small business & epreneurship development

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UNIT II: ENVIRONMENT AND ENTREPRENEURIAL DEVELOPMENT:
ENTREPRENEURIAL ENVIRONMENT,
DEFINITION
Entrepreneurial environment can be defined as a place where there is a strong emphasis on identifying
and pursuing opportunities, along with a willingness to take calculated risks to create value.
Entrepreneurial environment as a set of conditions that include access to resources, networks, and
cultural support for entrepreneurial activities.
Entrepreneurial environment emphasized the social and contextual aspects of entrepreneurship.
An Entrepreneurial environment as the institutional framework and policy environment that
influences the level of entrepreneurial activity in a particular area. This includes factors like
government policies, access to financing, and the legal system.
Significance of Entrepreneurial Environment
A study of socio-political and economic environment has a great social and economic significance
to the growth of entrepreneurship. Modern business is treated as a social and economic institution
and is affected by the political, social and economic forces. The political environment, industrial
policy, licensing policy, foreign exchange regulations, backing policy, technological development
and social change form the framework within which an enterprise has to work. It is for these reasons
that all business plans must be based on the immediate environment. An entrepreneurial plan cannot
be framed and finalized for its implementation without its relevance to the political, social,
economical and technological requirements. In fact, it is environment, which regulates
entrepreneurial activities. Business environment has a positive relationship with the development of
entrepreneurship.
Characteristics of EntrepreneurialEnvironment
So There are many characteristics of entrepreneurial environment. Theseenvironments can broadly
be classified as important components, which includes: -
1. Political Environment
2. Economical Environment
3. Social Environment
4. Legal Environment
5. Technology Environment
6. Cultural Environment
Environment
 Political-Political Atmosphere, Quality of Leadership
 Economic-Economic Policies, Labour, Trade, Tariffs, Incentives, Subsidies
 Social-Consumer, Labour, Attitudes, Opinions, Motives

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 Technological-Competition and Risk, Efficiency, Productivity, Profitability
 Legal-Rules, Regulations
 Cultural-Structure, Aspirations and Values
Political Environment:-The political environment constitutes all the factors related to
government affairs such as the type of government in power, the attitude of the government
towards different groups of societies, policy changes implemented by different governments,
etc.The political environment has an immediate and great impact on business transactions so
businessmen must scan this environment very carefully.
Economical Environment: -The economic environment factors have an immediate and direct
impact on the businessman so businessmen must scan the economic environment and take timely
actions to deal with these environments. The economic environment may put constraints and may
offer opportunities to the businessman. After the new economic policy of 1991,lots of opportunities
were offered to businessmen.
Social Environment: -The Social Environment consists of the customs and traditions of the society
in which business exists. It includes the standard of living, taste, preferences,and education level of
the people living in the society where business exists.
Legal Environment:-The legal environment constitutes the laws and various legislations passed in
the parliament. The businessman cannot overlook the legislation because he has to perform his
business transactions within the framework of the legal environment.
Technology Environment:-Technological environment refers to changes taking place in the
method of production, and the use of new equipment and machinery to improve, the quality of
product. The businessman must closely monitor the technological changes taking place in his
industry because he will have to implement thesechanges to remain in the competitive market.
Cultural Environment: -The cultural environment consists of the influence of religious, family,
educational, and social systems in the marketing system. Marketers who intend to market their
products overseas may be very sensitive to foreign cultures. While the differences between our
cultural background in the United Statesand those of foreign nations may seem small, marketers who
ignore these differences risk failure in implementing marketing programs. Failure to consider cultural
differences is one of the primary reasons for marketing failures overseas.
Importance of EntrepreneurialEnvironment
These are the significance or importance of entrepreneurial environment:
1. Identify Opportunities
2. Identify Threats
3. Tapping Useful Resources
4. Giving Direction for Growth
5. Continuous Learning
6. Increased Productivity

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7. Coping with Rapid Changes
8. Improved Performance
Identify Opportunities: -The entrepreneurial environment enables the ffirms to identify
opportunities and get the first mover advantage. Analysis of business environment helps to identify
opportunities i.e., positive external changes to be exploited instead of losing them to competitors.
Identify Threats:-It helps the firms to identify threats and early warns to take corrective measures
against those threats that hinder business performance and takeappropriate preventive measures on
time.
Tapping Useful Resources: -Any business enterprise depends on the environment as a source of
input like raw materials, labor, etc., and as an outlet for outlet i.e., goods or services, taxes, etc.
Analysis of the business environment helps to get resources that itneeds to convert into outputs that
an environment desires.
Giving Direction for Growth: -When a business interacts with its environment, it becomes easier
to identify areas for growth and expansion of its activities. A firms can get answers to similar
questions by tapping into its business environment. It gives a correct assessment of how to plan and
strategize a business activityso as to achieve goals or objectives.
Continuous Learning: -Since the environment is dynamic in nature, it constantly keeps changing.
Thiskeeps continuous learning & updating knowledge and skills. This helps an individual to prepare
for predicted and unpredicted changes in the realm of business.
Increased Productivity: -A better understanding of the environment results in increased
productivity, as all the resources can be arranged and used properly. Environmental factorshelp in
the proper utilization of resources as a result there is minimum wastage and increased
productivity.
Coping with Rapid Changes:-It helps management to become more sensitive to ever changing
needs of the customers. As a result, of environmental awareness, they are able to respond to such
changes effectively. It helps in assisting in planning and policy formulation.
Environmental scanning provides the basis for deciding the future course ofaction (planning) and
guidelines for decision-making (policy).
Improved Performance: -The continuous monitoring of the environment and adoption of suitable
business practices not only improve their present performance but also continue to succeed in the
market for the period.
PROCESS OF ENTREPRENEURIAL DEVELOPMENT,
The entrepreneurial process into five phases: idea generation, opportunity evaluation, planning,
company formation/launch and growth. These phases are summarized and the Opportunity
Evaluation and Planning steps are expanded in greater detail below.

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1. Idea Generation: every new venture begins with an idea. In our context, the entrepreneur takes
an idea to be a description of a need or problem of some constituency coupled with a concept of a
possible solution.
2. Opportunity Evaluation: this is the step where a entrepreneur asks the question of whether there
is an opportunity worth investing in. Investment is principally capital, whether from individuals in
the company or from outside investors, and the time and energy of a set of people. But the
entrepreneur should also consider other assets such as intellectual property, personal relationships,
physical property, etc.
3. Planning: Once the entrepreneur has decided that an opportunity, the entrepreneur need a plan
for how to capitalize on that opportunity. A plan begins as a fairly simple set of ideas, and then
becomes more complex as the business takes shape. In the planning phase entrepreneur will need to
create two things: strategy and operating plan.
4. Company formation/launch: Once there is a sufficiently compelling opportunity and a plan, the
entrepreneurial team will go through the process of choosing the right form of corporate entity and
actually creating the venture as a legal entity.
5. Growth: After launch, the company works toward creating its product or service, generating
revenue and moving toward sustainable performance. The emphasis shifts from planning to
execution. At this point, entrepreneur continue to ask questions but spend more of time carrying out
the plans.
Although it is natural to think of the early steps as occurring sequentially, they are actually proceeding
in parallel. Even as you begin your evaluation, you are forming at least a hypothesis of a business
strategy. As you test the hypothesis, you are beginning to execute the first steps of your marketing
plan (and possibly also your sales plan). We separate these ideas for convenience in description but
it is worth keeping in mind that these are ongoing aspects of your management of the business. In
the growth phases, you continue to refine you basic idea, re-evaluate the opportunity and revise your
plan.
This website is focused on the early phases of new ventures. It does not delve into the process of
generating the original idea. Nor does it cover the phases of growing a company much beyond it’s
initial launch. However, the topics of evaluation and business planning remain relevant well into the
early life of the company.
The focus here is the evaluation and planning phases. We first develop a framework for understanding
and analysing this process. This table summarizes this framework:
Opportunity evaluation
(investment prospectus)
Company’s plan Execution
 Need / problem
 Solution
 Competitive position
 Team
 Risk / reward profile
Strategy
 Target customer
 Business model
 Position
 Market research
 Marketing
 Business
development
 Forecasting
 Sales planning

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 Milestones / company
objectives
Operating plan
 Company timeline
 Staffing plan
 Budget
 Financing plan
 R&D management
 Operations
management
 People management
 Process and
infrastructure
 Budgeting
 Financing
To take this analysis one level deeper, we can break down each of these phases as follows.
Opportunity Evaluation
It is helpful to think of the evaluation step as continually asking the question of whether the
opportunity is worth investing in. You are actually constructing and then continually revising an
“investment prospectus.”
There are five basic questions that you should ask as you evaluate an opportunity.
1. Is there a sufficiently attractive market opportunity?
2. Is your proposed solution feasible, both from a market perspective and a technology
perspective?
3. Can we compete (over a sufficiently interesting time horizon): is there sustainable
competitive advantage?
4. Do we have a team that can effectively capitalize of this opportunity?
5. What is the risk / reward profile of this opportunity, and does it justify the investment of time
and money?
If you can answer all of these questions affirmatively, then you have persuaded yourself that this
opportunity is worth investing in. This is the first step toward being able to convince others, whether
they be prospective customers, employees, partners or providers of capital.
These ideas are developed in the Opportunity Evaluation section
Planning
Strategy-There are four main areas of strategy: determination of the target customer set, business
model, position and objectives. These are described briefly below and in more depth in the sections
devoted to these topics.
Target customers-The target customer is the set of potential buyers who are your focus as you design
your company’s solution. The more you know about them, the better off you are. Your
characterization should be both qualitative and quantitative.You should investigate any alternatives
the customer has for solving or working around the problem or need that you are targeting. You
should understand the buying process in detail, including who are the decision makers and who
influences the decision.

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Business Model-The business model is your theory about how you will make money. It involves a
definition of a solution to the customer’s need, an hypothesis about how and how much the customer
will pay for that solution. If there are any assumptions required for your theory to be true (such as
the existence of complementary product or services, or the customer’s willingness to change business
processes) these should also be articulated.
Position-“Position” refers both to how your company is differentiated from any competitors and also
how it relates to other companies in the value chain. This is an opportunity to define, at a fundamental
level, what your company will do and what it will not do.
An element of position is your company’s vision: how it wants to be known or thought of. A
compelling vision is necessary to inspire investors, recruit and motivate employees, and to excite
customers and partners.
Milestones / Objectives-As a first step toward creating your operating plan, you should create a set
of high level objectives for your business. This should include:
 Key milestones (prototype, product, customer, partnerships, etc.)
 Share or penetration into your chosen market
A clear articulation of objectives will allow you to set priorities for your venture, which will be
critical as you face the many tough decisions that any entrepreneur must face.
These ideas are developed in the Strategy Development section
Operating plan-Your operating plan is where you spell out all of the things that you plan to do and
what they will yield for your business. The activities will cover all areas of the business: marketing,
selling, engineering, etc. These activities should yield products by a certain date, possibly partners,
customers, etc. These activities will drive the financial performance of the company.
Your operating plan will be a combination of plans, i.e., these people working on this topic for this
period of time will produce result X, and forecasts or projections, i.e. predictions about what results
will occur. The primary and most important forecast concerns revenue, but predictions about costs
of materials and other things may be important as well. The operating plan is the core of your
business, and you should make it as good as you can – your plans should be as thorough as possible
and your forecasts should be based on the best and most complete evidence you can compile.
Begin with your strategy and break down what needs to be accomplished to achieve your objectives
– this is the basis of your plan. The more detailed and fine grained analysis you can develop, the more
accurate and reliable your plan will be.
Company Timeline-This is a representation of all the major accomplishments or deliverables that are
necessary for you to achieve your strategy.
Staffing Plan-This is the document where you capture all of the hiring your firm will do (skills,
experience and timing).
Budget-The budget is where all the pieces of the operating plan come together and are expressed in
financial terms. This is a critical document for managing your business.

