institutional support in entrepreneurship

SUPPORT ORGANIZATIONS FOR AN ENTREPRENEUR AND THEIR

ROLES, FRAMEWORK FOR STARTING A BUSINESS IN INDIA

Presented By:- Ganesh Adasul Bhavik Jani

BhavikMehtaMayuresh Shivankar

Institutional support system is necessary at three stages enterprise development:

Inception or Promotion Day-to-day management Expansion and Diversification

Three dimensions of institutional support system are:

Central Government State Government Non-government Support System

CENTRAL GOVERNMENT INSTITUTES

SMALL SCALE INDUSTRIES BOARD

Established in 1954 to provide effective coordination and inter-institutional linkages for the benefit of small scale sector.It consists of the following members:

Union Industry Minister State Industry Minister Selected members of Parliament Secretaries of department concerned Financial Institutions Eminent experts in the field

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT (NABARD)

Services offered by NABARD: Attracting youth to rural non-farm sector. District Industries Rural Project (DRIP). Rural Entrepreneurship Development

Programme (REDP).

SMALL INDUSTRIES DEVELOPMENT ORGANISATION (SIDO)

Constituted in 1954 to develop support services for promotion of SSS.Main objectives of SIDO are:

To formulate policy for promotion of SSI Provide coordination of policies of state

government To collect and disseminate information To offer consultancy services Provision of testing services

NATIONAL SMALL INDUSTRIES CORPORATION (NSIC)

Set up by government of India in 1955.Main functions are:

Supply of machinery and equipment. Provision of financial assistance. Assistance for arrangement of raw

materials. Establishment of technology transfer

centers. Arrangement of marketing assistance. Priority in government purchase

programme

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)

Subsidiary of IDBI, setup as an act of parliament.

Provides assistance for: Setting up of new SSI units, small hotels,

hospitals and so on Technological upgradation and

modernization, expansion and diversification.

Quality upgradation. Discounting of bills of manufacturer-

seller in selling either equipments or components.

STATE GOVERNMENT INSTITUTES

STATE FINANCIAL CORPORATIONS (SFC)

Objectives: Provide term loans for the acquisition of

land, building, plant and machinery. Promotion of self-employment. Encourage women entrepreneurs. Expansion of industry. Provide seed capital assistance.

STATE SMALL INDUSTRIES DEVELOPMENT CORPORATION (SSIDC)

Important functions performed are: Procurement and distribution of raw

materials. Supply of machine on hire-purchase

basis. Construction of industrial estates. Providing assistance for marketing of

products of SSI. Eg:- KARNATAKA STATE SMALL

INDUSTRIES DEVELOPMENT CORPORATION LTD.

TECHNICAL CONSULTANCY ORGANISATON

Services of TCOs include: Preparation of project profiles. Undertaking industrial potential surveys. Identification of potential entrepreneurs. Undertaking market research. Project supervision and rendering

technical and administrative assistance. Conducting EDPs.

KHADI AND VILLAGE INDUSTRIES COMMISION (KVIC)

It is engaged in the development of khadi and village industries in rural areas.Main objectives of KVIC are:

Providing employment in rural areas. Skill improvement. Rural industrialization. Transfer of technology.

NON-GOVERNMENT INSTITUTES

INDIAN COUNCIL OF SMALL INDUSTRIES (ICSI)

It was established in 1979.Main functions are:

Information dissemination. Entrepreneurship development. Consultancy and managerial support. Training and research.

LAGHU UDYOG BHARTI (LUB)

It was founded in 1995.It is responsible to undertake:

Entrepreneurial training. Technology upgradation. Marketing services.

Framework for setting up a business

General Information Project Report Financial Assistance Marketing

General Information:

Selecting an activity Industry potential survey Market study Inputs required Agencies providing help-MSMEDI, SIDC

Project Report:

Gives an account of the project proposal Detailed information Model project reports Agencies providing help-MSMEDI, SFC,

NSIC

Financial Assistance:

Loan for fixed capital and working capital Suitable source of funding Eligibility criteria Margin money Procedure for getting a loan Agencies providing help-SIDBI, NSIC, SFC

Marketing:

Offer goods and services of desired quality at optimum cost

Create awareness through a network of dealers

Exhibitions and trade fairs Agencies providing help-NSIC, KVIC

Success story of Raisin Cluster, Sangli in Maharashtra

MSME sector in India contributes-8% to GDP45% to Mfg output40% to total exports

Cluster Development Programme (MSE-CDP) one of the flag-ship schemes of the Ministry

Cluster :- Group of enterprises located within an identifiable area having similar properties like methods of production, quality control, testing, technology & marketing strategies/practices

What does the GoI do?

Diagnostic Study for SWOT analysis Soft Intervention – Activities like general

awareness, counseling, motivation, seminars, workshops

Capacity Building - M/S. Sangli Grape Processing, Marketing & Research Industries

Marketing Development - National level Exhibition , W.T.O. Mumbai

Management Development - Seminar on management practice at VP Institute of Management

Hard Interventions i.e. setting up of Common Facility Centers

Facilities of CFCa) Common Processing Centreb) Common Testing Centrec) Common Packaging Centre

Benefits of CFC1) Increase the efficiency and productivity of the MSME units2) Reduced cost of Product 3) Mfg. of the internationally competitive raisins is possible

What does the GoI do?

Success of the Cluster

May.2012 Jun.2012 Jul.2012 Aug. 2012

Sep. 2012

Oct.2012 Nov. 2012

Dec.2012 Jan. 2013 Feb.2013 Mar.2013

32.36

51.58

36.45 34.56

19.94

37.64

28.8936.76

49.7

36.32

87

Increase in Revenue (Rs. in Lakhs)

Increase in Revenue (Rs. in Lakhs)

CONCLUSION

The most important development in the post-independence period has been the growth of a number of key institutions to promote, assist and develop entrepreneurs to initiate industrial growth in the country. The country has laid a strong foundation broad based its infrastructure and provided much needed support and assistance.

REFERENCES

Entrepreneurship and Small Business Management

-M. B. SHUKLA The Dynamics of Entrepreneurship

Development and Management-VASANT DESAI

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