Micro-enterprise Graduation Model

This project aims to formalise the business management strategy for micro-entrepreneurs to pursue higher-order growth.


Recognising the need for financial and non-financial support in growing and scaling SHG enterprises, this model seeks to formalise the business management strategy for top business types to assuage risk and ensure enterprise sustainability. This will assist the entrepreneur and the supporting business development service providers in clarifying the milestones for an expanding enterprise, with analytical rigour. 


The pilot will focus on the following priority areas:

  • Enhance visibility on an enterprise’s growth trajectory and assist the entrepreneur in intensifying the scale of operation.
  • Support at least 25% of businesses in 1 OSF catchment area in the pilot; scale-up will impact a minimum of 9,450 entrepreneurs. 
  • Reduce risk exposure in running a business and support increased entrepreneurial drive among SHG women.
  • Create a ready playbook of templates for high-opportunity business types that aid the business development service providers in supporting entrepreneurs (stratified as per their risk appetite).


Typically, the top 25% of the SHG-run enterprises comprise “safe” business choices such as vegetable trading, running Kirana stores, producing dairy products etc., which yield steady, but low returns, with limited growth prospects. By templatising the business process flow, which is tailored to their business type and category, the entrepreneur will gain a clear road map and can be positioned to pursue higher-order enterprises, with the business development service providers’ specialised support offered under NRETP.

Thematic area

Small, Growing Businesses and Employment

Project Leads

Sijo John, Sharon Buteau


Madhya Pradesh, Jharkhand, Odisha, Chhattisgarh


Ministry of Rural Development