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Presentation on theme: "INSTITUTIONAL SUPPORT FOR SMALL ENTERPRISES AUTHOR: ALPANA TREHAN CHAPTER-8 © 2011, Dreamtech Press :: Chapter 8 1."— Presentation transcript:


2  Central level  SSI Board  KVIC  MSME-DO  NSIC  NIESBUD  IIE  State level  SIDCs/sIIcS  SDIs  DICs  Others  Industry Associations  Non Governmental Organizations INSTITUTIONS SUPPORTING SMALL- SCALE ENTERPRISES © 2011, Dreamtech Press :: Chapter 8 2

3  Refers to a legal body formed by an Act of Parliament (No. 61 of 1956) in April, 1957  The functions of KVIC are as follows:  Planning and organizing training of individuals employed or seeking employment in khadi and village industries  Building up reserves of raw material and supplying them to individuals engaged or likely to be engaged in production of handspun yarn, khadi, or village industries  Facilitating production and marketing of khadi or products manufactured by village industries  Encouraging research in the technology used in khadi and village industries  Promoting cooperative efforts among the manufacturers of khadi or individuals engaged in village industries  Establishing quality standards and ensuring that products of khadi and village industries adhere to the set standards KHADI AND VILLAGE INDUSTRIES COMMISSION (KVIC) © 2011, Dreamtech Press :: Chapter 8 3

4  Formulates, coordinates, implements, and monitors various policies for the growth of SSEs  The services rendered by MSME-DO are follows:  Advising the government in policy formulation for the promotion and development of SSEs  Providing techno-economic and managerial consultancy, common facilities, and extension services to SSEs  Providing facilities for technology upgradation, modernization, quality improvement, and infrastructure  Developing human resources through training and skill upgradation  Providing economic information services  Maintaining a close link with the central ministries, planning commission, state governments, financial institutions and other organizations concerned with the development of SSEs MICRO, SMALL, AND MEDIUM ENTERPRISES DEVELOPMENT ORGANIZATION (MSME-DO) © 2011, Dreamtech Press :: Chapter 8 4

5  Aims at promoting, helping, and nurturing the development and growth of SSEs  It provides the following technical support services to SSEs :  Advising on application of new techniques  Providing material testing facilities through accredited laboratories  Facilitating product design including Computer Added Design (CAD)  Providing energy and environment services at selected centers  Facilitating classroom and practical training for skill upgradation NATIONAL SMALL INDUSTRIES CORPORATION LIMITED (NSIC) © 2011, Dreamtech Press :: Chapter 8 5

6  Coordinates and monitors the activities of agencies involved in entrepreneurship development for SSEs  The objectives of the NIESBUD are as follows:  Evolving standardized materials and processes for selection, training, support and sustenance of entrepreneurs  Conducting training programs for promoters, trainers, and entrepreneurs  Formulating scientific selection procedure  Developing training aids, manuals, and tools  Sharing international experience and expertise in entrepreneurship development  Undertaking research and exchange experiences globally in development and growth of entrepreneurship  Creating environment suitable for the emergence of entrepreneurship NATIONAL INSTITUTE FOR ENTREPRENEURSHIP AND SMALL BUSINESS DEVELOPMENT (NIESBUD) © 2011, Dreamtech Press :: Chapter 8 6

7  Focuses on entrepreneurship development by providing training, research, and consultancy services to SSEs  The activities of IIE include the following:  Evolving strategies and methodologies for different target groups and locations, and conducting field tests  Identifying training needs and offer training programmers to government and non-government organizations engaged in promoting and supporting entrepreneurship  Documenting and disseminating information needed for policy formulation and implementation related to self-employment  Identifying, designing, and conducting training programs for existing entrepreneurs  Preparing and publishing literature related to entrepreneurship and industrial development  Organizing seminars, workshops and confer conferences for providing a forum for interaction and exchange of views by various agencies and entrepreneurs  Conducting research for generating knowledge to accelerate the process of entrepreneurship development  Acting as a catalyst for development of self-employment/entrepreneurship, industry/business INDIAN INSTITUTE OF ENTREPRENEURSHIP (IIE) © 2011, Dreamtech Press :: Chapter 8 7

