Year of Enterprises Project Unlocked Kerala’s Entrepreneurial Potential: Minister P Rajeeve

THIRUVANANTHAPURAM:
The Year of Enterprises (YOE) initiative launched by the Kerala Government in 2022-23 for building a highly conducive ecosystem for MSME sector powered the state’s profound transformation into an industrial and entrepreneurship friendly ecosystem, Minister for Industries, Law and Coir, P Rajeeve said.

The Minister was making an online presentation to the annual conference of the American Society of Public Administration (ASPA) on ‘Developing Entrepreneurship Ecosystem Policy and Successful implementation: A Case Study of Year of Enterprises.’

Kerala was presented with ASPA’s award for Innovation in Public Administration for the successful implementation of YOE project.

Suman Billa, who was till recently Principal Secretary, Department of Industries and Commerce, Government of Kerala, received the award on behalf of the Kerala government at the event held in Washington DC. Billa is at present the Additional Secretary, Ministry of Tourism, Government of India, in New Delhi.

ASPA is a membership association of almost 10,000 professionals in the United States, sponsoring conferences and providing professional services primarily in the areas of government policy, public administration, and programmes of civil society.

Regretting that he could not be physically present for the event ‘due to technical reasons,’ the Minister thanked the ASPA for inviting him to share the experience of Kerala’s innovative initiatives, especially the huge success of the YOE project.

The massive outcome of the project, which unlocked the entrepreneurial potential of the state, has far exceeded its initial target of creating over 100,000 units in the MSME sector in a year and generating over 300,000 jobs, he said.

“Kerala has created a model of sustainable growth by adopting the right strategies and ensuring the convergence of efforts across the MSME ecosystem, government departments, R&D and academic institutions, trade unions and financial institutions,” the Minister said.

“Our economic vision is rooted in the principles of Environmental, Social, and Governance (ESG) Excellence. We are committed to transforming our state into a trillion-dollar economy, focusing on nature, people and industry. Our goal is to ensure quality infrastructure, enhance the standard of living, and support economic prosperity for all,” he noted.

Though the slow growth of industrial sector had for long been a matter of serious concern, due to the government’s legislative and administrative policy initiatives in recent years the situation had changed, he said.

In 2019, Kerala was ranked the 28th in Ease of Doing Business (EODB). The legislative and administrative reforms introduced by the government since 2016 have instilled confidence in both industries and society, which resulted in the state being ranked the number one in EODB in India, the Minister said.

MSME sector in Kerala, which can play a crucial role in the economic transformation and creating jobs to youth and socially disadvantaged sections including scheduled castes, scheduled tribes, women, and persons with disabilities, was faced with grim challenges.

These hurdles included absence of targeted policies, infrastructure limitations, limited access to credit and risk capital, better market linkages, inadequate convergence among various departments, leading to delays in approvals and lack of proper awareness among the public.

The YOE initiative, however, has successfully addressed these challenges and set the MSME sector on a high growth trajectory. The government has simplified and rationalised procedures for starting MSME units. At the grassroots, the local bodies have been leveraged for monitoring the progress of the scheme, besides roping in the state’s robust startup ecosystem for technology support.

These efforts exceeded expectations leading to the creation of over 350,000 MSMEs during 2022-25. According to data from State Level Bankers’ Committee (SLBC), there has been a massive increase in loans provided to the MSMEs since the launch of YOE.

The government has also come out with novel projects like private industrial estate scheme which encourages the development of private industrial estates by offering financial support of Rs 300 lakhs per acre for land development and 33 new industrial farms were established within a year.

The scale of subsidies and the margin money for nano units have also been increased. The industry-university linkage scheme was another major initiative, besides establishing Campus Industrial Parks to promote youth entrepreneurship.

The Kerala Brand initiative focuses on creating a unique identity for Kerala’s products to enhance their global market presence.

“This journey underscores the power of strategic vision, collaborative governance and efficient implementation in driving inclusive and sustainable growth. The road ahead is full of possibilities and we look forward to forge ahead with more transformative initiatives,” Rajeeve added.