This document discusses entrepreneurship development in the MSME sector in India. It provides definitions of entrepreneurs and entrepreneurship. It outlines the importance of MSMEs for the Indian economy, noting they employ over 31 million people and account for 45% of industrial production. The document discusses the Micro, Small and Medium Enterprises Development Act of 2006 and various schemes to support MSMEs, including credit support, technology support, marketing assistance, and cluster development programs. It also analyzes entrepreneurial opportunities that exist in the agriculture sector as part of the MSME sector, such as diversification, organic farming, food processing, floriculture, and production of agro-inputs.

2. ENTERPENURSHIP DEVELOPMENT
IN
MSME SECTOR
SUBMITTED BY
SOUMYA RANJAN MOHAPATRA
MBA – 3RD SEMISTER
REG NO- 1406369028
MANABHAJAN BHUE
MBA-3RD SEMISTER
REG NO- 1406369015

3. MSME
SECTOR
ANALYSIS

4. An entrepreneur is defined as “person in
effective control of commercial undertaking;
one who undertakes a business or an
enterprise”.
Entrepreneur is an innovative person who
maximizes his profits by following new
strategies or venturing into new products or
services.
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5. Entrepreneurship is the act of being an entrepreneur, who
starts any economic activity for being self-employed.
Entrepreneurship is the “process of the entrepreneur”. It is
an attempt to create value through recognition of business
opportunity. It is basically communicative and management
functions to mobilize financial and material resources.
The entrepreneurial activity is governed by varying
combination of socio-economic, psychological, cultural and
other factors: Caste/religion, Family background, Level of
education, Level of perception, Occupational background,
Migratory character, Entry into entrepreneurship, Nature of
enterprise, Investment capacity and Ambition/moderation.
Entrepreneurship
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6. Who is a Entrepreneur............
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7. WHAT ENTREPRENEURS DO?
EMPLOYMENT & INCOME GENERATION
ENTERPRISES
ENTREPRENEURS
Taxes/Govt.
Revenues
Poverty
Alleviation
Higher Productivity &
Innovations
Output &
Exports
Wealth

8. Entrepreneurial Characteristics
Being an entrepreneur requires specific characteristics and
skills that are often achieved through education, hard work, and
planning.
Risk Taker
Businesses face risk. Entrepreneurs minimize risk through
research, planning, and skill development.
Perceptive
Entrepreneurs view problems as opportunities and challenges.
Curious
Entrepreneurs like to know how things work. They take the time
and initiative to pursue the unknown.
8
Entrepreneurship
development
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9. Entrepreneurial Characteristics
Imaginative
Entrepreneurs are creative. They imagine solutions to problems that
encourage them to create new products and generate ideas.
Persistent
True entrepreneurs face bureaucracy, make mistakes, receive
criticism, and deal with money, family, or stress problems. But they
still stick to their dreams of seeing the venture succeed.
Goal-setting
Entrepreneurs are motivated by the excitement of staring a new
business. Once achieved, they seek out new goals or ventures to
try.
Hardworking
Entrepreneurs need a great deal of energy to see a venture start
and succeed. Yet they are not deterred by the long hours to achieve
their goal.
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10. Entrepreneurial Characteristics
Self-confident
Entrepreneurs believe in themselves. Their self-confidence takes
care of any doubts they may have.
Flexible
Entrepreneurs must be flexible in order to adapt to changing trends,
markets, technologies, rules, and economic environments.
Independent
An entrepreneur’s desire for control and the ability to make
decisions often makes it difficult for them to work in a controlled
environment.
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11.  Increases national production
 Balanced area development
 Dispersal of economic power
 Reinvestment of profit for the welfare of the area of profit
generation
 Development is a function of motivation and human resource
 Entrepreneurial awareness
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Need for entrepreneurship
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13. 13
Growth of
Micro, Small & Medium Enterprises
in India

14. After India’s independence, Cottage and Small
scale sector was given prime importance in the
economic and industrial policies for:
a) Industrial dispersal
b) Employment creation
14

15. 15
13 Million MSMEs
> 8000 products
45% industrial
production
40% Exports
31 Million
Employment
PERFORMANCE AND CONTRIBUTION OF
MSMEs
For MSEs
 Industrial Production – 45%
 Exports : 40%
MSMEs

16. Micro, Small and Medium Enterprises
Development Act 2006 (MSMED)
MSMED Act 2006 promulgated in order to :
1. remove impediments due to multiple laws
2. introduce statutory consultative and
recommendatory bodies on MSME policies
3. improve registration procedures of MSMEs
4. statutory basis for purchase preference and
credit policies
5. Improve realisation of payments of MSMEs
16

17. 17
Micro, Small and Medium Enterprises
Development Act, 2006
Salient Features
1. Ambit of sector enlarged to cover
medium enterprises.
2. Constitution of MSME Board
3. Simplification of registration procedure

18. 18
5. Policy of preferential procurement
from MSMEs
6. Progressive credit support
7. Penalty for delayed payments
8. Provision for exit policy

19. Manufacturing Enterprises
Micro Rs. 2.5 million (US$ 56000)
Small Rs. 50 million (US$ 1.1 million)
Medium Rs. 100 million (US$ 2.2 million)
Services Enterprises
19
MSME classification based on
investment limit in plant and
machinery:
Micro Rs. 1 million (US$ 22000)
Small Rs. 20 million (US$ 0.4 million)
Medium Rs. 50 million (US$ 1.1 million)

