This document discusses entrepreneurial support systems for micro, small and medium enterprises (MSMEs) in India. It outlines how enterprises are classified based on investment levels, and describes various policy initiatives, financial support schemes, and the role of District Industries Centers in promoting MSMEs. Concessions, incentives, and export promotion facilities aim to generate employment, disperse industries across areas, and earn foreign exchange through supporting small businesses.
The document provides information on various organizations that promote rural development and entrepreneurship in India, including RUDSETI, IDBI, TECSOK, DICs, NIESBUD, IFCI, SFCs, and KSSIDC. It describes the origins, objectives, functions and activities of each organization related to providing credit, training, consultancy and other support services to small businesses and entrepreneurs.
There are two main types of institutions that provide support to small scale industries (SSI) in India - state level institutions and central government institutions. State level institutions include State Directorates of Industries, State Small Scale Industries Development Corporations, District Industries Centers, State Finance Corporations, and Technical Consultancy Organizations. Central government institutions that support SSI include the Department of Small Scale Industries, Small Scale Industries Board, Small Industries Development Organisation, National Small Industries Corporation, Industrial Credit and Investment Corporation of India, and Industrial Finance Corporation of India. These institutions provide various services like financing, training, marketing assistance, infrastructure development, and policy guidance to small businesses.
The document discusses 16 different types and sources of financing available for start-up businesses, including personal savings, friends and family, venture capital, angel investors, government grants and programs, equity offerings, IPOs, warrants, banks and commercial lenders, commercial finance companies, bonds, leases, commercial paper, bank overdrafts, asset-based financing, and private placements. Each type is briefly described in 1-2 sentences.
The District Industries Centre was established to promote small, village, and cottage industries at the district level. The key objectives are to accelerate industrialization, support rural industries, provide equal economic opportunities across regions, and help entrepreneurs access government schemes by streamlining procedures. DICs act as the main agency for industrial promotion, collecting industry data and statistics, providing entrepreneur guidance and training, and assisting entrepreneurs in obtaining necessary approvals and financing. They aim to promote industries under a single roof. Over 400 DICs have been established, supporting millions of jobs and businesses through credit provision and new unit establishment.
The State Finance Corporations (SFCs) are established by state governments to promote small and medium enterprises. There are currently 18 SFCs across India. SFCs provide financial assistance like loans and guarantees to industrial units. They mobilize funds from various sources like share capital, bonds, and bank loans. While SFCs aim to catalyze investment and job growth, they face challenges like limited funds, high interest rates, and a lack of technical expertise. Some also show a bias toward financing larger enterprises over small businesses.
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Any of these can become the focus or starting point for initiating and implementing an EDP.
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The document discusses various types of institutional assistance available to small scale industries in India. It describes the financial assistance provided by State Finance Corporations (SFCs), Small Industries Development Bank of India (SIDBI), commercial banks, Karnataka State Industrial Investment and Development Corporation (KSIIDC), Karnataka State Small Industries Development Corporation (KSSIDC), and Industrial Finance Corporation of India (IFCI). It also outlines various loan schemes and eligibility criteria for small scale entrepreneurs to receive funding from these institutions.
The document discusses the various steps involved in setting up an enterprise. It begins by explaining that setting up an enterprise is a complex process that requires knowledge of key business aspects. It then outlines 8 main steps provided by the Ministry of MSMEs for setting up micro, small, and medium enterprises, including project selection, arranging finance, approvals, and quality certification. The document provides details on each step, including requirements for a project feasibility study, business plan preparation, obtaining necessary clearances and licenses, and implementing the project. It stresses the importance of proper planning through a detailed project report.
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The document discusses various institutions that provide financial and non-financial assistance to small scale enterprises in India. It describes the roles of state financial corporations, SIDBI, commercial banks, KSIIDC, IFCI, DIC, SISI, EDI, SIDO, AWAKE, TCOs, TECSOK, and KVIC in promoting and supporting small businesses. It also covers microfinance institutions like self-help groups and their role in providing financial services to unemployed or low-income individuals.
Merchant banking refers to a range of financial services including underwriting shares, portfolio management, project counseling, and insurance provided by both commercial and investment banks for a fee. Merchant bankers play an important role as intermediaries between companies raising funds and investors. They perform various functions such as promotional activities, issue management, credit syndication, project counseling, portfolio management, and mergers and acquisitions. Merchant banking activities in India are regulated by the Securities and Exchange Board of India (SEBI). Other key players in the capital markets include underwriters, bankers to an issue, brokers to an issue, and registrars and share transfer agents.
This document provides an overview of venture capital. It defines venture capital as equity support that funds new business concepts with higher risk but also higher growth potential. The document outlines the typical stages of venture capital funding from seed money to bridge financing. It also describes the roles within a venture capital firm such as general partners and limited partners. Key features of venture capital investments are discussed like the long time horizon, lack of liquidity, high risk, and equity participation. Finally, the advantages of venture capital for the economy, investors, and entrepreneurs are summarized.
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This document provides an overview of micro, small, and medium enterprises (MSMEs) in India. Some key points:
1. MSMEs are the backbone of India's industrial development, contributing nearly 8% of GDP, 40% of manufacturing output, and 45% of exports. They also provide the largest share of employment after agriculture.
2. MSMEs can be classified as micro, small, or medium based on the number of employees and amount invested in plant and machinery. Micro enterprises have less than 10 employees and investments under Rs. 25 lakh. Small enterprises have less than 50 employees and investments under Rs. 5 crore.
3. MSMEs play an important role in
This document provides an overview of venture capital financing in India. It defines venture capital as money provided by outside investors to finance new, growing, or troubled businesses in exchange for equity. It then discusses the various stages of venture capital funding including early stage, expansion, and acquisition/buyout financing. The rest of the document outlines the venture capital investment process, including deal origination, screening, evaluation, deal structuring, post-investment activities, and exit planning. It also provides examples of venture capital funding deals in India and lists the top 5 early stage venture capital firms in the country.
This document provides an overview of a presentation on venture capital. It includes definitions of venture capital, the nature and scope of venture capital, regulatory framework, problems with venture capital, the venture capital investment process, the current scenario in India, global experience, and conclusions. The document outlines topics that will be covered in the presentation and provides background information on venture capital concepts.
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3) SIDBI's mission is to facilitate and strengthen credit flow to small businesses and address financial and developmental gaps. Its vision is to be a single window for meeting small business needs and to enhance shareholder wealth through technology.
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Msme overview for finance, subsidy & project related support contact - 9861...Radha Krishna Sahoo
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Everything you need to know about MSME - Micro Small and Medium Enterprise. Its Organisational structure, schemes, training programmes, or setting up an Enterprise.
The document discusses several tax benefits and incentives available to small scale industries (SSI) in India. Some key tax benefits include tax holidays for new businesses, higher depreciation limits for machinery, and deductions for research spending. Major incentives provided by the government include reserving certain industries exclusively for SSIs, preference in government purchases, price preferences, priority for raw materials, and excise duty exemptions. Financial assistance is also provided through priority sector lending, credit guarantee schemes, and equity funding.
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. R&D Funding scheme provides funds to institutions/ organizations in the area of research and development, for technical collaboration, etc.
Micro, Medium and Small Enterprises
It is helpful for enterpreneurs and persons having interest in economy and want to gain knowledge regarding society.
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The document discusses various institutions that provide support to industries in Karnataka, including the Karnataka Industrial Areas Development Board (KIADB), Karnataka Small Scale Industries Development Corporation (KSSIDC), Karnataka State Industrial Investment and Development Corporation (KSIMC), National Small Industries Corporation (NSIC), District Industries Centres (DICs), and Small Industries Development Bank of India (SIDBI). It provides details on the functions and services provided by these institutions such as acquiring land for industrial areas, providing infrastructure, term loans, refinancing, entrepreneurship training, and more.
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The document outlines various policies introduced by the Indian government since 1947 to support small scale industries. Key policies include reserving certain products for exclusive production by small industries, fiscal incentives like tax holidays, and excise duty concessions. Support measures also include preferential pricing, technical assistance, and schemes for credit access, skill development and technology upgradation. The policies aim to promote rural employment and more inclusive industrialization.
Government policies for development and promotion of small scale industries in India
State Finance Corporations
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The document discusses the growth and development of Micro, Small, and Medium Enterprises (MSMEs) in India. It outlines the government policies that promote MSMEs, including reservations, credit support, fiscal incentives, and infrastructure development. MSMEs contribute significantly to India's economy, accounting for over 30% of GDP, 45% of manufacturing output, 40% of exports, and employment of over 30 million people. The Micro, Small and Medium Enterprises Development Act of 2006 aims to support MSMEs through registration, credit policies, and payment realization. The government provides various schemes to boost MSMEs, such as credit guarantee funds, technology upgradation subsidies, marketing assistance, cluster development, and entrepreneurship programs
Introduction to MSMEs in India, Key Government Policies and Support for MSMEs, Ease of Doing Business : The India Story, Financing Sources for MSMEs, MSME Issues and Challenges and Role of Information Technology and Innovation
• The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place.
• The District Industries Centre is the institution at the District level, which provides all the services and support facilities to the entrepreneur for setting up Micro, Small and Medium Enterprises. This included identification of suitable schemes, preparation of feasibility reports, arrangements for credit facilities, machinery and equipments, provision of raw materials and development of industrial clusters etc.
• Established in 1940
• Vision is to be primary driving force of commercially sustainable industrial development .
• Industrial development Corporations are companies or agencies in India which were established at various times under the policy of Government of India for the promotion of small - scale industries.
• A Central Industrial Finance corporation was set up under the industrial Finance corporations Act, 1948 in order to provide medium and long term credit to industrial undertakings which fall outside normal activities of commercial banks.
• The State governments expressed their desire that similar corporations be set up in states to supplement the work of the Industrial financial corporation. State governments also expressed that the State corporations be established under a special statue in order to make it possible to incorporate in the constitutions necessary provisions in regard to majority control by the government, guaranteed by the State government in regard to the payment principal. In order to implement the views Expressed by the State governments the State Financial Corporation bill was introduced in the Parliament.
• Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
• It was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
• The purpose is to provide refinance facilities and short term lending to industries. Its headquarters is in Lucknow.
• Former Deputy Managing Director is Shri N.K. Maini. Dr. Kshatrapati Shivaji is the new Chairman and Managing Director of the organisation.
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The document discusses various initiatives by the Indian government to support MSMEs, including revised MSME classification criteria based on investment and turnover, Production Linked Incentive schemes covering 13 sectors, reforms in the defense sector to encourage indigenization and exports, agriculture reforms focusing on infrastructure development and farmer support, and schemes promoting agro-MSMEs, food processing, dairy, and herbal cultivation. Banking and financial support schemes for new entrepreneurs like MUDRA, Stand Up India, and CGTMSE credit guarantee are also summarized.
The document discusses various government institutions that provide support to small scale industries (SSIs) in India. It outlines central level institutions like the Small Scale Industries Board and the Small Industry Development Organization that provide advisory, technical, and financial assistance. It also discusses state level organizations like State Industrial Development Corporations and District Industries Centres that promote SSIs. National institutions like National Small Industries Corporation and Small Industries Development Bank of India provide financing, marketing, and technology support. The overall aim is to encourage entrepreneurship and strengthen the SSI sector in India.
SIDBI and MSFC play important roles in providing financial services to support small and medium enterprises in India. SIDBI was established by the government in 1989 as the apex institution to oversee financing for small and medium industries. It provides loans, refinancing, import/export support, and development programs. MSFC was established in 1962 and supports industries in Maharashtra, Goa, and Daman and Diu by providing term loans for assets, expansion, and modernization of small and medium businesses. Both organizations aim to promote industry and economic development in India.
The document contains answers to frequently asked questions about support available to micro, small and medium enterprises (MSMEs) in India from the Ministry of Micro, Small & Medium Enterprises. It defines MSMEs based on investment in plant and machinery or equipment. It discusses support for collateral-free borrowing, technology upgradation, cluster development, skill development, tools provided by Tool Rooms, improving manufacturing competitiveness, energy conservation, quality improvement, and product design. The overall document provides an overview of the various schemes and programs implemented by the Ministry to support growth and development of MSMEs in India.
The document discusses various policies by the Indian government to support small scale industries (SSIs) since independence in 1947. It outlines key provisions and fiscal incentives for SSIs established in Industrial Policy Resolutions from 1948 to 1991, including tax exemptions, reservations of products for SSIs, and preferential treatment. Measures for promoting SSIs are also summarized, such as technical assistance, marketing support, and new initiatives like technology business incubators.
The Small Industries Development Bank of India (SIDBI) was established in 1989 as the principal financial institution for promoting, financing and developing small industries in India. SIDBI's mission is to empower micro, small and medium enterprises to make them strong, vibrant and globally competitive. Its key objectives are financing, promotion, development and coordination of small industries. SIDBI offers various direct financing, refinancing, bills financing and international financing schemes as well as promotional and developmental activities like entrepreneurship training to support small businesses.
This document provides a summary of a presentation on SME development in India given by Dr. G.U.K. Rao. The presentation discusses the importance of MSMEs to India's economy, provides an overview of policies from 1948 to 2006 to support MSMEs, explains the key features and comparative analysis of the Micro, Small and Medium Enterprises Development Act of 2006, outlines various policy measures in the Act, and discusses plans to implement the Act by strengthening support for training, marketing, technology, and clusters.
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2. Learning Objectives (LO):
2
To understand the concept of Micro, Small and Medium Enterprises &
their available Export Promotion facilities;
To discuss policy & development of the small scale industries in India;
To explain concession and Incentive facilities available for small business
enterprises;
To know the different financial support schemes;
To understand the role of DIC (District Industries Centre)
3. Micro, Small and Medium Enterprises DevelopmentAct 2006.
Concessions and Incentives,
Financial support schemes,
DIC (District Industries Centre’s role and functions),
Policies regarding SSI sector,
Export Promotion facilities for SMEs and GlobalVision for
Entrepreneur.
3
4. Enterprises have been classified broadly into:
Enterprises engaged in the Manufacture / production of Goods pertaining to
any industry; &
Enterprises engaged in providing / Rendering of services.
4
5. Manufacturing enterprises have been defined in terms of investment in plant and machinery
(excluding land & buildings) and further classified into :
Micro Enterprises - investment up to Rs.25 lakh.
Service enterprises have been defined in terms of their investment in equipment (excluding
land & buildings) and further classified into: -
Micro Enterprises – investment up to Rs.10 lakh.
5
6. Manufacturing
enterprises
Small Enterprises
- investment
above Rs.25 lakh
& up to Rs. 5
crore
Service enterprises
Small Enterprises
– investment
above Rs.10 lakh
& up to Rs.2
crore.
6
7. Manufacturing enterprises
Medium Enterprises - investment above Rs. 5 crore & up to
Rs.10 crore.
Service enterprises
Medium Enterprises–investment above Rs. 2 crore & up to
Rs. 5 crore
7
9. 9
As per Ministry of small scale industries notification dated 5th October,
2006, the investment in Plant & Machinery to in respective limits is the
original price, irrespective of whether the plant & machinery are new or
second hand. In respect of imported machinery, the following is to be included in
calculating the value:
Import duty (excluding miscellaneous expenses such asTransportation from the port
to the site of the factory);
Shipping charges;
Customs clearance charges and
Sales tax or value added tax.
10. 10
As per the said notification, further, the following are excluded while
calculating the investment in plant & machinery:
Equipments such as tools, jigs, dies, moulds and spare parts of maintenance
and the cost of consumable stores;
Installation expenditure for plant & machinery;
Research & development equipment and pollution control equipment;
Power generation set and extra transformer installed by the enterprise as per
the regulations of the state electricity board;
11. 11
The following are excluded while calculating the investment in plant
& machinery:
Installation of cables, wiring, bus bars, electrical control panels (not
mounted on individual machines), oil circuit breakers or miniature
circuit breakers which are necessarily to be used for providing electrical
power to the plant & machinery or for safety measures;
Gas producer plants;
Fire fighting equipment;
12. 12
The following are excluded while calculating the investment in plant
& machinery:
Charges paid for technical know-how for assembly of plant &
machinery and
Such storage tanks which store raw materials and finished products
only and are not linked with the manufacturing process.
Bank charges and service charges paid to the national small industries
corporation of the state small industries corporation;
13. 13
SMEs have strategic importance for each national economy due a wide
range of reasons such as
Simpler way to create new job positions,
Increasing GDP and
Rising standard of population
Therefore government are supporting entrepreneurship and encouraging
and supporting people who dare to start their own business.
Every surviving and successful business means new jobs and
growth of GDP.
14. 14
Therefore, Council of Ministers and entity governments provide full
coordination of activities through numerous governmental
institutions (like chambers of commerce, employment bureaus, etc.) and
NGOs dealing with entrepreneurship and SMEs.
15. 15
Governments create different types of support institutions:
i) To provide information on regulations, standards, taxation, customs duties,
marketing issues;
ii) To advise on business planning, marketing and accountancy, quality control and
assurance;
iii) To create incubator units providing the space and infrastructure for business
beginners and innovative companies, and helping them to solve technological
problems, and to search for know-how and promote innovation; and
iv) To help in looking for partners. In order to stimulate entrepreneurship and improve
the business environment for small enterprises.
16. 16
Training,
Marketing Assistance,
Promotional Schemes,
Concession on Excise Duty and
Credit Facility to MSME
Credit to micro, small and medium scale sector has been covered under priority sector lending by
banks. Small Industries Development Bank of India (SIDBI) has been established as the apex institution for
financing the MSME. Loans upto Rs. 5 lakhs are made available by the banks without insisting on
security/guarantee. Further Credit Guarantee Fund for micro, small and medium enterprises has been set
up to provide guarantee for loans to MSME up to Rs. 25 lakhs extended by Commercial Banks and some
Regional Rural Bank.
17. 17
All the State Governments provide technical and other support services to small units
through their Directorates of Industries, and District Industries Centers. The
details of the scheme vary from state to state, the following are the common areas of
support.
1. Development and management of industrial estates
2. Suspension/deferment of SalesTax
3. Power subsidies
4. Capital investment subsidies for new units set up in a particular district
5. Seed Capital/Margin MoneyAssistance Scheme
6. Priority in allotment of power connection, water connection.
7. Consultancy and technical support
18. 18
Government of India runs a scheme for giving National Awards
to micro, small and medium scale entrepreneurs providing quality
products in 11 selected industry groups of consumer interest. The
winners are given trophy,certificate and a cash price of Rs.25000/- each.
Through framing and implementing suitable policies and
promotional schemes, government play supportive role in developing
entrepreneurs.
19. 19
Have a place of pride in India because they have potential among other for
Generating employment,
Dispersal of manpower to semi-urban & rural areas, and
Earning foreign exchange etc.
SSI even would absorb semi or un skilled persons
Growth or gestation period of SSI is very short as compare to large scale,
Large units mostly concentrated in metropolitan cities as a result people migrate in
large nos. from village to cities which creates social, environmental & personal
problems. Whereas SSI are mostly established in small towns & villages to satisfy the
local demand.
20. 20
Government for the first time announced a separate small scale industries (SSIs) policy in
August 1991. This policy promises to meet 100% credit demand of small & tiny
industries.
The policy Highlights are –
1) The Small Industries Development Organization (SIDO) has been recognized as the nodal
agency to support the SSIs export promotion.
2) An export development center would be set up in SIDO to serve the SSIs through its
network of field officers to further augment export activities of the sector.
3) A Technological Development Cell (TDC) will be set up in SIDO which could provide
technology inputs to improve quality & competitiveness of products of SSI sector.
21. 21
The policy Highlights are –
4) The Scheme for the Handloom sector which contributed 30% of the total textile
production in the country would be redesigned keeping in view the local & regional
needs. It would be the policy of government to promote handloom to sustain
employment in rural areas & to improve quality of life for handloom weavers.
5) The National Small Industries Corporation (NSIC) would concentrate on marketing of
mass consumption items under common brand name & organizational links between
NSIC & SSIDCs would be established.
6) The scope of the national equity fund scheme will be widened to cover projects up to
Rs. 10 lakhs for Equity Support (up to 15%)
22. 22
The policy Highlights are –
7) The Single Window Loan Scheme has also been enlarged to cover projects up to
Rs. 20 lakhs with working capital margin up to Rs. 10 lakhs.
8) SSIs can have equity support to the extent of 24 % of the investment from the
medium & large scale industries, public undertakings, NRIs or foreign
investment.
9) Limited partnership act was proposed to be introduced.
10) To avoid delayed payments by the large units, factoring services through SIDBI
was proposed. Some of the title of important schemes are – Soft Loan Schemes,Seed
Capital Assistance,Risk Capital Assistance,Concessional Schemes,etc.
24. 24
MSMED act was established to provide for facilitating the promotion and
development and enhancing the competitiveness of micro, small and medium
enterprises.
The previous act i.e. Industrial Development Regulation Act
(IDRA) was restricted only to SSI. However, during last 60 years of
independence, the norms for the promotions and development have changed and
the requirement to motivate the higher and different versions of SSI is felt.
The MSMED Act not only addresses these issues but it also takes care of Micro,
Small and Medium Scale enterprises (“MSM enterprises”).
25. 25
TheAct is operational from October 2,2006.
The MSMEDAct was framed with the following objects:
To facilitate the promotion and development of micro, small and
medium scale enterprises (MSM enterprises);
To enhance the competitiveness of MSM enterprises;
To concentrate on the related matters of MSM enterprises;
26. 26
Schemes implemented directly by the Ministry of MSME
Schemes implemented through NSIC
Schemes implemented through KVIC (Khadi &Village Industries Commissions)
http://www.kvic.org.in
Schemes implemented through Coir Board
http://coirboard.gov.in
Schemes implemented by the Office of the DC(MSME)
27. 27
Any person who intends to establish Micro, Small & Medium enterprise engaged
either in manufacturing of products or providing or rendering of services shall file
Part-I. Once Enterprise starts the production or starts providing or rendering
services then they shall file Part-II of the Entrepreneur Memorandum.
Validity of Entrepreneur’s Memorandum (Part-I) is two years.
No Renewal shall be granted.
Existing enterprise shall file Part-II of Entrepreneurs Memorandum.
28. 28
Entrepreneur shall have to inform the District Industries Centre
(DIC) in writing within three months of the change
In case of change in investment in Plant & Machinery or in equipments, the
enterprises, which have already filed Entrepreneurs Memorandum
In case of change of products & that of services or addition in product or
services, the enterprises which have already filed Entrepreneurs
Memorandum
Failure to do so is contravention of law and is punishable as specified in
section 27 of MSMED Act.
29. 29
would normally get registered to avail some benefits like –
Incentives or support given either by the Central or State Govt.
Marketing assistance
TechnologyTrainingAssistance
Arrange exhibitions
Domestic exhibitions
International exhibitions
Space available on lease
30. 30
Sr.
No
.
Benefits available under the act
Whether
available to
Micro
enterprises
Whether
available to
Small
enterprises
Whether
available to
Medium
enterprises
1.
Protection against delayed payments by
buyers of goods/services
Yes
(see Note 1
below)
Yes
(see Note 1
below)
No
2.
Central Governments' measures for
promotion and development [Sec 9 of the
act]
Yes Yes Yes
3.
RBI’s progressive credit policies for
ensuring timely and smooth flow of credit
[Sec 10 of the act]
Yes Yes
Yes
(see Note 4
below)
4.
Reservation of items for manufacture and
production u/s 29B of the 1951Act
Yes
(see Note 2
below)
Yes
(see Note 2
below)
No
Note 1: This benefit shall be available only if the micro/small enterprise has filed memorandum u/s 8 of the act.
Note 2: This benefit is available only to enterprises engaged in manufacturing or production of goods in any scheduled industry.
There is no provision under any law which permits the government to reserve any services for exclusively being rendered only by
micro and small enterprises.
31. 31
Sr.
No
.
Benefits available under the act
Whether
available to
Micro
enterprises
Whether
available to
Small
enterprises
Whether
available to
Medium
enterprises
5.
Preference policies (preference to micro
enterprises in respect of goods and services
procured by Government Departments/aided
institutions/ PSEs) notified by Central/ state
government [Sec 11 of the act].
Yes Yes No
6.
Simplified exit scheme (winding up the
business) u/s 25 of the act.
Yes
(see Note 3
below)
Yes
(see Note 3
below)
Yes
(see Note 3
Below)
Note 3: This scheme shall not apply to companies.
Note 4: As per RBI’s master circular, dated 2-7-2007 lending by banks to medium enterprises is not considered
as “priority sector credit”.
33. 33
Works under the Union Ministry of Industries
Was set up in 1955
For aid & foster the growth of SSI in country.
Provides a wide range of services to promote SSIs.
34. 34
Its main functions are –
To provide machinery on hire-purchase of SSIs.
To provide equipment leasing facility.
To help in export marketing of product of SSIs.
To participate in bulk purchase programme of the government.
To develop prototype of machines & equipments to pass on to SSIs for
commercial production.
To distribute basic raw material among SSIs through raw material depots.
35. 35
Its main functions are –
To help in development & up gradation of technology &
implementation of modernization programmes of SSIs.
To impart training in various industrial trades.
To set up SSIs in other developing countries on turn-key basis.
To undertake the construction of industrial estates.
36. 36
SIDO is a subordinate office of the department of Small Scale Industries (SSI)
& Agro and Rural Industries (ARI).
It is an apex body & nodal agency for formulating, co-ordinating & monitoring
the policies & programmes for promotion & development of SSIs.
The main function of SIDO are classified into
Co-ordination,
Industrial Development, and
Extension
37. 37
These functions performed through a national network of institutions &
associated agencies created for this reason.
The SIDO functions through –
27 offices,
31 Small industries Service Institutes 9sisi0,
37 Extension Centers,
3 Product-cum-Process Development Centers 7
4 Production Centers.
38. 38
All SSIs fall under the scope of the SIDO
except those falling within the specialized
boards & agencies like
KVIC,
Coir Board,
Central Silk Board, etc.
39. 39
Main Functions performed by SIDO in each of its three categories are as
follows –
Functions relating to Co-ordination
1) To evolve a national policy for the development of SSIs,
2) To co-ordinate the policies & programmes of various state governments,
3) To maintain a proper link with the related Central Ministries, Planning
Commission, State Governments, Financial Institutions, etc.
4) To co-ordinate the programme for the development of Industrial estates.
40. 40
Functions relating to Industrial Development
1) To reserve items for production by SSIs,
2) To collect data on consumer items imported & then, encourage the setting of
industrial units to produce these items by giving coordinated assistance,
3) To render required support for the development of ancillary units, and
4) To encourage SSIs to actively participate in Government Stores Purchase
Programme by giving them necessary guidance, market advice & assistance.
41. 41
Functions relating to Extension
1) To make provision of technical services for improving technical process,
production planning, selecting appropriate machinery, preparing ,
2) To collect data on consumer items imported & then, encourage the setting of
industrial units to produce these items by giving coordinated assistance,
3) To render required support for the development of ancillary units, and
4) To encourage SSIs to actively participate in Government Stores Purchase
Programme by giving them necessary guidance, market advice & assistance.
42. 42
•Constituted in 1954 to advice on development of SSIs in the country.
•It is also called as Central Small Industries Board (CSIB).
•The Industries Minister of the Government of India is the chairman of the
SSIB.
It comprises of 50 members including
State Industry Minister,
some members of parliament,
Secretaries of various departments of government of India,
Industry associations &
Eminent experts in the field.
43. 43
set up to provide consultancy & training to small entrepreneurs.
All over the country they have 30 branch SISIs in state capital.
The main functions SISIs include –
To serve as interface between Central 7 state governments.
To render technical support services.
To conduct Entrepreneurship Development Programs.
To initiate promotional programs.
44. 45
In each district one agency was created to deal with all
requirements of small & village industries which is called as
“District Industries Centre”
45. 46
In Industrial Policy announced by the Government of the
India on 23rd December 1977 laid special stress on the
development of Small Scale, Village & Cottage industries. The
policy statement indicated that the District would be the main
focus of efforts & agency for promotion of small scale, village
& cottage industries would be a new organization called as
“District Industries Centre”
46. 47
The District Industries Centers (DIC’s) programme was started
in 1978 for promotion of small scale industries in rural areas.
The DIC’s are pictured as a single window interacting agency at the
district level providing service and support to small
entrepreneurs under a single roof.
DIC’s are the implementing arm of the central and state
governments of the various schemes and programmes.
47. 48
To develop Entrepreneurial Skills of people.
To motivate for self employment.
To provide all the necessary facility under one roof.
To reduce regional imbalance of development.
To courage in migration.
48. 49
Registration of small industries is done at the district industries centre
and PMRY (Pradhan Mantri Rojgar Yojana) is also implemented by
DIC.
Prime Minister RozgarYojona (PMRY)
It is a self-employment scheme for educated unemployed youth with eligibility...
a) ClassVIII passed
b)Age – 18 to 35 years (relaxable up to 45 years for SC / ST /Women / Physically
handicapped / Ex-Servicemen)
c) Project up to Rs 2.00 lakh for Industries/Service and Rs 1.00 lakh for Business
d)Annual family income – Rs 40,000/- (Max)
49. 50
The organizational structure of DICs consists of
General Manager,
Functional Managers and
Project Managers to provide technical services in the areas relevant
to the needs of the district concerned.
Management of DIC is done by the state government.
51. 52
The main functions of DIC are:
To prepare and keep model project profiles for reference of the
entrepreneurs.
To prepare action plan to implement the schemes effectively
already identified.
To undertake industrial potential survey and to identify the types
of feasible ventures which can be taken up in ISB sector, i.e.,
industrial sector, service sector and business sector.
52. 53
To guide entrepreneurs in matters relating to selecting the most
appropriate machinery and equipment, sources of it supply and
procedure for importing machineries.
To provide guidance for appropriate loan amount and
documentation.
To assist entrepreneurs for availing land and shed equipment and
tools, furniture and fixtures.
53. 54
To appraise the worthiness of the project-proposals received
from entrepreneurs.
To help the entrepreneurs in obtaining required
licenses/permits/clearance.
To assist the entrepreneurs in marketing their products.
To conduct product development work appropriate to small
industry.
54. 55
To help the entrepreneurs in clarifying their doubts about the
matters of operation of bank accounts, submission of monthly,
quarterly and annual returns to government departments.
To conduct artisan training programme.
To act as the nodal agency for the district for implementing
PMRY (Prime Minister RojgarYojana).
To help the specialized training organizations to conduct
Entrepreneur development programmes.
55. 56
The Department of small-scale industries was created in 1991, in the
Ministry of Industry to exclusively formulate the policy framework for
promoting and developing small-scale industries in the country.
These activities are supported by a host of other central/state government
departments, promotional agencies, autonomous institutions, non-
government organizations and so on.
The range of services cover consultancy in techno-economic and managerial
aspects, training, testing facilities, and marketing assistance through the
agencies created for the specified functions.
56. 57
The implementation of policies, programmes and schemes for
providing infrastructure and support services to small enterprises is
undertaken through these offices, namely Small Industries
Development Organization (SIDO), Khadi Village and Industry
Commission (KVIC) and Coir Board, National Small Industry
Corporation (NSIC) and various training institutes.
57. 58
The institutional network can be
broadly classified as
Central level
institutions/agencies
State level institutions/agencies
Other agencies
Fig.: Institutions supporting small-scale industries
58. 59
National Productivity Council (NPC)
Indian Institute of Entrepreneurship (IIE)
National Institute for Entrepreneurship and Small Business Development (
NIESBUD).
National Science &Technology Entrepreneurship Development Board ( NSTEDB).
National Institute of Small Industry ExtensionTraining (NISIET)
State Financial Corporations (SFC )
State Small Industries Development Corporations (SSIDCS)
59. Review Question
60
Explain in brief the stages in entrepreneurial process.
Distinguish between Micro, Small & medium enterprise. Discuss Micro, Small and Medium
Enterprises DevelopmentAct 2006.
What do you mean by Small-Scale industry? Explain the role of SSI.
Discuss the support provided by NSIC to small scale industries.
Explain various activities of SIDO.
Explain the functions of SISI. Enumerate various types of assistances rendered by it.
Discuss the important functions of SSIDC.
Explain in brief the main functions of DIC.