2.4 Assessing Enterprise Potential

In SVEP’s approach, the Enterprise Potential of a block can be assessed using one or more of the following ways.

  1. By assessing the demand and supply gap in the block
  2. By assessing the potential based on locally available resources
  3. By assessing the demand based on Government Schemes
  4. By allotting a proportion of existing enterprises to be supported by the project.

Let us look closely at each of these ways.

2.4.1. Enterprise Potential based on Demand-Supply Gap

An understanding of the demand-supply gap in selected sectors in a block can help in identifying opportunities for starting enterprises in that sector.

What data collection activities are used to assess the gap?

To understand the gap, primary data collection activities are used. Enterprise Census and Stratified Survey provide data to assess the supply and the Household survey provides information to calculate the demand in the block. See the figure below. CRPs-EP conduct these surveys.

Which tool is used to assess?

The enterprise potential is primarily assessed using the SVEP mobile application. Hence, the profiles of the CRPs-EP must be created in the software application.

Guideline on creating the profiles of CRPs-EP in the app is mentioned in Annexure 2.3.

What are the other sub-activities to be done?

Once the profiles of the CRPs-EP are created in the application, it is important that the CRPs-EP are given an orientation on the data collection process. SRLM can choose to provide this orientation either using their staff or through the PIA.

Note for the Facilitator
1. Conduct a three-day orientation training for the CRPs-EP in the NRLM SVEP Demo app on Enterprise Census, Stratified Sample Survey, and Household Census.
2. Make sure that the training clarifies the specific terminologies used in the mobile application. This will ensure that the quality of data collected is good. (Refer Annexure 2.4 to see the data points that require special attention).
3. As there is a gap between all the surveys, plan a one-day refresher before the survey is undertaken by the CRPs-EP.

What is an Enterprise Census?             

This is the first Enterprise related data collection activity. It is a primary data collection activity that collects basic details such as enterprise size, enterprise type, enterprise category, type of ownership, etc., of all enterprises in the block.

How is the Enterprise Census done?

The census is carried out directly on the mobile application (Enterprise Census Format is attached as Annexure 2.5). The census is completed over a period of 8 to 10 days. Here, seven to nine days are spent on the data collection, and one day is assigned to ensure data collected is synced in the NRLM SVEP software/app.

Note for the Facilitators (Mentor and Professional from PIA)
1. Monitor the survey by tracking the data reported by the CRPs-EP and the data reported in the SVEP BRC and PIA login.
2. Complete these steps for completing the Enterprise Census data collection.
a. Assign Villages to the CRPs-EP for defining their region for data collection
b. Design targets for the CRPs-EP in order to complete the entire data collection activity within the stipulated time
c. Conduct daily monitoring of the data collected by comparing the number of enterprises reported by the CRPs-EP with the number of enterprises reported in the web login of NRLM SVEP software.
d. Provide the necessary technical support to the CRPs-EP (in case of issues with application, in case of issues with formats, in case of issue with accessibility, etc.) by coordinating with the necessary stakeholders (Software Support Team, Block SRLM Team, etc.).
e. Once data entry for a particular village is complete, the CRP-EP must mark that village as complete and sync the phone.
f. At this point, the latest population census details of all the villages in the block will have to be entered in the Census of India option in the web platform of the software by the PIA. This is required for generating the sample.
g. Once data entry of all villages are complete and CRP-EP has marked the enterprise census as complete for all the villages assigned to him or her followed by syncing the data, the sample for the Stratified Survey will get generated and the CRP-EP will receive it in his or her phone in the Stratified Sample Survey option under Baseline.
h. As a facilitator, you must ensure that while syncing the data after completing the census, CRPs-EP have stable internet connection on their mobile phones. Poor internet affects the syncing process thus delaying the generation of sample for the next step. The sample may not always be representative of all the villages. It depends on the density and diversity of the enterprises in the block.

What is a Stratified Survey?

Stratified survey is the second enterprise related data collection activity. It collects extensive details of the enterprises such as their sales patterns, expenditure patterns, working capital details, credit details and details of workers involved. This survey is significantly more detailed and longer vis-a-vis the Enterprise Census survey (Stratified Survey Format is provided as Annexure 2.6).

How is the Stratified Survey done?

The activity is conducted over a period of five days in which four days are spent for the data collection on paper, and one day is used to feed and sync the collected data into the mobile application.

To avoid errors that can occur in conducting this survey directly on the app and to ensure ease of data collection by the CRPs-EP, the details of this survey are first collected on paper and later fed into the mobile application.

Note for the Facilitators
Given below are the steps for doing the Stratified Survey –
a. The sample for the survey is automatically and directly generated by the SVEP application based on the data collected for the Enterprise Census.
b. Facilitators (the Mentor and Professional from PIA) must ensure that the terminologies and data required for this survey are clearly explained to the Data Collectors. (Refer Annexure 2.7 to see the Stratified Sample Terminologies to be explained)
c. The facilitators including the Mentor and Block BPM must plan the activity to provide sufficient time to feed the data collected into the mobile application during the period assigned for Stratified Survey
d. Tracking of data is done similar to Enterprise Census with an additional step of tracking the data entered into the mobile application against the data collected in the hard copies.
e. After the completion of data entry, the CRPs-EP are required to successfully sync the data. The concerned PIA representative can cross check if the data syncing is completed by checking the same in the PIA login.

