission (SPEM) with Kudumbashree-National Resource Organization (KS- NRO) as the Project Implementing Agency (PIA). Based on the detailed baseline formation and market potential assessment conducted in the block, the plan for implementation has been prepared. Project Information Project SRLM Kudumbashree - State Poverty Eradication Mission PIA Kudumbashree-NRO Period of implementation Four years (01 December 2016 to 30 November 2020) Nodal Cluster Federation To be decided MEC Group for managing the BRC- To be deployed EP Number of Micro Enterprise Needed – 31 Consultants (MEC) to be deployed Targets Total enterprises to be supported 2164 Break-up of total new enterprises formed by source of demand 2004 Perennial Seasonal Household consumption 887 Local commodity resources 658 423 Tourism 24 Government schemes 12 Total Enterprises 1557 447 Number of existing enterprises to be supported 160 Expected income accruing to participant household from Rs. 10,000 per month SVEP enterprise (average for the block)

Physical Targets – Year-Wise Year 1 200 enterprises Year 2 600 enterprises Year 3 600enterprises Year 4 764enterprises

Budget and Financial Plan Total budget for 4-years 573.2 lakh Fixed budgeted costs 348.3 lakh Costs as per number of enterprises 224.9 lakh Year-wise financial allocation Year 1 323.3 lakh 56% Year 2 75.9 lakh 13% Year 3 80.9 lakh 14% Year 4 93.0 lakh 16% Total GOI share 343.9 lakh 60% Total State share 229.3 lakh 40%

2. Context of the Block

This chapter contains information and analysis of the existing situation of Parakode block. The situation analysis consists of the following sections. 1. Demographic and socio-economic profile 2. Literacy, employment and natural resource profile 3. Access to infrastructure and facilities 4. Status of social mobilisation and institution building under NRLM

The situation analysis has been done using secondary data. Census of India 2011 is the primary source of information for the analysis in sections 1 to 3. Data made available by Kudumbashree has been used for section 4. Data from Socio Economic Caste Census (SECC) 2011 has also been used. 2.1. Demographic and Socio-Economic Profile

There are 7 gram panchayats in Parakode block and 11 villages, of which all are reported as inhabited. The total area of Parakode is 250.68 sq. km and population density is 822.71 persons per sq. km compared to the population density of 402.64 persons per sq. km of Pathanamthitta district and 860 persons per sq. km for Kerala State. Table: 2.1.i Basic Demographic Details, Source – Census of India 2011

Total HH 55,702 Total Population 2,06,239 Total Male Population 96,202 Total Female Population 1,10,037 Total Population 0-6 17,096 Total Population - Scheduled Castes 38,959

Total Population - Scheduled Tribes 562 Females (per 1000 Males) 1,144 Females (per 1000 Males) - 0-6 989 Females (per 1000 Males) - SC 1.085 Females (per 1000 Males) - ST 1,178

Parakode has significantconcentration of Scheduled Castes population with around 19% of the population belonging to Scheduled Castes category as compared to 13.64% in Pathanamthitta district and 9.09 % in whole of Kerala.

Table 2.1.ii – Number and percentage of inhabited villages in specified population size ranges, Source – Census of India 2011

All Population Population Range Number of % of all villages villages Less than 200 persons 0 0% Between 200 499 persons 0 0% Between 500-999 persons 0 0% Between 1000-1999 persons 0 0% Between 2000-4999 persons 0 0% Between 5000-9999 persons 0 0% More than 10,000 persons 11 100% Total 11

100% of the villages in the block have population greater than 10,000. In comparison, Pathanamthitta district has 92% of the villages with rural population more than 10,000. The size of the villages, on an average for the district, is large with only one village having population below 2,000 persons.

2.2. Literacy, Employment and Natural Resource Profile

Table 2.2.i – Literacy amongst the population in Parakode block, Source – Census of India 2011

Total Male Female Literate persons – All 1,79,462 84,313 95,149 Literacy rate - All 94.9% 96.26% 93.73% Literate persons - SC 31,464 15,617 15,847 Literacy rate - SC 88.78% 92.17% 85.66%

Literacy rate in Parakode is slightly lower than the district literacy rate of 96.5% and higher than that of Kerala State, where rural literacy rate is 92.98%. The gap in literacy rate between men and women in the Block is 2.53 percentage points in case of all population and 6.51 percentage points in case of SC population.

Table 2.2.ii - Work Participation, Source – Census of India 2011

Main Worker Marginal Worker Total workers % of all % of all Numbers Numbers workers workers All 69,747 (33.83% of the population) 50,309 72.13 19,438 27.87 Male 49,665 (51.64% of the population) 37,918 76.35 11,747 23.65 Female 20,082 (18.25% of the population) 12,391 61.70 7,691 38.30

It can be seen that the proportion of male workers is higher than female workers among main workers while the reverse is true in case of marginal workers.

Table 2.2.iii - Work participation – category-wise, Source – Census of India 2011

Category of Worker Main Worker % of Main Marginal % of Workers Worker Marginal Workers Cultivator 6,932 13.78% 2,490 12.81% Agriculture Labour 6,396 12.71% 4,475 23.02% Household Industries 1,070 2.13% 518 2.66% Others 25,288 50.26% 11,958 61.51%

The work participation rate indicates that there is higher participation in work categories other than agriculture and household industries. More than 50% of the main and 60% of the marginal workers are engaged in other categories depicting limited reliance on agriculture for wage generation.

Table 2.2.iv - Deprivation indicators as per Socio-Economic Caste Census 2011

Parameter # of HH % of HH Household considered for deprivation (Total household - excluded household - included 18,247 100.00% household) Only one room with kucha walls and kucha roof 1,114 6.11% No adult member between age 16 to 59 1,680 9.21% Female headed households with no adult male member 2,433 13.33% between age 16 to 59 Disabled member and no able bodied adult member 215 1.18% SC/ST households 7,440 40.77% No. literate adult above 25 years 590 3.23% Parameter # of HH % of HH Landless households deriving major part of their income 10,396 56.97% from manual casual labour At least 1 deprivation criterion 14,077 77.15% No deprivation criteria 4,123 22.60%

Of the houses considered for deprivation, 40.7% of the households are SC/ST households. More than half the households are landless and derive a major part of their income from manual casual labour. More than three fourth of the households considered for deprivation fulfil at least 1 deprivation criterion. Table 2.2.v - Land Use Pattern, Source – Census of India 2011

Nature of Land Use Area (Ha) % of total Total Area of block 25,068.00 Forests 1,827.1 7.29% Area under Non-agricultural Uses 1,500.1 5.98% Barren and Un-cultivable land 62.3 0.25% Permanent Pastures and Other Grazing Lands 0 0.00% Land Under Miscellaneous Tree Crops etc. 1.4 0.01% Culturable Waste Land 179.6 0.72% Fallow lands other than current fallows 258.6 1.03% Current Fallows 1,358.1 5.42% Net Area Sown 19,880.7 79.31%

Table 2.2.vi - Status of Irrigation, Source – Census of India 2011

Status of Irrigation Area (Ha) % of Net Sown Area Total Irrigated Land Area 3,626.8 18% Total Un-irrigated Land Area 17,872 90% Canals 2,032.7 10% Wells/Tube-wells 220.4 1% Tanks/Lakes 19 0%

Close to 80% of the land area is under cultivation. Forest cover is only around 7%. Only a18% of the cultivated land is irrigated. For Kerala as a whole, 52.5% of total land area is under cultivation while 27% of the area of the state is under forest cover. For Pathanamthitta district, nearly 39 % of the total land area was under cultivation while 52 % of the total land area is under forest cover.

2.3. Access to Infrastructure and Facilities

Table 2.3.i - Access to education and health services by distance from the village, Source – Census of India 2011

At less than Within the At Distance Distance more 5 km Education / Health Village of 5-10 km than 10 km Facility Distance Number of Villages Primary school 11 0 0 0 Secondary School 11 0 0 0 Primary health centre (PHC) 6 1 3 1 Anganwadi Centre 11 0 0 0

The block has remarkably good accessibility to infrastructure with all villages having primary schools, secondary schools and Anganwadi centres within the village. More than 50% of villages have Primary health centres located within the village and only 1 village not having access to a PHC within the radius of 10 km.

Table 2.3.ii - Access to transport and communication services by distance from the village, Source – Census of India 2011

Within the At less than 5 At Distance Distance more Transport / Communication Village km Distance of 5-10 km than 10 km Facility Number of Villages Connected to state highway 6 1 2 2 Connected to major district road 9 2 0 0 Pucca roads 11 0 0 0 Bus service (Public & Private) 11 0 0 0 Auto/Modified Autos 11 0 0 0 Taxis and Vans 11 0 0 0 Public Library 11 0 0 0 Newspaper Supply 11 0 0 0

More than 50% of the villages are connected to the state highway and more than 80% are connected to major district road. All villages have pucca roads and enjoy remarkable access to various forms of public transport. In terms of access to information, the block depicts highly effective results with all of the villages having their own public library and aces to newspapers within the village. Table 2.3.iii – Access to banking and market services by distance from the village, Source – Census of India 2011

At less Distance Within the At Distance than 5 km more than Village of 5-10 km Bank / Market service Distance 10 km Number of Villages Commercial and Co-operative Banks 11 0 0 0 Post office (PO) 11 0 0 0 ATM 7 2 2 0 Public Distribution System (PDS) 11 0 0 0 Mandis / Regular Market 11 0 0 0 Weekly Haat 8 0 3 0

As in access to other infrastructure, Parakode block enjoys fairly good access to the banking network and markets. Table 2.3.iv - Access to drinking water in the village, Source – Census of India 2011 Available in the Not Available in Electricity / Drinking Water Facility village the village Tap water (Treated / Untreated) 11 0 Well water (Covered / Uncovered well) 11 0 Power Supply for Domestic Use (ED) 11 0 Power Supply for Agricultural Use (EAG) 10 1 Power Supply for Commercial Use (EC) 10 1 Power Supply for All Uses (EA) 10 1

All villages in the block enjoy access to tap water and well water. Power supply is available to all villages except for one (Erathu village).

Household Level Data on Access to Amenities

 Housing According to SECC 2011, 6.11 % of the houses considered for deprivation in Parakode are single room houses with kucha walls and kucha roof.

 Drinking Water 79.1% of the households report wells (covered and uncovered) as their source of drinking water. Less than 10% have access to treated tap water. 87.7% of households have source of drinking water within the house premises.

 Toilet 92.7% of households have latrine facility within the house premises.

 Lighting and Cooking Fuel 93.1% of households report Electricity as fuel for lighting. 6.4% of households report use of kerosene. 67% of households use firewood for fuel. 30.8% households report use of LPG.

Table 2.3.v - Ownership of durable assets, Source – Census of India 2011

Asset / Facility % of HH Radio/ Transistor 25.2 Television 76.7 Landline telephone 14.2 Mobile telephone 37.7 Both landline and mobile telephone 35.7 Bicycle 17.1 Scooter/ Motorcycle/Moped 22 Car/ Jeep/Van 10 None of the assets specified 6.5 Households availing banking services 73.6

Only 6.5% of the households in the block report no ownership of any of the durable assets listed. More than one-third of the houses have mobile phone connection, while about 20% have a motorised or non-motorised form of transport. Almost three fourths of the households report availing of bank services.

2.4. Status of Social Mobilisation and Institution Building under NRLM

Key statistics on the social mobilization and institution building process in the block is captures in the table below. Social category-wise and further detailed data is provided in annexure 1.

Table 2.4.i – Status of social mobilisation and institution building in Parakode block (data as of February 2016) – Source: Kudumbashree District Mission

Number of Gram Panchayats in which intensive strategy initiated 7 Number of villages in which intensive strategy initiated 11 Total number of NHGs under NRLM fold in Intensive blocks 1,869 Number of predominantly ST-NHGs (ST members >=50%) 0 Number of predominantly SC-NHGs (SC members >=50%) Total Households mobilized into all NHGs 29,355 Total ST Households Mobilized into all NHGs 71 Total SC Households Mobilized into all NHGs Total Amount of Savings Mobilized in all NHGs (INR in lakhs) 2210.9 No of NHGs with Bank Accounts 1,869 No of NHGs with Bank Linkage 1,325 Number of Total NHGs provided RF 44 Amount of RF provided to all NHGs (in Rs. lakh) 6.6 Total Number of all NHGs provided CIF 10 Total Amount of CIF provided to NHGs (in Rs. lakh) 5 Number of Households covered under livelihood activities 1,462 Number of ADSs formed 130 Number of NHGs holding membership in the ADSs 1,869 Number of CDSs formed 7

2.5. Summary of Poverty and Livelihoods Context of the Block

Parakode block is the most populous block of Pathanamthitta district. The block average is twice the district average for population spread across villages and similarfor average household size. The literacy rate of Parakode (94.9) is only slightly lower than that of Pathanamthitta district (96.5) but is higher to the rural literacy rate for Kerala State (92.98). Comparing the work participation rates, the overall work participation rate among men and women in Parakode is similar to that of Pathanamthitta as a whole. As against the work participation rate for the district in work categories other than agriculture, Parakode has slightly lower rate (58.28%) than Pathanamthitta (71.91%). This difference is reflected in the net sown area of Parakode (79.31% of total land area) which is more than that of Pathanamthitta district (38.43%). Accessibility in Parakodeis at par with that forPathanamthitta district as a whole with excellent public transportation and connectivity with state and district roads. Parakode also has good access to commercial and co-operative bank similar to that of Pathanamthitta district, resulting in a high proportion of households having banking facilities. Power supply for domestic, agricultural and commercial use is good in Parakode as is the case generally in Pathanamthitta. The condition of housing, ownership of durable assets and access to drinking water in Parakode is similar to that of Pathanamthitta district in general. On sanitation indicators, Parakode (92.7) does slightly worse than the rural Pathanamthitta average (93.7) based on the number of houses with toilet facilities located within the premises. However, overall, Parakode performs well on sanitation indicators. NHGs have been formed in all villages of Parakode. The 1,869NHGs formed so far cover 29,355 (52.70%) of the total households in Parakode. All (100%) of the NHGs have opened bank accounts and roughly 70% of them (1,325 NHGs) have bank linkage. Only 2.34% (44 NHGs) of the NHGs have been provided Revolving Fund, and a mere 0.5% (10 NHGs) of the NHGs have been provided CIF. ADS and CDS formation has also been initiated in Parakode and all 1,869 NHGS hold membership in the 130 ADSs and 7 CDSs that have been formed so far.

3. Baseline and Assessment of Existing Enterprises

The first step in the planning for implementation of SVEP in Parakode block was the conduct of the baseline and market potential assessment study. This was done to understand the existing scenario with respect to micro enterprises in the Block. A complete census of micro enterprises was conducted. The census was done by the Micro Enterprise Consultants (MEC) currently undergoing training by Kudumbashreeto be deployed in the Block. The process was guided by Mentors from Kudumbashree-NRO. During the census, information about the nature of the business and its location were collected. A stratified sample was selected, based on different business types and a detailed survey was conducted of the sample businesses to obtain greater detail about the ownership and operations of the enterprises. To collect more qualitative information, focus-group discussions were conducted with members of the NHGs and entrepreneurs who are NHG members. This chapter provides details of the existing enterprises in Parakode block, based on the enterprise census, the stratified sample study and the focused-group discussions. 3.1. Data on Existing Micro Enterprises

The total number of enterprises listed by the census is 3,766. It is to be noted that enterprises that were operational during August 2016, the duration within which the survey was conducted, have been captured in enterprise census. 3.1.1. Data on Existing Enterprises by Business Sectors and Types

The enterprise census listed the existing enterprises by their business types. These types were further classified into key business sectors. Table 3.1.i – Existing enterprises in Parakode block – listed by business sector – Source – Enterprises Census

Business Sector Number Listed in Census % of All Listed Animal Husbandry – Subsistence 21 1% Animal Husbandry – Business 42 1% Livestock Products 30 1% Production 649 17% Services 1,298 34% Trading 1,501 40% Mixed 160 4% Unclassified 65 2% Total 3,766 100%

Summary information on business types under each business sector, based on their numbers is provided in the table below. Detailed information on each business type listed in the enterprise census is provided as annexure 2. Table 3.1.ii - Number of enterprises by sector and types in the enterprise census – Source – Enterprises Census

Less than Between 20-50 Between 50-100 Between 100-200 More than 200 Business Sector 20 Enterprises Enterprises Enterprises Enterprises Enterprises Names of business types Medical shop, Kirana, Lottery, Book stall, Bricks/ Electricals shop – Readymade/ cloth Cigarette and Tile trading, Fertilizer shop, shop, Rubber Trading Wire, bulbs etc, Pan shop, Stationery Shop Electronics shop – Fridge, Trading, Hardware Fruits, Ladies Store, Vegetable store, Gift Shop Tv etc and 59 more types Mobile shop and trading one more type Papad making, Candle making and selling, Bakery, Tea and Vegetable cultivation and Furniture shop, Production Tea selling snacks, Hotel selling, Bag making, Beedi Aluminium works (Restaurant) making and selling and 20 more types Goat and sheep rearing, Cow Animal Husbandry – rearing and selling (Different Subsistence from beef) Animal Husbandry – Fish rearing and selling, Fish trading Business Poultry farm Studio, Electronics Flour mill, Cable / Dish TV, Salon, Four/ three Repair, Beauty Watch repair, Sound and wheeler repair, Autorickshaw/ Service parlor, Welding, Tailoring light rental, Agricultural Internet, Xerox/ passenger van Bike repair and 2 rentals and 27 more types Printer more types Livestock Products Egg trading, Dairy Chicken shop 3.1.2. Data on Existing Enterprises by Location and Correlation with Population Density of Villages

3.1.iii - Distribution of Enterprises by Village Size – Source – Enterprises Census & Census of India 2011

Enterprises Name of Gram Population Number of Enterprise Population per 100 Panchayat Percent Enterprises Percent Population Kodumon 25,707 12% 566 15% 2 Pallickal 38,027 18% 648 17% 2 Ezhamkulam 30,606 15% 851 23% 3 Erathu 23,296 11% 523 14% 2 Enadimangalam 31,539 15% 230 6% 1 Kalanjoor 32,267 16% 471 13% 1 Kadampanad 24,797 12% 477 13% 2

The distribution of enterprises by village size is not particularly in line with the distribution of population across villages. This can be seen from the above table. For instance, the most populous gram panchayat, Pallickal gram panchayat with the largest population share has only 1.7 enterprises per 100 persons while the gram panchayat with the least population share, Erathu has enterprise density of more than 2 per 100 population. The three gram panchayats with more than 2 enterprises per 100 persons are Ezhamkulam, Erathu, Kodumon.

