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entrepreneur support scheme

December 16, 2022

Entrepreneur Support Scheme Kerala

All You Need To Know About Entrepreneur Support Scheme Kerala

What if we told you, the small scale entrepreneurs will get a government subsidy up to Rs 30 lakh under Entrepreneur Support Scheme, to initiate their establishments? Yes! You heard it right, there are many attractive schemes offered by the Directorate of Industries and Commerce, but the Entrepreneur Support Scheme (ESS scheme) is one of the most popular. This entrepreneur support scheme kerala  provides financial assistance proportional to the capital investment made by Micro, Small and Medium Enterprises (MSMEs) in the state. Investment units can receive ess scheme subsidy ranging from 15% to 45% of the fixed capital investment depending on the investor’s category, sector, and district as an entrepreneurship support. Loans from financial institutions are not required for the ess scheme. Entrepreneur Support Scheme is a state government initiative that combines and replaces all the schemes that were implemented for entrepreneurs’ benefit in the State. This article will examine this entrepreneurship support scheme in detail. 

Entrepreneur support scheme kerala aims to provide comprehensive support to micro, small and medium businesses. It also provides one-time entrepreneurship support to those who fall into special categories by making better use of funds and enabling more flexibility of operation during the implementation phase. Let’s discuss the scope of benefits from the ess scheme. 

It would be possible to avail of the entrepreneur support scheme only once, with a maximum entitlement of Rs. 30 lakhs per applicant unit. The ess scheme anticipated that the upper limit of Rs. 30 lakhs will increase by 5% per annum during the course of its operation. In order to determine the amount of assistance provided, a fixed percentage of the composite investment would be used for entrepreneurship support. This would include the planned development costs, the building and improvement charges on existing buildings, essential office infrastructure, fixed plant and machinery costs, electrification, generators, and related equipment costs. Another key benefit of the entrepreneur support scheme Kerala is the 30% reservation for micro-enterprises among eligible applicants. In order to facilitate the establishment of micro, small, and medium enterprises in the state, the State will provide 15% assistance up to a limit of Rs. 20 lakhs on the fixed capital investment under the ess scheme. And also an assistance of 20% of the fixed capital investment is available in the ess scheme, up to a limit of Rs. 30 lakhs for micro, small, and medium enterprises ventured by women, Scheduled Castes and Scheduled Tribes.

As a first step, the applicant must submit the prescribed form along with the required documentation and account information for registering into the Entrepreneur Support Scheme . For assistance to be provided, the applicant also needs to sign an agreement with the notified authority. It’s imperative to keep in mind that entrepreneurs are independent legal entities when applying for this entrepreneurship support scheme. A link is provided at the bottom of the application that allows the applicant to submit the application online along with the documents listed in the checklist. In accordance with the merits of each application, the sanctioning authority under the ess scheme will process the application.

An applicant must provide all the mandatory details, accompanied by a declaration that the details given are true. Each unit requires an application fee of Rs 1105/- in order to get into the entrepreneur support scheme kerala. It may also be necessary for the applicant to submit to inspection or verification if the recommending/sanctioning authority requires clarification or further details. 

The applicant must submit the original copies of the documents for verification if the sanctioning authority of ess scheme requires it. Furthermore, they should execute legal agreements online and if necessary on paper. Money can only be used as agreed by the applicant. As proof of their functioning, the applicant must present the notified authority with copies of balance sheets, licences issued by local authorities, electricity bills, and performance details in the prescribed form every year until the end of the next financial year.

There are generally three stages in the Entrepreneur Support Scheme:

Startup Support Phase: An entrepreneur who has received a term loan from a financial institution in support of a specific project report as recommended and forwarded by the Industries Department, and approved by the Financial Institution. Entrepreneurs could receive assistance at the rates specified for each category under the ess scheme if they met the following criteria:

  • There shall be a limit of 50% on eligibility for each category of assistance.
  • A maximum of Rs. 3 lakhs would be available for startup support.

Investment Support Phase: Under the Entrepreneur Support Scheme, Investment support is available to all enterprises that start commercial production within one year of applying. Individual cases may, however, be delayed by the District and State Committees on merit. Delays of up to two years are acceptable to the District Level Committee.

Technology Support Phase: Within six months of the installation of upgraded technology, industrial units can apply for technology support in the ess scheme. Individual cases are considered by the District Level Committee based on their merits. New units or existing units may claim technology support without participating in diversification, expansion, or modernization programs. 

As a Manufacturer, Wholesaler, and Trader, Powertek Enterprises is well-known for providing entrepreneurship support for small scale entrepreneurs. The company is one of the most popular options as an entrepreneur support system for people looking to start small-scale businesses,  because Powertek is a 360° service oriented entrepreneurship support system providing complete assistance on all the ess scheme subsidy and further procedures. Over the years, they’ve become pioneers in the industrial machine field and are renowned for their innovations. Powertek offers their clients a sustainable advantage through the use of high-end types of industrial machinery by giving integrated manufacturing and exporting of a wide range of products which includes paper bag making machines, concrete hollow block making machines and interlock making machines – which are absolutely perfect and safest options for small scale businesses, along with the support of the Entrepreneur Support Scheme. Entrepreneurship is the process of transforming ideas into a business through the introduction of new products, services, and technologies and it is an emerging business model that requires bold and firm decisions.

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