Entrepreneurship Skill Development Programme (ESDP)

What is the Entrepreneurship Skill Development Programme (ESDP)?

Entrepreneurship Skill Development Programme (ESDP) is a training scheme of the Ministry of Micro, Small and Medium Enterprises. ESDP does not pay a subsidy or a loan. ESDP pays for the training itself, so that a person who wants to start or run a small enterprise can attend an awareness, skill or management course without paying a course fee.

According to the Office of the Development Commissioner (MSME), the objective of ESDP is to motivate youth from different sections of society: including SC, ST, women, differently-abled persons, ex-servicemen and people below the poverty line; to consider self-employment or entrepreneurship as a career option, to promote new enterprises, to build the capacity of existing MSMEs, and to cultivate an entrepreneurial culture in the country.

ESDP was restructured for the 15th Finance Commission cycle. For the period 2021-22 to 2025-26 the scheme carries a budget outlay of Rs 495 crore, covering the Entrepreneurship Awareness Programme and the Entrepreneurship-cum-Skill Development Programme.

Main features

• No course fee for candidates in Entrepreneurship Awareness Programmes and in programmes conducted exclusively for weaker sections.
• Minimum candidate age of 18 years.
• 40% overall women participation required across EAP and E-SDP batches.
• Delivered through MSME Development and Facilitation Offices, MSME Technology Centres, NI-MSME and approved partner institutions.
• ESDP is a sub-component under the "Development of MSMEs" vertical of the Office of DC (MSME).

What programmes are conducted under ESDP?

ESDP is an umbrella for four distinct programme types, and knowing which one you need saves a wasted trip to the office.

• Industrial Motivation Campaigns (IMCs): two-day events that identify and motivate potential entrepreneurs towards self-employment, with one-day sessions run for cluster associations.
• Entrepreneurship Awareness Programmes (EAPs); conducted at ITIs, polytechnics and other technical institutions for batches of 50 to 100 persons aged 18 and above, covering product and project selection, project profile preparation, marketing techniques, product and service pricing, and export opportunities.
• Entrepreneurship-cum-Skill Development Programmes (E-SDPs), technical training that upgrades the skills of prospective and existing entrepreneurs, with dedicated batches for SC and ST candidates, persons with disabilities and women.
• Management Development Programmes (MDPs) — short-duration training on managerial functions such as finance, marketing and production planning, aimed at improving decision-making and productivity in existing units.

Who is eligible for ESDP?

You can apply if:

• You are 18 years of age or above.
• You are a prospective entrepreneur exploring self-employment, or an existing MSME owner, partner or employee seeking to upgrade skills.
• You are a student or trainee at an ITI, polytechnic or technical institution where an Entrepreneurship Awareness Programme is being conducted.
• You meet any trade-specific qualification the particular skill course prescribes.

You cannot apply if:

• You are below 18 years of age, this is a firm floor across ESDP programmes.
• You are seeking a seat in a batch reserved for a category you do not belong to. Batches run exclusively for SC, ST, women or persons with disabilities are not open to other candidates.
• You lack the minimum educational or trade qualification prescribed for a specific technical skill course. Awareness programmes have no such requirement, but many E-SDP technical courses do.
• You are looking for a cash benefit. ESDP is not eligible as a route to a grant, subsidy or loan. Those are separate MSME schemes.

What documents are required for ESDP?

How to apply for ESDP training

1. Open the ESDP portal at msmedi.dcmsme.gov.in or the Office of DC (MSME) site and look up the programme calendar for your state.
2. Identify the programme type that fits you, an Entrepreneurship Awareness Programme if you are exploring the idea, an E-SDP if you want a trade skill, or a Management Development Programme if you already run a unit.
3. Contact the conducting office, your nearest MSME Development and Facilitation Office (formerly MSME-DI), an MSME Technology Centre, NI-MSME Hyderabad, or the partner institute listed against that batch.
4. Submit the enrolment form with Aadhaar, and a caste, disability or qualification certificate where the batch requires one.
5. Confirm your seat before the batch start date, since EAP batches are capped at 50 to 100 participants and technical batches are smaller.
6. Attend the full programme and collect the certificate of participation issued by the conducting institution.

How much does ESDP cost a candidate?

According to the Ministry of MSME, the training fee for ESDP programmes is nil, and no fee is charged from candidates under programmes conducted exclusively for weaker sections of society; SC, ST, women and persons with disabilities.

The scheme's spend is on the institution side: honoraria for faculty, training material, workshop consumables and administrative cost, met from the Rs 495 crore outlay approved for 2021-22 to 2025-26. Around 4.8 lakh people were trained across India under the scheme in 2022-23.

Stipend and travel reimbursement, where offered, depend on the individual programme and the conducting institution. Confirm this at enrolment rather than assuming it.

What comes after ESDP training?

ESDP produces a trained candidate, not a funded one. The usual next steps are:

• PMEGP (Prime Minister's Employment Generation Programme) for a subsidy-linked bank loan to set up a new micro enterprise.
• Udyam Registration at udyamregistration.gov.in, which is free and is the gateway to almost every other MSME scheme.
• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for collateral-free bank credit once the enterprise exists.

Many MSME Development and Facilitation Offices run ESDP batches jointly with PMEGP awareness sessions, so ask about that at the same office.

Help and contact for ESDP

• ESDP portal: msmedi.dcmsme.gov.in
• Office of DC (MSME): dcmsme.gov.in
• MSME/Udyam helpline: 1800-180-6763
• Local office: your district's MSME Development and Facilitation Office

ESDP enrolment is free. No agent or middleman can charge a fee for securing a seat in an ESDP batch.