Assessing the Role of PMEGP in Promoting Self-Employment and Entrepreneurship in India

Abstract

The Prime Minister’s Employment Generation Programme (PMEGP) is a major government initiative aimed at promoting self-employment and generating sustainable employment opportunities through the establishment of micro-enterprises in rural and urban areas of India. Implemented through the Khadi and Village Industries Commission (KVIC), along with State Khadi and Village Industries Boards and District Industries Centres, the programme provides financial assistance in the form of margin money subsidy to eligible entrepreneurs for setting up new micro-enterprises. This study examines the role of PMEGP in employment generation and assesses its contribution to self-employment, job creation, entrepreneurship development, and local economic activity. The study also considers the role of PMEGP in providing livelihood opportunities to unemployed and economically disadvantaged sections of society. Using relevant secondary data and empirical evidence, the research analyses trends in PMEGP-supported enterprises and employment generation. The study highlights the potential of micro-enterprise development as an instrument for addressing unemployment and strengthening grassroots economic development. At the same time, challenges related to access to finance, market opportunities, entrepreneurial skills, infrastructure, and enterprise sustainability are considered. The study concludes that PMEGP can contribute significantly to employment generation when financial support is complemented by adequate training, market linkages, institutional support, and effective monitoring.