Table 3.1.iv - Noteworthy features of villages with high concentration of enterprises – Source – Enterprises Census & Census of India 2011

Name of Gram Panchayat Key Feature Located close to a major market in Parakode and Adoor town Ezhamkulam along MC road Located along MC road, is near a famous church, Enadimangalam „Maruthumoodu and Mount Zion Medical College Has a very famous hospital called „Lifeline‟, VFPCK market Pallickal and weekly market at Thengermam, MC road Located along MC road; has a medium sized market, a famous Kodumon church called „Chandanapally‟ and a famous temple called „Spideer‟ temple Located along MC road; has close by weekly market at Erathu Manakkala and daily market at Vadakkedathkavu Has a famous temple called Kalanjoor Mahadeva Temple; has Kalanjoor a famous granite works company called Darsan Granites, a prominent hospital called „AIMS Hospital‟and Koodal stadium Has a very famous weekly market and is located along MC Kadampanad road

3.1.3. Data on Ownership of Enterprises by Social Categories and Gender

Caste and gender based disaggregated data was not collected during the enterprise census. The stratified sample study had obtained this data. Data presented in this section pertain to the 336 enterprises in the sample study. Table 3.1.vii - Number of enterprises by caste and enterprise sector (N=336) enterprises) – Source – Enterprises Stratified Sample Survey As % of As % of As % of Total Total Total Enterprise Sector SC OBC Gen Total Enterprise Enterprise Enterprise Sector Sector Sector Animal 0% 8 3% 1 0% 9 Husbandry - Business Livestock 0% 2 1% 7 3% 9 Products Production 0% 23 8% 32 12% 55 Service 8 3% 32 12% 28 10% 68 Trading 1 0% 59 22% 70 26% 130 9 3% 124 46% 138 51% 271

The total number of enterprises owned by SC households is less, in proportion to their total population. Across all social groups, most people are engaged in service and trading businesses. Table 3.1.viii - Number of enterprises by gender (N=336 enterprises) – Source – Enterprises Stratified Sample Survey

Number of Ownership Number of Total Enterprises Enterprises by Women Enterprise Sector Enterprises Surveyed (as % of all Owned by (as % of all Surveyed Enterprises) Women Enterprises) Animal Husbandry 3 0.89% 9 2.68% - Business Livestock Products 1 0.30% 10 2.98% Production 13 3.87% 72 21.43% Service 26 7.74% 87 25.89% Trading 31 9.23% 158 47.02% 74 17.90% 336 100.00%

Ownership by women in higher in service and trading sectors of enterprises, while it is relatively lower in case of services and production sector enterprises. Table 3.1.ix – Caste composition of women owned enterprises (N=271 enterprises) – Source – Enterprises Stratified Sample Survey

Number of Ownership by Number of Total Enterprises Caste Enterprises Owned Women (as % of Enterprises Surveyed (as % Category by Women all Enterprises) Surveyed of all Enterprises) General 36 13% 138 51% OBC 31 11% 124 46% SC 2 1% 9 3% 69 25% 2711 100%

Fewer women belonging to SC category own enterprises, while the share of women-owned enterprises among the General category shows a relatively higher proportion. 3.1.4. Data on Investment and Revenue Patterns of Existing Enterprises

Table 3.1.xi – Investment-range wise distribution of existing enterprise by enterprise sectors (N=290 enterprises) – Source – Enterprises Stratified Sample Survey

Animal Livestock Investment Range Husbandry Production Service Trading Total Products - Business < 5,000 1 1 4 1 9 16 5,001-20,000 6 3 21 30 20,001-50,000 4 8 17 26 55 50,001-2,00,000 3 7 25 28 39 102 > 2,00,001 1 1 20 21 44 87

More than two third of all enterprises covered in the stratified sample study reported investment of more than Rs.50,000. 15% reported investment below Rs. 20,000. The higher levels of investment is proportionately higher in case of trading and services enterprises with around 60% of enterprises with investments exceeding Rs. 50,000 being production, service and trading sector enterprises.. Table 3.1.xii – Monthly revenue-range wise distribution of existing enterprise by enterprise sectors (N=293 enterprises) – Source – Enterprises Stratified Sample Survey

Animal Revenue Range Livestock Husbandry Production Service Trading Total (Monthly) Products - Business

1 Animal Revenue Range Livestock Husbandry Production Service Trading Total (Monthly) Products - Business < 5,000 1 4 5 12 22 5,001-20,000 1 6 8 3 18 20,001-50,000 1 1 3 6 5 16 50,001-2,00,000 1 9 13 12 35 > 2,00,001 5 8 41 41 107 202

More than 70% of the enterprises covered in the stratified sample study reported monthly revenue of more than Rs.2,00,000. Nearly 15% reported monthly revenue below Rs. 20,000. The higher levels of revenue is proportionately higher in case of trading and production sector enterprises with around 75% of enterprises with investments exceeding Rs. 50,000 being production, service and trading sector enterprises. 3.1.5. Data on Existing Enterprises Owned by NHG Members

The stratified sample study had tried to assess the linkage of entrepreneur with NHGs. Due to the absence of objective verification tools, the information available from the study is not reckoned to be reliable. 160 of the 336 entrepreneurs reported relationship with NHGs. Table 3.1.xiii – Enterprises run by NHG members– Source – Kudumbashree NHG network

Enterprise Sector Number of Enterprises Animal Husbandry – Business 5 Livestock Products 2 Production 33 Services 45 Trading 75 Total 160

The Animal Husbandry–Subsistence sectoris reported enterprises where it was felt that a business approach was not taken. The subsistence activities have not been included for further analysis. The most significant enterprise sectors where NHG members have set up businesses are the following. Table 3.1.xiv– Most popular Enterprise sectors run by NHG members Source- Kudumbashree NHG network

% of Number of Sector Enterprise Sectors Enterprises in Enterprises the Sector Animal Husbandry- Fish Trading 5 Business 3% % of Number of Sector Enterprise Sectors Enterprises in Enterprises the Sector Livestock Products Poultry Centre 2 1% Production Bakery 7 4% Production Furniture 8 5% Production Hotel 8 5% Production Tea and Snacks 10 6% Service Flour Mill 6 4% Service Mobile 2 1% Service Passenger 11 7% Service Repair 8 5% Service Salon 6 4% Service Tailor 11 7% Service Tuition 1 1% Trading Cloth 4 3% Trading Footwear 2 1% Trading Fruits 8 5% Trading Kirana 9 6% Trading Ladies Store 10 6% Trading Mobile 6 4% Trading Pan and Cigarette 15 9% Trading Stationery 11 7% Trading Vegetables 10 6%

3.2. Analysis of Existing Enterprise Environment and Entrepreneurship Factors

Information about factors affecting entrepreneurship in Parakode block was collected through focussed-group discussions with NHG members and NHG member-entrepreneurs. 3.2.1. Sources of Credit

More qualitative details of credit access was obtained through the focus-group discussions. Table 3.2.i – Key features of credit access in Parakode block – Source – Focus Group Discussion

Maximum Source of Rate of Interest Ease of Amount Repayment Terms Credit (p.a) Availability Available Maximum Source of Rate of Interest Ease of Amount Repayment Terms Credit (p.a) Availability Available Monthly (6 months to NHG Rs 25,000 12% 1 Week (Easy) Year) Monthly (1 year to 3 1 Month (Bank Bank Rs 4,50,000 12% Year ) Formality) Weekly (3 Months to Moneylender Rs 1,00,000 25% 1Week (Easy) 2 Year) Each Gram Gold Loan 18% Monthly (1 year) Easily available @ Rs 1,500

3.2.2. Factors Motivating women Entrepreneurship

A qualitative assessment of attitude, motivation, and risk factors governing NHG members' choice for self-employment was done through the focussed-group discussions. Key points that emerged as reasons for choosing self-employment were:  Additional Income for the family  To improve the quality of life  The freedom that comes from running own business  Increases confidence  Can work based on own capability and convenience  Not a limited, fixed income  Successful projects as source of inspiration  Income generation for the employees of the enterprise  Flexible hours based on the entrepreneur allows time for family  Assurance of good quality products  Status enhancement in the society  Instilling of discipline due to running an enterprise  Local economic development

3.2.3. Factors Contributing to Enterprise Mortality

As per data available from the Kudumbashree community organisation network, 18 NHG women micro enterprises set up during the last year in Parakode had shut down within 6 months of functioning. Enterprise sector-wise analyses of the shut-down enterprises show the following: Table 3.2.ii – Enterprise sector-wise distribution of shut-down enterprises – Source – Focus Group Discussion & Kudumbashree NHG network

# Enterprises Enterprise Sectors Shut-down Soap products 1 # Enterprises Enterprise Sectors Shut-down Readymade Cloth Shop 1 Cow rearing and selling 1 Vegetable Trading 1 Bakery 1 Agarbatti making and selling 1 Book Binding 1 Coconut products 1 Sari painting 1 Food products 1 Tailoring 1 Mushroom 1 Chicken Farm 2 Bee keeping 1 Rock chips ( Handmade ) 1 Provisional store 1 Medical store 1 Total of all NHG-owned enterprises 18

Reasons for failure of these enterprises, as explained by those involved include:  Lack of profit  Lack of working capital  Lack of market  Lack of trust within the group (in cases of group enterprises)  Lack of appropriate skill training  Limited knowledge of book keeping  Limited knowledge of government aid in livelihood; difficulty in accessing cheap credit  Inability to standardize quality  Insufficient income  Issues in group dynamics in case of group enterprises  Inaccessibility of good quality raw material 3.2.4. Existing Income and Aspirations of Potential Entrepreneurs

Table 3.2.iii – Calculation of Opportunity Cost of NHG members, based on current incomes – Source – Focus Group Discussion

Number of Days / Number of Number of Month when Months / Year Income Activity Hours / Day in Activity is when Activity is Earned the Activity Available Available Bakery Daily 25 Days 12 months Rs 72,000

Tailoring Daily 25 Days 12 months Rs 50,000

Food products Daily 25 Days 12 months Rs 30,000

Provisional store Daily 25 Days 12 months Rs 70,000

Vegetable farm Daily 30 Days 12 months Rs 72,000

Garments Daily 25 Days 12 months Rs 60,000

Cow rearing Daily 30 Days 12 months Rs 1,44,000

Egg trading Daily 30 Days 12 months Rs 12,000

Vegetable shop Daily 25 Days 12 months Rs 60,000

Pickles 4 hrs 15 Days 6 months Rs 32,000

Candles 5 hrs 15 Days 6 months Rs 18,000

Tea shop Daily 30 Days 12 months Rs 72,000

Stationery Daily 25 Days 12 months Rs 30,000

Firewood shop Daily 30 Days 12 months Rs 30,000

Soap products Daily 20 Days 10 months Rs 8,000

Catering Daily 30 Days 12 months Rs 90,000

Curry powder Daily 20 Days 10 months Rs 12,000

Goat rearing Daily 30 Days 12 months Rs 18,000

Based on this information, the opportunity cost of NHG women can be pegged at Rs. 375 per day. On a monthly basis, the opportunity cost is Rs. 9,375. The aspiration of the NHG members in terms of incomes expected from enterprise activity was also assessed. The general expectation of income from running a micro-enterprises has been pegged at Rs.10,000 per month in case of working within the village and Rs. 15,000 per month in case of working outside the village. At the same time, the minimum wage for labour and non-NREGA work is Rs. 600 per day and NREGA wage is Rs. 240 per day.

3.2.5. Market and Other Factors Affecting Enterprises

Two key sets of factors affecting micro-enterprises were looked at.  Seasonality and market factors  Socio-economic and political factors An extensive analysis of these factors was done through the focus-group discussions. Key points that emerged are presented in the tables below

Table 3.2.iv - Seasonality and related market factors affecting / influencing enterprises – Source – Focussed Group Discussion

Strength Weakness  Availability of Panchayat level, weekly, local market  Lack of knowledge about good packing and labeling among  Presence of Public sector enterprise organizations such as KHDP, existing entrepreneurs VFPCK. Co-operative societies etc  Lack of knowledge about new technology and the relevant  Scope of festival markets for religious and regional festivals such machinery as Onam, Christmas, Eid, Vishu etc  Problems in price identification for existing enterprises  Raw materials is easily available  Lack of skilled workers  Issues in accessing credit  Competition from non-profit enterprises  Lack of market knowledge- new trends and changing customer preferences  Lack of good communication with customers  Lack of knowledge of how to utilize by products for creation of additional income sources Opportunity Threat  Abundant natural resourcesleading to possibility of sales outside  Lack of stable income the Block and even district  SHG products may face competition from branded  Strong Kudumbashree network and other government sector products NGOs can be potentially leveraged for enterprise promotion  Volatile weather which reduces the availability of raw  The availability of basic facilities that can incubate innovative materials businesses  Availability of cheaper products brought to the local  Good access to market market by external traders as a possible threat for local producers

Table 3.2.vi –Socio economic and political factors affecting / influencing enterprises– Source – Focussed Group Discussion

Strength Weakness  No political and caste issues evident among entrepreneurs and  Lack of leadership quality among potential entrepreneurs customers which needs to be nurtured and developed  30% of the Panchayat members are also part of the  Presence of prominent leaders that can potentially work as Kudumbashree network, leading potentially to ease in liaising pressure groups and dissuade business as usual  Strong commitment of the Kudumbashree network to local  Presence of high economic disparity economic development  Good relationship between the citizens and the Panchayat  Quick turnover for Kudumbashree products emanating from the goodwill of the network  Availability of good basic amenities (water ,building, transportation, electricity)

Opportunity Threat  Conduct of religious and regional festivals as possible marketing  The fear of acquisition of innovative businesses by bigger events businesses in the market  seasonal fare that can be harnessed for setting up seasonal, high  Cumbersome formalities in initiating new businesses profit markets  Easy availability of capital  Presence of strong Kudumbashree network  Infrastructure  No political-caste issues  Availability of different markets for accessing raw materials as well as retailing finished products  space for innovative businesses

4. Assessment of Potential for SVEP Enterprises

The second part of the baseline and market potential assessment was a series of exercises aimed at estimating the potential for enterprises to be targeted under SVEP. The potential for SVEP Enterprises emerge from both the demand and supply of goods and services in the block. In order to understand the demand-supply situation and make a reasonable estimate of potential, the assessment was done in three key steps. The SVEP potential was assessed based on:  Demand for local household consumption of goods and services provided by micro- enterprises  Supply of locally available resources – commodities, tourism, artisanal skills and proximity to high floating demand locations/urban markets  Demand for goods and services from implementation of government schemes

4.1. Assessment of Potential Based on Household Consumption

The assessment of household consumption demand was done through the following steps: (detailed log of the process is provided in Annexure 3).  Estimating demand for goods and services, using the Monthly Per Capita Expenditure (MPCE) figures from the National Sample Survey Office (68th Round of Survey – Household Consumption of Various Goods and Services in India 2011-12). The MPCE figures for the State was disaggregated to the district level, using the Market Potential Index developed by the MICA Indian Market Intelligence (MIMI)  The household level consumption figures were verified through a sample survey consisting of 500 households from different demographic and socio-economic categories  Data on sales of existing enterprises collected through the enterprise stratified sample study was used to estimate the total local supply  The gap between demand and supply, with necessary correction and tempering factors, for various business types was calculated and used as the basis for calculating the potential based on household consumption demand

4.1.1. Household Consumption Demand Calculation

The villages in the block were mapped on a 12-point matrix of population intervals and distance of the village from the Major District Road (MDR) and the ones to be sampled were chosen at random from each point on the matrix. 10% of the villages in the block were selected in total for sampling. The total number of households to be surveyed in the block was taken as lower of 500 or 10% of the total number of HHs. These households were then divided among the selected villages in the ratio of the total number of households belonging to SC, ST, and General (non-SC and non-ST) households in the block. 10% of the households from which the data collected by data enumerators (MECs) collected data were validated by Mentors from Kudumbashree NRO. Based on the validation results and maximum, minimum, mean and median values of the data, the outliers were eliminated based on judgement. On completion of the survey, the data was recorded in Excel by data entry operators. The different frequencies of purchase month as recorded in the questionnaires were brought to a common frequency – monthly in this case. The consumption values were divided by the number of family members in the household to get the final figures. Mean values were taken for each type, which represented the amount spent on purchase by each HH on each type. The mean was then multiplied by the population in the block to arrive at total purchases in the block for each consumption type. Further, based on the data collected, percentage of purchases from within the block was calculate. The total purchase was then multiplied by the percentage of purchases from within the block to arrive at total local purchases.