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Financing Plan-This includes the capital needs of the company, the timing of those needs and the
desired/expected sources of that capital.
Planning Process-Here are a few important principles:
 The actual budget, staffing plans, etc. are then driven by estimates of what it takes to
accomplish the tasks in the required timeframe.
 Build a plan that captures everything (so that you are not hurt by surprises or unexpected
expenses)
 Revenue: detailed bottom up plan, based on best information about customer groupings,
conversion rates, sales activity, …
 Expenses: usually people driven – build in realistic hiring timetables, training, learning curve,
benefits, travel, etc.
 Program expenses: mostly marketing – must support the plan and estimates should be equally
comprehensive
 The plan must close – all pieces tie together.
The plan becomes more manageable when you break it down into major functional areas. The
traditional breakdown is as follows, but you don’t have to be bound by this except in so far as you
should follow Generally Accepted Accounting Practice.
 Marketing
 Sales
 Research and development
 Operations
 Finance
 People management
 Processes & infrastructure
You should monitor your budget carefully and continually, and make adjustments as needed.
A more detailed description of the process of building an operating plan may be found at: Operating
Plan Development Process
Execution-Execution is organized by the core functional areas of the company
TRAINING OF ENTREPRENEURIAL,
Entrepreneurial Training
Training aimed at developing entrepreneurial competence in potential individuals is called
entrepreneurial training. Motivating probable entrepreneurs, assisting. these individuals in endeavor
to do the appropriate activities and enterprises, improving their enterprise development skills, and
facilitating them to make economically and technically feasible project reports are the main activities
of entrepreneurial training programmes. The different types of motivational inputs include the wide
array of tests, role plays, psychological games, goal-setting exercise and so on. Helping the
individuals to have a better understanding of their entrepreneurial personality, changing self-concept
and values with the help of self-study and creating the supportive entrepreneurial behavior arc the
main motives of these inputs.
Inculcating the abilities to recognize the appropriate products and items for production or various
other types of self-employment setups can be facilitated with the help of these training programmes.
The training also focuses on teaching different techniques of performing research, surveys or studies.

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Relevant project reports are also required to be prepared by the participants. In such training's,
different available government schemes and programmes for the entrepreneurial development are
also explained to the participants. There are various institutional agencies which provide assistance
to the entrepreneurs in form of financial support, power supply, raw materials, water supply,
machinery, equipment, etc. In order to promote these entrepreneurs, various state governments have
also initiated different types of schemes for providing various incentives and concessions.Such
training programmes are not limited to enable entrepreneurs to prepare projects only. Actually,
through such training, the entrepreneurs become able to apply the managerial techniques in different
management areas and launch their own enterprises. Different managerial" topics like production
management, resource management, marketing management, financial management, taxation,
inventory control, labour laws, etc., are covered in the entrepreneurial training programmes. In order
to introduce the production process and machines required in entrepreneurial venture, industrial visits
to plants producing the items selected by the entrepreneurs are arranged. Visits to small industrial
units are very helpful to entrepreneurs.
Overall, the entrepreneurial training is very helpful in motivating and developing the entrepreneurial
knowledge and skills among individuals.
Entrepreneurial training covers all the necessary topics required for an individual to run their own
business successfully. Although all businesses are not the same, the basic at the core are always
aligned with each other. The entrepreneurial training program includes a range of educational and
development programs designed to help entrepreneurs to gain all the necessary competencies
required to succeed in the market.
The goal of entrepreneurial training is to equip aspiring entrepreneurs with the skills knowledge and
resources they need to successfully launch and grow their business ventures.
For various EDPs which are conducted in the country, normally a uniform course curriculum is
adopted by the ED institutes. Total 30-35 participants are taken in a group and the training goes for
4-6 weeks. Throughout the training module, the following inputs are normally covered which can be
seen as appropriate for having the basic knowledge related to entrepreneurship and enterprise :
1) Basics of Entrepreneurship:
In this input, the basics of entrepreneurship like its meaning,
history, features, qualities, significance, advantages of being an entrepreneur, role in economic
development of the country, etc., are discussed with the potential entrepreneurs.
2) Motivational Inputs:
Various motivational inputs are included in the training course so as to develop entrepreneurial
competencies in the potential entrepreneurs. These inputs are called Achievement Motivation
Training (AMT). The main objectives of AMT are to enhance the confidence, self-awareness,
innovativeness, achievement need, and other entrepreneurial skills among the entrepreneurs.
Behavioral psychology techniques are also used here.
3) Management Inputs :
For starting a new venture and making it profitable, it is very necessary to inculcate management
concepts in potential entrepreneurs. That is why, basic management functions like production,
marketing, finance and labour relations are taught to them.
4) Support System and Procedure :

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Different supporting institutions are available to support the entrepreneurs and the entrepreneurial
ventures. The participants are introduced to the supporting institutions and their schemes and roles.
It is essential so as to make the potential entrepreneurs familiar with the service agencies, financial
& non-financial institutions and different programmes and policies of the government.
5) Project Feasibility Study :
The information related to prospective business opportunities present in the area where EDP is
conducted is provided to the trainees. Once the trainees select some business opportunities, assistance
is provided to them for preparing the project feasibility reports to be submitted to the banks and
various other financial institutions. Further, trainees are provided with information about market
survey, feasibility study project appraisal, technical and commercial viability analysis and so on.
6) Field Visits/Industrial Exposure :
The course curriculum also includes industrial visits so that the trainees can have a real life exposure
to industrial activities. Apart from this, first-hand knowledge and exposure related to the various
issues and opportunities in industrial enterprises can be gained with the help of industrial visits.
7) Technical Knowledge :
It is very important for the entrepreneurs to have the technical knowledge about the selected field of
enterprise. Therefore, the trainees are required to have information about the economic aspects of the
technology such as costs and benefits associated with a particular technology.
8) Market Survey :
Since, the entrepreneurs should also have enough knowledge about how a market operates, therefore,
EDPs also provide the trainees with opportunities to conduct market surveys for project of their
choice.
Various experienced entrepreneurs who have successfully established their businesses are called in
these training programmes to share their life experiences with the upcoming entrepreneurs. They
serve as role models for the budding entrepreneurs.
In order to groom trainees in most significant manner, the inputs of training are planned efficiently
so that the trainee entrepreneurs become enable to deal with the various responsibilities of business
and face challenges which could arise during the development and management phase.
Objectives of entrepreneurial training
The main objectives of entrepreneurial training are enlisted below :
1. To encourage the spirit of self-employment among entrepreneurs and develop small and
medium enterprises.
2. To encourage new venture establishment and expansion of the existing ones in rural areas
through designing especial programmes.
3. To inculcate the entrepreneurial skills to potential entrepreneurs and help develop the same
in existing entrepreneurs.
4. To enable the entrepreneurs to define or redefine their business objectives and work
individually as well as in group for the realization of the same.
5. To make the entrepreneurs ready for unforeseen threats and risks associated with the business.
6. To facilitate strategic decision making among entrepreneurs.

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7. To inculcate team building and coordination skills for meeting the future demands.
8. To develop the communications skills among the potential entrepreneurs.
9. To make the potential entrepreneurs able to define the vision of their ventures and work in
coordination for the realization of the same.
10. To make the potential entrepreneurs able to analyse the environment around them and take
suitable decisions about the product.
11. To make the potential entrepreneurs. understand the legal procedures and norms involved
establishing a new venture.
12. To inculcate the basics of industrial relations among potential entrepreneurs.
ENTREPRENEURIAL DEVELOPMENT PROGRAM(EDP)
EDP may be defined as “a programme designed to help an individual in strengthening his
entrepreneurial motive and in acquiring skills and capabilities necessary for playing his
entrepreneurial role effectively”.
Types of Entrepreneurial Training Programs
There are several types of entrepreneurial training programs. Different types of programs cater to
different types of needs but the base of entrepreneurial learning and succeeding lessons at own
enterprises remain the same. Types of entrepreneurial training programs are:
1. Classroom-based training:
This sort of training program is delivered in the traditional method in a classroom setup where
instructors cover subjects such as business planning, financial management, marketing and sales,
legal and regulatory compliance, and leadership and management.
2. Online Courses:
This sort of training program help with entrepreneurship education over online platforms. It is a
growingly popular way of gaining entrepreneurial knowledge as individuals can learn about all they
want to learn from top mentors around the world in their own time.
3. Mentorship Program:
Mentorship programs help developing entrepreneurs gain experience by working under experienced
mentors and gaining real-life knowledge that can perfect their business plans. Mentorship programs
can be formal or informal & can be offered to individuals and organizations as well.
4. Business Incubators:
Business incubators are facilities that offer a variety of resources to help up-and-coming
entrepreneurs with their ventures. Resources from incubators can include office space, equipment,
mentoring, training, access to resources, funding, and many things that can help the enterprise scale
its business.

