Answer By law4u team
Veterans often possess a wealth of experience, discipline, and leadership skills acquired during their military service. To help them transition successfully into civilian life and business, the government and various institutions offer entrepreneurship schemes tailored to ex-servicemen. These initiatives provide financial support, mentorship, and training to veterans looking to start and run their own businesses.
Key Entrepreneurship Schemes for Veterans in India
Prime Minister’s Employment Generation Programme (PMEGP):
Objective: PMEGP is a flagship initiative launched by the Ministry of Micro, Small & Medium Enterprises (MSME). It offers financial assistance to veterans and other individuals to set up their own micro-enterprises and small businesses.
Eligibility: Ex-servicemen, along with others, can apply under this scheme to receive financial assistance. Veterans are eligible for subsidized loans and may get a grant for setting up small-scale industries or service-oriented businesses.
Support: The scheme provides capital subsidy, which can be used for business setup costs like purchasing machinery, raw materials, etc.
Application Process: Applications can be made through Khadi and Village Industries Commission (KVIC), and interested veterans need to submit their business plans along with required documents.
National Career Service (NCS) Portal:
Objective: The NCS is a digital platform initiated by the Ministry of Labour and Employment that connects job seekers with employment opportunities, including in the entrepreneurial sector.
Veteran-specific support: Veterans can register on the portal for entrepreneurial opportunities. It provides access to training programs, job fairs, and networking opportunities with potential investors and collaborators.
Application Process: Veterans can visit the NCS website and create their profile. They can explore resources for business development and find relevant schemes and mentors.
Stand-Up India Scheme:
Objective: This scheme aims to promote entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs). While it primarily targets these groups, veterans who belong to these categories can avail of the scheme for financial support to start a business.
Eligibility: Veterans can access loans for setting up greenfield enterprises, and the government provides financial assistance for activities like manufacturing, services, retail, and others.
Loan Amount: The scheme provides loans ranging from ₹10 lakh to ₹1 crore, and the applicant must have a sound business plan.
The Directorate General of Resettlement (DGR):
Objective: The DGR under the Ministry of Defence offers various self-employment schemes and resettlement programs for veterans. These programs focus on training, rehabilitation, and financial support to help veterans start their businesses.
Training and Support: The DGR offers training in areas such as entrepreneurship, skill development, and management. Veterans can access guidance on business planning, financial management, and marketing.
Financial Assistance: The scheme provides financial assistance for establishing businesses like security agencies, transport services, retail, and manufacturing.
Application Process: Veterans must register with the DGR to avail of these services and explore different self-employment options.
MUDRA (Micro Units Development and Refinance Agency) Scheme:
Objective: MUDRA offers financial assistance to micro and small enterprises, including those established by ex-servicemen. It provides loans to veterans under its Shishu, Kishore, and Tarun categories, depending on the scale of the business.
Loan Amount: Loans range from ₹50,000 (Shishu) to ₹10 lakh (Kishore), and up to ₹10 crore (Tarun) for more established businesses.
Support: MUDRA provides refinancing facilities to banks and financial institutions to facilitate loans to small business owners, including veterans.
Application Process: Veterans can apply for MUDRA loans through participating banks and financial institutions.
NSIC (National Small Industries Corporation) Schemes:
Objective: NSIC offers a range of schemes for veterans interested in small-scale industries and entrepreneurship. The schemes support setting up businesses in manufacturing, services, and technology.
Services Offered: NSIC provides marketing support, technology assistance, raw material supply, and financial assistance to new enterprises.
Application Process: Veterans can access NSIC's various programs by visiting their website or approaching local NSIC offices.
Additional Support for Veterans
Veteran’s Welfare Associations:
Many organizations such as the Indian Ex-Servicemen League (IESL) provide guidance and mentorship for veterans looking to start a business. These associations can help with networking, getting legal advice, and connecting veterans to resources.
Skill Development Programs:
Several training programs are available for ex-servicemen to develop skills in areas such as IT, management, and finance to enhance their entrepreneurial capabilities.
Example
An ex-serviceman who served in the Army and now wishes to start a security services company can apply under the DGR self-employment scheme. Through this, he receives training in security business management and financial planning. Additionally, he can apply for a loan under the PMEGP scheme to cover the startup costs for his business. With financial support and mentorship, he sets up the company and hires other veterans as staff.
