Kerala’s Finance Minister, K N Balagopal, has underscored the need for increased support and assistance for startups in rural areas. Speaking at the StartUp Conclave organized by the Kerala Financial Corporation (KFC) in Thiruvananthapuram, he highlighted the importance of bridging the urban-rural divide by providing equal opportunities for entrepreneurship across the state.
Narrowing the Urban-Rural Divide
Kerala’s unique geographical and infrastructural landscape allows for a narrow gap between urban and rural facilities, making it an ideal region for fostering entrepreneurship in less urbanized areas. Many young entrepreneurs are keen to launch ventures in their native places, recognizing the untapped potential of rural Kerala. The Finance Minister emphasized the role of financial institutions like KFC in promoting these rural startups.
Zoho Corporation’s Rural Model: A Success Story
Balagopal pointed to the success of Zoho Corporation’s rural office in Kottarakkara as a shining example of what can be achieved in Kerala’s rural areas. This model demonstrates that large-scale businesses can thrive in less urbanized regions, paving the way for similar initiatives.
Expanding Financial Support for Startups
The state government is committed to enhancing the financial landscape for startups in Kerala. The government has already doubled the capital investment in KFC to Rs 600 crore and reduced interest rates on loans, making it easier for new businesses to access much-needed funds. The loan ceiling for startups has been increased from Rs 2 crore to Rs 3 crore, and there are plans to raise the upper ceiling on loans for other establishments from Rs 10 crore to Rs 15 crore.
Aiming for a Robust Loan Portfolio
The Finance Minister revealed that the state aims to expand KFC’s loan portfolio to Rs 10,000 crore. Currently, the corporation’s portfolio stands at Rs 7,368 crore, catering to a diverse customer base that ranges from startups to companies with annual turnovers of Rs 700-800 crore. These measures are part of a broader strategy to make KFC a more effective tool for fostering entrepreneurship in Kerala.
A Promising Future for Kerala’s Startups
Kerala’s startup sector is vibrant and full of potential. With the government’s continued support, the state is well-positioned to help entrepreneurs realize their dreams, particularly in rural areas where there is ample opportunity for growth. The StartUp Conclave, presided over by District Panchayat President D Suresh Kumar, marked a significant step forward in this endeavour.
This commitment to nurturing rural startups not only strengthens Kerala’s economy but also ensures a more equitable distribution of resources and opportunities across the state.
