3. NEED FOR INSTITUTIONAL SUPPORT
Finance is the life blood of any business. In other words finance is the nerve centre of a
business. Every kind of business requires adequate amount of finance for its start.
ENTREPRENEUR NEEDS FINANCE :-
* To start an Industry.
* For acquiring Fixed Assets.
* Developing Product.
* Developing Men and Machine at Work.
* Encourage Management to make Progress.
Finance is important but not the only condition to run an Enterprise.
Any economic activity requires prior built-up Infrastructural facilities for its start.
But creation of infrastructural facilities requires huge funds which small entrepreneurs
can not afford or are always found short of.
Finance is required by large, medium as well as small business Enterprises.
4. Central and 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 October 14,1999 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 (SSI & RRI).
Work of Ministry of SSI - * Initiates various
i) Policy measures
ii) Programmes &
iii) Schemes
for the Promotion of SSIs (Small Scale Industries)
6. Karnataka State Small Industries Development Corporation Ltd.
- (KSSIDC)
KSSIDC – Government of Karnataka Undertaking – was established for providing
basic infrastructural facilities for the upliftment of small scale industries in the
state of Karnataka.
KSSIDC has constructed over 5523 industrial sheds for SSI entrepreneurs all over
the state. These sheds have been designed to provide entrepreneurs the space
they require, on a need – based manner.The corporation gives preference to those
entrepreneurs who deal in high technology, export – oriented and import
substitution products.
The sheds include
(i) Factory accommodation
(ii) Toilet facilities
(iii) Storage space
(iv) open area outside the shed.
It also provides good natural ventilation lighting, security and easy
accessibility.
7.
8.
9.
10.
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12.
13. CONCLUSION
Government has made conscious effort to promote the growth of SSIs by
facilitating the flow of not only finance (through institutional credit) but also other
facilities also.
Not only finance but Infrastructural facilities, like transport, communication are
also required.
Central & State Governments have come forward to provide these facilities which
otherwise are beyond the capacity of a small entrepreneur to build up.
Various institutions have been coming up since independence which provide support
to SSIs in many ways. Institutions like SISIs, DICs, NRDC, NIESBUD,
NSIC, EDII,TCOs, SIDOs, NISIET etc, have been set up which provide
timely assistance to SSIs.