Encourage

India's aspiration to become a developed economy rests not only on the success of large corporations but equally on the ability of its Micro, Small and Medium Enterprises (MSMEs) to innovate, scale and compete globally. Accounting for nearly 9 percent of GDP, 45 percent of manufacturing output, 40 percent of exports and providing employment to nearly 70 million people across more than 26 million enterprises, the MSME sector is one of the principal engines of India's economic growth and social transformation. Yet, despite its immense contribution, the sector continues to face structural constraints that limit its growth potential, including constrained access to finance, weak corporate governance, limited managerial capacity, inadequate technology adoption and insufficient engagement with capital markets. These constraints set the context for ENCOURAGE.

Recognising both the immense promise and constant challenges of this sector, SKOCH Development Foundation launched ENCOURAGE, its flagship SME Enablement and Mentorship Programme. Conceived after more than a decade of engagement with entrepreneurs through field research, policy dialogues, conferences and stakeholder consultations, ENCOURAGE seeks to transform promising enterprises into institutionally strong, investment-ready and growth-oriented businesses. This mission responds directly to the gaps outlined above.

At its heart, ENCOURAGE rests on a simple belief: India does not lack entrepreneurs; it needs stronger enterprises. The programme therefore goes beyond training or advisory support. It builds the institutional capabilities that enable enterprises to grow sustainably, attract investment, improve governance and compete confidently in domestic and global markets.

Why ENCOURAGE?

Across India, thousands of MSMEs demonstrate remarkable innovation, fortitude and entrepreneurial energy. However, as enterprises grow, they frequently face a different group of challenges. Access to working capital becomes constrained, governance systems remain informal, technology investments are delayed, financial reporting needs strengthening and opportunities offered by institutional finance and capital markets remain underutilised. These pressures make institutional readiness essential.
ENCOURAGE was created to bridge this gap. It provides enterprises with the knowledge, mentorship, networks and institutional support needed to transition from owner-driven businesses to professionally managed organisations capable of maintaining long-term growth.

A Holistic Enterprise Development Model

Following an integrated approach, the programme identifies high-potential enterprises through extensive engagement with banks, industry associations, business clusters and professional institutions. It then undertakes a comprehensive assessment of their strengths, aspirations and growth constraints before designing structured mentoring interventions.

The objective is not simply to improve business performance but to strengthen every critical capability that supports long-term growth.

Areas of intervention include:

Corporate governance and institutional development.
Financial management and reporting.
Access to institutional credit.
Capital market readiness.
Technology adoption and digital transformation.
Human resource development.
Business strategy and market development.
Innovation and productivity enhancement.
Regulatory preparedness and compliance.
Leadership and organisational capability.

Preparing Enterprises for Institutional Finance

One of ENCOURAGE's defining features lies in its emphasis on helping MSMEs access formal sources of growth capital.

ENCOURAGE familiarises entrepreneurs with the opportunities available through banks, financial institutions and capital markets, while helping them understand the governance, disclosure and institutional practices required to access these resources successfully.

Through specialist-led Workshops and Masterclasses, participants acquire practical knowledge of corporate governance, financial openness, investor expectations, business valuation, regulatory compliance and planned growth. The programme demystifies capital markets and enables entrepreneurs to view public listing not simply as a financing option but as a pathway to institutionalisation.

The programme has worked closely with the stock exchanges and financial institutions to familiarise enterprises with opportunities such as the SME platforms and other institutional financing mechanisms. This builds on its broader finance readiness work.

Mentorship that Builds Institutions

The distinguishing strength of ENCOURAGE lies in its mentorship model.

Participants take part in stakeholder discussions, diagnostic assessments, workshops, masterclasses and peer-learning sessions that expose them to proven management methods and emerging business opportunities.

This collaborative ecosystem enables entrepreneurs to learn not only from experts but also from the experiences of fellow enterprises that have successfully navigated similar growth journeys. It also reinforces the mentorship model described above.

Impact

Over the years, ENCOURAGE has evolved into one of India's most comprehensive enterprise mentoring initiatives. Its achievements include:

Its achievements include:

Identifying nearly 15,000 high-potential MSMEs from across the country.
Performing detailed financial and business assessments of more than 5,000 enterprises.
Organising stakeholder consultations to identify the principal barriers affecting enterprise growth.
Conducting specialised masterclasses on corporate governance, capital markets, financial management and access to institutional finance.
Building collaborative partnerships with banks, stock exchanges, industry associations, domain experts as well as academic institutions to strengthen the MSME ecosystem.
Creating an enabling pathway for enterprises to explore institutional finance and public market participation.
Contributing evidence-based recommendations that strengthen public policy relating to MSME growth and competitiveness.

By combining mentorship, capacity building, governance, access to finance and policy engagement within a single integrated framework, the programme equips entrepreneurs to build stronger businesses, create better jobs and contribute more meaningfully to India's economic progress towards the vision of Viksit Bharat 2047.