8  Provides technical and financial assistance to industrial units  The major activities of SIDCs are as follows:  Providing term finance to all small, medium and large enterprises  Subscribing to shares and debentures of enterprises for financial assistance  Formulating feasibility studies and encouraging private entrepreneurs to establish their own enterprises in the state  Setting up industrial ventures in joint and assisted sector by collaborating with private entrepreneurs  Motivating entrepreneurs by implementing scheme of Industrial Development Bank of India STATE INDUSTRIAL DEVELOPMENT/ INVESTMENT CORPORATIONS (SIDCS/SIICS) © 2011, Dreamtech Press :: Chapter 8 8

9  Promotes SSEs in rural areas and small towns  The activities of DICs are as follows:  Conducting surveys to assess industrial potential of a district  Preparing an action plan for industrial development  Evaluating investment proposals received from entrepreneurs  Guiding entrepreneurs in buying appropriate machinery, equipment, and raw material  Suggesting appropriate marketing strategies to entrepreneurs  Maintaining links with research and development institutions for quality improvement and technology upgradation  Conducting training programs for artisans  Providing self-employment to educated unemployed youth DISTRICT INDUSTRY CENTERS (DICS) © 2011, Dreamtech Press :: Chapter 8 9

10  Help in supporting SSEs by providing them with a platform to raise industry related issues and promote their activities  The major industry associations include:  Federation of Indian Chambers of Commerce and Industry (FICCI)  Works with the government for increasing efficiency, competitiveness, and global opportunities for SSEs by providing specialized services  PHD Chamber of Commerce and Industry (PHDCCI)  Works with the senior government officials and task forces that pool knowledge and experience for overall benefit of the business community  World Association for Small and Medium Enterprises (WASME)  Informs the promotion of SMEs in member countries and markets the products of SMEs  Indian Council of Small Industries (ICSI)  Aims at extending assistance to the small and cottage enterprises that further leads to the overall growth of the economy INDUSTRY ASSOCIATIONS © 2011, Dreamtech Press :: Chapter 8 10

11  They provide financial assistance, marketing, training, and legal advice to SSEs.  They help entrepreneurs in different states by conducting various micro-financing activities for them.  They support by setting sub-contract exchanges that help in the following ways:  Collecting data on the manufacturing capacities of SSEs  Obtaining the details of the items that are required by large units and can be produced in SSEs  Setting up the data bank to provide the information to SSEs and large industries  Conducting programs for promoting the products manufactured by SSEs  Arranging buyer-seller meets to display products of SSEs required by large undertakings  Matching the requirements of large undertakings with the capacity of SSEs NON-GOVERNMENTAL ORGANIZATIONS © 2011, Dreamtech Press :: Chapter 8 11

12  Small Industries Development Bank of India (SIDBI)  Provides credit flows to SSEs in the areas of transport, healthcare, and tourism  Focuses on assisting individuals establishing SSEs  Provides assistance the following two ways:  Direct Assistance  Indirect Assistance  State Financial Corporations (SFCs)  Spreads industrial culture in rural, semi-urban, and backward areas of different states in India  Provide term loans to small and medium enterprises for procuring various assets, such as land, building, and machinery  Provide non-fund based services, such as merchant banking, under- writing of public issues, project counseling, bill discounting, and leasing and hire purchase to SSEs INSTITUTIONS PROVIDING FINANCIAL ASSISTANCE © 2011, Dreamtech Press :: Chapter 8 12

13  ISO 9000/14001 certification fee reimbursement scheme  Micro and Small Enterprises Cluster Development Program MSE-CDP  Credit Linked Capital Subsidy Scheme (CLCSS), to improve the competitiveness of MSMEs  National Manufacturing Competitiveness Program (NMCP)  Skill development programs  Integrated Infrastructure Development (IID) Scheme  Other Facilities and Incentives for Indian MSMEs  Prime Minister’s Employment Generation Program (PMEGP)  Scheme for rejuvenation, modernization, and technology upgradation of the coir industry SCHEMES FOR TECHNOLOGICAL UPGRADATION OF SMALL ENTERPRISES © 2011, Dreamtech Press :: Chapter 8 13

14  Small-Scale Enterprises (SSEs) face a number of problems due to inadequate capital, low productivity, and lack of infrastructure facilities.  Government of India has formed the Ministry of Micro, Small & Medium Enterprises (MSME), which is focused on the growth and development of the small-scale sector.  The Ministry of MSME provides special facilities and support services to SSEs through its central and state level institutions.  The main objective of these institutions is to enhance the competitiveness of SSEs in the market. RECAP © 2011, Dreamtech Press :: Chapter 8 14


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