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5. Accelerator Programs:
Accelerator programs help entrepreneurs with launching their businesses faster in a more cooperative
way. It can provide support with resources, funding, network & many other components required to
scale the business plan further.
6. Entrepreneurial Bootcamps:
In simple terms, it’s a crash course on entrepreneurship education. Bootcamps provide mentorship
within a short period such as a weekend or a week. Bootcamps are usually focused on specific
industries or niches.
Depending on the specific need of individuals or enterprises entrepreneurs can leverage this training
to perfect their business plans and implement their entrepreneurial learning further.
Domains of Entrepreneurial Training
Entrepreneurial training programs can cover a wide range of training topics. Depending on the needs
which entrepreneurs want to develop their entrepreneurial skills on, they can choose the topic. Some
of the topics of these training can be:
How Training Effects Entrepreneurial Outcomes?
ETPs have a significant effect on defining entrepreneurial outcomes. Some of the ways it can benefit
in developing entrepreneurial capabilities are,
Examples of Successful Entrepreneurial Training Programs
ETP has been revolutionary for new entrepreneurs and over the year there have been many successful
entrepreneurial training programs around the world. Here are some examples:
 Emily Doubilet: Emily Doubilet, founder of the Susty Party, took part in the Brooklyn Public
Library’s Entrepreneurship Training Program. The program assisted her in gaining the skills
and information required to launch her eco-friendly party supply company, which has been
highlighted in national media outlets and has a dedicated customer base.
 Kim Kaupe: ZinePak co-founder Kim Kaupe took part in the Goldman Sachs 10,000 Small
Companies initiative. Her company, which creates personalized content and merchandise for
artists and companies, benefited from the program’s assistance in developing a growth
strategy. The company has worked with well-known customers such as Katy Perry and Taylor
Swift, and it has been named to the Inc. 5000 list of the fastest-growing businesses.
 James L. Elizondo II: James L. Elizondo II, founder of Infinity Visual and Performing Arts,
attended the Small Business Development Center at Jamestown Community College’s
Business Plan Workshop. The program assisted him in developing a business plan and
obtaining funds to create his arts group, which provides arts education and programming to
the community of Jamestown, New York.
 Jennifer Bolstad: Jennifer Bolstad, the founder of Local Office Landscape and Urban
Design, participated in the Nevada Small Business Development Center’s NxLevel
Entrepreneurship Training program. The program assisted her in developing a business
strategy and obtaining financing to begin her sustainable landscape design firm, which has
received numerous accolades and has been featured in national media outlets.

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Here are just a few examples of entrepreneurs who have succeeded by participating in ETPs. These
programs can play an important role in boosting entrepreneurship and creating economic growth by
giving entrepreneurs the skills, knowledge, and resources they need to establish and grow their
enterprises.
INSTITUTIONS, PRODUCING AIDS FOR AN ENTREPRENEURIAL DEVELOPMENT.
INSTITUTIONAL SUPPORT
 Every kind of business requires adequate amount of finance for its start.
 Any economic activity requires prior built-up Infrastructural facilities for its start.
 Creation of infrastructural facilities requires huge funds which small entrepreneurs cannot
afford or are always found short of.
ENTREPRENEUR NEEDS FINANCE
 To start an Industry.
 For acquiring Fixed Assets.
 Developing Product, Men and Machines at Work.
 Encourage Management to make Progress.
GOVERNMENT AND NON GOVERNMENT ASSISTANCE
Central & State Governments provides various kinds of supports and facilities to help the small
entrepreneurs which helps them: -
• To establish their industry in market & Grow Bigger.
A separate ministry of Small Scale Industries was created on Dt 14 October1999 to focus attention
of SSI (Small Scale Industries) sector.
• Now renamed as the Ministry of Micro, Small and Medium Enterprises (M/OMSME for all matters
relating to Micro, Small and Medium Enterprises)
Before 1999, the same Ministry was known by name of Small Scale Industries and Agro & Rural
industries.
Work of Ministry of SSI – Initiates various
 Policy measures
 Programmes
 Schemes for the Promotion of SSIs (Small Scale Industries)
NEED FOR INSTITUTIONAL SUPPORT
Starting a business /unit requires resources and facilities. MSME enterprise, given their small
resources, find it difficulties to have all these resources and facilities their own.
Finance has been a important resources to start and run an enterprise because it facilitates the
enterprise to procure land, labour, material, machine and son on from different parties to run their
enterprise. Hence finance is considered as life blood for an enterprise. That way government

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institution and financial bank has come forward to help MSME entrepreneurs by providing them fund
called development fund on soft and liberal terms and conditions.
By the helps of Institutional supports and facilities, entrepreneurs make economic environment more
conducive to business or industries.
Several institutions have been set up at all India and state level to provided necessary services to
exiting as well as to the new entrepreneurs.
Framework which exits in India to provide necessary assistance to MSMEs enterprise is given below:
INSTITUTIONS TO ASSIST MSMES
Central Government institution
 NABARD-national bank for agriculture and rural development
 SIDBI-small industries development bank of India
 NIC-national information centre
 KVIC-khadi and village industries commission
 SIDO-small industries development organization
 NSIC-national small industries corporation ltd.
State Government institution
 DIC-district industries centers
 SFC-state financial corporation
 SSIDC-state small industries development corporations
Others like
 SIDC-state industrial development corporation
 State co-operative bank
 Regional rural bank
 Technical consultancy organization etc
CENTRAL GOVERNMENT INSTITUTION
NABARD-NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
1.BACKGROUND
National Bank for Agriculture and Rural Development (NABARD) was established on 12 July 1982
by an Act of the Parliament. NABARD, as a Development Bank, is mandated for providing and
regulating credit and other facilities for the promotion and development of agriculture, small scale
industries, cottage and village industries, handicrafts and other rural crafts and other allied economic
activities in rural areas with a view to promoting integrated rural development and securing
prosperity of rural areas, and for matters connected therewith or incidental there to.
VISION:Development Bank of the Nation for Fostering Rural Prosperity.

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MISSION:Promote sustainable and equitable agriculture and rural development through
participative financial and non-financial interventions, innovations, technology and institutional
development for securing prosperity.
OWNERSHIP:NABARD is wholly owned by Government of India.
ORGANISATIONAL SET UP: NABARD, with its Head office at Mumbai, has 31 Regional
Offices located in States and Union Territory, a cell at Srinagar, 03 Training Establishments in the
Northern, Eastern & Southern parts of India and 418 District Development Managers functioning at
district level. NABARD has 2386 professionals supported by 1193 other staff. (Data pertains to 31
March 2020).
FUNCTIONS AT A GLANCE: The major functions of NABARD include promotion and
development, refinancing, financing, planning, monitoring and supervision.
Non-credit related:
•Credit Planning and Monitoring, Coordination with various agencies and institutions.
•Assist in policy formulation of GoI, RBI and State Governments on matters related to agricultural
credit and rural development
•Institutional development and capacity building of Cooperatives and Regional Rural Banks (RRBs)
to strengthen the rural credit delivery system. Statutory inspection of Regional Rural Banks (RRBs),
State Cooperative Banks and District Central Cooperative Banks (DCCBs), voluntary inspection of
State Cooperative Agriculture and Rural Development Banks (SCARDBs) and their off-site
surveillance
•Promotional and developmental initiatives in the areas of farm, off-farm, micro finance, financial
inclusion, Convergence with Govt sponsored programmes.
•Supporting the financial inclusion efforts of Regional Rural Banks and Cooperative Banks
•Thrust on promotion of livelihood opportunities and Micro Enterprises
•Capacity Building of Personnel and Board Members of Credit Cooperatives and Staff of Rural
Financial Institutions.
•Support to research and development, rural innovations, etc.
Credit related:
 Refinance to Rural Financial Institutions for investment credit (long term loan) and
production and marketing credit (short term loan) purposes for farm and off-farm activities
in rural areas.
 Loans to State Governments for developing rural infrastructure and strengthening of the
Cooperative Credit Structure
 Loans for warehousing infrastructure to State Governments, State/ Central government
Owned/ assisted entities, Cooperatives, Federation of cooperatives, Farmers’ Producers
Organizations,(FPOs), Federations of Farmers’ Collectives, Primary Agricultural Credit
Societies (PACS) / Cooperative Marketing Societies (CMS) or similar institutions,
Corporates/ Companies, Individual entrepreneurs, etc.,
 Direct lending to Cooperatives and Producers’ Organization, support to State owned
institutions /corporations under NABARD Infrastructure Development Assistance and direct
lending to individuals, partnership firms, corporates, NGOs, MFIs, Farmers’ collectives etc.
under Umbrella Programme for Natural Resource Management (UPNRM)

15. 15
 Pass through agency of select Government of India Capital Investment Subsidy Schemes.
PARTNER INSTITUTIONS/CLIENTS OF NABARD
Credit related
 Scheduled Commercial Banks
 State Governments
 State Owned Bodies and Corporations
 Regional Rural Banks
 State Cooperative Banks
 District Central Cooperative Banks
 State Cooperative Agriculture & Rural Development Banks
 Scheduled Urban Cooperative Banks
 Non-Banking Finance Companies
 Farmers’ Collectives and Producers’ Organisation
 Corporates/ Companies, individual entrepreneurs, SPV under PPP mode, etc, for projects
under Warehouse Infrastructure Fund.
Development Oriented
 Rural Financial Institutions
 NGOs and Voluntary Agencies
 Development and Self Employment Training Institutions
 Self-Help Groups
 Rural Innovators
 Joint Liability Groups
 Farmers’ Clubs
 Research Organisations
SIDBI-SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of Indian
Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of
the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of
institutions engaged in similar activities
Mainly focuses on the financing, promotion and development of the Micro, Small and Medium
Enterprises (MSMEs).
Primary objective is to strengthen the MSME sector by facilitating cash flow.
MISSION OF SIDBI: To facilitate and strengthen credit flow to MSMEs and address both financial
and developmental gaps in the MSME eco-system
VISION OF SIDBI:To emerge as a single window for meeting the financial and developmental
needs of the MSME sector to make it strong, vibrant and globally competitive, to position SIDBI
Brand as the preferred and customer - friendly institution and for enhancement of share - holder
wealth and highest corporate values through modern technology platform .
SIDBI assists MSMEs to get funds for the development, commercialization and marketing of their

16. 16
innovative technologies and products. SIDBI offers customized financial products under several loan
schemes and provides services to meet the demands of various business projects.
SIDBI was made responsible for administering Small Industries Development Fund and National
Equity Fund that were administered by IDBI before. SIDBI is the Primary Financial Institution for
promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector. Besides
focussing on the development of the Micro, Small and Medium Enterprise sector, SIDBI also
promotes cleaner production and energy efficiency.
SIDBI helps MSMEs in acquiring the funds they require to grow, market, develop and commercialize
their technologies and innovative products. The bank provides several schemes and also offers
financial services and products for meeting the individual’s requirement of various businesses.
FEATURES OF SIDBI (SMALL INDUSTRIES AND DEVELOPMENT BANK OF INDIA)
 SIDBI provides refinance support of Small Scale Industries (SSIs)
 Funding support to MSME sector
 Helps in discounting the bills of Small Scale Industries
 Provides refinance to financial institutions, including banks, NBFCs & Small Finance
Companies
 Offers financial services, such as hire purchase, factoring and leasing services
 Promotes employment opportunities among SSIs
 It provides assistance to exports
 Bank loans to women and underprivileged group of people
FUNCTIONS OF SIDBI
 Small Industries Development Bank of India refinances loans that are extended by the PLIs
(Postal Life Insurance) to the small-scale industrial units and also offers resources assistance
to them.
 It discounts and rediscounts bills.
 It also helps in expanding marketing channels for the products of SSI (Small Scale Industries)
sector both in the domestic as well as international markets.
 It offers services like factoring, leasing etc. to the industrial concerns in the small-scale sector.
 It promotes employment-oriented industries particularly in semi-urban areas for creating
employment opportunities and thus checking the relocation of people to the urban areas.
 It also initiates steps for modernization and technological up-gradation of current units.
 It also enables the timely flow of credit for working capital as well as term loans to Small
Scale Industries in cooperation with commercial banks.
 It also co-promotes state-level venture funds.
FINANCE FACILITIES OFFERED BY SIDBI
Small Industries Development Bank of India, offers the following facilities to its customers:

