SHG-led Enterprises and Urban Job Creation – Mission for Elimination of Poverty in Municipal Areas,Andhra Pradesh

SHG-led Enterprises and Urban Job Creation

Problem

  1. Over-reliance of SHG members on consumption loans with limited investment in income-generating activities.
  2. Lack of structured planning, guidance, and convergence of financial schemes to support sustainable livelihoods.
  3. Inadequate access to dignified wage employment, especially for urban women and youth from SHG households.
  4. Underutilization of Centrally Sponsored Schemes and bank credit due to low awareness and poor coordination.
  5. Absence of formal business registration, limiting access to markets, subsidies, and formal financial systems.

Solution

  1. Development of operational guidelines aligned with the “One Family One Entrepreneur” vision, setting district-wise targets.
  2. Awareness campaigns and capacity building through community-level mobilizers to promote productive loan utilization.
  3. Facilitation of credit access via SHG Bank Linkage, SEP funds, and convergence with schemes like DAY-NULM and PMEGP.
  4. Local job mapping and implementation of the Walk-to-Work model for in-situ employment placements.
  5. Mass MSME registration campaign to formalize SHG-led enterprises for better access to credit and support schemes.

Outcomes

  1. Establishment of 31,637 new livelihood units by SHG members across urban Andhra Pradesh.
  2. Employment of 9,183 SHG members or family members in local jobs under the Walk-to-Work initiative.
  3. Formal MSME registration for 1,43,173 SHG enterprises, enhancing visibility and market access.
  4. Shift in credit utilization patterns from consumption to productive economic activities.
  5. Strengthened SHG ecosystem across 26 districts, fostering women’s economic empowerment and urban resilience.

Innovations

  1. Introduction of the Walk-to-Work model, enabling employment close to home, especially for women.
  2. One Family One Entrepreneur vision ensuring every SHG household has at least one income earner.
  3. Integration of multiple financial support streams—Bank Linkage, SEP, and Centrally Sponsored Schemes—for entrepreneurship development.
  4. Implementation of centralized MIS-based monitoring for real-time tracking of enterprise creation and job placements.
  5. Hosting of Livelihood Jatharas and district workshops to align stakeholders and generate micro-level livelihood plans.

Challenges

  1. Limited entrepreneurial and financial literacy among SHG members, necessitating extensive mentoring.
  2. Documentation gaps and credit hesitancy from banks delayed loan disbursements to first-time women entrepreneurs.
  3. Low digital literacy hindered MSME registration in smaller towns and among older SHG members.
  4. Skill mismatches in certain areas limited the success of Walk-to-Work placements.
  5. Some micro-enterprises struggled post-establishment due to inadequate market linkages and operational support

SKOCH Award Nominee

Category: State Government – Municipal Administration & Urban Development
Sub-Category: secState Government – Municipal Administration & Urban Development
Project: SHG-led Enterprises and Urban Job Creation
Start Date: 2-22-2024
Organisation: Mission for Elimination of Poverty in Municipal Areas,Andhra Pradesh
Respondent: Tej Bharath N
https://www.apmepma.gov.in/index.php
Level: Platinum Star

CLICK HERE TO VOTE FOR THIS PROJECT!

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Case Study

Empowering Urban Women through SHG-led Enterprises and Local Job Creation

The Mission for Elimination of Poverty in Municipal Areas (MEPMA) under the Government of Andhra Pradesh has taken significant strides to transform the urban poverty landscape by empowering Self-Help Group (SHG) members and fostering local economic development. Anchored in the Chief Minister’s visionary framework of “One Family One Entrepreneur,” the project titled SHG-led Enterprises and Urban Job Creation presents a scalable model that converges financial inclusion, entrepreneurial development, and employment generation. This initiative not only addresses economic vulnerabilities but also advances women’s empowerment and urban sustainability.

MEPMA’s intervention emerged in response to a set of persistent socioeconomic issues affecting urban SHG households. The primary concern was the widespread dependence on consumption-based loans, with limited transition to income-generating enterprises. SHG members, despite their potential, lacked structured support in the form of planning, credit access, and mentorship to establish sustainable livelihoods. Additionally, urban unemployment—particularly among SHG youth and women—remained acute due to skill-job mismatches and the absence of localized employment models.

