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Rural Entrepreneurship Development Program

Rural Entrepreneurship Development Program

Rural Entrepreneurship Development Program

Rural Entrepreneurship Development Programme (REDP) is a program supported by NABARD for the creation of sustainable employment and income opportunities for the benefit of educated unemployed rural youth. In this article, we look at the objectives, features, purpose, details, eligibility, grants provided by Rural Entrepreneurship Development Programme (REDP).

Objective of Rural Entrepreneurship Development Programme

The Rural Entrepreneurship Development Programme aims to develop entrepreneurial and activity-oriented skills among the unemployed rural youths willing to create small or micro-enterprises by assisting agencies and NGOs involved in the conducting of Entrepreneurship Development Programs. Hence, the Rural Entrepreneurship Development Programme indirectly supports entrepreneurs through various agencies and NGOs.

Rural Entrepreneurship Development Programs

Rural Entrepreneurship Development Programme can be divided into three phases, viz., pre-training, training and post-training phase. The achievement of the programme depends on the stringent adherence to these phases. Some of the highlights of the training program conducted under the Rural Entrepreneurship Development Programme are:

  • REDPs are conducted for a certain skill and unemployed rural youth are trained in these programs.
  • The trainee has to be in the age limit of 18 and 50 years.
  • Training period could differ from a minimum period of 4 weeks to a maximum period of eight weeks.
  • Each program would support about 25-30 participants.
  • Programs are held with the support of NGOs and the NGOs must be a registered and with a minimum experience of 3 years.
  • Programs could be residential or non-residential.
  • The NGO must have essential infrastructure, faculty support of their own or invite guest faculty.

Pre-Training Phase

In the pre-training phase, a detailed survey is done for identifying prospective business activities or market. Then publicity, awareness and motivational campaign are conducted for Entrepreneurship development in coordination with Banks or Government Departments or other NGOs.

Training Phase

Entrepreneurship Development Programs are typically 6-8 weeks long. Training module comprises the following:

  • Achievement motivation
  • Opportunity identification and guidance
  • Knowledge related to supporting agencies and schemes
  • Preparation of project reports/profiles
  • Management of resources (men, material, money)
  • Marketing aspects
  • Book-keeping/Accounting

The training program would include case-studies on prospective activities, field visits, practical work, visit to thriving units, etc., 


Post training, the program endeavours to facilitate in the hand-holding or syndication of bank loan or creation of the MSME unit for a period of a minimum of 2 years.

Grant provided under the Program

The grant provided under the Rural Entrepreneurship Development Programme covers for preliminary expenses, rent for hall, training material, boarding charges, stationery, honorarium to faculty or guest faculty and the other expenses. Incentive is obtainable for handholding after the training and settlement of trainees.

Types of Rural Entrepreneurship Development Programme

Swarnajayanti Gram Swarozgar Yojana

The program is aimed at creating micro enterprises in rural areas based on the capability of the poor and prospective potential of each area. Since 1999 the Swarnajayanti Gram Swarozgar Yojana (SGSY) has been considered as the main program for the self-employment of the rural poor with a focused objective to enable the assisted BPL families i.e. Swarozgais above the Poverty Line by supplying them income-generating assets by means of provision of bank credit and Government subsidy.

National Program for Rural Industrialization (NPRI)

The National Program for Rural Industrialization envisages creating Rural Industrial Estates and Artisan Clusters to present essential infrastructure and support services to the village industries. The Finance Minister in his Budget Speech for 1999-2000 has announced the National Program for Rural Industrialization (NPRI) to encourage clusters of units in rural areas aiming to institute 100 rural clusters in each year. Ministry of Agro & Rural Industries has been selected to organize the program with different Ministries/agencies engaged in similar program. Small Industries Development Bank of India (SIDBI), National Bank for Agriculture and Rural Development (NABARD), Khadi and Village Industries Commission (KVIC) and associated states are the chief implementing agencies of the program.

Micro and Small Enterprises – Cluster Development Program (MSE – CDP)

With reference to the Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI) has practiced the cluster development approach as a main strategy for enhancing the productivity and competitiveness and capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. Clustering of units too enables providers of different services to them, including banks and credit agencies, to enable their services more cost-effectively, thus reducing costs and enabling the accessibility of services for these enterprises.