20. 20
Institutional Support Structure
for MSMEs in India
At Federal
Level
1. Ministry of MSMEs
2. Small Industries
Development
Organisation
(SIDO)
3. National Small
Industries
Corporation(NSIC)
4. Khadi & Village
Industries
Commission(KVIC)
5. Coir Board
6. Entrepreneurship
Development
MSME
s
At State Level
1. Directorate of
Industries
2. District Industries
Centres
3. State Finance
Corporation
4. State Industrial
Development
Corporation
5. Technical
Consultancy
Organisations
6. Entrepreneurship
Development
Institutions (EDIs)
Others
1. Industry
Associations
2. NGOs
3. Banks/Financial
Institutions

21. Entrepreneurship Development
Programes
 Prime Minister’s Employment Generation
Programme – PMEGP
 EDP Institutes
 Incubators
21

22. International Cooperation
Programme
 Provides exposure to MSMEs to the latest
technologies, manufacturing practices prevalent
in their fields in different countries.
 Encourages their participation in international
exhibitions for exports
22

23. 23
MAJOR SCHEMES
FOR
MSME’s SUPPORT

24. 24
Credit Support
1.Public sector banks advised to double the flow
of credit to MSMEs within 5 years (20% annual
growth)
2.A minimum of 40% of bank credit earmarked
for priority sector lending which includes loans
to MSEs
3.Specialised SME Bank branches in industrial
clusters for smooth flow of credit to MSMEs
4.One Time Settlement (OTS) scheme for
settling NPAs of MSMEs
5.Interest band prescribed

25. 25
1. Helps MSMEs in accessing credits from
banks & financial institutions, orders from
foreign buyers
2. Helps in assessing their strengths and
weaknesses.
3. Rating by one of the empanelled national or
international Rating agencies.
4. Government subsidises 75% of the cost of
Rating fee
5. Concessional credits from Banks/FIs to such
Performance and Credit Rating
Scheme

26. 26
Credit Guarantee Fund for Small Enterprises
• Credit Guarantee Fund Trust for Micro & Small
Enterprises (CGFTSI) gives guarantee to its
Member Lending Institutions for their collatoral
free loans to MSEs upto INR 2.5 million (USD
64000).
• Initial guarantee fee at specified rate (1.5% ) of
the credit facility sanctioned shall be paid
upfront and thereafter annual fee.
• Provides comfort to the Banks and Financial
Institutions.

27. 27
Technological Support
1.Credit Linked Capital Subsidy Scheme for
Technology Upgradation
• Scheme meant to improve quality of products by technology
upgradation.
• Investment upto INR 10 million (US$ .250,000) eligible for
support with subsidy upto 15% on investment.
2.Technology Business Incubators for incubating
new enterprises
3.Testing Centres for Quality Certification
4.Tool Rooms and Training Centres for skill
upgradation
5.Incentive scheme for obtaining ISO Certification
by MSEs

28. 28
Marketing Assistance and Export
Promotion
1.Support for participation in trade fairs and
exhibitions – national as well as international
2.Training programmes on packaging for exports
3.Purchase preference in Government
procurement
4.Market Development Assistance Scheme for
publicity, market studies and adoption of
modern market practices

29. 29
Cluster Development Program
 technology upgradation & productivity
improvement
 energy conservation & pollution
control
• Rs 1 million assistance for capacity
building activities without fixed assets
• Grant upto 80% of Project cost with ceiling
of Rs.100 million to implementing agency
for:

30. ENTREPRENEURIAL
OPPORTUNITIES IN
AGRICULTURE
SECTOR AS A MSME

31. Entrepreneurial Opportunities in Agriculture:
 Diversification:
 Organic farming:
 Food preservation, processing and packaging:
 Production of agro-inputs
 Floriculture
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32. Entrepreneurial Opportunities in Agriculture
• Diversification
http://dfs.berkeley.edu/about-us/mission-goals/
Diversification in agriculture
involve shift in cropping pattern
from traditionally grown less
remunerative crops to more
remunerative crops like oilseeds,
pulses, fodder crops, horticulture,
medicinal and aromatic plants,
floriculture etc. It also includes
livestock and fishery enterprises
and small scale agro-based
industries. Diversification
increases the employment
opportunities, optimum use of
resources and profitability.

33. Entrepreneurial Opportunities in Agriculture:
• Organic farming:
The importance of organic farming is growing very fast
particularly in international market. This sector provides
great business opportunities to agro-based entrepreneur.
Area under organic farming is increasing but unable to
meet the demand of organic produce.
http://www.organicagriculture.co/indian-scenario.php
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34. Entrepreneurial Opportunities in Agriculture:
• Food preservation, processing and packaging
Large proportion of agricultural produce is wastage due to improper
storage and warehousing, lack of transportation and food
processing facilities. There is a significant shift in consumer food
preference towards processed food products. Entrepreneurs can
add value with proper management and marketing initiatives.
The processed food market opens a great potential for
entrepreneurs be it fast food, packaged food or organic food.
food-preservation-can-jam-9-stone-fruits/
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35. floriculture is a very
lucrative sector. India's
share in world trade of
floriculture is just 0.18
per cent. This is a huge
market to be tapped
considering the rising
demand for fresh
flowers.
Entrepreneurial Opportunities in Agriculture:
• Floriculture
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36. • Production of agro-inputs:
 Farmers can start entrepreneurial activities in the production of
seed, organic fertilizers and pesticides.
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Entrepreneurial Opportunities in Agriculture:

38. Let Us Sum Up
 Entrepreneur is one who identifies and sensitizes the opportunities,
innovate the ideas, raises money, assembles inputs and set and mange the
organization
 The introduction of entrepreneurship in agriculture requires
development of certain qualities and skills like positive self concept,
moderate risk taker, planning, innovative, information and opportunity
seeking, etc. in an entrepreneur.
 Important entrepreneurship development opportunities in agriculture
are diversification in agriculture, income from venture technologies, food
preservation, processing and value addition, production of agro-inputs.
The entrepreneurial qualities and skills can be developed through
vocational education programmes and training.
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THANK YOU