What is a Household Survey?

A household survey collects the consumption details that helps in determining the demand generated in the block (Refer Annexure 2.8 to view the Format for Household Survey). The PIA, with the help of the Block BPM, determines the sample for the Household Survey using the Population Census database. 

How is a Household Survey done?

Household survey can be conducted simultaneously with the Stratified Survey.  Similar to a stratified survey, this survey is conducted over five days in which four days are spent for the data collection on paper, and one day is used to feed and sync the collected data into the mobile application.

The PIA generates the sample for the survey using the Population Census data. The Block BPM is expected to support in finalizing the villages chosen for the survey.

Note for the Facilitators
1. The PIA during orientation of Household Survey format should ensure that the Data Collectors understand the relevance of ensuring diverse households are covered through this survey to ensure the quality of data. The Block BPM will help in monitoring this during the daily reporting.
2. The division of sample for Household Survey must be done by considering the distance to be covered and allowing sufficient time to feed the data collected into the mobile application
3. As the household survey format is significantly lengthy, the data is collected in hard copies. The survey collects expenditure details of the household across an exhaustive list of commodities.
4. The collected data is fed into the mobile application. After the completion of the data entry, the CRPs-EP are required to successfully sync the data. The concerned PIA representative can cross-check if the data syncing is completed by checking the same in the PIA login.

2.4.2 Enterprise Potential Based on Locally Available Resources

An understanding of the demand for locally available resources also helps in identifying opportunities for new or existing enterprises in a block.

Hence, to assess the demand based on locally available resources, four major areas are considered.

Four major areas
1. Tourism areas in the block
2. Artisanal Clusters available in the block
3. Primary commodities/products available in the block
4. Locations which have scope for high demand or are in close proximity to urban markets.

How is the data collected?

The data for this is collected through two methods.

  • Focus Group Discussions
  • The database maintained at the Panchayat office or at the Block/District offices of the SRLM 

The PIA is primarily responsible for collecting the data.

The SRLM’s block-level team help in coordinating the data collection process and verifying the data collected from various sources before its finalization.

How are the Focus Group Discussions (FGDs) held?

FGDs are done to understand and capture the given below details from the participants.

  • Sources of credit for starting a business.
  • The rate of interest, repayment terms, the maximum amount available for different sources of credit.
  • Current activities undertaken by people in the village and the income earned from each activity.
  • Details related to tourism, artisanal skills, primary commodities produced in various villages and locations with scope for high demand or closer to urban markets.

Based on the responses from the FGDs, the opportunity cost of being an entrepreneur and the aspirational income from running an enterprise in the block is calculated. The format for conducting a FGD is provided as Annexure 2.9.

Note for the Facilitators
1. The Professional allotted to the block by the PIA conducts the FGDs as it requires little probing to facilitate the discussion and derive the best results from the FGDs.
2. Conduct FGDs with the CBO members, specifically the CLF members.
3. Conduct One FGD in each CLF.

2.4.3 Data Collected from Panchayat and Block/District SRLM Office

The data collected through FGDs are compared with the database maintained at the Block/District office as well as the Panchayat Office. This helps in determining the right clusters and identifying the high demand areas and tourism spots.  It is recommended that the data on local commodities, their price, and availability be cross-checked with the existing database in these offices.

Note: Comparing the data collected through surveys and FGDs with the existing database is an important task as validation provides new insights.

How is the assessment of enterprise potential done?

An understanding of the Government schemes also gives an idea about the possible business opportunities in a block. (Guideline for Data Collection from Block / District Functionaries is provided as Annexure 2.10)

Assessing demand for goods and services from implementation of government schemes
Four examples are mentioned below –
1. Potential for supplementary nutrition is derived by mathematically treating variables such as number of children in Anganwadi, number of lactating mothers to per capita spending on them by the government.
2. For exploring the number of enterprises producing uniforms, variables such as the number of school-going children, the number of grade 3 and 4 staff in hospitals are taken.
3. For construction units, opportunities for SBM and PMAY are explored.
4. And lastly for institutional canteens to be promoted under the project, the number of meetings of CBO happening at the block level and a tentative number of participants attending those meetings are accounted.

Details under this section must be collected by the SRLM mainly though the BMMU office, Line departments, APMC website etc.

How are the existing enterprises to be supported?

The SVEP software can provide the number of existing enterprises which require performance improvement. For this, existing enterprises with growth potential must be selected.  

Calculating the growth potential
Annual Gross Revenue of medium enterprises of one enterprise type / Annual Gross Revenue of small enterprises of the same type

Based on the growth potential figure, the enterprise types for which interventions can be done are identified.