17. 17
Direct Finance: SIDBI offers Working Capital Assistance, Term Loan Assistance, Foreign Currency
Loan, Support against Receivables, equity support, Energy Saving scheme for the MSME sector, etc.
under its various direct finance loan schemes.
Indirect Finance: SIDBI offers indirect assistance by providing Refinance to PLIs (Primary Lending
Institutions), comprising of banks, State Level Financial Institutions, etc. with an extensive branch
network across the country. The key objective of the refinancing scheme is to raise the resource
position of Primary Lending Institutions that would ultimately enable the flow of credit to the MSME
sector.
Micro Finance: Small Industries Development Bank of India offers microfinance to small
businessmen and entrepreneurs for establishing their business.
Benefits of availing loans from SIDBI
 Concessional interest rates
 Customized form of credit and loans
 Most of loans are Collateral Free
 Custom-made funding for MSMEs
 Subsidies on various schemes
 Transparent funding process
 Capital growth for business owners
 Assistance and advice provided by relationship managers
Custom-made: SIDBI policies loans as per the requirements of your businesses. If your requirement
doesn’t fall into the ordinary and usual category, Small Industries Development Bank of India would
assist in funding you in the right way.
Dedicated Size: Credit and loans are modified as per the size of the business. So, MSMEs could
avail different types of loans custom-made for suiting their business requirement.
Attractive Interest Rates: It has a tie-up with several banks and financial institutions over the world
and could offer concessional interest rates. The SIDBI has tie-ups with World Bank and the Japan
International Cooperation Agency.
Assistance: It does not just provide a loan, it also offers assistance and much-required advice. Its
relationship managers assist entrepreneurs in making the right decisions and offering assistance till
the loan process ends.
Security Free: Businesspersons could get up to Rs.100 lakhs without providing security.
Capital Growth: Without tempering the ownership of a company, the entrepreneurs could acquire
adequate capital for meeting their growth requirements.
Equity and Venture Funding: It has a subsidiary known as SIDBI Venture Capital Limited which
is wholly owned that offers growth capital as equity through venture capital funds that focusses on
MSMEs.
Subsidies: SIDBI offers various schemes which have concessional interest rates and comfortable
terms. SIDBI has in-depth knowledge and a wider understanding of schemes and loans available and
could help enterprises in making the best decision for their businesses.
Transparency: Its processes and the rate structure are transparent. There aren’t any hidden charges.
LOAN PRODUCTS OFFERED BY SIDBI

18. 18
SIDBI covers mainly 6 products under Direct Loans that are discussed below:
 SIDBI Make in India Soft Loan Fund for Micro Small and Medium Enterprises
(SMILE)
 Smile Equipment Finance (SEF)
 Loans under Partnership with OEM
 Working Capital (Cash Credit)
 SIDBI Trader Finance Scheme (STFS)
 Loan for Purchase of Equipment for Enterprise’s Development (SPEED)
Let’s further have some basic understanding of these products:
 SMILE (SIDBI Make in India Soft Loan Fund for MSME): SMILE focuses on covering
the financial requirements for new enterprises which are in the manufacturing or in the
services sector. The loan amount offered under this scheme is minimum Rs. 10 lakh for
equipment finance and Rs. 25 lakh for other purposes. Under SIDBI’s SMILE, Machinery
loan is also a loan option that can be availed under Equipment loan segment. Repayment
tenure is maximum of 10 years, including moratorium period of up to 36 months
 SMILE Equipment Finance (SEF): SEF has a simplified application format with
competitive interest rate. MSME entities that want to purchase any new equipment or need
financing for the same are covered under this loan scheme. Repayment period is of 72 months
and the loan amount starts from Rs. 10 lakh
 Loans under Partnership with OEM (Original Equipment Manufacturer): This loan
scheme is helpful for MSMEs that can purchase machines from OEMs. Minimum 3 years of
business existence is required and the repayment period is of 60 months. Loan amount offered
is maximum up to Rs. 1 crore
 Working Capital (Cash Credit): Working Capital is available for MSME units. Working
Capital offers seamless approvals, as per the loan applicant’s requirement
 SIDBI Trader Finance Scheme (STFS): STFS loan scheme is for MSME
Retails/Wholesalers who are in existence for at least 3 years with a satisfactory financial
position. The minimum loan amount offered is Rs. 10 lakh and maximum up to Rs. 1 crore.
However, the repayment period shall depend on the cash flow and size of business. However,
the repayment tenure is maximum up to 60 months
 Loan for Purchase of Equipment for Enterprise’s Development (SPEED): Under this
loan scheme, SIDBI offers 100% financing with loan amount up to Rs. 1 crore for New to
Bank and Rs. 2 crore for existing customers. Minimum 3 years of operations are required to
get this loan wherein the repayment period is 2 to 5 years, including Moratorium period of 3-
6 months. Borrowers can avail this loan at an interest rate of 9.25% to 10% per annum
Types of Loan Schemes from SIDBI
Loan Scheme
Eligibility
Criteria
Repayment
Tenure
Loan Amount Features
SIDBI Make in
India Soft Loan
New Enterprises
in the
manufacturing as
Up to 10
years
Starts from Rs.10
lakh up to Rs.25
lakh
SMILE offers affordable
interest rate with a longer
repayment period

19. 19
Fund for MSME
(SMILE)
well as service
sector and
existing
enterprises who
want to expand
their operations
can apply for
SMILE
Small Equipment
Finance (SEF)
MSME entities
who have had
three years of
existence in
financial sector
can apply for SEF
Up to 72
months
Minimum loan
amount is Rs.10
lakh and the
maximum loan
amount depends
on the financial
profile of the
applicant
The loan scheme provides
simplified application
format which is easier for
the applicants and the rate
of interest is affordable and
competitive
Loans under
partnership with
OEM (Original
Equipment
Manufacturer)
MSME entities
who are in the
financial sector
for at least 3 years
can apply for this
loan scheme
Up to 60
months
Minimum loan
amount is Rs.1
crore. One can
apply for higher
loan amount as
well as per the
bank’s guidelines
The loan scheme works as
a one stop solution for the
MSMEs where they can
purchase machines
Working Capital
(Cash Credit)
Existing
customers under
SIDBI or other
banks can apply
for Working
Capital
Tenure
depends as
per the bank
guidelines
Depends on the
loan applicant’s
financial profile
Working Capital gives the
option of choosing the
banking facilities from at
least 2-3 banks
SIDBI Trader
Finance Scheme
(STFS)
Retailers and
Wholesalers in
distribution,
retailing, malls,
and super markets
with a financial
profile for three
years can apply
for this scheme
The tenure
depends on
the loan
amount and
the
maximum
repayment
tenure is up
to 60
months
The minimum
loan amount
starts from Rs.10
lakh up to Rs.1
crore
The rate of interest is
competitive along with
flexible repayment options
Funds of Funds for
start-ups
Start-ups who
require funds for
operational or day
to day purpose,
can apply for this
scheme
As per the
loan amount
and
financial
profile of
the loan
applicant
As per the loan
amount and
financial profile
of the loan
applicant
This loan scheme was
launched with the idea of
supporting Alternative
Investment Funds which
can help in the contribution
of SIDBI

20. 20
Aspire Fund
Enterprises who
are enlisted with
SIDBI that can
support the AIF’s
for the
contribution to
SIDBI can apply
for this scheme
Up to 6
years
As per the loan
amount and
financial profile
of the loan
applicant
Aspire fund helps in
contributing to the early
stages of a start-up in the
form of manufacturing,
service delivery etc
India Aspiration
Fund
Varies from
applicant to
applicant
As per the
loan amount
and
financial
profile of
the loan
applicant
The loan amount
depends on
number of
factors as the
complete fund
size of India
Aspiration goes
up to Rs.2000
crore
India Aspiration Fund
focuses on promoting
equity and equity linked
investments in the MSME
sectors
Assistance to
NBFCs
The company
should be
registered with
RBI and should
be in business for
5 years
The loan
repayment
period starts
from 2 to 5
and half
years
The loan amount
depends on the
need based
assistance of the
companies
NBFCs and the loan
companies that are
registered with the RBI
help in promoting the
financial assistance to the
MSME sector
Refinance Scheme
The entity should
be in business
operations for at
least 3 years with
earned profit of 2
years. The entity
should also have
strong profit or
loss balance sheet
for the last 3 years
Up to 5
years.
As per the loan
amount and
financial profile
of the loan
applicant
This loan scheme helps in
supporting the micro and
the small enterprises by
providing smooth flow of
cash credit to the MSME
Sector
Assistance to Small
Finance Banks
(SFBs)
The entity should
have a license
sanctioned by the
RBI to carry out
small business
operations. The
entity should also
have profits
earned for the last
2-3 years
As per the
financial
institution’s
guidelines
As per the loan
amount and
financial profile
of the loan
applicant
Assistance to Small
Finance Banks helps in
strengthening the small
finance banks by providing
the financial support

21. 21
Additional Loan Products from SIDBI
SIDBI’s Venture Capital:This loan scheme covers some major initiatives which take care of start-
up funding. This includes Start-ups Life cycle along with SIDBI’s interventions, Funds of Funds for
Start-ups, Aspire Fund and India Aspiration Fund.
 Start-ups Lifecycle along with SIDBI’s interventions: There are new start-ups and ventures
in the field of business that require the right funding from time to time. This initiative helps
in providing the funds with the help of banks, NBFCs and SFBs
 Funds of Funds for Start-ups: The Government of India started with this initiative to support
various Alternate Investment Funds (AIFs) with the idea that it will bring some contribution
to the start-up businesses. It aims to support the growth and development of the enterprises
which are innovation driven
 Aspire Fund: Aspire fund focuses on providing financial backing to start-ups who are in the
initial stages of setting up manufacturing and services
 India Aspiration Fund: With the support of RBI, India Aspiration Fund was set up in order
to promote equity and equity based investments in start-ups and the MSME sector
SIDBI’s Indirect Finance: Under Indirect Finance, there are schemes where financial assistance is
provided to banks, NBFCs and SFBs:
 Assistance through Banks, NBFCs, and SFBs: Indirect Finance is provided to Banks,
NBFCs, SFBs and MSMEs
 Assistance to NBFCs: NBFCs which include the loan companies as well that are registered
with RBI help in providing financial assistance to enterprises in the MSME sector
 Refinance Schemes: Assistance is provided to banks that are financially stable through the
refinance schemes
 Assistance to Small Finance Banks (SFBs): In order to strengthen the SFBs equity and
resource base, this scheme was introduced. This scheme focuses on providing refinance
support to SFBs
SIDBI’s Micro-Lending: There are 3 main schemes under Micro Lending namely Micro Lending
Development Department, Responsible Finance Initiatives and Beyond Microfinance.
 Micro-Lending Development: The mission of Micro-Lending Development is to create an
institution and provide micro financial services to the people who are economically weak,
including women
 Responsible Finance Initiatives: In the light to promote cooperation and the right lending
practices in the financial sector, this loan scheme comes as a big support to the banks and
other financial institutions in the country
 Beyond Microfinance: This loan scheme helps the entrepreneurs to graduate from micro
finance to a higher ticket size at an affordable rate

22. 22
Steps to apply for a business loan from SIDBI
The application process of SIDBI is divided into a few steps that are mentioned in detail. Here is how
you can apply for a business loan from SIDBI –
STEP 1:
Visit www.udyamimitra.in. Here all the government based loan schemes are explained in detail.
STEP 2:
Go to the Login section and select the tab of ‘Applicant’ under that.
Step 3:
Under the Applicant tab, click on ‘New User’
STEP 4:
After clicking on New User, the first two options will appear asking for the expected loan amount
and the scheme you wish to apply under. There is also an option of ‘Assess your scheme suitability’
so one can check the loan schemes under which they are eligible for.
STEP 5:
After filling the two fields, the loan application form will expand asking for some mandatory
information including personal and business related details.
STEP 6:
After filling the application, click on Register. An account activation mail will be sent to your email
containing the username and password. Login the portal with new credentials and a new form will
appear asking information about your business activities.
Once all the details have been filled, you can validate the page and apply for the loan scheme which
is applicable according to your financial profile.
Direct Finance Loan Schemes Offered by SIDBI
Loan Scheme Loan Amount Loan Tenure Eligibility Criteria
SIDBI Make in India
Soft Loan Fund for
MSME (SMILE)
Minimum loan size – Rs.10
lakh for Equipment Finance
and Minimum Loan Size for
Others – Rs.25 lakh.
Up to 10 years,
including 3-year
moratorium
New enterprises in the
manufacturing and
services sector and
existing enterprises
undertaking expansion.
Smile Equipment
Finance (SEF)
Minimum loan amount is
Rs.10 lakh
Up to 72 months
MSMEs in existence for
at least 3 years and
having satisfactory
financial position.

23. 23
Loans under partnership
with OEM (Original
Equipment
Manufacturer)
Up to Rs.1 crore Up to 5 years
MSMEs in existence for
at least 3 years and
having satisfactory
financial position.
Working Capital (Cash
Credit)
Depends upon the financial
ability of the applicant
As per the terms
and conditions
MSME units which are
existing customers under
SIBDI or of other banks.
SIDBI – Loan for
Purchase of Equipment
for Enterprise’s
Development (SPEED)
Up to 100% of the machinery
cost subject to maximum of
Rs.1 crore for New to Bank
(NTB) customers and up to
Rs.2 crore for existing
customers of SIDBI.
Up to 2-5 years
including
moratorium of
up to 3-6 months
MSME units with at least
3 years operations with
stable sales and cash
profits in immediate past
2 years.
SIDBI-Loan for
Purchase of Equipment
for Enterprise’s
Development Plus
(SPEED PLUS)
Up to 100% of the machinery
cost subject to maximum of
Rs.2 crore for New to SIDBI
customers and up to Rs.3
crore for existing customers
of SIDBI.
Up to 2-5 years
including
moratorium of
up to 3-6 months
MSME units with at least
5 years operations with
stable sales and cash
profits in immediate past
3 years.
Top Up Loan For
Immediate Purposes
(TULIP)
30% of existing exposure or
20% of net sales subject to
maximum of Rs.2 crore
Up to 5 years
including 6-
month
moratorium
At least 1-year
association with SIDBI
SIDBI Term-Loan
Assistance for Rooftop
Solar PV Plants (STAR)
Rs.10 lakh to Rs.2.5 crore
Up to 5 years
including 3-6
months
moratorium
Proof of 2 years of cash
profit and satisfactory
financial records
SIDBI Assistance to
Facilitate Emergency
Response Against
Coronavirus (SAFE)
Up to Rs.50 lakh Up to 5 years
For New to bank
customer – At least two
years of cash profits and
account and
For existing bank
customer – Cash profit in
last audited balance sheet
and account
SIDBI Assistance to
Facilitate Emergency
Response Against
Coronavirus Plus
(SAFE PLUS)
Up to Rs.100 lakh
Repayable over
4-month cycle
For New to bank
customer – At least two
years of cash profits and
account and
For existing bank
customer – Cash profit in
last audited balance sheet
and account
Timely Working Capital
Assistance To Revitalise
Industries In Times Of
Up to 20% of total
outstanding loans with
SIDBI up to Rs.25 crore as of
February 29, 2020
Up to 4 years
including 1
month
moratorium
All existing borrower
accounts with combined
outstanding credit

24. 24
Corona Crisis
(TWARIT)
facilities up to Rs.25
crore as of 29.2.2020.
How to apply for loan through SIDBI
For processing a loan through the Small Industries Development Bank of India, an entrepreneur
would have to go through the below-mentioned process:
Step 1: Recognized consultants empanelled with the SIDBI would prepare the documents needed.
Depending on the requirements and information specified by the MSMEs, the consultants would
prepare a BIM (Basic Information Memorandum). This document would include all the information
related to the rating agencies and banks.
Step 2: The Basic Information Memorandum is approved by MSME entrepreneur. The accredited
consultants would then submit the Basic Information Memorandum to Small Industries Development
Bank of India.
Step 3: In case required, the proposal would be rated by the rating agency which is approved by the
Reserve Bank of India.
Step 4: SIDBI would directly handle the below-mentioned cases:
 SIDBI would offer equity or quasi-equity to the existing units that are growth-oriented.
 The bank would finance units that are in the service sector.
 It would offer credit to MSMEs for Cleaner Production Processes and Energy Efficient.
Step 5: For other cases, the application for the loan would be submitted to the Public-Sector Banks.
SIDBI (Small Industries Development Bank of India) has an MOU (memorandum of understanding)
with the public-sector banks for issuing loans.
Small Industries Development Bank of India would help the entrepreneur at each stage until the loan
is finally processed. MSMEs stands a better chance of availing the loan in time and also could avoid
needless delays.
SIDBI Headquarters
SIDBI Tower, 15, Ashok Marg, Lucknow SIDBI Mumbai Office
SIDBI,Swavalamban Bhavan,Bandra-Kurla Complex, Bandra East,
SIDBI New Delhi Office,Atma Ram House, 1 Tolstoy Marg, New Delhi
NIC-NATIONAL INFORMATION CENTRE
The National Informatics Centre (NIC) is an attached office under the Ministry of Electronics and
Information Technology in the Indian government
The NIC provides infrastructure to help support the delivery of government IT services and the
delivery of some of the initiatives of Digital India

25. 25
The NIC was established in 1976 under the aegis of the Ministry of Electronics and Information
Technology.
The National Informatics Centre is credited with helping the Indian government embrace IT in the
1990s and has also helped disseminate e-governance to the masses.
It had an annual budget of ₹11.5 billion (US$160 million) for the year 2018–19.
In May 2019, the government of India set up the Centre for Smart Governance (CSG), and state
governments have since been advised to consult the CSG for IT projects they previously would have
consulted the NIC and private firms for. Some claim that government sources have said "NIC is said
to be unable to scale up", and Rajeev Chawla, Additional Chief Secretary (e-Governance), was
quoted as saying "CSG will be an analogue to NIC".
he National Informatics Centre (NIC) is an institute set up by the Indian government in 1976 to drive
its technology and e-governance initiatives in the country.
Part-funded by the United Nations Development Fund which lent monetary assistance of $4.1 million
(Rs 22.81 crore, approximately) at its inception, NIC functions under the Department of Information
Technology.
The institute has the mandate to set up, implement and support all the information technology led-
programs of the central and state governments and other government organizations in India.
NIC is also in charge of providing the information network which connects various law-making
bodies throughout the country and collecting crucial data that helps the government in its socio-
economic development plans. The Centre acts as the repository of all economic data and statistics of
the central and state governments and monitors all IT projects undertaken by them.
The following major activities are being undertaken:
 Setting up of ICT Infrastructure
 Implementation of National and State Level e-Governance Projects
 Products and Services
 Consultancy to the government departments
 Research and Development
 Capacity Building
NIC is playing an instrumental role in executing key IT projects, in close collaboration with Central
and State Governments, making the last-mile delivery of government services to the citizens a reality,
through a variety of digital solutions. NIC endeavours to cater to ICT needs at all levels of governance
including central, state, districts, judiciary, and legislative layer. A large number of Government
initiatives such as Swachh Bharat Mission, My-Gov, e-Hospital, fertilizer distribution, e-Courts, e-
Transport etc. have been completely managed using digital platforms developed by NIC.
SIDO-SMALL INDUSTRIES DEVELOPMENT ORGANIZATION
Small Industries Development Corporations are state-owned companies or agencies in the states of
India which were established at various times under the policy of Government of India for the
promotion of small scale industries.

26. 26
Small Industries Development Organization (SIDO) is a subordinate office of the Department of SSI
& Auxiliary and Rural Industry . It is an apex body and nodal agency for formulating, coordinating
and monitoring the policies and programmes for promotion and development of small-scale
industries.
Development Commissioner is the head of the SIDO. Development Commissioner of SIDO is
assisted by various directors and advisers in evolving and implementing various programmes of
training and management, consultancy, industrial investigation, possibilities for development of
different types of small-scale industries, industrial estates, etc.
The main functions of the SIDO are classified into:
(i) Co-ordination,
(ii) Industrial development, and
(iii) Extension.
These functions are performed through a national network of institutions and associated agencies
created for specific functions. At present, the SIDO functions through 27 offices, 31 Small Industries
Service Institutes (SISI), 37 Extension Centres, 3 Product-cum -Process Development Centres, and
4 Production Centres.
All small-scale industries except those falling within the specialized boards and agencies like Khadi
and Village Industries (KVI), Coir Boards, Central Silk Board, etc., fall under the purview of the
SIDO.
The main functions performed by the SIDO in each of its three categories of functions are:
Functions Relating to Co-ordination:
a. To evolve a national policy for the development of small-scale industries,
b. To co-ordinate the policies and programmes of various State Governments,
c. To maintain a proper liaison with the related Central Ministries, Planning Commission, State
Governments, Financial Institutions etc., and
d. To co-ordinate the programmes for the development of industrial estates.
Functions Relating to Industrial Development:
a. To reserve items for production by small-scale industries,
b. To collect data on consumer items imported and then, encourage the setting of industrial units to
produce these items by giving coordinated assistance,
c. To render required support for the development of ancillary units, and

