National SC ST Entrepreneurship Hub Initiative

Background and policy intent

National SC ST Entrepreneurship Hub Initiative: The National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme is a focused policy intervention designed to strengthen the participation of SC and ST entrepreneurs in India’s MSME ecosystem. It reflects the government’s broader commitment to inclusive economic growth, social justice, and equitable access to entrepreneurial opportunities.

The scheme functions as a support platform that addresses long-standing structural barriers faced by marginalized business communities. These barriers include limited finance, weak market access, and lack of exposure to institutional procurement systems.

Static GK fact: The Ministry of Micro, Small and Medium Enterprises was created in 2007 by merging the Ministry of Small Scale Industries and the Ministry of Agro and Rural Industries.

Institutional framework

The NSSH Scheme is a flagship initiative of the Ministry of MSME and is implemented by the National Small Industries Corporation Limited (NSIC). NSIC is a Government of India enterprise that has historically supported MSMEs through credit facilitation, marketing assistance, and technology support.

Through NSIC, the scheme ensures pan-India reach, institutional credibility, and coordinated implementation across sectors and regions.

Static GK Tip: NSIC was established in 1955 to promote, aid, and foster the growth of small industries in India.

Core objectives

The primary objective of the NSSH Scheme is capacity building of SC and ST entrepreneurs. It aims to create an entrepreneurial ecosystem where SC/ST-owned enterprises can compete effectively in domestic and global markets.

The scheme also seeks to promote an entrepreneurship culture among first-generation business owners, reducing dependence on informal employment and enhancing economic self-reliance.

Public procurement and market access

A defining feature of the NSSH Scheme is its alignment with the Public Procurement Policy. Under this policy, all Central Ministries, Departments, and CPSEs are mandated to procure at least 4% of their total annual purchases from SC/ST-owned MSMEs.

The scheme assists entrepreneurs in registering on the Government e-Marketplace (GeM) and understanding tendering procedures. This institutional access ensures predictable demand and reduces market uncertainty for small enterprises.

Static GK fact: GeM was launched in 2016 to create a transparent and efficient public procurement platform.

Financial and credit facilitation

Access to finance remains a critical challenge for SC/ST entrepreneurs. The NSSH Scheme facilitates credit linkages with public sector banks, private banks, financial institutions, and NBFCs.

Entrepreneurs receive support in preparing bankable project reports and navigating loan application procedures. This structured assistance reduces exclusion caused by lack of collateral or prior credit history.

Skill development and mentoring support

The scheme places strong emphasis on skill development and handholding. It supports Entrepreneurship Development Programmes, technical training, and managerial skill enhancement.

Continuous mentoring is provided in areas such as legal compliance, GST, digital marketing, quality standards, and export readiness. This reduces early-stage business risks and improves sustainability.

Technology and value chain integration

NSSH promotes technology adoption, participation in trade fairs, and buyer–seller meets. These initiatives help SC/ST enterprises integrate into domestic and global value chains, enhancing productivity and competitiveness.

Recent government focus has increased outreach, strengthened CPSE coordination, and emphasized digital platforms for ease of doing business.

Static Usthadian Current Affairs Table

National SC ST Entrepreneurship Hub Initiative: