Boosting SC–ST Entrepreneurship through NSSH

Why in News ?

The Ministry of Micro, Small and Medium Enterprises (MSME) has intensified efforts to promote entrepreneurship among Scheduled Caste (SC) and Scheduled Tribe (ST) communities through the National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme, with a renewed focus on capacity building, access to credit, and participation in public procurement.

Background & Context

Despite constitutional safeguards and affirmative action, SC/ST entrepreneurs remain underrepresented in India’s MSME ecosystem due to structural barriers such as lack of access to capital, markets, networks, and skills.

Recognising entrepreneurship as a key pathway to economic empowerment and social mobility, the government launched the NSSH to mainstream SC/ST enterprises into formal markets, especially government procurement, and align inclusion with India’s broader goals of inclusive growth and Atmanirbhar Bharat.

National Scheduled Caste and Scheduled Tribe Hub (NSSH): An Overview

• The NSSH is a flagship scheme of the Ministry of MSME.
• It is implemented by the National Small Industries Corporation Limited (NSIC).
• The scheme aims at:
  • Capacity enhancement of SC/ST entrepreneurs
  • Promoting an entrepreneurial culture among SC/ST communities
  • Facilitating integration of SC/ST MSMEs into national supply chains

Key Objectives of the NSSH Scheme

• To empower SC/ST entrepreneurs to effectively participate in:
  • Government procurement
  • Public sector supply chains
• To help Ministries, Departments, and Central Public Sector Enterprises (CPSEs) meet the mandatory 4% procurement target from SC/ST enterprises under the Public Procurement Policy.
• To address gaps in:
  • Finance
  • Skills
  • Market access
  • Technology adoption

Major Components and Interventions

1. Public Procurement Enablement

• Supports SC/ST entrepreneurs in:
  • Vendor registration
  • E-marketplace onboarding (e.g., GeM portal)
  • Tender participation and compliance
• Enhances awareness of procurement norms, quality standards, and certification requirements.

2. Access to Finance and Credit Facilitation

• The scheme facilitates access to affordable and timely credit.
• Collaboration with:
  • Public and private sector banks
  • Financial institutions
  • Non-Banking Financial Companies (NBFCs)
• Focus on reducing:
  • Information asymmetry
  • Collateral-related constraints
• Complements other credit-linked MSME schemes.

3. Skill Development and Capacity Building

• Organises:
  • Entrepreneurship Development Programmes (EDPs)
  • Skill upgradation workshops
  • Sector-specific training programmes
• Focus areas include:
  • Business management
  • Financial literacy
  • Digital tools and e-commerce
  • Quality certification and compliance

4. Handholding and Market Linkages

• Provides mentoring and handholding support.
• Facilitates participation in:
  • Domestic and international exhibitions
  • Buyer–seller meets
  • Trade fairs
• Aims to improve market visibility and competitiveness of SC/ST enterprises.

Significance of the NSSH Scheme

• Promotes inclusive entrepreneurship, shifting welfare from subsidy-based support to enterprise-led empowerment.
• Strengthens social justice outcomes by integrating marginalised communities into formal economic systems.
• Enhances diversity in government procurement and supply chains.
• Supports India’s commitments to:
  • Inclusive growth
  • MSME-led job creation
  • Sustainable livelihoods

Challenges and Way Forward

• Awareness gaps among potential beneficiaries in rural and remote areas.
• Limited scale of enterprises, affecting competitiveness in large tenders.
• Need for:
  • Stronger convergence with State MSME schemes
  • Digital handholding for GeM and e-procurement platforms
  • Outcome-based monitoring of procurement targets
• Expanding mentorship networks and cluster-based approaches can further strengthen impact.