27. 27
d. To encourage small-scale industries to actively participate in Government Stores Purchase
Program by giving them necessary guidance, market advice, and assistance.
Function Relating to Extension:
a. To make provision to technical services for improving technical process, production planning,
selecting appropriate machinery, and preparing factory lay-out and design,
b. To provide consultancy and training services to strengthen the competitive ability of small-scale
industries.
c. To render marketing assistance to small-scale industries to effectively sell their products, and
d. To provide assistance in economic investigation and information to small- scale industries.
NSIC-NATIONAL SMALL INDUSTRIES CORPORATION LTD.
NSIC CIN No.U74140DL1955GOI002481:National Small Industries Corporation (NSIC), is an
ISO 9001:2015 certified Government of India Enterprise under Ministry of Micro, Small and
Medium Enterprises (MSME). NSIC has been working to promote, aid and foster the growth of
micro, small and medium enterprises in the country. NSIC operates through countrywide network of
offices and Technical Centres in the Country. In addition, NSIC has set up Training cum Incubation
Centre managed by professional manpower.
Mission: “To promote and support Micro, Small & Medium Enterprises (MSMEs) Sector” by
providing integrated support services encompassing Marketing, Technology, Finance and other
services.
Vision: “To be a premier Organization fostering the growth of Micro, Small and Medium Enterprises
(MSMEs) Sector”.
Schemes of NSIC:NSIC facilitates Micro, Small and Medium Enterprises with a set of specially
tailored scheme to enhance their competitiveness. NSIC provides integrated support services under
Marketing, Technology, Finance and other Support service.
Marketing Support:Marketing has been identified as one of the most important tool for business
development. It is critical for the growth and survival of MSMEs in today's intensely competitive
market. NSIC acts as a facilitator and has devised a number of schemes to support enterprises in their
marketing efforts, both domestic and foreign markets.
These schemes are briefly described as under:
Consortia and Tender Marketing:Small Enterprises in their individual capacity face problems to
procure & execute large orders, which deny them a level playing field vis-a'-vis large enterprises.
NSIC forms consortia of Micro and Small units maufacturing the same product, thereby pooling in
their capacity.
NSIC applies the tenders on behalf of single MSE/Consortia of MSEs for securing orders for them.
These orders are then distributed amongst MSEs in tune with their production capacity.

28. 28
Single point Registration for Government Purchase:NSIC enlists Micro & Small Enterprises
(MSEs) under Single Point Registration scheme (SPRS) for participation in Government Purchases.
The units enlisted under Single Point Registration Scheme of NSIC are eligible to get the benefits
under Public Procurement Policy for Micro & Small Enterprises (MSEs) Order 2012 as notified by
the Government of India, Ministry of Micro Small & Medium Enterprises, New Delhi vide Gazette
Notification dated 23.03.2012 and amendment vide order no. S.O. 5670(E) dated 9th November
2018. The enlistment under SPRS is completely online. Login: www.nsicspronline.com
 Issue of the Tender Sets free of cost.
 Exemption from payment of Earnest Money Deposit (EMD),
 In tender participating MSEs quoting price within price band of L1+15 per cent shall also be
allowed to supply a portion upto 25% of requirement by bringing down their price to L1 Price,
where L1 is non MSEs.
 Consortia facility for Tender Marketing.
MSME Global Mart B2B Web Portal for MSMEs:Information today is becoming almost as vital
as the air we breathe. We need it every minute of our working lives. With increase in competition
and melting away of international boundaries, the demand for information is reaching new heights.
NSIC, realizing the needs of MSMEs, is offering Infomediary Services which is a one-stop, one-
window bouquet of aids that will provide information on business, technology and finance, and also
exhibit the core competence of Indian SMEs through digital presence. The corporation is offering
Infomediary Services through its MSME Global Mart www.msmemart.com; which is a Business to
Business (B2B) web portal. The services are available through Annual Membership.
 a. Create your Company's Web Page in minutes
 b. Display Products & Services 24*7
 c. Connect with Buyers & Suppliers Globally
 d. Information’s on Events & Exhibitions
 e. Keyword based Unlimited Tender Alert
 f. Franchise & Distributorship Opportunities
 g. Request For Quotations
 h. Trade Leads
 i. Platform to Buy/Sell Used Machinery
 j. Service Available in Multiple Language
 k. Free Membership for SC/ST Entrepreneurs for one year
Marketing Intelligence:Collect and disseminate both domestic as well as international marketing
intelligence for the benefit of MSMEs. This cell, in addition to spreading awareness about various
programmes / schemes for MSMEs, will specifically maintain database and disseminate information.
Exhibitions and Technology Fairs:To showcase the competencies of Indian MSMEs and to capture
market opportunities, NSIC participates in select International and National Exhibitions and Trade
Fairs every year. NSIC facilitates the participation of the small enterprises by providing concessions
in rental etc. Participation in these events exposes MSMEs to international practices and enhances
their business prowess.
Buyer-Seller meets:Bulk and departmental buyers such as the Railways, Defence, Communication
departments and large companies are invited to participate in buyer-seller meets to enrich small
enterprises knowledge regarding terms and conditions, quality standards, etc required by the buyer.
These programmes are aimed at vendor development from MSMEs for the bulk manufacturers.

29. 29
Credit Support:NSIC facilitates credit requirements of small enterprises in the following areas:
Financing for procurement of Raw Material (Short term):NSIC's Raw Material Assistance
Scheme aims at helping Small Enterprises by way of financing the purchase of Raw Material (both
indigenous & imported). The salient features are:
1. Financial Assistance for procurement of Raw Material upto 180 days.
2. MSMEs helped to avail Economics of Purchases like bulk purchase, cash discount etc
Financing for Marketing Activities (Short term):NSIC facilitates financing for marketing actives
such as Internal Marketing, Exports and Bill Discounting.
Credit Facilitation Through Bank:To meet the credit requirements of MSME units, NSIC has
entered into a Memorandum of Understanding with various Nationalized and Private Sector Banks.
Through syndication with these banks, NSIC facilitates MSME in accessing credit support (fund
based or non-fund based limits) from the banks. NSIC assists MSMEs in completion of the
documentation for submitting the proposals to the banks and also does the follow up with the banks.
These handholding support are provided by NSIC without any cost to the MSMEs.
Technology Support:Technology is the key to enhancing a company's competitive advantage in
today's dynamic information age. Small enterprises need to develop and implement a technology
strategy in addition to financial, marketing and operational strategies and adopt the one that helps
integrate their operations with their environment, customers and suppliers.NSIC offers small
enterprises the following support services through its Technical Services Centres and Extension
Centres:
1. Advise on application of new techniques
2. Material testing facilities through accredited laboratories
3. Product design including CAD
4. Common facility support in machining, EDM, CNC, etc.
5. Energy and environment services at selected centres
6. Classroom and practical training for skill upgadation
NSIC Technical Services Centres are located at the following places:
Name of the Centre Focus area
Chennai Leather & Footware
Howrah General Engineering
Hyderabad Electronics & Computer Application
New Delhi Machine Tools & related activities
Rajkot Energy Audit & Energy Conservation activities
Rajpura (Pb) Domestic Electrical Appliances
Aligarh (UP) Lock Cluster & Die and Tool making

30. 30
Name of the Centre Focus area
Neemka (Haryana) Machine Tools & related activities
Software Technology Cum Business Parks:NSIC has established Software Technology cum
Business Parks at New Delhi and Chennai for providing the space to small and medium enterprises
in software development and to IT/ITES/MSME units not regd. with STPI or the units that are falling
under the overall definition of MSME as per the guidelines of Ministry of Micro, Small and Medium
Enterprises. Units other than MSME such as Banks/PSUs/Financial Institutions, corporate sector etc.
would also be considered for allotment on a case-to-case on merit with the approval of Competent
Authority. NSIC Software Technology cum Business Parks, New Delhi is located in a prime location
at Okhla Industrial Area adjacent to NSIC Bhawan with a total b uilt up area of approx.53000 sq.ft.
This location is in the near vicinity to Nehru Place. (the commercial centre of computer industry).
NSIC Software Technology cum Business Parks, Chennai is located in a prime location at Guindy
Industrial Estate (Jawahar Lal Nehru Statue) with a total built area of 48,000 Sq. Ft. This location is
in the near vicinity to domestic and international Airports.
Incubation of unemployed youth for setting up of New Micro & Small enterprises:This
programme facilitates setting up of new enterprises all over the country by creating self-employment
opportunities for the unemployed persons. The objective of this scheme is to facilitate establishment
of new small enterprises by way of providing integrated services in the areas of training for
entrepreneurial skill development, selection of small projects, preparation of project profiles/reports,
identification and sourcing of plant, machinery and equipments, facilitating sanction of credit facility
and providing other support services in order to boost the development of small enterprises in
manufacturing and services sectors.
International Cooperation:NSIC facilitates sustainable international partnerships. The emphasis is
on sustainable business relations rather than on one-way transactions. Since its inception, NSIC has
contributed to strengthening enterprise-to-enterprise cooperation, south south cooperation and
sharing best practices and experiences with other developing countries, especially those in the
African, Asian and Pacific regions. The features of the scheme are:
1. Exchange of Business / Technology missions with various countries.
2. Facilitating Enterprise to Enterprise cooperation, JVs, Technology Transfer & other form of
sustainable collaboration.
3. Explore new markets & areas of cooperation:
4. Identification of new export markets by participating in sector- specific exhibitions all over
the world.
5. Sharing of Indian experience with other developing countries
International Consultancy Services:For the last five decades, NSIC has acquired various skill sets
in the development process of small enterprises. The inherent skills are being networked to offer
consultancy services for other developing countries. The areas of consultancy are as listed below:
1. Capacity Building
2. Policy & Institutional Framework
3. Entrepreneurship Development
4. Business Development Services