Table 4.1.i Average consumption across population categories (N = 500 households)

Consumption Good / Services Grouped Weighted General SC as per Enterprise Type Average Total (figures in Rs. per capita per month) Kirana Items 853.77 882.82 856.93 Dairy Items 293.22 118.07 259.33 Eggs, Fish, And Meat 710.60 483.89 665.83 Fruits 116.10 69.30 106.94 Vegetables 140.62 122.00 136.72 Cable Tv 64.95 57.70 63.40 Newspaper 89.12 44.14 80.38 Bakery / Sweet Shop 132.34 115.05 128.72 Fast Food / Hotel 46.83 26.24 42.81 Snacks Shop 49.93 39.58 47.84 Readymade Garments / Cloth Shop 122.63 102.90 118.57 Footwear 35.71 32.29 34.97 Barber / Beautician Services 20.78 20.13 20.60 Tailor 16.83 29.35 19.15 Mobile Recharge 108.90 108.27 108.49 Bus / Taxi / Auto Fare 140.21 216.93 154.32 Tuition 83.71 68.38 80.59 Ladies Store 11.09 18.04 12.37 Consumption Good / Services Grouped Weighted General SC as per Enterprise Type Average Total (figures in Rs. per capita per month) Books And Stationery 40.75 16.67 36.09 Repair On House / Land 108.94 3.44 88.72 Grinding Charges 10.62 9.42 10.36 Pan And Cigarettes 40.75 46.95 41.81 Furniture 38.04 4.42 31.59 Total 3287.92 2639.32 3156.44

According to census 2011, the ST households form less than 0.5% of the total households in Parakode. They were not covered as a part of household survey. The weighted average total figures were compared with MPCE for Kerala (Rural) from NSSO adjusted with the MIMI-MPI. The difference between the findings from the household survey and the MPCE disaggregated figures for most consumption types were beyond acceptable limits of deviation.

4.1.2. Calculating Existing Supply for Household Consumption

Data from the stratified sample study of micro-enterprises was used to calculate the existing supply in the block. (detailed log of the process is providedin annexure 3).

The enterprises listed through the enterprise census were mapped on a 12-point location-market matrix. A minimum of 5 enterprises from each point on location-market matrix were selected at random per block subject to a maximum of 10% of the enterprises. A wait-list was also selected (on random basis) to ensure that the target is met with. Overall, it was ensured that the sample consisted of at least 10% of the total enterprise numbers collected. The questionnaire schedule for the study was administered by the MEC using the Android App. 10% of the enterprises from which the data collected by data enumerators (MECs) collected data were validated by Mentors from Kudumbashree NRO. Based on the validation results and observation of maximum, minimum, mean and median values of the data, the outlier records were eliminated based on judgement. Sales value of all the enterprises belonging to each type was totalled and the average sales value was taken for each type by dividing the total sales value of all the enterprises belonging to the particular type by the total number of enterprises in surveyed in the block belonging to that type. The revenue was calculated monthly to enable comparison with the HH numbers. These type- wise sales figures were then aggregated to broader types got from the HH survey to reach the final values to be multiplied with the number of enterprises belonging to each of these types according to enterprise census data to find out the total supply. Table 4.1.ii – Data on existing supply for household consumption

Average Number of Total Monthly Consumption Good / Services Monthly Enterprises in Sales (in Rs. Grouped as per Enterprise Type Revenue (Rs.) Census Lakh) Kirana Items 1,47,557 187 275.93 Eggs, Fish, And Meat 79,873 94 75.08 Fruits 1,13,438 35 39.70 Vegetables 1,26,174 131 165.29 Bakery / Sweet Shop 95,449 191 182.31 Fast Food / Hotel 1,37,647 100 137.65 Snacks Shop 39,325 112 44.04 Readymade Garments / Cloth Shop 88,603 80 70.88 Footwear 49,308 16 7.89 Barber / Beautician Services 41,193 43 17.71 Tailor 13,873 143 19.84 Mobile Recharge 1,35,141 40 54.06 Bus / Taxi / Auto Fare 70,440 517 364.17 Ladies Store 63,519 33 20.96 Books And Stationery 2,05,111 334 685.07 Repair On House / Land 72,000 167 120.24 Grinding Charges 27,682 17 4.71 Pan And Cigarettes 43,282 137 59.30 Furniture 49,199 46 22.63

Data for the following enterprises was not available from the enterprise sample:  Newspaper  Tuition

4.1.3. Gap between Demand and Supply and Enterprise Potential

Table 4.1.iii - Gap between demand and supply leading to estimate of enterprise potential

Average Proportion Total Demand – Consumption Good / Average Consumption of Purchase Monthly Supply Services Grouped as Consumption Within the Within the Sales (in Gap (in Rs. per Enterprise Type (in Rs. Lakh) Block (in Rs. Block2 Rs. Lakh) Lakh) Lakh) Kirana Items 300.44 1.0 300.44 275.93 24.51 Dairy Items 534.84 1.0 534.84 - 534.84 Eggs, Fish, And Meat 109.86 1.0 109.86 75.08 34.78 Fruits 66.17 1.0 66.17 39.70 26.46 Vegetables 197.38 1.0 197.38 165.29 32.09 Cable Tv 13.08 1.0 13.08 - 13.08 Newspaper 16.58 1.0 16.58 - 16.58 Bakery / Sweet Shop 212.37 1.0 212.37 182.31 30.06 Fast Food / Hotel 132.44 1.0 132.44 137.65 -5.21 Snacks Shop 49.33 1.0 49.33 44.04 5.29 Readymade Garments 85.59 1.0 85.59 70.88 14.71 / Cloth Shop Footwear 21.63 1.0 21.63 7.89 13.75 Barber / Beautician 25.50 1.0 25.50 17.71 7.78 Services Tailor 27.64 1.0 27.64 19.84 7.80 Mobile Recharge 89.50 1.0 89.50 54.06 35.44 Bus / Taxi / Auto Fare 372.38 1.0 372.38 364.17 8.20 Tuition 16.62 1.0 16.62 - 16.62 Ladies Store 25.52 1.0 25.52 20.96 4.56 Books And Stationery 669.83 1.0 669.83 685.07 -15.24 Repair On House / 91.48 1.0 91.48 120.24 -28.76 Land Grinding Charges 12.82 1.0 12.82 4.71 8.11

2 Indicates the average proportion of the good/service purchased within the block out of that consumed in the block – From Household Survey Average Proportion Total Demand – Consumption Good / Average Consumption of Purchase Monthly Supply Services Grouped as Consumption Within the Within the Sales (in Gap (in Rs. per Enterprise Type (in Rs. Lakh) Block (in Rs. Block2 Rs. Lakh) Lakh) Lakh) Pan And Cigarettes 77.61 1.0 77.61 59.30 18.31 Furniture 39.09 1.0 39.09 22.63 16.46

Table 4.1.iv – Enterprise types with SVEP potential

Rupee Number of Demand – Take Home value of Potential Consumption Good / Aspired Supply Gap Income Ratio enterprise Enterprises Services Grouped as per Income (in Rs. for Potential (Rupee Enterprise Type (Rs.) Lakh) Entrepreneur3 (In Rs. Value / Lakh) Aspiration) Kirana Items 24.51 0.21 5.15 10,000 51 Eggs, Fish, And Meat 34.78 0.22 7.65 10,000 77 Fruits 26.46 0.23 6.09 10,000 61 Vegetables 32.09 0.2 6.42 10,000 64 Bakery / Sweet Shop 30.06 0.22 6.61 10,000 66 Snacks Shop 5.29 0.48 2.54 10,000 25 Readymade Garments / 14.71 0.36 5.29 10,000 53 Cloth Shop Footwear 13.75 0.27 3.71 10,000 37 Barber / Beautician 7.78 0.53 4.13 10,000 41 Services Tailor 7.80 0.51 3.98 10,000 40 Mobile Recharge 35.44 0.26 9.21 10,000 92 Bus / Taxi / Auto Fare 8.20 0.71 5.82 10,000 58 Ladies Store 4.56 0.45 2.05 10,000 21 Grinding Charges 8.11 0.63 5.11 10,000 51 Pan And Cigarettes 18.31 0.47 8.61 10,000 86

3 Indicates profit and wages taken home by the entrepreneur/s as a proportion of the total revenue of the business Rupee Number of Demand – Take Home value of Potential Consumption Good / Aspired Supply Gap Income Ratio enterprise Enterprises Services Grouped as per Income (in Rs. for Potential (Rupee Enterprise Type (Rs.) Lakh) Entrepreneur3 (In Rs. Value / Lakh) Aspiration) Furniture 16.46 0.39 6.42 10,000 64 Total 887

4.2. Enterprise Potential Based on Locally Available Resources

The second component of the potential for enterprises under SVEP comes from the livelihoods resource base available in the block. The livelihoods resources have been classified into four:  Primary commodities/products from land-forest-water resources  Tourism  Artisanal skills  Locational – high demand concentration locations/ proximity to urban markets

4.2.1. Commodities / Products

A list of primary commodities/products was identified through extensive field interactions by the MECs. The list of 12 commodities consists of a balanced mix of tree/forest products and farm products.

Table 4.2.i – Primary commodities/products identified in Parakode block

Mango Chembu Jackfruit Kachil Coconut Pea (Payar) Tamarind Snakeguard(Padavalam) Kodampuli Ginger Cheema Puli Green Chilly Champakka Amarandas (Cheera) Guava Rubber Rambootan Milk Pappaya Tapioca Pineapple Banana Jathikka Pavakka Cheeva kizhangu Chena (Koorkha)

A value-chain approach to the commodities was adopted for understanding the potential for micro-enterprises. Five value-chain points were identified for detailed analysis in the field.  Input services  Production  Post-harvest management (grading, sorting)  Processing  Logistics (storage and transportation)

The production point was not taken up for further analysis. MECs collected information on the processes, quantities and issues related to potential for micro-enterprises on the remaining four points, through detailed key-informant interactions in the villages and markets.

Table 4.2.ii – Estimated market value of commodities / products in Parakode block

Estimated market value in Rs. lakh # Commodity Input Post-Harvest Processing Logistics

1 Mango 0.00 9.07 800.21 1681.13 2 Jackfruit 0.00 0.00 1300.52 2716.38 3 Coconut 33.72 8877.88 106.49 5111.61 4 Tamarind 0.00 0.00 0.00 284.29 5 Kodampuli 0.00 0.00 0.00 436.64 6 Cheema Puli 0.00 0.00 86.46 20.60 7 Champakka 0.00 0.00 632.10 2540.20 8 Guava 0.00 0.00 2.07 5.04 9 Rambootan 0.00 3.41 0.64 0.69 10 Pappaya 0.00 0.00 6200.69 10674.63 11 Pineapple 321.30 0.00 251.09 304.55 12 Jathikka 0.00 32.20 6.76 12.46 13 Cheeva kizhangu 0.00 11.90 0.00 26.78 (Koorkha) Estimated market value in Rs. lakh # Commodity Input Post-Harvest Processing Logistics

14 Tapioca 92.63 0.00 34.99 102.69 15 Banana 37.35 0.00 184.28 1032.48 16 Pavakka 0.91 0.00 6.39 28.00 17 Chena 4.27 0.00 15.12 731.57 18 Chembu 5.15 0.00 101.57 1256.97 19 Kachil 0.34 0.00 0.00 78.21 20 Pea (Payar) 0.31 0.00 43.40 54.92 21 Snakeguard(Padavalam) 0.02 0.00 0.00 42.26 22 Ginger 0.50 0.00 11.18 24.10 23 Green Chilly 0.22 10.71 1.99 4.80 25 Amarandas (Cheera) 206.64 0.00 0.00 51.56 26 Rubber 1263.39 0.00 0.00 213.11 27 Milk 0.00 0.00 20.16 181.98

The ability of SVEP to convert the market value into actual enterprises will depend on four key factors. These factors were analysed and a quantified value assigned to each, in terms of percentage of the value that can be exploited. The four factors that were considered and the values arrived at for each, based on key-informant discussions are as follows. Table 4.2.iii – Conversion factors for commodity/product based potential in Parakode

Factor Detail Capital requirement Lower levels of capital requirement are better-suited for SVEP Demand that can be How much of the demand can be generated, given local generated conditions Availability of skill and Levels of technical skill and basic infrastructure that is needed infrastructure to take advantage of the potential Magnitude of competition Lower the existing competition, better the opportunities for existing in the market SVEP

Accordingly, the rupee value of the potential for SVEP was assessed for each product/commodity and the number of enterprises possible was calculated, which came out to 10% for all sectors across value chain. Take-home income potential of the enterprises was estimated as 30%. The enterprises based on availability of resources are expected to be seasonal enterprises, each running for about 4-months. The aspiration level was taken as that for enterprises outside the village, hence the number of enterprises possible was based on a higher level of aspiration of income for 4-months of Rs 24,000. Table 4.2.iv – Calculation of SVEP potential based on commodities / products

Market Value Considered for SVEP (Rs. lakh) Take Home Number of Post- Commodity Input Processing Logistics Potential Potential harvest Total (10%) (10%) (10%) (30%) Enterprises (10%) Mango 0.00 0.91 80.02 168.11 249.04 74.71 125 Jackfruit 0.00 0.00 130.05 271.64 401.69 120.51 201 Coconut 3.37 887.79 10.65 511.16 1412.97 423.89 235 Tamarind 0.00 0.00 0.00 28.43 28.43 8.53 14 Kodampuli 0.00 0.00 0.00 43.66 43.66 13.10 22 Cheema Puli 0.00 0.00 8.65 2.06 10.71 3.21 5 Champakka 0.00 0.00 63.21 254.02 317.23 95.17 53 Guava 0.00 0.00 0.21 0.50 0.71 0.21 0 Rambootan 0.00 0.34 0.06 0.07 0.47 0.14 0 Pappaya 0.00 0.00 620.07 1067.46 1687.53 506.26 281 Pineapple 32.13 0.00 25.11 30.45 87.69 26.31 15 Jathikka 0.00 3.22 0.68 1.25 5.14 1.54 3 Cheeva kizhangu 0.00 1.19 0.00 2.68 3.87 1 (Koorkha) 1.16 Tapioca 9.26 0.00 3.50 10.27 23.03 6.91 4 Banana 3.73 0.00 18.43 103.25 125.41 37.62 21 Pavakka 0.09 0.00 0.64 2.80 3.53 1.06 1 Chena 0.43 0.00 1.51 73.16 75.10 22.53 13 Chembu 0.51 0.00 10.16 125.70 136.37 40.91 23 Kachil 0.03 0.00 0.00 7.82 7.86 2.36 4 Pea (Payar) 0.03 0.00 4.34 5.49 9.86 2.96 2 Snakeguard(Padaval 0.00 0.00 0.00 4.23 4.23 1 am) 1.27 Ginger 0.05 0.00 1.12 2.41 3.58 1.07 1 Green Chilly 0.02 1.07 0.20 0.48 1.77 0.53 0 Market Value Considered for SVEP (Rs. lakh) Take Home Number of Post- Commodity Input Processing Logistics Potential Potential harvest Total (10%) (10%) (10%) (30%) Enterprises (10%) Amarandas 20.66 0.00 0.00 5.16 25.82 4 (Cheera) 7.75 Rubber 126.3 0.00 0.00 21.31 147.65 49 4 44.30 Milk 0.00 0.00 2.02 18.20 20.21 6.06 3 Total 1081

4.2.2. Tourism

Places in the block where large number of non-local people congregate, for religious or leisure purposes, were identified. The MECs conducted a dip-stick survey in these locations to estimate the footfall and to understand the nature of enterprise activities ongoing and possible.

Table 4.2.v - Tourist spots in Parakode

No. of Families Money Spent by a No of Days Visiting in a Family on Average Open in a Year year (Rs) Chankoor Mahadeva Temple, Enadimangalam 10 1,250 700 Elamannor Mahadeva Temple, Enadimangalam 10 1,500 700 Maruthimoodu Church, Elamannor 365 36,500 500 Table 4.2.vi – Calculation of SVEP potential from tourism locations

Share of Take Home Total New Family Potential Existing Enterprise Type Enterprise Enterprises Spending Available Enterprises Potential Possible (%) (Rs.) Chankoor Mahadeva Temple, Enadimangalam Snacks Shop 30 1,05,000 2 5 2 Gift Shop 20 35,000 0 4 0 Toy Shop 15 26,250 0 2 0 Share of Take Home Total New Family Potential Existing Enterprise Type Enterprise Enterprises Spending Available Enterprises Potential Possible (%) (Rs.) Hotel 25 87,500 4 1 4 Puja Matarial 10 17,500 0 1 0 Elamannor Mahadeva Temple, Enadimangalam Tea and Snacks 20 84,000 5 5 0 Gift Shop 20 45,000 3 2 1 Toy Shop 20 45,000 3 2 1 Hotel 30 67,500 4 2 2 Puja Matarial 10 21,000 1 3 0 Maruthimoodu Church, Elamannor Tea and Snacks 15 10,95,000 6 2 4 Puja Materials 20 7,30,000 4 6 0 Puja Materials 20 7,30,000 4 6 0 Cold Drinks Shop 10 3,65,000 2 1 1 Hotel 15 10,95,000 6 1 5 Toy Shop 10 3,65,000 2 0 2 Gift Shop 10 3,65,000 2 0 2 Total 24

4.2.3. Artisanal Skills

The purpose of assessing availability of artisanal skills is to estimate if enterprise potential from clustering of artisanal production, using a value-chain approach can be developed under SVEP. In order for meaningful interventions to happen, a cluster-value chain approach is necessary.Field work did by the MECs reveal no significant artisan cluster in Parakode block. 4.2.4. High Demand Concentration Locations / Proximity to Urban Markets

Parakode is around 80 kms from Alapuzha city and plenty of trade happens between Parakode and Alapuzha.

Enterprise potential coming from the proximity to Ajmer has not been assessed properly yet. The time available for the market assessment studies and the level of experience of the local teams were not sufficient to understand this potential. It is expected that enterprises in the services sector will have opportunities in the days to come. This will be understood and realized as part of implementation of SVEP.

