Kathmandu, December 14

With the aim of decentralising its programmes, the Youth and Small Entrepreneur Self-employment Fund (YSESF) has proposed to begin entrepreneurship development programme in the newly-formed 753 local units across the country.

The government agency will invest Rs 100 million in each local level. The YSESF has proposed to start entrepreneurship development schemes through local governments.

As per the investment guidelines prepared by the YSESF, each local level will get the money and they would be able to provide loans to local entrepreneurs who are interested to start small-scale business.

According to the provision of the guidelines, local units will be responsible to utilise the funds targeting unemployed youths and also should monitor them to ensure whether the fund is being properly utilised or not.

Currently, the YSESF is providing loans through the cooperatives. However, those who are interested to take loan from this programme have been facing multiple hassles.

“Youths have been deterred from beginning their own business by taking loans from this programme owing to the long and tedious approval process. So, we are planning to implement the programme from the local level, where youths would be able to get easy access,” stated Prem Dangal, executive vice chairman of the fund.

The government office believes that utilising the funds through the local units will help to create jobs in the country. “This programme will help to generate self-employment and also mobilise the fund proportionately all over the country,” Dangal said.

The government had established the YSESF in 2007 with an aim to promote self-employment and reduce the joblessness rate. After 10 years of establishment, it has proposed to amend the investment guidelines. The government has planned to create 50,000 jobs through self-employment in the current fiscal year by utilising the funds through YSESF.

YSESF is implementing its plans and programmes in 73 districts of the country. It is mobilising funds through cooperatives and banks and financial institutions and 38,000 people had taken loans from the fund last fiscal.

The Ministry of Cooperatives and Poverty Alleviation had forwarded the investment guidelines to the Council of Ministers before the second phase elections. The Cabinet is yet to endorse the proposal.

The local levels will be authorised to issue loans on fast track, which means that youths would be able to get loan as per the programme of YSESF within 15 to 20 days of submission of applications.

Currently, the YSESF is providing Rs 200,000 as loan to unemployed youths through the cooperatives. It has also proposed to increase the limitation of credit facility to Rs 500,000, but the government has not approved the operational bylaws till now. The YSESF had sent the proposal for the same to the Cabinet around a year ago.