The term institutional support system generally refers to the economic environment of industry and business comprising of authorities and institutions whose decisions and operational framework affect the level of business.These institutions include govt owned agencies, statutory corporations autonomous and semi autonomous organisations.
It is an apex body and has been entrusted to play advisory role in solving problems of SMEs.
For providing credit for the promotion of agriculture small scale industries, cottage and village industries handicrafts and other rural industries.1.To promote labour intensive industries in rural sector and open wide range of avenues for employment to the rural ppl. various schemes have been formulated by NABARD to provide exclusive support to activities undertaken by women like ASSISTANCE TO RURAL WOMEN IN NON FARM DEVELOPMENT, assistance for marketing of non farm products and so on..2.It is an integrated area based credit intensification pgm in collaboration with the govt. banks and other development agencies…so far it has been implemented in over 106 districts in the country..3.It is a promotional pgm setup to motivate and train educated unemployed rural youth to start their own enterprises.
With the objective of promoting and developing SSIs.1.it has two schemes in this context: hire purchase scheme and lease scheme…..under hire purchase scheme it arranges indigenous and imported machinery on easy instalmnt….in lease scheme 100% financial facilities are available to small entrepreneurs which enable them to diversify and ensure tech upgradation…2. Financial assistance provided for marketing, bills discounting, purchase of raw materials and export activities.3. …supply of raw materials…..import of raw materials…..supply of scarce raw materials on priority basis….4. SSIs are interested to avail facilities for tech acquisition, adoption and upgradation. Technicl service centers are established by NSIC in different parts of the country to provide diverse technical support to SSS.5. ….ensures adequate margin or return to small entrepreneurs….encourage stadardisation and quality control for products of SSI…….assist in development of brand ie making pdts more marketable…..ensure effective advertising and publicity of pdts of SSI.6. These benefits include supply of tender form free of cost…..freedom from security deposit….exemption from payment of earnest money.
It is the principal financial institution for the promotion, financing and development of industry in the small, tiny and cottage industries.3.Acquiring of ISO 9000 series certification
SFC function wid the objective of financing and promoting SMEs, achieving regional socio-economic growth and generating grtr employment opportunities.1.And other assets3.To encourage new and technically qualified women entrepreneurs in setting up industrial projects.4.Expansion of industry by rural and urban artisans.5.Under the scheme of IDBI.
3.PROVIDING ALLIED INFRASTRUCTURTE facilities and their maintenance.
INDIAN FINANCIAL INSTITUTIONS ALOGWITH COMMERCIAL BANKS AND STATE LEVEL FINANCIAL AND development institutions estblished a network of TCOS DURING THE 70S and 80s to cater to the consultancy needs of the SMEs and new entrepreneurs with a view to provide technical expertise.3. And providing them technical and mgmt assistance.6. And skill upgradation prgms.
Notable achievements of the kvic are introduction of fabric painted khadi, ready made garments, hand made paper….furthermore it also has tie ups with export companies for exporting kvi technology
To help tiny cottage and small industries and artisans of rural sector
To promote and safeguard the interest of small and medium scale industries.it has been given representation on the national and state level govt bodies.
FOR AN ENTREPRENEUR
AND THEIR ROLES,
STARTING A BUSINESS IN
Presented By:- Ganesh Adasul
Institutional support system is necessary at
three stages enterprise development:
Inception or Promotion
Expansion and Diversification
Three dimensions of institutional support
Non-government Support System
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
Eminent experts in the field
NATIONAL BANK FOR
AGRICULTURE AND RURAL
Services offered by NABARD:
Attracting youth to rural non-farm sector.
District Industries Rural Project (DRIP).
Rural Entrepreneurship Development
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
To collect and disseminate information
To offer consultancy services
Provision of testing services
NATIONAL SMALL INDUSTRIES
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
DEVELOPMENT BANK OF INDIA
Subsidiary of IDBI, setup as an act of
Provides assistance for:
Setting up of new SSI units, small hotels,
hospitals and so on
Technological upgradation and modernization,
expansion and diversification.
Discounting of bills of manufacturer-seller in
STATE FINANCIAL CORPORATIONS
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
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
Eg:- KARNATAKA STATE SMALL
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.
KHADI AND VILLAGE INDUSTRIES
It is engaged in the development of khadi and
village industries in rural areas.
Main objectives of KVIC are:
Providing employment in rural areas.
Transfer of technology.
INDIAN COUNCIL OF SMALL
It was established in 1979.
Main functions are:
Consultancy and managerial support.
Training and research.
LAGHU UDYOG BHARTI (LUB)
It was founded in 1995.
It is responsible to undertake:
Framework for setting up a
Selecting an activity
Industry potential survey
Agencies providing help-MSMEDI, SIDC
Gives an account of the project proposal
Model project reports
Agencies providing help-MSMEDI, SFC, NSIC
Loan for fixed capital and working capital
Suitable source of funding
Procedure for getting a loan
Agencies providing help-SIDBI, NSIC, SFC
Offer goods and services of desired quality at
Create awareness through a network of
Exhibitions and trade fairs
Agencies providing help-NSIC, KVIC
Success story of Raisin Cluster, Sangli in
MSME sector in India contributes-
8% to GDP
45% to Mfg output
40% 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
What does the GoI do?
Diagnostic Study for SWOT analysis
Soft Intervention – Activities like general
awareness, counseling, motivation, seminars,
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
Hard Interventions i.e. setting up of Common
Facilities of CFC
a) Common Processing Centre
b) Common Testing Centre
c) Common Packaging Centre
Benefits of CFC
1) Increase the efficiency and productivity of the MSME
2) Reduced cost of Product
3) Mfg. of the internationally competitive raisins is
What does the GoI do?
Success of the Cluster
Increase in Revenue (Rs. in Lakhs)
Increase in Revenue (Rs. in Lakhs)
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.
Entrepreneurship and Small Business
-M. B. SHUKLA
The Dynamics of Entrepreneurship
Development and Management