4.3. Demand based on Government Schemes

Expenditure incurred on goods and services for the implementation of various government schemes has the potential to create micro-enterprises under SVEP. The potential of schemes were assessed and the number of enterprises possible has been calculated. However, these enterprises can only be realised with adequate support and timely approvals and sanctions from government departments. The government schemes with enterprise potential considered are:  Swachh Bharat Mission  Uniform for school children and hospital staff  Supplementary nutrition for lactating mothers and children aged 6 months – 3 years  Establishing institutional catering services for NRLM offices

4.3.1. Swachh Bharat Mission (SBM)

The target for building toilets during 2016-17 in Parakode for SBM is1,318. The material proportion for SBM and cost per unit is as under:

Table 4.3.i – Market value of goods needed for SBM

Total Market (in Rs. Material Component Proportion Rate (in Rs.) lakh) Bricks 225 pieces 24 71.2 Cement 4 bags 400 21.1 Iron Rod 25 kg 35 11.5 Sand 0.5 load 5,000 33.0 Crushed Rock 50 feet 7 4.6 Door 1 door 1,275 16.8

For the purpose of SVEP, the following are the enterprise types considered:  Bricks manufacturing  Bricks trading  Cement trading  Roof stone trading  Door manufacturing

4.3.2 Pradhan Mantri Awas Yojana The target for building toilets during 2016-17 in Parakode for PMAY is354. The material proportion for PMAY and cost per unit is as under: Table 4.3.ii – Market value of goods needed for IAY

Material Component Proportion Rate (in Rs.) Total Market (in Rs.) Bricks 2,200 pieces 24 1,86,38,400 Cement 120 bags 400 1,69,44,000 Iron Rod 650 kg 35 80,30,750 Sand 2 load 5000 35,30,000 Crushed Rock 200 feet 7 4,94,200 Door 2 doors 4000 28,24,000 Window 5 pieces 1500 26,47,500 Total 5,31,08,850

4.3.2. Uniforms in Schools and Hospitals

School Children  Number of school children in the block – 3,825  Per capita school uniform allocation per annum (average) – Rs. 600  Total market value possible – Rs. 22.95 lakh

Hospital Staff  Number of hospital staff ◦ Grade 3 – 9 ◦ Grade 4 – 7  Per capita hospital uniform allocation per annum (average) ◦ Grade 3 – Rs. 1,500 ◦ Grade 4 – Rs 700  Total market value possible – Rs. 0.18 lakh

4.3.3. Supplementary Nutrition

Supplementary nutrition was not considered for enterprise development activities due to the presence of supply from Nutrimix units in Kerala.

4.3.4. Institutional Catering

 Number of meetings in the block panchayats and CDS‟ per month – 84  Approximate number of persons per meeting – 25  Average spent per meeting per person – Rs. 50  Total market value possible per annum – Rs. 12.6 lakh

As done in the case of potential assessment from commodities/products, conversion factors to calculate potential of SVEP from the total market value possible were also assessed. The same four factors as listed in Table 4.2.iii above was considered. The conversion factor was pegged at 10% for enterprises under SBM and at 75% for enterprises catering to uniform, supplementary nutrition, and institutional catering. Table 4.3.ii – Calculation of SVEP potential from government schemes

Available Potential Take SVEP Number of Conversion Market Available Home Potential Potential Enterprise Type Factor (in Rs. (in Rs. Income (In Rs. Enterprises Used Lakh) Lakh) Ratio lakh) Bricks 128.78 10.0% 12.9 0.2 2.6 2 Manufacturing Bricks Trading 128.78 10.0% 12.9 0.2 2.6 2 Cement and iron 282.37 10.0% 28.2 0.1 2.8 2 rods Trading Centering and 9.56 10.0% 1.0 0.2 0.2 0 Construction Door and Window Frames 71.52 10.0% 7.2 0.2 1.4 1 Manufacturing Institutional 12.6 75% 9.45 0.45 4.25 0 Catering School / Hospital 23.134 75% 17.3505 0.6 10.41 5 Uniform Total 12

4.4. Existing Enterprises Supported under SVEP

SVEP envisages providing support to existing micro-enterprises run by members of NRLM SHGs and/or their family members. As seen in Section 3.1.5, there are existing enterprises run by SHG members in the Block. 25% of these will be brought under the purview of SVEP support. The number of existing enterprises in the block identified during the enterprise census, owned by SHG members / family members is 160. All 160 enterprises have been included in the plan presented in this DPR, as the total number of existing enterprises supported does not exceed the 25% of all enterprises proposed to be supported in the block under SVEP.

4.5. Potential for Enterprises under SVEP – Consolidated Information (type-wise)

Table 4.5.i - Calculation of SVEP potential for new and existing enterprises – Consolidated

Nature of Potential Enterprise Type Number of Enterprises Perennial Seasonal

Kirana Items 51 Eggs, Fish, And Meat 77 Fruits 61 Vegetables 64 Bakery / Sweet Shop 66 Snacks Shop 25 Readymade Garments / Cloth Shop 53 From Household Footwear 37 Demand Barber / Beautician Services 41 Tailor 40 Mobile Recharge 92 Bus / Taxi / Auto Fare 58 Ladies Store 21 Grinding Charges 51 Pan And Cigarettes 86 Furniture 64 Mango 125 Jackfruit From Sub-Sector 201 Analysis: Commodities Coconut 235 Tamarind 14 Nature of Potential Enterprise Type Number of Enterprises Perennial Seasonal Kodampuli 22 Cheema Puli 5 Champakka 53 Papaya 281 Pineapple 15 Jathikka 3 Cheeva kizhangu (Koorkha) 1 Tapioca 4 Banana 21 Pavakka 1 Chena 13 Chembu 23 Kachil 4 Pea (Payar) 2 Snakeguard(Padavalam) 1 Ginger 1 Amarandas (Cheera) 4 Rubber 49 Milk 3

Gift Shop 3 Hotel 11 From Sub-Sector Tea And Snacks Analysis: Tourism 6 Cold Drinks 1 Toy Shop 3 Bricks production 2 From Government Bricks trading 2 Demand Cement trading 2 Nature of Potential Enterprise Type Number of Enterprises Perennial Seasonal Door production 1 Uniform 5 Total 1,557 447 Total New Enterprises 2004 Total Existing Enterprise 160 Total Number of SVEP Enterprises in the Block 2164

4.6. From Potential to Actual Enterprises

As explained in the sections above, the market potential assessment carried out has provided numbers of enterprises that can be undertaken for development as part of SVEP. The challenge is to ensure that the estimated numbers are converted into real enterprises benefitting the SHG members and their families. It is therefore necessary to be realistic about the targets and the processes to be followed. There are also factors external to SVEP implementation itself that needs to be considered.

4.6.1. Conditions of Success

The conditions of success of SVEP are around the following key issues, not fully within the control of the SVEP implementation mechanism.  Institutional ability of the NRLM community institution structure Success of SVEP will depend on the capabilities and interest of the SHG-Federation structure in the block. Interventions of the SRLM and related agencies in areas of social mobilisation, institution building, capacity building and financial inclusion are critical in this regard.

 Bank coordination Coordination with banks / financial institutions also have implications on the success of SVEP. Here again the overall strategy of the SRLM, especially w.r.t to financial inclusion as a whole will be critical. There are issues related to creditworthiness and access to credit that poor entrepreneurs face. Many of this will be addressed by SVEP through its interventions. But the larger picture cannot be discounted.

4.6.2. Phasing Strategy

Phasing of the SVEP strategy in terms of realising the targeted numbers is also critical. The phasing referred to here is with respect to the enterprise sectors and types. It will be necessary for certain sectors of businesses to be established before others can be made feasible. The inter- relationship is critical and has to be studied. The market assessment exercise did not do this. The issue may not be so critical in case of enterprises catering to household demand. It will be significant for enterprises taking advantage of the resource context and those looking to gain from government schemes. Besides this, enterprises catering to provision / maintenance of irrigation and other facilities in the villages will be considered in due course of SVEP implementation. A clear phasing strategy will be developed within six-months of starting of implementation of SVEP. This time is necessary to ensure that all market and community level issues are clearly understood before the strategy is finalised.

5. Implementation of SVEP – Arrangements at Various Levels

Implementation of SVEP in the Block will be taken in stages as explained below.

Table 5.i – SVEP Implementation Stages

Stage Activities Time-period DPR Conduct of baseline & market potential Undergoing study and preparation of DPR Stage 1 Preparatory activities After EC approval – till the 6th month. Stage 2 Field-level preparatory activities After EC approval – till the 10th month. Stage 3 Field-level implementation After EC approval – 11th month onwards

Various activities to be taken up as part of SVEP implementation in the Block are explained in this chapter. The stage of implementation as per the above table will be referred to in the explanation. The project calendar in Chapter 8 will provide a summary view of the activity plan.A month-wise plan is elaborated in annexure 3. 5.1. Description of Project Components

SVEP aims at promotion self-employment opportunities among rural women to guard themselves against vagaries of agriculture. Towards this, a system of providing start-up and handholding support is being established under this programme in the form of Micro Enterprise Consultants (MEC). The SVEP Guidelines of the Ministry of Rural Development refers to them as CRP-EP. In case of SVEP in Kerala, the MEC will serve as CRP-RP. MEC are persons from the community with basic numeracy and logic skills, who will be trained and certified under SVEP to provide support to budding / existing entrepreneurs. 5.1.1. Placement of Micro Enterprise Consultants

In case of Parakode Block, the Micro Enterprise Consultants need to be identified, oriented and trained. The trained MECs will function as a group. Stage-wise activity plan for MEC

Activities Stage Responsible Agency Selection and Capacity Building of MEC Stage 1 Kudumbashree-NRO Group Formation of MEC Group to take up BRC Stage 1 Kudumbashree-NRO operations Certification of MECs Stage 2 Kudumbashree-NRO 5.1.2. Setting-up of Block Resource Centre for Enterprise Promotion (BRC)

The Block Resource Centre for Enterprise Promotion (BRC) will be set up as the base for implementation of SVEP in the Block. The BRC will be the nodal centre for technical support for SVEP at the Block level. Ownership of the BRC will be with the Block Level Federation (BLF) to be set up under the NRLM institutional structure. Until the BLF is formed, a nodal Community Development Society (CDS) assigned by Kudumbashree SPEM will be responsible to own the BRC. The MEC Group which will be trained in the Block will be assigned the responsibility of operating the BRC. The BRC will be a physical place to work and will consist of all MEC working in the Block. After the formal start of SVEP implementation, Kudumbashree-NRO, the Project Implementing Agency (PIA) will establish necessary hardware and facilities including physical infrastructure such as furniture, fixtures and IT Hardware for the BRC. The PIA with the support of SRLM will also establish the norms, terms and conditions for operations of the BRC. The PIA, with the support of SRLM will also orient the nodal CDS and other concerned Block level stakeholders and ensures their familiarisation with the MEC. Stage-wise activity plan for BRC

Activities Stage Responsible Agency Identification of nodal-CDS to own the BRC Stage 1 Kudumbashree SPEM Orientation of the nodal-CDS Stage 1 Kudumbashree SPEM Empanelment of MEC Group to operate the BRC Stage 2 Kudumbashree SPEM Setting up physical infrastructure for the BRC Stage 2 Kudumbashree-NRO Formal agreement between nodal-CDS and MEC Stage 2 Kudumbashree SPEM Group for operations of the BRC Regular functioning of the BRC Stage 3 Nodal-CDS, Kudumbashree-NRO &Kudumbashree SPEM as per agreed upon monitoring framework

5.1.3. Setting up CEF and Norms for Disbursement / Collection / Management

The Community Enterprise Fund (CEF) is a dedicated fund, on the lines of the Community Investment Fund provided under NRLM, for the pilot Block under SVEP to give out loans to the entrepreneurs. It will help to enhance credit-worthiness of the village entrepreneurs and also showcase the ability of the community institution led enterprise capital provisions to demonstrate disciplined credit behaviour. This will also help to enhance bank‟s confidence in the unorganised sector. Kudumbashree SPEM will issue detailed guidelines for use of CEF in Parakode Block. Kudumbashree-NRO will support in drafting of the guidelines. The following general conditions issued by NRLM will be included in the guidelines. The CEF will not be used for funding illegal activities and motorised vehicles (except if they are being used for revenue-generating purposes). Also, activities which require licensing / other govt. formalities will not be funded till necessary formalities are completed.

The CEF will be provided through the community institutions. The NHG member associated with the enterprise would be responsible for signing the CEF on behalf of the entrepreneur (either self, spouse, child or parent). The first step in the setting up of the CEF will be to transfer the CEF to the nodal CDS, which will be done by the SRLM. The nodal CDS will have to maintain separate books of accounts pertaining to CEF.

Conditions to avail CEF may include the following:  Income and credit appraisal of the entrepreneur  Feasibility study of the enterprise  Appraisal of loans by BLF or nodal-CDS based on enterprise sector and regional benchmarks

Stage-wise activity plan for CEF

Activities Stage Responsible Agency Issue of guidelines for operations of the CEF Stage 1 Kudumbashree SPEM Opening of bank account of the nodal-CDS Stage 1 Kudumbashree SPEM Establishing accounting system for the operations of Stage 1 Kudumbashree SPEM the CEF Transfer of CEF funds to nodal-CDS into their Stage 2 Kudumbashree SPEM separate bank account for SVEP Formal setting up of the CEF for the Block Stage 2 Kudumbashree SPEM

5.1.4. Finalising design and rolling out of the VE-IT Application

The Village Enterprise – IT application (VE-IT App) will be used for assisting the various stakeholders such as MEC, BRC, Kudumbashree SPEM, Kudumbashree-NRO and the NRLM- NMMU in carrying out various activities. The VE-IT App was used in data collection for preparing DPR. It will be used further to monitor the performance of enterprises so formed under the project. VE-IT application will include the following components:  New business feasibility and opportunity assessment through heat maps, that captures location, density and size of competition contrasted with market size  Business performance appraisal and investment analysis (To be based on regional norms and benchmarks)  Credit appraisal (based on financial strength of entrepreneur)  Performance Tracking System (PTS) - paper or mobile book-keeping at the enterprise level and business performance information collated and analysed by the BRC to provide meaningful feedback to the entrepreneur  Reporting to Financial Institution and other stakeholders like NRO, KS –District Mission, KS - State Mission, NMMU and the CDS-ADS-NHG  Baseline and market assessment study to arrive at benchmarks for various enterprise types

Stage-wise activity plan for VE-IT App

Activities Stage Responsible Agency Finalisation of software and roll-out in the Block Stage 2 Kudumbashree-NRO Ensuring availability of necessary hardware with the Stage 2 Kudumbashree-NRO BRC to manage the VE-IT App Training of the MEC on the VE-IT App Stage 2 Kudumbashree-NRO Orientation of KS - District Mission, KS - Stage 2 Kudumbashree-NRO DistrictMissionand KS - StateMission of Kudumbashree SPEM on the VE-IT App Synchronisation of VE-IT PTS and Kudumbashree Stage 2 Kudumbashree SPEM MIS SPEM Orientation of entrepreneurs on use of data recording Stage 3 BRC (paper or mobile-based) for PTS On-going use of VE-IT App Stage 3 BRC

5.2. Positioning of Personnel and Roles and Responsibilities of SRLM and PIA

A Memorandum of Understanding (MOU) has been signed between Kudumbashree SPEM, the SRLM and Kudumbashree-NRO, the PIA for implementation of SVEP in the Block. The terms and conditions stipulated in the MOU shall be followed. In case of specific activities, the explanations given in this Detailed Project Report (DPR) document shall form the basis of the partnership between the SRLM and the PIA. This section details the roles and responsibilities of the various personnel who will be engaged in the implementation, coordination and facilitation of SVEP from the SRLM and the PIA.

5.2.1. KudumbashreeSPEM – State, District, and Block Mission Units

SRLM shall position the following personnel:  Senior personnel (SPM) for coordination of the partnership at the State-level  One professional at the Block level to be Block Project Manager for SVEP (BPM-SVEP) to work closely with the PIA. This professional should have the competencies and experience as defined by the NRLM-MoRD

Other responsibilities of the SRLM shall include:  Prepare Annual Action Plans  Conduct project initiation workshops  Provide field level support and required information such as records, local institutional contact etc. required for planning and smooth implementation of the project activities.  Setup the Block Resource Centre (BRC)  Prioritize creation of BLF and assign one CDS/ADS in the Block with responsibility for the monitoring BRC till BLF comes into existence  Engage its district and Block level teams for the implementation of activities under the partnership

5.2.2. Personnel on the Ground

Mentors Mentors are persons having experience in enterprise promotion in Kerala and shall be drawn from amongst the community organizations promoted by Kudumbashree. They shall be selected on the basis of their experience within Kerala and / or within partner states under MEC project, communication skills and willingness to work as Mentors. The role of Mentors shall be as follows:  Assist PIA and SRLM during selection and training of MEC  Guide MEC during the training programme  Support MEC in on-field activities and enterprise promotion  Be available to MEC for consultation on telephone during other times

Micro Enterprise Consultants (MEC) The MEC will form the BRC. They will provide the following type of services, for which payment will be made to them as per norms and conditions explained later.  Selection of entrepreneurs and conduct of business feasibility analysis  Business plan preparation  Business plan appraisal and credit appraisal  Need based linkages for start-up and enterprise launch  Personalized advisory / performance and repayment tracking The detailed list of services provided by the MEC is given as Supplement to Section 6 of the DPR.

5.3. Roles and Responsibilities of Community Institutions

The NHG-Federation network formed as part of NRLM will play a critical role in the implementation of SVEP. As explained earlier, till such time that a Block-level Federation is established, one CDS identified by the SRLM will function as the nodal-CDS for SVEP. Other Federations, Area Development Society and NHGs will play their respective roles.

5.3.1. Nodal-CDS

The Nodal CDS shall, preferably, be the CDS in the Block headquarters. It will act as the holding entity till the BLF comes into existence. The nodal-CDS should have the capability for handling the CEF. The nodal CDS will be trained by the SRLM, with the support of PIA, to manage funds related to CEF under SVEP. 5.3.2. NRLM NHGs and their Federations

The NHG-ADS-CDS network must be actively involved in the enterprise promotion efforts in their respective areas. Their engagement with the MEC and the BRC is key to the success of SVEP. Their role in the project will be:  Help in the selection of potential entrepreneurs  Monitor the use of the loan and the ensure repayment  Create and use a community based Credit Guarantee Fund, with help from SRLMs  Monitor the work of the MEC  Provide social and emotional support to the entrepreneurs as and when required

5.4. Institutional / Contractual Arrangements to be made for Operations at the Block Level

5.4.1. BRC as outsourced entity of Nodal CDS

The ultimate responsibility for promoting self-employment among NHG members rests with the community institutions. However, given the present context, it is difficult for the community network to support the first-generation entrepreneurs based on their limited technical business logic and knowledge. To cover for this gap, the community network, through their CDS, shall engage with the MEC Group to operate the BRC. The MEC Group is an independent entity responsible for their own revenue and profits. The CDS shall enter into a contract with the MEC Group to provide enterprise-related support to the NHG women or their family members in exchange for a fee. The contract shall clearly list the terms of payment and roles and responsibilities of each stakeholder. The template for the contract shall be finalised by PIA, in consultation with SRLM.

