Bihar’s Small Enterprise Scheme Brings Hope for Economically Weaker Sections, Says Minister

Patna: The Bihar Laghu Udyam Yojana is emerging as a vital support scheme for the state’s economically weaker sections, aiming to foster entrepreneurship, expand self-employment opportunities, and tackle unemployment. According to officials, the scheme has already benefited over 40,000 applicants, with plans to support thousands more in the current financial year.

Launched with an online portal in February 2025, the scheme ensures a transparent and efficient application process. Under the initiative, eligible beneficiaries receive Rs 2 lakh in three installments to establish small-scale enterprises. The first installment of Rs 50,000 is provided upfront, followed by Rs 1 lakh and a final Rs 50,000 after the completion of each phase of enterprise setup.

For the financial year 2023-24, Rs 390 crore has been disbursed to 40,099 selected applicants. In the ongoing financial year 2024-25, 56,248 applicants have completed a three-day entrepreneurial training at district industry centres, after which they will receive the first installment of financial support. An initial provision of over Rs 300 crore has been set aside to support these entrepreneurs.

Industry Minister Nitish Mishra described the scheme as a “powerful means” to make Bihar’s youth self-reliant. He said the government is committed to ensuring that all eligible applicants benefit from the scheme and that their entrepreneurial skills are nurtured to drive the state’s economic growth.

Applicants must be permanent residents of Bihar, aged between 18 and 50, with a family income of less than Rs 6,000 per month. They must also not be beneficiaries of other state entrepreneurship schemes.

Officials said the programme is expected to contribute significantly to lowering the state’s unemployment rate, enabling young people from disadvantaged backgrounds to establish their own ventures and become self-sufficient.