31. 31
HEAD OFFFICE AND BRANCH OFFICE OF NISC
National Small Industries Corporation
NSIC Bhawan, Okhla Industrial Estate,
New Delhi - 110020, India
Phone: +91-11-26926275, 26926370
1 AGRA (BO)
ASHOK KUMAR
SINGH
Deputy General
Manager
NSIC Limited, 307/T-
6, 3rd Floor, Maruti
Plaza, (behind Sanjay
Talkies)Sanjay
Place,Agra
Pincode -282002
Ph - 0562-2527862, 2525567
Fax- 0562-2524842
boagra[at]nsic[dot]co[dot]in
2 AGRA (NSSH)
PUSHPENDRA
SURYAVANSHI
Deputy Manager
Unit No-202, Second
Floor, Sector-12 A,
Padam Business Park,
Awas Vikas, Sikandra
Yojana, Agra
Pincode -282007
Ph - 0562-2603131
nsshoagra[at]nsic[dot]co[dot]in
3
AHMEDABAD
(BO)
VIKAS MATHUR
Deputy General
Manager
202-203, Samruddhi
Bldg, Opp. Sakar-III,
Near Income Tax
Circle, Ahram Road,
Ahmedabad
Pincode -380014
Ph - 079-
27543228/27544893/27544254
Fax- 079-27540159
boamd[at]nsic[dot]co[dot]in
4
AHMEDABAD
(ZO)
PRABHAT KUMAR
JHA
Chief General Manager
202, 203, Samruddhi
Building Opp. Gujarat
High Court,
Ahmedabad
Pincode -380014
Ph - 079-
27543228/27544893/27544254
Fax- 079-27540159
zgmcentral[at]nsic[dot]co[dot]i
n
5
ALIGARH
(NTSC)
T.S. Rajput
General Manager
NSIC Technical
Services Centre, A-1
Industrial Estate
Aligarh
Pincode -202001
Ph - 0571-2403552
ntsecalig[at]nsic[dot]co[dot]in
6
AMBATTUR
(BO)
M. V. Somashekhar
Deputy General
Manager
309 SIDCO-AIEMA
TOWERS, 1ST MAIN
ROAD, AMBATTUR
INDUSTRIAL
ESTATE,CHENNAI
Pincode -600058
Ph - 044-26243984, 28291292
Fax- 044-26246826
boambattur[at]nsic[dot]co[dot]i
n
7
AURANGABA
D (BO)
ANKUR
BORTHAKUR
Manager
P/15, MASSIA,
MORE CHOWK,
MIDC WALUJ,
AURANGABAD
Pincode -431136
Ph - 0240-2552300
Fax- 0240-2563799
boaurangabad[at]nsic[dot]co[do
t]in

32. 32
8
BALANAGAR
(BO)
R.VEERABHADRA
RAO
Deputy General
Manager
6-3-144,144/1, 3rd
Floor,Jahanara Kareem
Complex, Balanagar,
Hyderabad
Pincode -500037
Ph - 040-23324769, 23344769
bobalanagar[at]nsic[dot]co[dot]
in
9
BELGAUM(B
O)
R J S V RAMA RAO
Manager
Plot no. 60, Anujay
Building, 5th cross,
Subhash-Chandra
Nagar,Opp. Belgaum
Foundry Cluster,Near
Utsav
hotel,Udyambag,Belag
avi-590006,Karnataka
Pincode -590006
Ph - 0831-2449922
belgaum[at]nsic[dot]co[dot]in
1
0
BENGALURU
(NSSH)
A KOKILA
Deputy Manager
No.6&7, ISICOS
Building West of
Chord Road Rajaji
Nagar, Industrial
Town, Bangalore
Pincode -560044
Ph - 080-23147000
nsshoban[at]nsic[dot]co[dot]in
1
1
BENGALURU
(BO Peenya)
V Suresh Babu
Deputy General
Manager
C-424, Peenya
Industrial Estate, 1St
Stage, Behind Peenya
Police Station,
Bangalore
Pincode -560058
Ph - 080-28374676, 28394576,
28372977
Fax- 080-28374676
bopeenya[at]nsic[dot]co[dot]in
1
2
BENGALURU
(BO
RAJAJINAGA
R)
M. Sreevatsan
General Manager
NSIC Limited No. 25,
Ist Main Road,
KSSIDC Industrial
Estate, 6th Block
Rajajinagar, Bangalore
Pincode -560010
Ph - 080-23109059,
23307791,23147858
boban[at]nsic[dot]co[dot]in
1
3
BENGALURU
(ZO)
P. RAVI KUMAR
Chief General Manager
No. 6 & 7, ISICOS
Building, West of
Chord Road,
Rajajinagar Indl.
Estate, Bangalore,
Karnataka
Pincode -560010
Ph - 080-23109059, 23307791,
23147858
Fax- 080-23300070
zgmsouth1[at]nsic[dot]co[dot]i
n
1
4
BHOPAL (BO)
MOHD.FAISAL
HUSSAIN
Chief Manager
NSIC Limited, Branch
Office 110, Malviya
Nagar, Ist Floor,
Bhopal
Pincode -462003
Ph - 0755-2766205, 4295152,
2766205
Fax- 0755-2553183
bobpl[at]nsic[dot]co[dot]in
1
5
BHUBANESW
AR (BO)
Anupam Gayen
Deputy General
Manager
NSIC Limited,1st
Floor, DIC Campus,
Rasulgarh Industrial
Estate,Bhubaneswar
Pincode -751010
Ph - 0674-2548875, 2549781
bobhubaneswar[at]nsic[dot]co[
dot]in

33. 33
1
6
BHUBANESW
AR (NSSH)
SUBHASIS DAS
Chief Manager
DIC Campus,
Rasulgarh Industrial
Estate, Bhubaneshwar
Pincode -751010
Ph - 0674-2548875, 2580630
nsshobhub[at]nsic[dot]co[dot]i
n
1
7
BHUBANESW
AR (ZO)
SURESH KARMALI
Chief General Manager
1st Floor, DIC
Campus, Rasulgarh
Industrial Estate,
Bhubaneswar (Orissa)
Pincode -751010
Ph - 0674-2548875, 6510189
Fax- 0674-2549780
zgmeast2[at]nsic[dot]co[dot]in
1
8
BOKARO
(SBO)
NABASIS DAS
Chief Manager
Plot No.7018, Khata
No.566, Near: Vaibhav
Hotel, Bye Pass Road,
Chas, Bokaro
Pincode -
Ph - 827012-9431923065
bojam[at]nsic[dot]co[dot]in
1
9
CHANDIGAR
H (BO)
GOPAL SWAIKA
Manager
NSIC Limited, Ground
Floor, BSNL Admin
Building Sector-34-A,
Chandigarh (UT)
Pincode -160022
Ph - 0172-2620538/39,2610537
Fax- 0172-2600858
bochd[at]nsic[dot]co[dot]in
2
0
CHENNAI
(BO)
R.SARAVANAKUMA
R
General Manager
422,ANNA SALAI,
CHENNAI
Pincode -600006
Ph - 044-28293347/28294541
Fax- 044-28295791, 28293347
bochen[at]nsic[dot]co[dot]in
2
1
CHENNAI
(NSSH)
J A N PRASAD
Chief Manager
MSME-DI Campus,
No.65/1, GST Road,
Guindy, Chennai,
Tamilnadu
Pincode -600032
Ph - 044-48631200
nsshochen[at]nsic[dot]co[dot]in
2
2
CHENNAI
(NTSC)
U.
VENKATACHALAPA
THI
General Manager (SG)
NSIC Technical
Services Centre Sector
B-24, Guindy
Industrial Estate
Ekkaduthangal PO,
Chennai
Pincode -600032
Ph - 044-22252335/6/7
Fax- 044-22254500
ntscche[at]nsic[dot]co[dot]in
2
3
CHENNAI
(ZO)
T
VENKATESWARAN
Deputy General
Manager
New No 422(Old No
615), Anna Salai,
Chennai
Pincode -600006
Ph - 044-2829 1943 ,2829 4541
Fax- 044-2829 5791
zgmsouth3[at]nsic[dot]co[dot]i
n
2
4
COCHIN (BO)
D. Paul Bright Singh
Chief Manager
NSIC LTD, S-
67,GCDA
COMMERCIAL
COMPLEX, MARINE
DRIVE,SHANMUGH
AM ROAD, KOCHI-
682031
Pincode -682031
Ph - 0484-2381850/2368149
Fax- 0484-2380155
bococh[at]nsic[dot]co[dot]in

34. 34
2
5
COIMBATORE
(BO)
G.KANNAN
Deputy General
Manager
1055/10, Gowtham
centre, Avanashi Road,
Coimbatore
Pincode -641018
Ph - 0422-2244618, 2247757
Fax- 0422-2247764
bocomb[at]nsic[dot]co[dot]in
STATE GOVERNMENT INSTITUTION
DIC-DISTRICT INDUSTRIES CENTERS
The District Industries Center (DIC) Programme was started in 1978
The industrial Policy 1977 contained the concept of District Industries Centres (DIC). DIC program
was initiated on 1st May 1978 as a centrally sponsored scheme.
DIC’s were started with a view to provide integrated administrative framework at the district level
for industrial promotion.
DIC’s was a landmark measure in development of cottage and small industries in smaller towns in
India.
The main of the DIC Programme is on the development of such industrial units, which can create
large employment opportunities in rural and semi-urban areas.
DIC’providing all the services and support to village and small scale enterprises under a single roof
for the effective development of small scale industry in the widely dispersed rural areas and small
towns of the country.
The main of the DIC providing all assistance and support to entrepreneurs in various states. These
centres are responsible for effective promotion of cottage and small scale industries at district level.
These centres also to provide support facilities, concessions and services to develop tiny, cottage and
district industries centres small scale units.
WHAT IS A DISTRICT INDUSTRIES CENTER?
A District Industries Center is an institution established at the district level so as to provide them to
set up small and village industries there.
Before the setting up of DIC, a prospective entrepreneur has to go to several agencies, many of them
far from his district, in order to get the necessary assistance and facilities. This caused considerable
delay, waste of time and money.
Now suitable powers have been delegated by several departments of the State Government to the
District Industries Center. Thus an entrepreneur can get all the assistance he needs from a single
agency itself i.e. DIC.
OBJECTIVE OF DISTRICT INDUSTRIES CENTRES
The basic purpose of these DIC’s is to generate more employment opportunities for rural people. It
was intended to make the Centre as a central location for-
 To granting financial and other facilities to small units
 To developing close links with development blocks and specialized institutions providing
help to set up industries in rural areas
 To identifying and helping new entrepreneurs

35. 35
 To identify the new entrepreneurs and providing assistance to them regarding their own
startup’s.
 To provide financial and other facilities to smaller blocks.
 To rise the complete efforts for industrialization at district level.
 To enhance the rural industrialization and also the development of handicrafts.
 To reach economic equality in multiple areas of the district.
 To allow various government schemes to the new entrepreneurs.
 To desize the regional imbalance of development.
 To make all the necessary facilities to come under one roof.
RESOURCE FOR DISTRICT INDUSTRIES CENTRES
Financial assistance is provided by the Government of India for District Industries Centre in the
following manner:
1. A non-recurring grant up to Rs.2 lakh for construction of an office building.
2. A non-recurring grant up to Rs.3 lakh for meeting the expenditure on furniture and fixtures, office
equipment and vehicles.
3. Recurring establishment expenditure to the extent of 75 percent of the actual expenditure, limited
up to Rs.3.75 lakhs.
STRUCTURE OF DISTRICT INDUSTRIES CENTRES
DIC’s comprise of:
1. One General Manager
2. Four functional managers, of whom three would be in the areas of economic investigation, credit
and village industries. The fourth functional manager may be entrusted with responsibility in any of
the areas like raw materials marketing, training etc., depending on the specific requirements of each
district.
3. Three Project managers to provide technical service in the area relevant to needs of the district
concerned. Their role is to facilitate modernization and upgradation of technology in the small sector.
ACTIVITIES OF DISTRICT INDUSTRIES CENTRES
1. Registration of SSI units (Permanent/ Provisional).
2. Registration of Handicrafts/Cottage industries.
3. Implementation of Prime Minister’s Rozgar Yojana.
4. Granting of Subsidies to SSI units.
5. Distribution of Project profiles among entrepreneurs.