BRC, while owned by the nodal-CDS and later the BLF, shall be the managed through outsourcing by nodal-CDS to the MEC Group. It will act as the agency running enterprise promotion and support at Block level. To ensure its ensure its smooth functioning there must be in place reporting structures, processes and rules so that effective monitoring of BRC can be done by other institutions.

5.4.2. Arrangements made by MEC Group to act as BRC

In order to ensure their sustainability and effectiveness the MEC Group must function as a single entity. To formalize this union the MECs shall make use of legal tools available. These will also act as a guideline in case of any internal conflict arises amongst the members. For the MEC Group to function as the managing agency of the BRC, it will have to comply with the following–  Register it as a partnership firm by signing a partnership deed. Partnership firms are easier to form and are governed by less stringent regulations, pertaining to movement of capital, tax, etc  Accredited by SRLM as their support agency  Sign a bye-law to detail out the internal work management and regular operations of members of MEC Group These will ensure that the MECs engage themselves and are responsible to their clients as the group managing the BRC. It shall be MEC Group's collective responsibility to discharge on contractual agreements with the CDS to operate the BRC.

5.4.3. Monitoring of the Functioning of BRC

Functioning of the BRC will be monitored as follows:

By the Nodal CDS  The nodal-CDS shall review the work of the BRC as per physical targets mentioned in the contract  The payment shall be made by the nodal-CDS on achievement of the physical targets as mentioned in the contract and as per the listed payment norms  BRC shall submit regular reports (weekly, bi-weekly, or monthly) to the nodal-CDS regarding work under contract

By the District Mission  The KS –District Mission, through BPM-SVEP, shall closely monitor the working of BRC  The BRC shall submit regular reports (weekly, bi-weekly, or monthly) to the BPM-SVEP / regular-BPM regarding work done under contractual agreement with the nodal-CDS. This report shall be attested by the nodal-CDS.  The KS - District Mission shall facilitate a monthly review of the BRC in presence of Block Anchor Person, BPM-SVEP, Mentors, representatives of BRC, nodal CDS and other constituent CDS/ADS to take stock of the activities, and engage in planning as per SVEP targets.

By the PIA  The PIA, through Mentors and Block Anchor Person, shall closely monitor the working of BRC.  The PIA shall facilitate a quarterly review of the BRC in presence of Block Anchor Person, BPM-SVEP, Mentors, and representatives of BRC, nodal CDS and other constituent CDS/ADS to take stock of the activities, and engage in planning as per SVEP targets.

Data generated from the VE-IT App on performance of the enterprises supported by the BRC shall form the basis of the business results assessment of the BRC. 5.5. Capacity Building

Capacity building of the SVEP stakeholders will be a continuous process. This section outlines some of the key elements. Capacity building of MEC Training of the MEC is the responsibility of Kudumbashree-NRO. Prior to the start of full- fledged implementation of SVEP on field, the MEC working in the Block will be oriented and trained in business management and soft-skills development. The business management training would be conducted in two parts, and they would be put through the SVEP testing system to certify their suitability. Capacity Building of Nodal-CDS To ensure nodal-CDS carries out its responsibilities effectively, the PIA, with the support of SRLM, will train the members of nodal-CDS (particularly the executive body) in apprising business plans and in assessing credit history of the entrepreneur. They will also be trained in the process of disbursing and collection of CEF and the norms and regulations governing the same. The nodal-CDS will also be oriented on their engagement with BRC and their role in promoting enterprise development in the Block. Capacity Building of other CDSs, ADS and NHG The immediate responsibility of assuring the success of SVEP falls on the community network. The NHG-ADS-CDS is responsible for assisting in entrepreneur identification, ensuring repayment of CEF and in reporting issues faced in implementation of the project. The NHG women or their family members will be direct recipients of BRC services and the onus will be on them to utilise BRC services to the best possible extent. For the community network to recognise their role in implementation of the project, they have to be oriented on the broad purpose and objectives of SVEP, accessing services of BRC, their role in ensuring CEF repayments on time, and in monitoring the working of BRC. The training of the community network will be the responsibility of the PIA, which will be discharged with the support of SRLM and its functionaries.

5.6. Support Provisions at Block Level for Operations of SVEP

This section outlines the specific support that various constituents of the SVEP implementation system will provide to each other, to ensure smooth implementation of the programme in the Block.

5.6.1. Support by PIA Block Anchor Person and Mentors

To MEC and BRC  Support the MEC Group to set up the BRC and coordinate with BPM-SVEP to procure assets for BRC  Coordinate with BPM-SVEP and nodal-CDS for release of working capital for functioning of BRC  Support BRC in proper utilization of working capital funds  Ensure BRC functions regularly and discharges its responsibilities towards NHG-ADS- CDS  Ensure BRC reports regularly to KS –District Mission, nodal-CDS, and other constituent / geographical CDS/ADS  Ensure that MEC are competent in using the VE-IT application and are able to prepare business plans, and conduct income and credit appraisal for the entrepreneurs as accurately as possible and in time  Support BRC in following-up with the nodal-CDS for loan disbursement for the entrepreneur  Support the BRC to establish links with the banks and other available financial institutions for facilitating loans to the entrepreneurs  Ensure MEC regularly update and maintain Performance Tracking System (PTS) records for all enterprises supported by them  Find out areas of improvement for MEC and flagging requirements for capacity building to PIA and SRLM  Ensure a smooth work relationship between BPM-SVEP and BRC

To Nodal CDS  Ensure capacity building of nodal-CDS is completed in time and the members (particularly the executive body) are clear with the process of fund disbursal and collection  Support the nodal-CDS in appraising loan applications and release of loan to the entrepreneurs  Ensure nodal-CDS adheres to norms for disbursal of loans  Supporting BPM-SVEP and nodal-CDS establish process for collection of loan amount from entrepreneurs  Support BPM-SVEP and nodal-CDS in maintaining proper accounts pertaining to CEF and in monitoring the SVEP-related activities of constituent / geographical CDS/ADS

5.6.2. Support by BPM – SVEP of KS –District Mission

To Mentors and PIA  Support Mentors and PIA in their work in the field and assist in quick trouble-shooting  Provide field level support and required information such as records, local institutional contact etc. required for planning and smooth implementation of the project activities  Connect the Mentors with the nodal-CDS and NHG-ADS-CDS  Ensure a positive work-relationship of the Mentors with MEC  Actively participate in the SVEP planning process with the PIA (Mentors, and Block Anchor Person)  Create a repository of business logics and training material for the BRCs along with the PIA  Facilitate periodic review with PIA at the Block, district, and state level  Support PIA in developing processes to monitor the functioning of BRC through the community network

To MEC and BRC  Help institutionalize the Block Resource Centre and make it part of all the SRLM processes in the Block  Provide field level support and required information such as records, local institutional contact etc. required for planning and smooth implementation of the project activities  Ensure BRC gets a physical (rented) place with electricity supply to operate with required assets (basic furniture and fittings, desktop computer, basic printer scanner and copier, broadband connection, etc.)  Connect the BRC with the nodal-CDS and NHG-ADS-CDS  Ensure a positive work-relationship of MEC with Mentors  Ensure proper contracting arrangements between BRC and ADS-CDS  Ensure smooth workflow (for disbursement of CEF) between BRC and nodal-CDS  Support BRC in identification and training of entrepreneurs  Ensure adherence to norms and completion of processes related to procurement of tablets and other equipment for the BRC

To Nodal-CDS  Ensure nodal-CDS are aware of SVEP activities  Ensure capacity building activities are carried out in time for all the members (particularly the executive body) of nodal-CDS  Connect nodal-CDS with the members of the BRC and Mentors from PIA  Ensure smooth workflow (for disbursement of CEF to the entrepreneurs) between nodal- CDS and BRC  Ensure the nodal-CDS follows prescribed processes for disbursal of CEF  Support the nodal-CDS in keeping track of repayments of CEF  Support the nodal-CDS in maintaining proper records pertaining to CEF at the nodal- CDS level and at the constituent / geographical CDS/ADS level  Ensure books of accounts pertaining to CEF at the nodal-CDS are audited and the report is sent to various stakeholders in time  Ensure nodal-CDS releases money to the BRC for working capital in time

To NHG-ADS-CDS in the Block  Ensure that community members across NHG-ADS-CDS are aware of SVEP activities  Ensure capacity building activities are carried out in time for all the members (particularly the executive body) of the NHG-ADS-CDS network  Connect the community members with BRC and Mentors  Ensure NHG-ADS-CDS support to BRC for identification and training of potential entrepreneurs  Ensure mechanisms are in place for NHG-ADS-CDS for collection of repayment CEF amount from the entrepreneurs  Support the constituent / geographical CDS/ADS in maintaining books of accounts pertaining to CEF  Ensure books of accounts pertaining to CEF at the constituent / geographical CDS/ ADS are audited and the report is sent to various stakeholders in time

5.7. Support from KS - State Mission and KS - District Mission for implementation of SVEP in the Block

The SRLM will own the project and will develop capability to roll-out the program in all Blocks of the states, using its own human resources after the establishing the success of the pilot. The SRLM is responsible for the overall implementation of the programme and monitoring the work.  KS - State Mission will deploy BPM-SVEP in SVEP pilot Blocks and review their progress  The SRLM Mission Director (whenever possible) and the SPM in-charge of SVEP will review the progress of the program and its physical and financial achievements every month  KS - State Mission and KS - District Mission will ensure the CBOs are effectively trained on handling CEF  KS - State Mission and KS - District Mission will ensure that the BRC is set up timely and is functional with all assets. All formalities for registration of BRC (if needed) should be complied by the SRLM functionaries in time  KS - State Mission will ensure timely disbursement of CEF to nodal-CDS  KS - State Mission will ensure adequate training arrangements are made in time for MEC  KS - State Mission will ensure the accounts related to SVEP, of nodal-CDS and constituent / geographical CDS/ADS are audited regularly and audit report is submitted in time to NMMU  KS - State Mission and KS - District Mission will support PIA in discharging its duties. The functionaries will regularly follow-up with the PIA on the work progress in the pilot Blocks

5.7.1. Block and State Level SVEP Committee

For monitoring and periodic review of project, a committee will be formed at the Block and State level. The State level committee will be headed by the Mission Director SRLM. The State Committee will have participation from the relevant State departments like Forest and Environment, Tribal Development, Women and Child Development, MSME, KVIC, Textiles, and domain experts. The committee will undertake quarterly reviews with the PIA. The State Governments may also constitute a State Level Technical Project Support Group to assist the PIA in the implementation of the project. The minutes of such monitoring committee meetings must be shared with the NRLM within 10 days of the meeting being held.

5.7.2. Enterprise Benchmark Setting Committee

The SRLM will also set up a benchmark setting committee which shall comprise members from SRLM including the SRLM (SPM / BPM-SVEP), other SPM (livelihoods), and expert practitioners of the trade and industry experts. This committee shall validate the business performance benchmarks for each group of enterprises for the Blocks, as generated from collating data, by the MIS software. This committee is also expected to send out seasonal advisories to various kinds of enterprises – to help them maximize incomes based on seasonal demand and minimize losses due to seasonal stocks left with them, due to the end of a seasonal demand. Apart from these activities, the committee is also expected to facilitate consolidation of demand and supply of all the enterprises in the Block / district / state and use the same for facilitating better trade terms for the enterprises capitalizing on collective bargaining power.

5.8. Responsibilities of PIA

This section details the roles and responsibilities of Kudumbashree-NRO as the PIA in State and District-level coordination, monitoring, and reporting of SVEP. The PIA will support the SRLM in implementation of its project in the pilot Blocks. The overall responsibility of implementation, however, lies with the SRLM.  PIA will depute a Block Anchor Person to coordinate the SVEP activities in the pilot Blocks along with BPM-SVEP  PIA will depute Mentor(s), experienced persons in enterprise support, in the pilot Blocks to provide field support to the BRC  PIA, with the support of SRLM, will identify, train and nurture MEC to promote, train, handhold and support the enterprises and to provide customized services required by entrepreneurs  PIA will ensure that the MEC are certified by NRLM  PIA will ensure training is delivered to NHG-ADS-CDS network  PIA will ensure regular monitoring of work. Regular reviews with BPM-SVEP and Block Anchor Person, Mentors, representatives of BRC, nodal-CDS, and constituent CDS/ADS will be conducted to keep track of project progress and report will be sent to NMMU and SRLM  PIA will ensure that the project is delivering as per targets set and course-correction is adopted where necessary  PIA will support SRLMs for evaluation and conduct of scale-up planning workshop  PIA will support SRLM with inputs needed for policy formulation

5.9. Relationship with Banks (branch-level, BLBC and DLRC), RSETI, DIC & NABARD

Banks play a key role in successful implementation of SVEP for critical funding of business enterprises but most banks find the transaction cost of doing business with micro-enterprises unviable. On the other hand, a considerable proportion of the borrowing goes into non- productive activities as bank managers find it unviable to perform „due-diligence‟ for scattered village enterprises due to households tangled cash flows and deficient books of accounts. This banking sector interface will be strengthened with the help of business plan, credit appraisal and low cost real time tracking mechanism under the VE-IT backend, thereby making it easier for the village entrepreneurs to access bank finance for their business. The PIA will support the BRC in setting up a Bank Coordination Support Team (in Blocks where banks are interested and RUDSETI /well performing RSETI is available) to improve the coordination with key banking entities such as RSETI, DIC, NABARD etc. The income and credit appraisal module from the VE-IT App will be used to forward “credit appraisal report” of enterprises to PIA-Bank pair for forwarding to respective branch manager in real-time. 6. SVEP Enterprise Formation and Support Processes

6.1. Business Planning and Benchmarking

6.1.1. Shelf of Projects with Model Business Plan

For MEC group to act as BRC, to be ready to implement potential enterprises under SVEP, a structure of business plans for selected types under SVEP need to be in place. The MEC will prepare these plans based on the training received. The plans will focus on core areas including:  Customers and competitors  Capabilities  Cost and profits  Capital  Existing environment

Feasibility analysis for each business type will be a pre-condition to preparation of customised business plans for each entrepreneur. The PIA, with the support of BPM-SVEP, will be responsible for preparation of the business plan template for each feasible business

6.1.2. Advisory Committee for Support

An advisory committee will be established at Block level and state level to continuously monitor the project and flag and resolve issues as and when they arise. The details about the same have been provided in section 5

6.1.3. Sharper Benchmarks on Key Business Metrics

Benchmarks, specific to SVEP type enterprises, will be developed and sharpened over a period of one year. Benchmarks will cover metrics such as, profit, profitability, return on investment, working capital, etc. The Enterprise Benchmark Committee at the State level will help in refining the process and will be responsible for benchmark revision after a specified period of time.

6.1.4. Roll-out of VE-IT Application

The MEC have already been introduced to VE-IT application for conduct of enterprise census and enterprise sampling. The BRC will use VE-IT application extensively to assist in their work. Through the VE-IT application, the BRC will conduct income and credit appraisal for the entrepreneur to avail loans from the CEF. Further, the entrepreneurs and the BRC will use the app for updating records for business transactions on a daily basis. The BRC will also use the application to generate financial statements and give advice to the MECs.

6.2. Mobilization and Training of CBOs and Potential Entrepreneurs

6.2.1. Mobilisation and Identification of New Entrepreneurs

The BPM-SVEP will play a key role for mobilisation and identification of entrepreneurs. The BPM-SVEP will be responsible for engaging with the community network for the same. Triggering and orientation of NHG women will form a part of the contract between CDS and BRC. The BRC, through orientation meetings and events, will trigger the entrepreneurial interest among NHG women. The ADS, through NHGs will follow-up and hand over the list of women interested in starting a new enterprise or want support for their existing enterprises. The CDS will then consolidate the list at the cluster level and with the help of nodal-CDS consolidate list for the entire Block. The BRC will provide business orientation to these women and try to gauge their areas of interest for starting enterprise or identify areas that need support in case of existing enterprises. The nodal-CDS, in consultation with BPM-SVEP, will hand over the final list of interested new and existing entrepreneurs to the BRC.

6.2.2. Training of New Entrepreneurs

The entrepreneurs identified by CDS/ADS will be divided into batches and be given general orientation training, training in soft-skills, basic business skills (including record-keeping), etc. The BRC will also ensure that the entrepreneurs get trained in required domain skill training through linkage with skill training institutes (such as RSETI) and the entrepreneurs are given need-based performance improvement training as and when required

6.3. Process of Enterprise Support

6.3.1. Finalisation of Feasible Business Idea for New Businesses and Identification of Existing Businesses

The finalization of feasible business idea happens with the BRC conducting viability / diagnosis analysis for each enterprise suggested by the potential / existing entrepreneur and sharing the result with both the entrepreneur and CDS/ADS. The BRC will distribute business viability / diagnosis forms among potential / existing entrepreneurs with the help of the CDS/ADS, who will spread the word about the same through the network. The BRC will then involve the potential/existing entrepreneur in the viability/diagnosis check and explain the result of the viability/diagnosis check to them, after which the BRC will get the signature of the entrepreneur on the report. The CDS/ADS will ensure that the entrepreneur has signed the report before approving the BRC claim for payment.

6.3.2. Income and Credit Appraisal of Entrepreneur

The BRC conducts income and credit appraisal of the entrepreneur by assessing the credit- worthiness of the entrepreneur and sharing the report with the entrepreneur and CDS/ADS. The BRC will collect information related to the income and credit position of the business from the entrepreneur and CBO network with the help of the VE-IT application. The credit appraisal report, prepared based on the information collected about the entrepreneur, will be shared with the entrepreneur and CDS/ADS, after which the BRC will get the signature of the entrepreneur on the report. The CDS/ADS will ensure that the entrepreneur has signed the report before approving the BRC claim for payment.