Compounding these challenges was the underutilization of centrally sponsored employment and entrepreneurship schemes. Moreover, the lack of formal business recognition impeded SHG members’ access to credit, markets, and government support mechanisms. Recognizing the interlinked nature of these problems, MEPMA crafted a holistic strategy that converged financial, technical, and institutional support, tailored specifically to the realities of urban SHG households.

The project’s lifecycle was structured through phased interventions starting in June 2024. Initial consultations across districts helped define local priorities and strategies. This was followed by capacity building for Urban Local Bodies (ULBs), Community Resource Persons, and Town Mission Coordinators who played a vital role in mobilizing SHG members and educating them about enterprise planning and productive credit usage.

From September to October 2024, the program facilitated credit linkages using multiple channels—Bank Linkage, Self-Employment Programme (SEP) funds, and Central Government schemes like DAY-NULM. These financial streams enabled SHG members to access loans and internal lending for enterprise establishment. Notably, over 31,637 livelihood units were launched across 26 districts in just over three months, a testament to the program’s intensity and precision.

Parallel to this, the innovative Walk-to-Work model was introduced in November 2024, which localized job placements to reduce mobility constraints. As a result, 9,183 individuals from SHG families were placed in urban jobs within their communities. By December 2024, a large-scale campaign led to 1,43,173 SHG enterprises being formally registered under MSME, unlocking opportunities for formal credit and subsidy access.

The initiative’s objectives were multifaceted. It aimed to:

  1. Promote sustainable self-employment by establishing SHG-led livelihood units through financial convergence.
  2. Facilitate dignified local employment via the Walk-to-Work program.
  3. Shift loan usage from consumption to enterprise creation.
  4. Formalize micro-enterprises through MSME registration.
  5. Realize the “One Family One Entrepreneur” vision by empowering at least one member of each SHG family.

The project followed a well-defined process. It began with micro-planning across various administrative levels, including cluster and SHG levels. MEPMA organized a State Livelihood Jathara and multiple district workshops to align stakeholders. Credit facilitation was complemented by Entrepreneurship Development Program (EDP) training, while job melas in collaboration with line departments helped map and fill local vacancies. An MIS-based monitoring system ensured real-time tracking of progress and bottlenecks.

The outcomes of the initiative were transformational. A total of 37,610 livelihood units were operationalized within 100 days—a significant leap in microenterprise development in urban Andhra Pradesh. The Walk-to-Work model successfully anchored employment within localities, especially benefiting women and youth facing mobility or domestic constraints. The MSME registration drive helped institutionalize over 1.43 lakh enterprises, enhancing their eligibility for future government schemes, market access, and financial products.

One of the most impactful outcomes was a tangible shift in SHG behavior—from taking loans for household consumption to investing in businesses. This not only promoted financial discipline but also fostered a culture of entrepreneurship. The project strengthened the urban SHG ecosystem and expanded financial inclusion and economic participation across the state.

The project’s ambitious scope was not without challenges. Many SHG members had limited entrepreneurial exposure, necessitating extensive handholding and business literacy efforts. Bank loan disbursement faced delays due to documentation gaps and hesitancy in financing first-time women entrepreneurs. Additionally, MSME registration posed digital and procedural challenges for women in small towns, which required ground-level facilitation.

The mismatch between skill sets and job availability also surfaced in some urban areas, affecting the effectiveness of Walk-to-Work placements. Post-establishment, a few micro-enterprises faced market linkage issues and operational difficulties. In response, MEPMA emphasized continuous mentorship, localized employment mapping, and district-level support mechanisms.

The initiative underscored several valuable lessons. Convergence of financial and institutional resources proved critical to long-term sustainability. Handholding and mentorship emerged as essential tools in enabling women to transition into confident entrepreneurs. The Walk-to-Work model, while simple in design, demonstrated that localized employment can offer sustainable livelihood pathways. Formalizing SHG enterprises through MSME registration had profound effects on access to credit and government schemes. Above all, community ownership and SHG participation in planning and execution significantly improved outcomes.

For more information, please contact:
Tej Bharath N at mdmepma2@apmepma.gov.in

(The content on the page is provided by the Exhibitor)

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