Institutional support to small and medium enterprises

1. INSTITUTIONAL SUPPORT TO
SMALL AND MEDIUM
ENTERPRISES

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

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

4. CENTRAL GOVERNMENT
INSTITUTES

5. SMALL SCALE INDUSTRIES BOARD
Established in 1954 to provide effective
coordination and inter-institutional linkages for the
benefit of small scale sector.
It consists of the following members:
Union Industry Minister
State Industry Minister
Selected members of Parliament
Secretaries of department concerned

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

7. NATIONAL BANK FOR AGRICULTURE
AND RURAL DEVELOPMENT (NABARD)
Services offered by NABARD:
Attracting youth to rural non-farm sector.
District Industries Rural Project (DRIP).
Rural Entrepreneurship Development Programme
(REDP).

8. SMALL INDUSTRIES DEVELOPMENT
ORGANISATION (SIDO)
Constituted in 1954 to develop support services for
promotion of SSS.
Main objectives of SIDO are:
To formulate policy for promotion of SSI
Provide coordination of policies of state
government
To collect and disseminate information

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

10. Services Rendered by SIDO:
Entrepreneurship development and Management
training.
Efforts for skill development.
Preparation of feasibility reports for different
products.
Provision of testing services.
Availability of tool room facilities.

11. NATIONAL SMALL INDUSTRIES
CORPORATION (NSIC)
Set up by government of India in 1955.
Main functions are:
Supply of machinery and equipment.
Provision of financial assistance.
Assistance for arrangement of raw materials.
Establishment of technology transfer centers.
Arrangement of marketing assistance.
Priority in government purchase programme

12. SMALL INDUSTRIES DEVELOPMENT
BANK OF INDIA (SIDBI)
Subsidiary of IDBI, setup as an act of parliament.
Provides assistance for:
Setting up of new SSI units, small hotels, hospitals
and so on.
Technological upgradation and modernization,
expansion and diversification.
Quality upgradation.

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

14. STATE GOVERNMENT
INSTITUTES

15. STATE FINANCIAL CORPORATIONS (SFC)
Objectives:
Provide term loans for the acquisition of land,
building, plant and machinery.
Promotion of self-employment.
Encourage women entrepreneurs.
Expansion of industry.
Provide seed capital assistance.

16. STATE SMALL INDUSTRIES
DEVELOPMENT CORPORATION (SSIDC)
Important functions performed are:
Procurement and distribution of raw materials.
Supply of machine on hire-purchase basis.
Construction of industrial estates.
Providing assistance for marketing of products of
SSI.

17. TECHNICAL CONSULTANCY
ORGANISATON
Services of TCOs include:
Preparation of project profiles.
Undertaking industrial potential surveys.
Identification of potential entrepreneurs.
Undertaking market research.
Project supervision and rendering technical and
administrative assistance.
Conducting EDPs.

18. KHADI AND VILLAGE INDUSTRIES
COMMISION (KVIC)
It is engaged in the development of khadi and
village industries in rural areas.
Main objectives of KVIC are:
Providing employment in rural areas.
Skill improvement.
Rural industrialization.
Transfer of technology.

19. NON-GOVERNMENT
INSTITUTES

20. INDIAN COUNCIL OF SMALL INDUSTRIES
(ICSI)
It was established in 1979.
Main functions are:
Information dissemination.
Entrepreneurship development.
Consultancy and managerial support.
Training and research.

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

22. CONCLUSION
The most important development in the post-
independence period has been the growth of a
number of key institutions to promote, assist and
develop entrepreneurs to initiate industrial growth
in the country. The country has laid a strong
foundation broad based its infrastructure and
provided much needed support and assistance.

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

24. THANK YOU