6.3.3. Business Plan Preparation

BRC prepares business plan in consultation with the entrepreneur (new / existing) and shares it with entrepreneur and CDS. The BRC will prepare a business plan for the enterprise based on results from the viability / diagnostic study. The BRC will then involve the potential / existing entrepreneur in the business plan preparation and explain the result of the business plan to them, after which the BRC will get the signature of the entrepreneur on the business plan after their consent. The CDS / ADS will ensure that the business plan is in the prescribed format.

6.3.4. Credit Linkage

BRC facilitates credit linkage with financial institutions for entrepreneur to avail loan. The BRC will help entrepreneur with application, approval and disbursement of loan in various financial institutions – Banks, CDS/ADS with the support of the business plan. The nodal-CDS will approve release of CEF on satisfactory vetting of the business plan. In case of other financial institutions, the BRC will assist CDS/ADS write a recommendation letter to the bank and other financial institutions for release of loan to the entrepreneur on the basis of the business plan. The CDS/ADS will also monitor repayment of bank loan or CEF disbursed to the entrepreneur through the NHG network and BRC.

6.3.5. Start-up Support (Linkages)

BRC will support entrepreneur in key decision making at the time of start of business. The following support will be provided to the entrepreneur during start-up:  Identification of business location  Identifying sources of raw-material, markets  Purchase of fixed assets  Working capital management  Human resource management  Technology based support  Filling and submission of forms for requisite legal authorisations / complying with legal formalities, registrations, licensing etc.  Follow up with the authorities on obtaining legal permissions The BRC will get a letter signed from the entrepreneur upon successful completion of the work and submit it to the CDS/ADS for release of payment for the services.

6.3.6. Growth Planning and Diagnostics

The BRC will conduct business diagnosis and growth planning for the enterprise on an on-going basis. The BRC will help diagnose strengths and weaknesses of the enterprise with the help of financial statements generated from continuous performance tracking of the enterprise. This information will then be used for planning the growth of the enterprise in consultation with the entrepreneur.

6.4. MEC Support to Enterprises

6.4.1. PTS (Start-up and Ongoing)

BRC will register the enterprise started / supported on the field (one-time) and will continuously track its performance. The BRC will register the enterprise involving the entrepreneur at the time of inception of business in the one-time registration format on paper or on the VE-IT mobile app. The BRC will ensure that the entrepreneur maintains day-books on a daily basis to capture information regarding the day-to-day activities of the business. The BRC will then aggregate the day-book results and generate financial statements for the enterprise periodically. These statements will become the key data source for monitoring and performance tracking of the enterprises under SVEP for the various SVEP stakeholders including the entrepreneur, MEC, Mentor MEC, nodal- CDS, PIA, and SRLM.

6.4.2. Handholding by MEC

BRC will provide on-going handholding support to entrepreneur during enterprise operations post start-up. The BRC will support the entrepreneur in the following activities during regular enterprise operations:  Information and linkages with suppliers and markets  Procurement / maintenance of fixed assets  Human resources management  Working capital management  Technology based support  Filling and submission of forms for requisite legal authorisations / complying with legal formalities, registrations, licensing etc.  Follow up with the authorities on obtaining legal permissions

The CDS/ADS or the entrepreneur will pay the BRC based on the terms agreed on before provision of service. List of MEC services are appended as supplement to section 6.

7. Project Management for SVEP

7.1. Framework

The following Project Management framework for SVEP lists out the key entities and indicators (with frequency of updating) used for monitoring the key entities in the SVEP. The following indicators have been used further in Table 8.3.iv to decide on the Annual Achievement Targets for the 4 years.

NHG Family Enterprise Project # Indicators CBO Level BRC Level Level Level Management

Mobilisation, Training and Services Indicators

Number (and %) of NHG members / family M1 Monthly Monthly members identified as entrepreneurs Number of entrepreneurs identified from SECC M2 Monthly Monthly deprived households Number of NHG members / family members trained M3 Monthly Monthly in entrepreneurship Number (and %) of NHGs trained in M4 Monthly Monthly entrepreneurship development Number (and %) of ADSs trained in M5 Monthly Monthly entrepreneurship development Number (and %) of CDSs trained in M6 Monthly Monthly entrepreneurship development Number of members of nodal CDS trained in M7 Monthly Monthly entrepreneurship development NHG Family Enterprise Project # Indicators CBO Level BRC Level Level Level Management

M8 Number of CRP-EPs / MEC trained Annual

M9 Number of CRP-EPs passed certification 1 (basic) Annual

Number of CRP-EPs passed certification 2 M10 Annual (advanced) Number of CRP-EPs passed certification 3 (trainer M11 Annual level – optional certification) Number and % of CRP-EPs / MECs trained from M12 Annual Annual NHG families

Household Level Outcome Indicators

Number of NHG members / family members H1 Monthly Monthly Quarterly engaged / employed in SVEP businesses Household income for families engaged in SVEP H2 Annual Annual enterprise Household assets for families engaged in SVEP H3 Annual Annual enterprise

H4 Number of income / credit appraisal completed Weekly Monthly Quarterly

Credit Flow and Management Indicators NHG Family Enterprise Project # Indicators CBO Level BRC Level Level Level Management

C1 Number of enterprises availed CEF Weekly Weekly Monthly

C2 Amount (and %) of CEF disbursed to entrepreneurs Weekly Monthly

C3 Amount (and %) of CEF repaid Weekly Weekly Monthly

Number of enterprises making CEF payment on C4 Weekly Monthly Monthly time

C5 Number of enterprises defaulting on CEF repayment Weekly Monthly Monthly

C6 Number of enterprises availed bank loan Weekly Half-yearly

C7 Amount of bank credit (in total) availed by NHGs Monthly Annual

C8 Number of loans availed under PM Mudra scheme Half-yearly

C9 Amount of loans availed under PM Mudra scheme Weekly Half-yearly

Interest income earned by nodal CDS by lending C10 Monthly Quarterly CEF Amount and % of existing CIF allocated towards C11 Monthly Quarterly enterprise development NHG Family Enterprise Project # Indicators CBO Level BRC Level Level Level Management Bulk loans taken from banks / FI to supplement CEF C12 Monthly Quarterly by CDSs

C13 CEF repayment ratio for nodal CDS Monthly Quarterly

Enterprise profitability to capital employed ratio for C14 Monthly Quarterly nodal CDS Enterprise turnover to capital employed ratio for C15 Monthly Quarterly nodal CDS Take home income (wages + profit) to capital C16 Monthly Quarterly employed ratio for nodal CDS Cost of credit to the entrepreneur from various C17 sources (money lender / supplier-customer / NHG / Annual Annual Annual

CEF / Bank)

Enterprise Performance Indicators

Number of enterprises for which PTS is regularly E1 Weekly Weekly Quarterly maintained Number of business plans prepared and submitted to E2 Weekly Weekly Quarterly CDS / bank / FIs

E3 Revenue of the enterprise Monthly Monthly Quarterly

E4 Cash balance of the enterprise Monthly Monthly Quarterly

NHG Family Enterprise Project # Indicators CBO Level BRC Level Level Level Management

E5 Profit of the enterprise Monthly Monthly Quarterly

E6 Profitability of the enterprise Monthly Monthly Quarterly

E7 Take-home income of the entrepreneurs Monthly Monthly Quarterly

E8 Number of enterprises meeting aspiration income Annual Annual Annual

E9 Revenue growth according to business categories Annual

Number of people employed by the enterprise (for E10 Monthly Monthly Annual how many days / months)

E11 Performance of new businesses Annual

E12 Growth of existing businesses Annual

Project Input-Results Indicators

P1 Number of new enterprises started under SVEP Monthly Monthly

Number of new enterprises started under SVEP by P2 Monthly Quarterly women NHG Family Enterprise Project # Indicators CBO Level BRC Level Level Level Management Number of new enterprises started under SVEP by P3 Monthly Quarterly minority community Number of new enterprises started under SVEP by P4 Monthly Quarterly women from minority community Number of new enterprises started under SVEP by P5 Monthly Quarterly NREGS workers Number of new enterprises started under SVEP by P6 Monthly Quarterly NREGS women workers Number of new enterprises started under SVEP from P7 Monthly Quarterly SECC deprived households P8- Number of new enterprises started under SVEP by Monthly Quarterly P13 OBC, OBC women, SC, SC women, ST, ST women Number of existing enterprises supported under P14 Monthly Monthly SVEP Number (and %) of existing enterprises supported P15 Monthly Quarterly under SVEP for women Number (and %) of existing enterprises supported P16 Monthly Quarterly under SVEP for women from minority community Number (and %) of existing enterprises supported P17 Monthly Quarterly under SVEP for minority community Number (and %) of existing enterprises supported P18 Monthly Quarterly under SVEP for NREGS workers NHG Family Enterprise Project # Indicators CBO Level BRC Level Level Level Management Number (and %) of existing enterprises supported P19 Monthly Quarterly under SVEP for NREGS women workers Number (and %) of existing enterprises supported P20 Monthly Quarterly under SVEP from SECC deprived households Number (and %) of existing enterprises supported P21- under SVEP for OBC, OBC women, SC, SC Monthly Quarterly P26 women, ST, ST women

P27 Number (and %) of women entrepreneurs identified Monthly Quarterly

Number (and %) of entrepreneurs identified from P28 Monthly Quarterly minority community Number (and %) of women entrepreneurs identified P29 Monthly Quarterly from minority community Number (and %) of entrepreneurs identified who are P30 Monthly Quarterly NREGA workers Number (and %) of entrepreneurs identified who are P31 Monthly Quarterly NREGA women workers Number (and %) of entrepreneurs and women P32- entrepreneurs identified from OBC, SC, ST Monthly Quarterly P37 community Amount (and %) of CEF disbursed to women P38 Monthly Quarterly entrepreneurs Amount (and %) of CEF disbursed to entrepreneurs P39 Monthly Annual from minority committee NHG Family Enterprise Project # Indicators CBO Level BRC Level Level Level Management Amount (and %) of CEF disbursed to women P40 Monthly Quarterly entrepreneurs from minority committee Amount (and %) of CEF disbursed to NREGS P41 Monthly Annual workers Amount (and %) of CEF disbursed to NREGS P42 Monthly Annual women workers Amount (and %) of CEF disbursed to entrepreneurs P43 Monthly Annual from SECC deprived households Amount of CEF entrepreneurs and women P44- entrepreneurs identified from minority, OBC, SC, Periodic Annual P49 ST community

P50 Number of mentors passed certification Annual

Number of orientation trainings provided to BPM- P51 Annual SVEP

P52 Number of reviews conducted as per calendar Monthly

Number of reports submitted to KS - District P53 Monthly Mission by KS - District Mission Number of consolidated reports submitted to KS - P54 Monthly State Mission by KS - District Mission Number of consolidated Block reports sent to SRLM P55 Quarterly and NMMU by PIA NHG Family Enterprise Project # Indicators CBO Level BRC Level Level Level Management Number consolidated reports submitted by SRLM to P56 NMMU Percent of financial targets met during the review P57 Quarterly period Percent of physical targets met during the review P58 Quarterly period

P59 Number and figures of Block benchmarks set Annual

Number of Blocks replicating SVEP components P60 Annual (CEF, BRC, CRP-EP)

P61 Number of tablets given to CRP-EPs Annual

P62 Amount of working capital given to BRC Quarterly

Number of bankable project documents prepared at P63 Half-yearly Half-yearly the Block level by BRC

P64 Amount paid to BRC for rendering services Monthly Quarterly

Amount earned by a CRP-EP per month (on P65 Quarterly Annual average)

P66 Number of collective enterprises started Annual

NHG Family Enterprise Project # Indicators CBO Level BRC Level Level Level Management

P67 Number of collective enterprises functioning Annual

Number of enterprises engaged in value addition of P68 Annual local produce Number of enterprises selling to markets outside the P69 Monthly Monthly Quarterly Block Margin earned in bulk deals for sourcing / supply at P70 Quarterly Block / district / State level including market tie-ups Value of bulk deals for sourcing / supply at Block / P71 Quarterly district / State level including market tie-ups 7.2. Block-Level Arrangements

The Block-level project management arrangements for SVEP will consist of periodic meetings between key stakeholders in the SVEP

7.2.1. Meeting at Block Level

Weekly meetings will be held at the Block level to discuss the enterprise development work on the field and other field level issues. The BAP, representatives of the BRC and Mentors will attend these meetings.

The strategy for identification and mobilization of entrepreneurs across CDSs in the Block for the upcoming week would be discussed in this meeting. It will also be ensured during the meeting that PTS of all SVEP enterprises in the Block are being updated regularly

7.2.2. Review and Planning at Block Level

Fortnightly meetings will be held at the Block level to review the activities on the field such as loan disbursal related issues as well as to get inputs for planning ahead. The BAP, BRC, mentors, BPM-SVEP, and nodal CDS representatives will attend this meeting. The CDS representatives will be apprised of all major on-going activities happening on the field and their inputs will be taken for further planning.

7.2.3. Review by KS –District Mission

Monthly meetings will be held by the Block level SVEP Committee to discuss the Monthly Progress Report, which is to be prepared every month before the meeting by the BPM-SVEP. The BAP, BRC representatives, Mentors and BPM-SVEP will attend this meeting.

Monthly meetings will be held at the district level to discuss the monthly progress of SVEP activities in all the SVEP Blocks in the district. The DMC, BAPs, BRC representatives, Mentors and Block level SVEP Coordinator will attend this meeting.

7.3. State-Level Review, Monitoring, and Reporting

Monthly meetings will be held by the State level SVEP committee to discuss the overall progress of SVEP in all the SVEP Blocks in the states against targets set. Each Block will submit their MPRs already discussed at the KS –District Mission level at least 5 days in advance. Any additional support needed for the project will also be discussed in these meetings.

The Mission Director, SRLM will head the State level committee. The State Committee will also have participation from the relevant State departments. The committee will also undertake quarterly reviews with the PIA. The minutes of such monitoring committee meetings must be shared with the NRLM within 10 days of the meeting being held.

Apart from this, the state level Enterprise Benchmark Setting Committee comprising of members from SRLM and expert practitioners from the field shall hold quarterly meetings to validate performance benchmarks for each group of businesses and send out seasonal advisories

7.4. Reporting to NMMU

There will be quarterly meetings held with representatives from NMMU to discuss the progress of the project in the state against targets set. These targets might be revised based on genuine issues faced in the course of the project. The SPM, DMCs, BAPs, NMMU representatives will attend this meeting.

8. Detailed Implementation Schedule and Budget

8.1. Phasing of SVEP Implementation

Table 8.1.i Implementation Plan for 4-years

Year 1 Year 2 Year 3 Year 4 Total

Number of CDS to be 7 7 7 7 7 taken up in each Year Number of villages to be 11 11 taken up Number of enterprises to 200 600 600 764 2164 be covered each year Name of CDS Kodumon 20 60 60 67 207 Angadickal 20 60 60 67 207 Pallickal 20 60 60 67 207 Peringanadu (Part) 20 60 60 67 207 Ezhamkulam 20 60 60 67 207 Enathu 20 60 60 67 207 Erathu 20 60 60 67 207 Enadimangalam 20 60 60 67 207 Kalanjoor 20 60 60 68 208 Koodal 10 30 30 80 150 Kadampanadu 10 30 30 80 150

Table 8.1.ii Implementation Plan for the first year

Name of CDS All the CDS Number of enterprises to be covered 200 Number of villages 11

Names of villages to be covered:Kodumon, Angadickal, Pallickal, Peringanadu, Ezhamkulam, Enathu, Erathu, Enadimangalam, Kalanjoor, Koodal, Kadampanadu

Table 8.1.iii Implementation Plan for the first year

Jul – Sep Oct – Dec Jan – Mar Apr – Jun Quarterly Plan Total 2016 2016 2017 2017 Villages reached Preparatory Activities 11 11 Enterprises started Preparatory Activities 200 200

8.2. 4-year Budget for SVEP in the Block

Table 8.2.i Budget for ParakodeBlock (in Rs.)

Budget Head Fixed Variable Costs Total for 4 Years Skill building 1,51,48,000 1,51,48,000 Handholding support 73,46,780 73,46,780 Training of CBO 10,00,000 10,00,000 Training of MEC 7,00,000 7,00,000 Setting up BRC 5,00,000 5,00,000 WC for BRC 1,80,000 1,80,000 Baseline 10,00,000 10,00,000 Evaluation 5,00,000 5,00,000 Mentor &Block support 29,76,000 29,76,000 CEF 2,55,17,600 2,55,17,600 Admin costs of SRLM 24,55,200 24,55,200 Total 3,48,28,800 2,24,94,780 5,73,23,580

Table 8.2.ii Budget Share of central and state governments (in Rs.)

Break-up of Budget Total GOI Share GOK Share Instalment 1 1,43,30,895 85,98,537 57,32,358 Instalment 2 2,86,61,790 1,71,97,074 1,14,64,716 Instalment 3 1,43,30,895 85,98,537 57,32,358 Total 5,73,23,580 3,43,94,148 2,29,29,432

8.3. Financial and Physical Targets

The following tables summarize the annual and half-yearly budget for the 4 years as well as the quarterly budget for the first year of the project. The Achievements target framework showing the Achievement targets for the 4 years is provided in Table 8.3.iv.

Table 8.3.i Coverage Plan and Budget for 4 years (in Rs.)

Coverage Plan Total Year 1 Year 2 Year 3 Year 4 CDS 7 7 7 7 7 Villages 11 11 Enterprises 2,054 200 600 600 654

Budget Total Year 1 Year 2 Year 3 Year 4 Skill building 1,51,48,000 14,00,000 42,00,000 42,00,000 53,48,000 Handholding support 73,46,780 6,79,000 20,37,000 20,37,000 25,93,780 Training of CBO 10,00,000 10,00,000 10,00,000 10,00,000 10,00,000 Training of MEC 7,00,000 7,00,000 Setting up BRC 5,00,000 5,00,000 WC for BRC 1,80,000 1,80,000 Baseline 10,00,000 10,00,000 Evaluation 5,00,000 5,00,000 Coverage Plan Total Year 1 Year 2 Year 3 Year 4 Mentor and Block support 29,76,000 7,44,000 7,44,000 7,44,000 7,44,000 CEF 2,55,17,600 2,55,17,600 Admin costs of SRLM 24,55,200 6,13,800 6,13,800 6,13,800 6,13,800 Total 5,73,23,580 3,23,34,400 85,94,800 90,94,800 1,02,99,580

Table 8.3.ii Coverage Plan and Budget for first year (in Rs.)

