Income generation by self-employment or small businesses creates rural employment. PAF has been focusing on this pressing issue of rural unemployment and under-employment. Since the world has witnessed the successes of small businesses (popularly known as microenterprises), PAF has incorporated this as one of its major programme components. From the identification of potential entrepreneur to the product sale, PAF provides longitudinal services in skill development, business literacy, technology, access to credit and sale. The process of micro-enterprise development also begins with social mobilization. Based on the resource potentials and entrepreneurial capability, the process of micro-enterprises creation begins.
For income generating activities, PAF provides 90 per cent grant to COs to launch activities, exclusively for the target groups. The groups or CO members borrow money from CO's Revolving Fund in the form of loan to launch Income Generating Activities (IGAs).
The participants pay back the loan on an instalment basis to the COs. Hence, the Fund revolves within the CO to support the financial requirement of target communities. Apart from this, group saving is also encouraged. To add value to their product and for market development. PAF also supports target communities to implement infrastructures related to create business linkages.