Institutional support is necessary at three stages of small and medium enterprise development: inception, day-to-day management, and expansion. This support comes from central and state government institutions as well as non-government organizations. Central government institutions that provide support include the Small Scale Industries Board, National Bank for Agriculture and Rural Development, Small Industries Development Organisation, and National Small Industries Corporation. At the state level, support is provided by organizations like State Financial Corporations, State Small Industries Development Corporations, and Technical Consultancy Organisations. Non-government support includes the Indian Council of Small Industries and Laghu Udyog Bharti.

1. INSTITUTIONAL SUPPORT TO
SMALL AND MEDIUM
ENTERPRISES

2. Institutional support system is necessary at three
stages enterprise development:
 Inception or Promotion
 Day-to-day management
 Expansion and Diversification

3. Three dimensions of institutional support system are:
 Central Government
 State Government
 Non-government Support System

4. CENTRAL GOVERNMENT
INSTITUTES

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.  Financial Institutions
 Selected Public Enterprises
 Industry Associations
 Eminent experts in the field

7. 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).

8. 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

9.  To provide wide range of extension services
through allied institutions
 To promote facilities for technology upgradation
 To offer consultancy services

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. 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

12. 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.

13.  Development of markets.
 Development of infrastructure.
 Discounting of bills of manufacturer-seller in selling
either equipments or components.

14. STATE GOVERNMENT
INSTITUTES

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. 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.

17. 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.

18. 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.

19. NON-GOVERNMENT
INSTITUTES

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. LAGHU UDYOG BHARTI (LUB)
It was founded in 1995.
It is responsible to undertake:
 Entrepreneurial training.
 Technology upgradation.
 Marketing services.

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. REFERENCES
 Entrepreneurship and Small Business Management
-M. B. SHUKLA
 The Dynamics of Entrepreneurship Development and
Management
-VASANT DESAI

24. THANK YOU