Total for Jul – Sept Oct – Dec Jan – Mar Apr – Jun Coverage Plan Y1 2016 2016 2017 2017 CDS 7 Preparatory Activities 7 Villages 11 Preparatory Activities 11 Enterprises 200 Preparatory Activities 200

Total for Jul – Sept Oct – Dec Jan – Mar Apr – Jun Y1 2016 2016 2017 2017 Skill building 14,00,000 8,40,000 Handholding 6,79,000 4,07,400 support Training of CBO 10,00,000 2,50,000 2,50,000 2,50,000 2,50,000 Training of MEC 7,00,000 175000 175000 175000 175000 Setting up BRC 5,00,000 2,50,000 2,50,000 WC for BRC 1,80,000 1,80,000 Baseline 10,00,000 10,00,000 Evaluation Mentor and 7,44,000 1,86,000 1,86,000 1,86,000 1,86,000 Block support CEF 2,55,17,600 1,05,77,258 1,49,40,343 Admin costs of 6,13,800 1,53,450 1,53,450 1,53,450 1,53,450 SRLM Total 3,23,34,400 1,27,71,708 1,59,54,793 7,64,450 28,43,450 Table 8.3.iii Half Yearly Physical and Financial Targets Total for Unit of Half Year 1 Half Year 2 Activity Year measure Physical Financial Physical Financial Year 1 1 Conduct of baseline and completion of DPR Numbers 1 10,00,000 10,00,000 Notification of Nodal-CDS in each Block by 2 Numbers 1 KS – State Mission Appointment of Block SVEP Coordinator in 3 the KS – District Mission by KS - State Numbers 1 Mission Placement of Block Anchor Person and 4 Numbers 1 Mentor by KS-NRO Completion of baseline and target setting as 5 Numbers 1 per Achievement target framework4 Orientation to nodal CDS/ADS and other 6 concerned Block level stakeholders by KS – Numbers 1 5,00,000 5,00,000 District Mission and KS-NRO Numbers of 7 Selection and training of new MEC 31 1,75,000 27 1,75,000 3,50,000 MEC 8 Roll-out of VE-IT App and training of MEC Numbers 1 1,75,000 1 1,75,000 3,50,000 Setting up of a state level/Block level 9 advisory committee of business experts by Numbers 1 KS - State Mission Establishing necessary hardware and facilities 10 Numbers 1 6,80,000 6,80,000 for BRC by KS-NRO Transfer of CEF funds Nodal-CDS into their 11 2,55,17,600 2,55,17,600 separate bank account for SVEP 12 NHG level campaign – ADS-wise Number of 11 5,00,000 5,00,000

4The Achievement target framework is provided in Table 8.3.iv Total for Unit of Half Year 1 Half Year 2 Activity Year measure Physical Financial Physical Financial ADS Number of 13 Identification and training of entrepreneurs 200 14,00,000 14,00,000 entrepreneurs Handholding support by MEC to Number of 14 200 6,79,000 6,79,000 Entrepreneurs entrepreneurs 15 Support of NRO Months 6 3,72,000 6 3,72,000 7,44,000 Administrative support by Kudumbashree 16 Months 6 3,06,900 6 3,06,900 6,13,800 SPEM Total – Year 1 2,87,26,500 36,07,900 3,23,34,400 Year 2 Number of 1 NHG level campaign – ADS-wise ADS Number of 2 Identification and training of entrepreneurs 300 21,00,000 300 21,00,000 42,00,000 entrepreneurs Handholding support by MEC to Number of 3 300 10,18,500 300 10,18,500 20,37,000 Entrepreneurs entrepreneurs 4 Support of NRO Months 6 3,72,000 6 3,72,000 7,44,000 Administrative support by Kudumbashree 5 Months 6 3,06,900 6 3,06,900 6,13,800 SPEM Total – Year 2 37,97,400 37,97,400 75,94,800 Year 3 Number of 1 NHG level campaign – ADS-wise ADS Number of 2 Identification and training of entrepreneurs 300 21,00,000 300 21,00,000 42,00,000 entrepreneurs Handholding support by MEC to Number of 3 300 10,18,500 300 10,18,500 20,37,000 Entrepreneurs entrepreneurs 4 Mid-term evaluation of the project Numbers 1 5,00,000 5,00,000 Total for Unit of Half Year 1 Half Year 2 Activity Year measure Physical Financial Physical Financial 5 Support of NRO Months 6 3,72,000 6 3,72,000 7,44,000 Administrative support by Kudumbashree 6 Months 6 3,06,900 6 3,06,900 6,13,800 SPEM Total – Year 3 37,97,400 42,97,400 80,94,800 Year 4 Number of 1 NHG level campaign – ADS-wise ADS Number of 2 Identification and training of entrepreneurs 382 26,74,000 382 26,74,000 53,48,000 entrepreneurs Handholding support by MEC to Number of 3 382 12,96,890 382 12,96,890 25,93,780 Entrepreneurs entrepreneurs 4 Support of NRO Months 6 3,72,000 6 3,72,000 7,44,000 Administrative support by Kudumbashree 5 Months 6 3,06,900 6 3,06,900 6,13,800 SPEM Total – Year 4 46,49,790 46,49,790 92,99,580

Table 8.3.iv Achievement Targets The following table has been created using indicators from Project Management Framework in Section 7.1. Baseline (if Target Target Target Target # Indicators applicable) Year 1 Year 2 Year 3 Year 4 Number (and %) of NHG members / family members identified 1 as entrepreneurs Number of entrepreneurs identified from SECC deprived 2 households Baseline (if Target Target Target Target # Indicators applicable) Year 1 Year 2 Year 3 Year 4 Number of NHG members / family members trained in 3 entrepreneurship Number (and %) of NHGs trained in entrepreneurship 4 development Number (and %) of ADSs trained in entrepreneurship 5 development Number (and %) of CDSs trained in entrepreneurship 6 development Number of members of nodal CDS trained in entrepreneurship 7 development 8 Number of CRP-EPs / MEC trained 9 Number of CRP-EPs passed certification 1 (basic) 10 Number of CRP-EPs passed certification 2 (advanced) Number of CRP-EPs passed certification 3 (trainer level – 11 optional certification) 12 Number and % of CRP-EPs / MECs trained from NHG families 13 Number of enterprises availed CEF 14 Amount (and %) of CEF disbursed to entrepreneurs 15 Amount (and %) of CEF repaid 16 Number of enterprises making CEF payment on time 17 Number of enterprises defaulting on CEF repayment 18 Number of enterprises availed bank loan 19 Amount of bank credit (in total) availed by NHGs 20 Number of loans availed under PM Mudra scheme 21 Amount of loans availed under PM Mudra scheme 22 Interest income earned by nodal CDS by lending CEF Amount and % of existing CIF allocated towards enterprise 23 development Baseline (if Target Target Target Target # Indicators applicable) Year 1 Year 2 Year 3 Year 4 24 Bulk loans taken from banks / FI to supplement CEF by CDSs 25 CEF repayment ratio for nodal CDS Take home income (wages + profit) to capital employed ratio 26 for nodal CDS Cost of credit to the entrepreneur from various sources (money 27 lender / supplier-customer / NHG / CEF / Bank) 28 Number of enterprises for which PTS is regularly maintained Number of business plans prepared and submitted to CDS / 29 bank / FIs 30 Number of new enterprises started under SVEP 31 Number of new enterprises started under SVEP by women Number of new enterprises started under SVEP by minority 32 community Number of new enterprises started under SVEP by women from 33 minority community Number of new enterprises started under SVEP by NREGS 34 workers Number of new enterprises started under SVEP by NREGS 35 women workers Number of new enterprises started under SVEP from SECC 36 deprived households Number of new enterprises started under SVEP by OBC, OBC 37 women, SC, SC women, ST, ST women 38 Number of existing enterprises supported under SVEP Number (and %) of existing enterprises supported under SVEP 39 for women Number (and %) of existing enterprises supported under SVEP 40 for women from minority community Baseline (if Target Target Target Target # Indicators applicable) Year 1 Year 2 Year 3 Year 4 Number (and %) of existing enterprises supported under SVEP 41 for minority community Number (and %) of existing enterprises supported under SVEP 42 for NREGS workers Number (and %) of existing enterprises supported under SVEP 43 for NREGS women workers Number (and %) of existing enterprises supported under SVEP 44 from SECC deprived households Number (and %) of existing enterprises supported under SVEP 45 for OBC, OBC women, SC, SC women, ST, ST women 46 Number (and %) of women entrepreneurs identified Number (and %) of entrepreneurs identified from minority 47 community Number (and %) of women entrepreneurs identified from 48 minority community Number (and %) of entrepreneurs identified who are NREGA 49 workers Number (and %) of entrepreneurs identified who are NREGA 50 women workers Number (and %) of entrepreneurs and women entrepreneurs 51 identified from OBC, SC, ST community 52 Amount (and %) of CEF disbursed to women entrepreneurs Amount (and %) of CEF disbursed to entrepreneurs from 53 minority committee Amount (and %) of CEF disbursed to women entrepreneurs 54 from minority committee 55 Amount (and %) of CEF disbursed to NREGA workers 56 Amount (and %) of CEF disbursed to NREGA women workers Baseline (if Target Target Target Target # Indicators applicable) Year 1 Year 2 Year 3 Year 4 Amount (and %) of CEF disbursed to entrepreneurs from SECC 57 deprived households Amount of CEF entrepreneurs and women entrepreneurs 58 identified from minority, OBC, SC, ST community 59 Number of mentors passed certification 60 Number of orientation trainings provided to BPM-SVEP 61 Number of reviews conducted as per calendar Number of reports submitted to KS –District Mission by KS – 62 District Mission Number of consolidated reports submitted to KS - StateMission 63 by KS - District Mission Number of consolidated Block reports sent to SRLM and 64 NMMU by PIA 65 Number consolidated reports submitted by SRLM to NMMU 66 Percent of financial targets met during the review period 67 Percent of physical targets met during the review period 68 Number and figures of Block benchmarks set Number of Blocks replicating SVEP components (CEF, BRC, 69 CRP-EP) 70 Number of tablets given to CRP-EPs 71 Amount of working capital given to BRC Number of bankable project documents prepared at the Block 72 level by BRC 73 Amount paid to BRC for rendering services 74 Amount earned by a CRP-EP per month (on average) 75 Number of collective enterprises started 76 Number of collective enterprises functioning Number of enterprises engaged in value addition of local 77 produce Baseline (if Target Target Target Target # Indicators applicable) Year 1 Year 2 Year 3 Year 4 78 Number of enterprises selling to markets outside the Block Margin earned in bulk deals for sourcing / supply at Block / 79 district / State level including market tie-ups Value of bulk deals for sourcing / supply at Block / district / 80 State level including market tie-ups

9. Annexures

9.1. Annexure 1 - Detailed Information on Business Types from the Enterprise Census

Source – Enterprise census in the field

Number of Enterprise Types % Enterprises Autorickshaw/ passenger van 517 13.7% Stationary shop 334 8.9% Bakery 191 5.1% Kirana 187 5.0% Others 158 4.2% Tailoring 143 3.8% Cigarette & Pan shop 137 3.6% Vegetable trading 131 3.5% Tea and Snacks 111 2.9% Hotel (restaurant) 100 2.7% Readymade/ cloth shop 80 2.1% Salon 79 2.1% Rubber Trading 71 1.9% Four/ three wheeler repair 67 1.8% Hardware store 65 1.7% Tea selling 60 1.6% Gift Shop 55 1.5% Internet, Xerox/ Printer 54 1.4% Furniture shop 46 1.2% Studio 46 1.2% Electronics Repair 45 1.2% Medical shop 44 1.2% Aluminium works 43 1.1% Beauty parlor 43 1.1% Electricals shop – Wire, bulbs etc 38 1.0% Welding 38 1.0% Fruits 35 0.9% Ladies Store 33 0.9% Mobile shop 33 0.9% Bike repair 27 0.7% Fish trading 27 0.7% Chicken shop 26 0.7% Vessels Rentals 25 0.7% Ayurvedic medicines 24 0.6% Medical center (clinic) 21 0.6% Number of Enterprise Types % Enterprises Goat & Sheep Rearing 18 0.5% Flour mill 17 0.5% Lottery 17 0.5% Book stall 16 0.4% Bricks/ Tiles trading 16 0.4% Bakery,Stationary shop 13 0.3% Fertilizer shop 13 0.3% Papad making 13 0.3% Electronics shop – Fridge, Tv etc 12 0.3% Cable / Dish TV 11 0.3% Watch repair 11 0.3% Candle making and selling 10 0.3% Fish Rearing and selling 10 0.3% Shoe shop (production or trading) 10 0.3% Sound and light rental 10 0.3% Tailoring,Readymade/ cloth shop 10 0.3% Agricultural rentals 9 0.2% Cold drinks shop 9 0.2% Computer services – repair 9 0.2% Laundry service 8 0.2% Printing press 8 0.2% Agarbatti trading 7 0.2% Cement trading 7 0.2% Driving School 7 0.2% Laboratory 7 0.2% Painter 7 0.2% Taxi service 7 0.2% Cycle repair shop 6 0.2% Footwear repair – Cobbler 6 0.2% Stationary shop,Readymade/ cloth shop 6 0.2% Stationary shop,Tea selling 6 0.2% Stationary shop,Vegetable trading 6 0.2% Kirana,Vegetable trading 5 0.1% Mobile repair 5 0.1% Pooja items shop 5 0.1% Poultry farm 5 0.1% Vegetable cultivation and selling 5 0.1% Bag making 4 0.1% Bakery,Others 4 0.1% Blacksmith 4 0.1% Number of Enterprise Types % Enterprises Carpenter 4 0.1% Centering/ construction 4 0.1% Cigarette & Pan shop,Others 4 0.1% Cigarette & Pan shop,Tea selling 4 0.1% Flowers trading 4 0.1% Gift Shop 4 0.1% Goods Van 4 0.1% Opticals 4 0.1% Scrap dealer 4 0.1% Tent house 4 0.1% Autorickshaw/ passenger van,Others 3 0.1% Bakery,Kirana 3 0.1% Beedi making and selling 3 0.1% Bricks and Tiles making and selling 3 0.1% Chips trading (Namkeen) 3 0.1% Cow rearing and selling (Different from Beef) 3 0.1% Egg Trading 3 0.1% Gymnasium 3 0.1% Inverter sale shop 3 0.1% Plastic products trading 3 0.1% Rice mill 3 0.1% Rice trading 3 0.1% Saree shop 3 0.1% Autorickshaw/ passenger van,Stationary shop 2 0.1% Bakery,Egg Trading,Ladies store,Stationary shop,Readymade/ cloth shop 2 0.1% Bakery,Hotel (restaurant) 2 0.1% Bakery,Ladies store 2 0.1% Bakery,Ladies store,Readymade/ cloth shop 2 0.1% Bakery,Mushroom production and selling,Soap and detergent,Stationary shop 2 0.1% Bakery,Tea selling 2 0.1% Bangle making and selling 2 0.1% Beauty parlor,Tailoring 2 0.1% Book stall,Ladies store,Stationary shop 2 0.1% Catering 2 0.1% Cement Product making and selling 2 0.1% Cold drinks shop,Cigarette & Pan shop 2 0.1% Forest produce – others 2 0.1% Gas Refilling & parts 2 0.1% Handicraft 2 0.1% Ice cream vending 2 0.1% Number of Enterprise Types % Enterprises Jewellers 2 0.1% Kirana,Stationary shop 2 0.1% Ladies store,Stationary shop,Readymade/ cloth shop 2 0.1% Masala trading,Masala processing 2 0.1% Mobile shop,Mobile repair 2 0.1% Others,Opticals 2 0.1% Others,Vegetable trading 2 0.1% Petrol pump 2 0.1% Plates (paper, leaf),Stationary shop 2 0.1% Private Tution 2 0.1% Stationary shop,Cigarette & Pan shop 2 0.1% Stationary shop,Others 2 0.1% Stationary shop,Wine shop 2 0.1% Utensils/ Vessels trading 2 0.1% Water Purifier Plant 2 0.1% Advertisement Promotion 1 0.0% Agarbatti making and selling 1 0.0% Autorickshaw/ passenger van,Aluminium works 1 0.0% Autorickshaw/ passenger van,Bakery 1 0.0% Autorickshaw/ passenger van,Cigarette & Pan shop 1 0.0% Autorickshaw/ passenger van,Cold drinks shop 1 0.0% Autorickshaw/ passenger van,Kirana 1 0.0% Autorickshaw/ passenger van,Tailoring 1 0.0% Autorickshaw/ passenger van,Tea and Snacks 1 0.0% Ayurvedic medicines,Computer services – repair,Others,Bike repair,Cycle repair shop 1 0.0% Ayurvedic medicines,Medical center (clinic) 1 0.0% Bakery,Book stall 1 0.0% Bakery,Hotel (restaurant),Saree shop 1 0.0% Bakery,Kirana,Generator rentals 1 0.0% Bakery,Muri trading 1 0.0% Bakery,Stationary shop,Fruits 1 0.0% Bamboo products making,Egg Trading,Handloom,Bed trading – Mattress, Razai 1 0.0% Bamboo products making,Exotic animals rearing – rabbit, emu, pigeon etc,Internet, Xerox/ Printer 1 0.0% Bangle making and selling,Centering/ construction,Muri production and selling,Others 1 0.0% Bed making and selling – Mattress, Razai,Electricals shop – Wire, bulbs etc 1 0.0% Bed trading – Mattress, Razai,Electricals shop – Wire, bulbs etc 1 0.0% Beef trading,Cigarette & Pan shop 1 0.0% Beef trading,Stationary shop,Beedi making and selling 1 0.0% Number of Enterprise Types % Enterprises Bindi making and selling,Cigarette & Pan shop 1 0.0% Bindi making and selling,Hardware store 1 0.0% Book stall,Gift shop 1 0.0% Book stall,Tea and Snacks 1 0.0% Carpenter,Kirana 1 0.0% Carpenter,Others,Cement product trading 1 0.0% Cart making - Bullock cart etc,Papad making 1 0.0% Cashew Trading 1 0.0% Catering,Others 1 0.0% Catering,Tea and Snacks 1 0.0% Cement product trading 1 0.0% Cement trading,Cement product trading 1 0.0% Chips making and selling (Namkeen) 1 0.0% Chips making and selling (Namkeen),Studio,Vegetable trading 1 0.0% Chips making and selling (Namkeen),Taxi service,Vegetable cultivation and selling 1 0.0% Cigarette & Pan shop,Fish trading 1 0.0% Cold drinks shop,Fruits 1 0.0% Cold drinks shop,Juice & other drinks 1 0.0% Cold drinks shop,Others 1 0.0% Computer services – repair,Others 1 0.0% Dairy 1 0.0% earth movers 1 0.0% Electronics Repair,Electricals shop – Wire, bulbs etc 1 0.0% Electronics Repair,Others 1 0.0% Electronics Repair,Others,Electricals shop – Wire, bulbs etc 1 0.0% Fertilizer shop,Gift shop 1 0.0% Fertilizer shop,Others 1 0.0% Fish Rearing and selling,Mushroom production and selling,Studio 1 0.0% Flour mill,Cement trading 1 0.0% Flour mill,Others 1 0.0% Forest produce – others,Others 1 0.0% Fruits,Electricals shop – Wire, bulbs etc 1 0.0% Fruits,Vegetable trading 1 0.0% Furniture shop,Four/ three wheeler repair 1 0.0% Furniture shop,Vegetable trading 1 0.0% Gift shop,Cigarette & Pan shop 1 0.0% Gift shop,Kirana 1 0.0% Groundnut / chana trading 1 0.0% Handloom 1 0.0% Handloom,Cycle repair shop 1 0.0% Number of Enterprise Types % Enterprises Hardware store,Kirana 1 0.0% Hardware store,Others 1 0.0% Honey trading 1 0.0% Hotel (restaurant),Others 1 0.0% Internet, Xerox/ Printer,Others 1 0.0% Internet, Xerox/ Printer,Printing press 1 0.0% Kirana,Cement trading 1 0.0% Kirana,Cigarette & Pan shop 1 0.0% Kirana,Jewellers 1 0.0% Kirana,Medical center (clinic) 1 0.0% Kirana,Others 1 0.0% Kirana,Saree shop 1 0.0% Ladies store,Agricultural rentals 1 0.0% Ladies store,Matches making and selling 1 0.0% Ladies store,Readymade/ cloth shop 1 0.0% Ladies store,Salon 1 0.0% Mat making 1 0.0% Mat making,Cigarette & Pan shop 1 0.0% Medical center (clinic),Others 1 0.0% Mobile repair,Oil trading 1 0.0% Mobile shop,Mobile repair,Muri trading 1 0.0% Mobile shop,Studio 1 0.0% Mutton shop,Cigarette & Pan shop 1 0.0% Newspaper Selling 1 0.0% Oil Trading 1 0.0% Others,Agarbatti trading 1 0.0% Others,Aluminium works 1 0.0% Others,Aluminium works,Chips trading (Namkeen) 1 0.0% Others,Cow rearing and selling (Different from Beef),Shoe shop (production or trading) 1 0.0% Others,Electricals shop – Wire, bulbs etc 1 0.0% Others,Electronics shop – Fridge, Tv etc 1 0.0% Others,Inverter sale shop 1 0.0% Others,Oil production and selling 1 0.0% Others,Oil trading 1 0.0% Others,Readymade/ cloth shop 1 0.0% Others,Shoe shop (production or trading) 1 0.0% Paper products – bags, covers 1 0.0% Plant nursery 1 0.0% Poultry farm,Saree shop,Readymade/ cloth shop 1 0.0% Readymade/ cloth shop,Generator rentals 1 0.0% Number of Enterprise Types % Enterprises Rice mill,Readymade/ cloth shop 1 0.0% Saree shop,Readymade/ cloth shop 1 0.0% Saw Mill 1 0.0% Scrap dealer,Readymade/ cloth shop 1 0.0% Seeds shop,Tailoring 1 0.0% Stationary shop,Cement trading 1 0.0% Stationary shop,Tailoring 1 0.0% Stationary shop,Tea and Snacks 1 0.0% Stationary shop,Tea selling,Vegetable trading 1 0.0% Stationary shop,Watch repair 1 0.0% Steel Shop 1 0.0% Sweets trading 1 0.0% Tailoring,Cigarette & Pan shop 1 0.0% Tailoring,Others 1 0.0% Tailoring,Tea selling 1 0.0% Tailoring,Vegetable trading 1 0.0% Tea and Snacks,Agarbatti trading 1 0.0% Tea and Snacks,Others 1 0.0% Tea and Snacks,Tea selling 1 0.0% Tea and Snacks,Watch repair 1 0.0% Tea selling,Vegetable trading 1 0.0% Tent house,Vegetable cultivation and selling 1 0.0% Travel Booking Agency 1 0.0% Utensils/ Vessels trading,Plastic products trading 1 0.0% Watch trading 1 0.0% Wine shop 1 0.0% Wine shop,Others 1 0.0%

