Institutional Support to Entrepreneurs

Institutional Support to Entrepreneurs by: Ms.Kumkum Bharti

Need for Institutional SupportEconomic environment conducive to sustainFinancial support & assistance

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National Small Industries Corporation Ltd (NSIC)Set up in 1955To promote, aid , foster the growth of small scale industries**

National Small Industries Corporation Ltd (NSIC)To provide machinery on hire-purchase scheme to SSIsTo provide equipment leasing facilityTo help in export marketing of the productsTo participate in bulk purchase programmeTo develop prototype of machines & equipmentsTo distribute basic raw materials among SSIs through raw material depotsHelps in upgrading & developing the technologyImpart training in various industrial tradesTo undertake construction of industrial estates.

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Small Industries Development Organization (SIDO)**

Small Industries Development Organization (SIDO)Functions:Co-ordinationIndustrial developmentExtensionSIDO currently functions through 27 offices, 31 small industries service institutes (SISI), 37 extension centers, 3 product-cum-process development centers, and 4 production centers.**

Small industries development organization (SIDO)Functions relating to co-ordinationTo evolve a national policy for development of MSMEsTo coordinate the policies & programmes of various state governmentTo maintain a proper liaison with the related central ministries, planning commission, state governments, financial institutions,etcTo coordinate the programmes for the development of industrial estates**

Small industries development organization (SIDO)Functions relating to industrial developmentTo reserve items for production by MSMEsTo collect data on consumer items imported and encourage the setting of industrial units to produce indigenouslyTo render support for the development of ancillary unitsTo encourage participation in govt. stores purchase programme by giving them necessary guidance, market advice and assistance**

Small industries development organization (SIDO)Functions relating to extensionTo make provision for technical services for improving technical process, production planning, selecting appropriate machinery, preparing factory layout and designTo provide consultancy & training services to strengthen competitive abilityTo render marketing assistance to MSME to effectively sell the productsTo provide assistance in economic investigation & information to small-scale industries**

Small Scale Industries Board (SSIB)Formed in 1954Alternative name of central small industries boardFacilitate co-ordination and inter-institutional linkagesApex advisory body constituted to render advice to the government on all issues pertaining to the development of MSMEsHead: industries minister of the governmentComprises of 50 members **

Small Scale industries development corporations (SSIDC)Set up under companys act 1956Cater to the primary developmental needs of the micro, small and medium industries in the state /union territoriesGreater flexibility in operations and wider scope for undertaking a variety of activities

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Small scale industries development corporations (SSIDC)Functions To procure and distribute raw materialsTo supply machinery on hire purchase systemTo provide assistance for marketing of the products of small-scale industriesTo construct industrial estates/ sheds, providing allied infrastructure facilities and their maintenanceTo extend seed capital assistance on behalf of the state government concernedProvide management assistance to production units**

Small Industries Service Institutes (SISIs)Set up to provide consultancy and training to small entrepreneurs- both existing & prospectiveActivities are coordinated by industrial management training division of the DCSSIS officeThere are 28 SISIs and 30 branches set up in state and other places all over the country

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Small Industries Service Institutes (SISIs)To serve as interface between central & state governmentTo render technical support servicesTo conduct EDPsTo initiate promotional programmesEconomic consultancy/ information/ EDP consultancyTrade & market informationProject profilesState industrial potential surveysDistrict industrial potential studiesModernization and implant studiesWorkshop facilitiesTraining in various trade/ activities

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Direct Industries Centre (DIC)Started inn may 8, 1978Provide integrated administrative framework at the district level for promotion of MSMEs in rural areasEnvisaged as single window interacting agency with the entrepreneurs at district levelThe SEEUY/ PMRY also implemented by DICs**

Direct Industries Centre (DIC)FunctionsTo conduct industrial surveys to provide investment advice to entrepreneursTo prepare an action plan to effectively implement the schemes indentifiedTo guide entrepreneurs in selecting right machinery & equipment, & procuring resourcesTo appraise worthiness of various proposalsTo assist entrepreneurs in marketing their productsTo undertake product development workTo conduct artisan training programs

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Industrial EstatesAn industrial estate is a group of factories, constructed on an economic scale in suitable sites with facilities of water, transport, electricity, steam, bank, post-office, canteen, watch and ward and first-aid, and provided with special arrangements for technical guidance and common service facilities.- P.C. Alexander**

Types of industrial estatesOn the basis of functionsGeneral type industrial estatesSpecial type of industrial estatesOn the basis of organizational set-up Government industrial estatesPrivate industrial estatesCo-operative industrial estatesMunicipal industrial estatesOn the basis of other variantsAncillary industrial estatesFunctional industrial estatesThe workshop bay

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Objectives of Industrial EstatesTo provide infrastructure and accommodation facilities to the entrepreneursTo encourage the development of small scale industries in the countryTo decentralize industries to the rural & backward areasTo encourage ancillarization in surrounding major industrial unitsTo develop entrepreneurship by creating a congenial climate to run the industries in these estates/ areas/ townships, etc**

Specialized institutionsCentral institute of tool design, HyderabadCentral tool room training centers, Mumbai. Kolkata, Bangalore, Ludhiana, new DelhiCentral institute of hand tool, JalandharInstitute of design of electrical measuring instruments (IDEM), MUMBAINational institute of entrepreneurship and small business development (NISEBUD)National institute of small industries extension training (NISIET), Hyderabad**