ENTREPRENEURSHIP DEVELOPMENT UNIT 6 Institutional support to Entrepreneurs

ENTREPRENEURSHIP DEVELOPMENT UNIT 6 – Institutional support to Entrepreneurs

NATIONAL SMALL INDUSTRIES CORPORATION (NSIC) Set up by government of India in 1955. Main functions are: i. To arrange for Supply of machinery and equipment. ii. To arrange Provision of financial assistance. iii. To provide Assistance for arrangement of raw materials. iv. To aid establishment of technology transfer centres. v. To make arrangement of marketing assistance. vi. To ensure priority in government purchase programme vii. To promote, aid, and foster the growth of micro and small enterprises in the country, generally on a commercial basis viii. To provides a variety of support services to micro and small enterprises catering to their different requirements in the areas of raw material procurement; product marketing; credit rating; acqui sition of technologies; adoption of modern management practices, arranging for business partners, ensuring technology transfer pro grammes through missions, delegations and expositions etc.

NSIC • Consortia & Tender Marketing • Single point registration for govt purchase • Exhibitions & Technology fairs • Buyer seller meets • Export of Products and projects • Infomediary services • Software technology parks • Technology Business Incubators • Material testing facilities through accredited labs • Product design including CAD • Common facility support in machining • Energy and environmental services Support Services Marketing Support Technology Support Credit Support • Equipment Financing • Tie up with Commercial Banks • Financing for procurement of raw materials • Financing of marketing activities

SMALL INDUSTRIES DEVELOPMENT ORGANISATION (SIDO) • It was constituted in 1954 to develop support services for promotion of SSS. Over the years, it has seen its role evolve into an agency for advocacy, hand holding and facilitation for the small industries sector. It has over 60 offices and 21 autonomous bodies under its management. • These autonomous bodies include: i. Tool Rooms ii. Training Institutions iii. And Project cum Process Development Centres.

SIDO The SIDO provides a wide spectrum of services to the small industries sector. These include: i. Facilities for testing, tool making, training for entrepreneurship development, preparation of project and product profiles, technical and managerial consultancy, assistance for exports, pollution and energy audits etc. ii. The SIDO provides economic information services and advis es Government in policy formulation for the promotion and development of SSIs. Consequent to the increased globalization of the Indian economy, small industries are required to face new challenges. The SIDO has recognised the changed environment and is currently focusing on providing support in the fields of credit, marketing, technology and infrastructure to SSIs. Global trends and national developments have accentuated SIDO’s role as a catalyst of growth of small enterprises in the country.

SMALL SCALE INDUSTRIES BOARD (SSIB) • The Small Scale Industries Board (SSI Board) is the apex advisory body constituted to render advise to the Government on all issues pertaining to the small scale sector. • The Board is reconstituted every two years and is headed by the Minister In charge of Small Scale Industries in the Government of India. • The Board comprises among others State Industry Ministers, some Members of Parliament, Secretaries of various Departments of Government of India, financial institutions, public sector undertakings, industry associations and eminent experts in the field.

STATE SMALL INDUSTRIES DEVELOPMENT CORPORATIONS (SSID) Important functions performed are: • Procurement and distribution of raw materials. • Supply of machine on hire purchase basis. • Construction of industrial estates/sheds, providing allied infrastructure facilities and maintenance. • Providing assistance for marketing of products of SSI. • Provide management assistance to production units

SMALL INDUSTRIES SERVICE INSTITUTES (SISI) • The small industries service institutes (SISI’s) are set up one in each state to provide consultancy and training to small and prospective entrepreneurs. • The activities of SISs are co ordinate by the industrial management training division of the DC, SSI office (New Delhi). In all there are 28 SISI’s and 30 Branch SISI’s set up in state capitals and other places all over the country. • SISI has wide spectrum of technological, management and administrative tasks to perform.

SISI 1. To assist existing and prospective entrepreneurs through technical and managerial counseling such as help in selecting the appropriate machinery and equipment, adoption of recognized standards of testing, quality performance etc; 2. Conducting EDPs all over the country; 3. To advise the Central and State governments on policy matters relating to small industry development; 4. To assist in testing of raw materials and products of SSIs, their inspection and quality control; 5. To provide market information to the SISI’s; 6. Conduct economic and technical surveys and prepare techno economic feasible reports for selected areas and industries.

DISTRICT INDUSTRIES CENTRES (DIC) • 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 finances for setting up DICs in a state are contributed equally by the particular state government and the central government. • 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 1. granting financial and other facilities to small units 2. developing close links with development blocks and specialized institutions providing help to set up industries in rural areas 3. identifying and helping new entrepreneurs

INDUSTRIAL ESTATES • According to P. C. Alexander, “An industrial estate is a group of factories, constructed on an economic scale in suitable sites with facilities of water, transport, electricity, steam, bank, post office, canteen, watch and ward and first aid, and provided with special arrangements for technical guidance and common service facilities”

TYPES • General type • Special type BASIS OF FUNCTIONS BASIS OF ORGANISATIONAL SET UP • Government IE • Private IE • Co operative IE • Municipal IE • Ancillary IE • Functional IE • Workshop bay BASIS OF OTHER VARIANTS

SPECIALISED INSTITUTIONS CENTRAL INSTITUTE OF TOOL DESIGN CENTRAL TOOL ROOM INSTITUTE FOR DESIGN OF ELECTRICAL MEASURING INSTRUMENTS CENTRAL INSTITUTE OF HAND TOOL NATIONAL INSTITUTE OF ENTREPRENEURSHIP AND SMALL BUSINESS DEVELOPMENT (NIESBUD)

TECHNICAL CONSULTANCY ORGANISATIONS (TCO) Services of TCOs include: i. Preparation of project profiles. ii. Undertaking industrial potential surveys. iii. Identification of potential entrepreneurs. iv. Undertaking market research. v. Project supervision and rendering technical and administrative assistance. vi. Conducting EDPs.