9.2. Annexure 2 -Details of Steps Followed for DPR Preparation

Conduct of Enterprise Census

 Enterprise census is used to ascertain the number and types of enterprises existing in a Block  Basic details of all enterprises in all villages in the Block need to be fed in the mobile app devised for this purpose

Drawing Sample for Enterprises to Survey from Enterprise Census

 For taking out a sample for enterprise survey, number of enterprises per category (as available from the census database) were calculated in the Block  They were mapped on the 12-point location-market matrix. A minimum of 5 enterprises from each point on location-market matrix (wherever applicable) were selected at random per Block subjected to a maximum of 10%

Main Market Small Market Only Shop Highways Major Road Village Road Lane

 Incase 5 enterprises per Block were not available, it was ensured that 5 enterprises from the district / state are selected  A wait-list was also selected (on random basis) to ensure that the target is met with  Overall, it was ensured that 10% of the total enterprise numbers collected, are sampled

Drawing Sample for Households to Survey

 For taking out a sample for Household survey, the total list of inhabited villages in the Block was taken along with their respective details on total population, SC population, ST population, no of households and distance from MDR (Major District Road)  All the villages in the Block were then mapped on a 12-point MDR (location) – Population interval matrix.

MDR/Population interval Less than 200 Between 200 - 999 More than 1000 Available within the village Available at less than 5 km Available between 5-10 km Available at more than 10 km

 The villages were then selected randomly from each point in the 12-point MDR- population interval matrix in the ratio of the total number of villages in each of the points in the 12-point matrix. It was ensured that at least one village was selected from each point wherever possible.  10% of the villages in the Block were selected in total for sampling.  The total number of households to be surveyed in the Block was taken as 500 or 10% of the total number of HHs whichever is lesser. These households were then divided among the selected villages (from the 12-point matrix) in the ratio of the total number of households in these villages.  The number of SC, ST and General HHs (Non-SC, Non-ST HHs) to be surveyed in each village was divided in the ratio of the number of SC, ST, and General Households in the Block. In case, the sample of SC, ST or General Households to be covered in any village was greater than the actual number of SC, ST or General Households in that village, a replacement was found for this village from the sample point in the 12-point MDR- population interval matrix.

Conduct of FGDs

 FGDs were conducted to get the general perception of the village entrepreneurs and potential women entrepreneurs (NHG women) about plausible enterprises in their vicinity, available information, support required, opportunity costs and aspiration levels  1 FGD was conducted per cluster with NHG women who are not entrepreneurs and 2 FGDs were conducted per cluster with entrepreneurs who belonged to NHG-member families

Poverty Context in the Block (References from Census 2011 and SECC data)

 The caste-wise and age-wise split up of population along with total population and total number of households as well as work participation related data was taken from the following source: o 2011 Census  Population Enumeration Data  Primary Census Abstract Data Block-wise  The household related data with respect to areas like housing, drinking water, sanitation, lighting, asset ownership etc. was taken from the following source: (The data is expressed as percentage of total households in the Block) o House listing and Housing data o HH Data Block-wise o Percentage of Households to Total Households by Amenities and Assets  Finally, all other data pertaining to the Block such as literacy, land use patter, banking and market services, social infrastructure and amenities etc. were taken from the following sources in the respective District Census Handbook. o Appendix VD o T02 o T21 o T27 o T31 o T34

Estimating Potential from HH Consumption

Part 1  Data was collected by the MECs on the paper-based household (HH) survey questionnaire for the household samples prepared for the 2 SVEP Blocks in Kerala. It was ensured that the target number of HH‟s belonging to different categories in the villages mentioned in the sample was covered during the survey. In case it wasn‟t possible to find the target number of SC, ST or General Households mentioned in the sample list for a particular village, a replacement Household was found for the same caste category in another village from the same Block.  The Mentors collected data for validation purpose from 10% of the HH‟s already surveyed by the MECs. It was ensured that at least 2-3 HH‟s surveyed by each of the MECs were covered during validation.  Once the survey was completed, the Mentors, MECs and a few hired data-entry operators tabulated the data collected on the field on excel. The data was then verified and cleaned once tabulation was completed for all Blocks.  The different frequencies of purchase month as recorded in the questionnaires were brought to a common frequency – monthly in this case  The consumption values were divided by the number of family members in the household to get the final figures  The final values were then taken aside and outliers were eliminated based on judgement applied looking at maximum, minimum, mean and median values. Mean values were taken for each category, which represented the amount spent on purchase by each HH on each category  The mean was then multiplied by the population in the Block to arrive at total purchases in the Block for each consumption category  Further, based on the data collected, percentage of purchases from within the Block was calculated  The total purchase was then multiplied by the percentage of purchases from within the Block to arrive at total local purchases

Part 2  Data was collected by the MECs on app-based questionnaire for the enterprises sample prepared from the enterprise census conducted earlier for the SVEP 2Blocks in Kerala  The Mentors collected data for validation purpose from 10% of the enterprises already surveyed. It was ensured that at least 2-3 enterprises surveyed by the MECs were covered during validation.  Once the data was retrieved from the app on completion of the survey, the Mentors and MEC verified that all entries made by them on the app was present on the final database and missing entries were re-entered for those entries for which back-ups were available. They also made changes to wrong entries made by them on the app as they were not able to edit responses submitted by them while on the field.  Once the Mentors and MECs had made final changes to the database for the 2Blocks, entries with key information missing such as enterprise ids, enterprise type, sales information etc. were removed along with validation entries without corresponding entries made by MECs.  Based on the validation results and maximum, minimum, mean and median values of the data, the outliers were eliminated based on judgement.  Next, sales value of all the enterprises belonging to each category was totalled and the average sales value was taken for each category by dividing the total sales value of all the enterprises belonging to the particular category by the total number of enterprises in surveyed in the Block belonging to that category. The revenue was calculated monthly to enable comparison with the HH numbers  These category-wise sales figures were then aggregated to broader categories got from the HH survey to reach the final values to be multiplied with the number of enterprises belonging to each of these categories according to enterprise census data to find out the total supply

Part 3  The total supply (from enterprise side) was subtracted from local purchase (from HH side) to arrive at the existing demand-supply gap for the listed categories in the HH survey  The gap was multiplied by the benchmarks, an estimate of take home income of the entrepreneur (including wages and profit) in the absence of benchmarks, to arrive at rupee value of potential under SVEP  The rupee value was then divided by monthly aspiration of the population (as derived from FGD) for each Block to get the number of enterprises for each category Estimating Potential from Resources Available in the Block

 A list of natural resources that have potential for enterprises in the Block are identified  The MECs collected data in panchayats / villages that produced high quantities of the concerned commodity  The values were aggregated at the Block level in the format appended as under:

Qt. Qt. No of Name of Production Supplied Seasonal / used in Qt. of Place of Processing Availability # Natural Quantity Outside Non Remarks the Waste Selling Units in Month Resource (Approx.) the seasonal Block Local area Block % Qt. % Qt. % Qt.

 The opportunities were further elaborated in in two tables as under to find out the rupee value. The opportunities perceived were mapped in 4 phases along the value chain – input, post-harvest (sorting, grading), processing, and logistics (transportation and storage)

Stage 1 Stage 2 Stage 3 Stage 4

Opportunity in Post- Opportunity in Logistics Name of Opportunity in Input Harvest (Grading / Sorting Opportunity in Processing (Transportation, Storage) # Natural ) Resource Potential Potential Potential Potential Reason Reason Reason Reason ME ME ME ME

Name of the Block: ______

Name of the Product 1: ______

STAGE-1: INPUT STAGE -2: POST HARVEST STAGE-3: PROCESSING STAGE-4: LOGISTICS Fertilizer, seeds, and Transportation Storage manure Sorting / Grading / Packing Name Co Pri Ra of Quantit Name st ce te Q Cost / Price / From From Proce y of Name of Place to Mo Rate / of Durat Pla Total / / / t Unit Unit Wastage Supply ssed Process Product Transport de Unit Produ ion ce U Un U Produ ing ct nit it nit ct Q Q Q Q Qt % t % t. % t. % Qt. % t %

Name of the Product 2: ______

STAGE-1: INPUT STAGE -2: POST HARVEST STAGE-3: PROCESSING STAGE-4: LOGISTICS Fertilizer, seeds, and Transportation Storage manure Sorting / Grading / Packing Name Co Pri Ra of Quantit Name st ce te Q Cost / Price / From From Proce y of Name of Place to Mo Rate / of Durat Pla Total / / / t Unit Unit Wastage Supply ssed Process Product Transport de Unit Produ ion ce U Un U Produ ing ct nit it nit ct Q Q Q Qt. % Qt. % t. % t. % Qt. % t %

 The potential value was then collated together to arrive at the final rupee value of each phase along the value chain  Each Block was scored on the four parameters to determine the potential that can be realized. The parameters are listed as under:

Name of the Block Input Post-Harvest Processing Logistic # Each cell to be marked out of 100 1 Demand that can be realized for the business 2 Existing competition for the business 3 Intensity of capital for the business 4 Existing skills/ Infrastructure in the Block

 The resultant figure was divided by higher of aspiration (outside the village) or opportunity cost figures for the Block for a year to arrive at the number of enterprises

Input Post-Harvest Potential Potential SVEP SVEP # Commodity Rupee Constant Rupee Constant Potential Potential Value Value A B C D E (C*D) F G H (F*G)

Processing Logistics Potential SVEP Potential SVEP Total SVEP Rupee Constant Constant Potential Rupee Value Potential Value Value I J K (I*J) L M N (L*M) O (E+H+K+N)

Take-Home Income % Applied Higher of Aspiration (outside No. of SVEP Enterprises (from total revenue) village) / opportunity cost)

P [O+(O*Income%)] Q R (P/Q)

Estimating Potential from Government Spent in the Block

 The data was collected in the form of a questionnaire  Possible enterprise sectors were identified: o Bricks Manufacturing o Bricks Trading o Cement and iron rods Trading o Asbestos and metal sheet Trading o Door and Window Frames Manufacturing o Uniform . Hospital Uniform for Grade 3 Staff . Hospital Uniform for Grade 4 Staff . School Uniform o Supplementary Nutrition . Supplementary Nutrition for Lactating Mothers . Supplementary Nutrition for Children Between 6 months - 3 years o Institutional Catering  The rupee value of potential (gross) was found out for possible enterprise sectors  Each Block was scored on the four parameters to determine the potential that can be realized The resultant figure was divided by higher of aspiration (outside the village) or opportunity cost figures for the Block for a year to arrive at the number of enterprises

9.3. Annexure 3 –Detailed Implementation Schedule

Stage Month Activities Responsible Agency Month 1- 6 Selection and Capacity Building of MEC Group Kudumbashree-NRO Month 1 Identification of nodal-CDS to own the BRC Kudumbashree SPEM Month 2 Orientation of the nodal-CDS Kudumbashree SPEM 1 Month 3 Issue of guidelines for operations of the CEF Kudumbashree SPEM Month 4 Opening of bank account of the nodal-CDS Kudumbashree SPEM Establishing accounting system for the operations Kudumbashree SPEM Month 5 of the CEF Month 7 Finalisation of software and roll-out in the Block Kudumbashree-NRO Month 7 Ensuring availability of necessary hardware with Kudumbashree-NRO the BRC to manage the VE-IT App Month 7 Training of the MEC on the VE-IT App Kudumbashree-NRO Month 7 Orientation of KS - DISTRICT MISSION, KS - DISTRICT MISSION and KS - STATE Kudumbashree-NRO MISSION of Kudumbashree SPEM SPEM on the VE-IT App Formation of MEC Group to take up BRC Month 7 Kudumbashree-NRO operations Month 7 Setting up physical infrastructure for the BRC Kudumbashree-NRO 2 Month 7 Empanelment of MEC Group to operate the BRC Kudumbashree SPEM Transfer of CEF funds to nodal-CDS into their Kudumbashree SPEM Month 7 separate bank account for SVEP Month 7 Formal setting up of the CEF for the Block Kudumbashree SPEM Formal agreement between nodal-CDS and MEC Kudumbashree SPEM Month 7 Group for operations of the BRC Orientation of entrepreneurs on use of data Month 9 BRC recording (paper or mobile-based) for PTS Certification of MECs Month 10 Kudumbashree-NRO

Synchronisation of VE-IT PTS and Kudumbashree Month 10 Kudumbashree SPEM SPEM MIS Nodal-CDS, Month 11 Regular functioning of the BRC Kudumbashree-NRO & 3 onwards Kudumbashree SPEM On-going use of VE-IT App BRC