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Institutional support to small and medium enterprises


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Institutional support to small and medium enterprises

  2. 2. Institutional support system is necessary at three stages enterprise development: Inception or Promotion Day-to-day management Expansion and Diversification
  3. 3. Three dimensions of institutional support system are: Central Government State Government Non-government Support System
  5. 5. 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
  6. 6.  Financial Institutions Selected Public Enterprises Industry Associations Eminent experts in the field
  7. 7. NATIONAL BANK FOR AGRICULTUREAND RURAL DEVELOPMENT (NABARD) Services offered by NABARD: Attracting youth to rural non-farm sector. District Industries Rural Project (DRIP). Rural Entrepreneurship Development Programme (REDP).
  8. 8. SMALL INDUSTRIES DEVELOPMENTORGANISATION (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
  9. 9.  To provide wide range of extension services through allied institutions To promote facilities for technology upgradation To offer consultancy services
  10. 10. Services Rendered by SIDO: Entrepreneurship development and Management training. Efforts for skill development. Preparation of feasibility reports for different products. Provision of testing services. Availability of tool room facilities.
  11. 11. NATIONAL SMALL INDUSTRIESCORPORATION (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
  12. 12. SMALL INDUSTRIES DEVELOPMENTBANK 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.
  13. 13.  Development of markets. Development of infrastructure. Discounting of bills of manufacturer-seller in selling either equipments or components.
  15. 15. 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.
  16. 16. STATE SMALL INDUSTRIESDEVELOPMENT 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.
  17. 17. TECHNICAL CONSULTANCYORGANISATON 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.
  18. 18. KHADI AND VILLAGE INDUSTRIESCOMMISION (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.
  20. 20. 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.
  21. 21. LAGHU UDYOG BHARTI (LUB) It was founded in 1995. It is responsible to undertake: Entrepreneurial training. Technology upgradation. Marketing services.
  22. 22. 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.
  23. 23. REFERENCES Entrepreneurship and Small Business Management -M. B. SHUKLA The Dynamics of Entrepreneurship Development and Management -VASANT DESAI
  24. 24. THANK YOU