36. 36
6. Training for Entrepreneur Development Programme.
7. Organisation of Industrial Cooperative Societies.
8. Raw Material assistance through SIDCO.
9. Allotment of sheds in Electrical & Electronic Industrial Estates.
10. Marketing assistance through SIDCO.
11. Conducting Motivation Campaigns.
12. Clearance of licences etc. through Single Window Meeting.
13. Rehabilitation of sick SSI units.
14. Recommendation of Awards to SSI units.
15. Recommendation of loan applications to banks under KVIC Scheme.
FUNCTIONS OF DIC
1. Survey and Investigation:The District Industries Center conducts survey of the existing
traditional and new industries and raw materials and human resources. It makes market forecasts of
various products. It also prepares techno-economic feasibility reports so as to give investment advice
to the entrepreneurs.
2. Training Courses:The District Industries Center also conducts training courses for the
entrepreneurs of small and tiny units. It acts as an intermediary between the entrepreneurs and the
small industries service institutes in order to introduce new and improved product lines and quality
developed by the latter to the former.
3. Machinery and Equipment:The District Industries Center indicates the locations where from
machinery and equipment can be acquired and also arrange for supply of machinery on hire purchase
basis.
4. Raw Materials:The District Industries Center obtains the details regarding the materials required
by various units and arrange for purchase of the same in bulk. Thereby it enables the small units to
get their raw materials at reasonable prices.
5. Arrangements for Loans:It makes the necessary arrangements with Lead Banks and other
Financial Institutions in order to provide financial assistance to the entrepreneurs. It also appraises
the application and monitors the flow of industrial credit in the district.
6. Marketing:The District Industries Center conducts market surveys and market development
programmes. It also organizes marketing outlets, contact with Government procurement agencies
and make the entrepreneurs well informed of the market intelligence.
7. Khadi and Village Industries:District Industries Centers gives special attention to the
development of khadi and village industries and other cottage industries. It also keeps close contact
with the State Khadi Board and organize training programmes for rural artisans.

37. 37
1.Make available comprehensive information on all matters including policies/schemes of
Central/State Governments, Banks/Financial Institutions/ Incentives from State / Central
Governments and Regulatory framework of Industries and Service Providers
2.Prepare District Industrial / Service Potential Profiles including viable project profiles in the State
in general and District in particular.
3.Facilitate Approvals from regulatory agencies like PCB, Factories through single window system
in minimum possible time and with minimum effort. (TSiPASS)
4.Facilitate credit linkages between Banks and Entrepreneurs.
5.Provide Market support
6.Implement self-employment scheme –PMEGP
7.Facilitate revival of Sick Industries in consultation with Industrial Health Clinic
8.To Provide linkages between technical institutes and industry facilitate new technology transfer.
9.Take up Skill development depending on the requi rement of the Industries in the District.
10.Facilitate Linkage between research institutes, incubation centres and Industry (T-HUB and
RICH)
11.Facilitate Entrepreneurship Development.
12.Identify and nurture clusters
13.Emphasis on the thrust areas identified by Government
14.Awards and recognition to outstanding Entrepreneurs
15.Closelywork with Industrial Associations and Trade Bodies.16.Raw Material Assistance: Almost
all required raw-materials by an industrial unit are available in open market these days without any
restrictions. But in case of those Industries which use certain Scarce Raw Materials like Alcohol,
Molasses, Methanol, Coal etc, their distribution is controlled. The Department of Industries assists
the applicant industries in procuring and also monitors the proper utilisation of these scarce raw
materials.
The DIC’s programme is funded jointly by the concerned state and central government. It took part
in various promotional measures In order to bring out the development of small unit sectors in the
district level. The DIC’s performs the following functions mainly:
1. To spot the entrepreneurs:DICs conducting various motivational programmes so that they can
find new entrepreneurs throughout the districts. It is done particularly under some schemes and with
the association of SIS’s and TCO’s for conducting Entrepreneurial programmes.
2. Purchase of fixed assets:Topurchase fixed assets, the DICs suggest loan applications of the
prospective entrepreneur to some of the concerned financial and development institutions like NSIC,

38. 38
SISI etc., DCI’s also recommend commercial banks so that to meet the working capital requirement
of SSI to run operations daily.
3. Offers subsidies and other incentives:DCIs helpthe rural people to subsidies offered by the
government on various schemes. It leads to the betterment in boosting financial capacity of the units
and may undergo for further development activities.
4. Guidance of import and export:Government provides various types of incentives for import and
export on particular goods and services. The license to the importer and exporter is issued on the
basis of recommendation of DIC.5.Entrepreneurial training programmes:DCIs allowa lot of training
programmes for the rural entrepreneurs who are new to the business world and also recommend other
institutions to take part in such training programs.These are intended to give better assistance to the
new entrepreneurs.6. Provides employment for unemployed educated ones:
ACTIVITIES OF DISTRICTINDUSTRIES CENTRE (DICs)
The DIC’s performs the following activities primarily:
 Economic Investigation.
 Plant and Machinery.
 Research, education and training.
 Raw materials.
 Credit facilities.
 Marketing assistance.
 Cottage industries.
SCHEMES UNDER DISTRICT INDUSTRIES CENTERS (DICS)
1. Prime minister’s employment generation program (PMEGP):The objective of this centrally
sponsored scheme of Ministry of Micro, Small & Medium Enterprises, and Government of India
being implemented since October, 2008 is to provide gainful self-employment opportunities to
educated unemployed one’s through industrial activities, servicesand business.
2. Seed money scheme:The scheme focusesto encourage an unemployed person to take up self-
employment ventures through industry, service and business, by providing soft loans to meet part of
the margin money to avail institutional finance.
3.Dic loan scheme:The aim of the scheme is to generateemployment opportunities including self-
employment to small units located in towns and rural areas with the population of less than 1 lakh
and withthe investment on plant & machinery below 2 Lakhs. Such identified microunits falling
within the purview of the Small Scale Industries Board and Village Industries, handicrafts,
handlooms, Silk & Coir Industries are covered for financial assistance in the form of margin/seed
money under the Scheme
4.Entrepreneurship development training program:The objective of training educated
unemployed persons to take up self-employment ventures or skilled wage employment.
Entrepreneurs are given guidance related to industry/service/business activities & skill up gradation.
Entrepreneurs are also guided in respect of choice of activity, necessities of land, project report,
obtaining various no objection certificates, licensesand marketing strategy.

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5.District award schemes:To encourage entrepreneurs in establishing small scale enterprises and
also to extols them for their success and achievements, the State Government has started honoring
such entrepreneurs with District Award Scheme at the district level. Proprietors / Partner’s / Directors
of enterprises who have obtained EM registration with the concerned District Industries Centre at
least three years earlier and in production for two continuous years are eligible for the award.These
awards are given to them under the scheme of this District Award scheme.
6. PMRY Scheme: PMRY(Prime Minister Rozgar Yojana) scheme was introduced on the auspicious
day of 2ndOctober, 1993, the birth Anniversary of Mahatma Gandhi all over the country .The main
objective of the PMRY scheme was to provide easy subsidized financial assistance to educated
unemployed youth for starting their own businessesin the fields like manufacturing, business &
service and trade sectors. Firstlythe scheme was aimed at providing self-employment to one million
educated unemployed youth in the country by making up 7 lakh micro enterprises through inducting
service and business ventures within2 ½ years. The scheme was successfullycapturedthe imagination
of the youth. Overwhelmed with the response and ever-increasing need, the Government has
confirmedto make it as apermanent scheme and framed modalities & guidelines for its successful
implementation and to fulfillthe purpose for which it is designed.
ROLE OF DIC FOR THE PROMOTION OF SMALL SCALE AND COTTAGE
INDUSTRIES
DIC provides the information on sources of machinery and equipment.
Promotes new industrial growth centers, electronic industries etc.,
Conducts multiple training programs to encourage the entrepreneurs.
Gives assistance to entrepreneurs under State Incentives scheme and funding assistance through
self-employment schemes.
It allotsraw materials to the concerned industries at district level.
DIC gives the information about marketing and its assistance on participating trade fairs/buyers-
sellers meet and so on.
Guidance regarding Import and Exports of specific goods and services.
Improves the managerial capacity by organizing various seminars, workshops etc.
It clears the problems related to SSI Registration/Bank loan/Marketing of production etc.
Single window assistance through SIDA and District Industries Centers.
Products standardization
Promotion of products under Non-conventional Energy Sources.
Design and product development for handicrafts
SFC-STATE FINANCIAL CORPORATION
In order to meet the financial needs of small and medium scale industrial units which are not governed
by Industrial Finance Corporation, the Government of India passed State Finance Corporation Act
in 1951, empowering the State Governments to start financial corporations. The First State

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Financial Corporation was set up in Punjab in the year 1953. At present there are 18 SFCs
operating in the country.
The State Finance Corporations (SFCs) are an integral part of institutional finance structure of a
country. Where SEC promotes small and medium industries of the states. Besides, SFC help in
ensuring balanced regional development, higher investment, more employment generation and broad
ownership of various industries.
At present in India, there are 18 state finance corporations (out of which 17 SFCs were established
under the SFC Act 1951). Tamil Nadu Industrial Investment Corporation Ltd. which is established
under the Company Act, 1949, is also working as state finance corporation.
SEC promotes small and medium industries of the states. Besides, SFCs are helpful in ensuring
balanced regional development, higher investment, more employment generation and broad
ownership of industries.
List of SFCs in India
1. Andhra Pradesh State Financial Corporation
2. Assam Financial Corporation
3. Bihar State Financial Corporation
4. Delhi Financial Corporation
5. Haryana Financial Corporation
6. Gujarat State Financial Services Ltd.
7. Hirnachal Pradesh Financial Corporation
8. Jammu & Kashmir State Financial Corporation
9. Jammu & Kashmir State Financial Corporation
10. Kerala Financial Corporation
11. Madhya Pradesh Financial
12. Maharashtra State Financial
13. Orissa State Financial
14. Punjab Financial Corporation
15. Rajasthan Financial Corporation
16. Tamil Nadu Industrial
17. Uttar Pradesh Financial Corporation
18. West Bengal Financial Corporation
ORGANIZATION AND MANAGEMENT OF SFC
A Board of ten directors manages the State Finance Corporations. The State Government appoints
the managing director generally in consultation with the RBI and nominates the name of three other
directors.
Thus, the state government and quasi-government institutions nominate the majority of the directors.
The State Finance Corporations management is vested in a Board of ten directors. The State
Government appoints the managing director generally in consultation with the Reserve Bank and
nominates three other directors.