Institutional support towards the development of ent.

in India
Institutional support system
Institutional support system has been designed at following levels:
1. Central Government
2. State Government
 Central Government Institutions:
National Board for Micro, Small and Medium Enterprises (NBMSME).
The Government Formulated the Micro, Small and Medium Enterprises Development Act in 2006
and established this. This Board examines the factors affecting promotion and development of
MSMEs and reviews policies and programmes from time to time relating to these enterprises, and
makes recommendations to the Government in formulating the policies for the growth of MSMEs.
National Commission for Enterprises in the Unorganised Sector (NCEUS)
The Government of India constituted the National Commission for Enterprises in the Unorganised
Sector (NCEUS) to examine the problems of the enterprises in the unorganized/informal sector. The
Commission has made recommendations to provide technical, marketing and credit support to
these enterprises.
Small Scale Industries Board (SSIB)
It was established in 1954 to provide effective coordination and inter- institutional linkages for the
benefit of small scale sector.
National Bank for Agriculture and Rural Development (NABARD)
NABARD is designated as an apex development bank in the country. This national bank was
established in 1982 by a Special Act of the Parliament, with a mandate to uplift rural India by
facilitating credit flow in agriculture, cottage and village industries, handicrafts and small-scale
industries. It is also required to support non-farm sector while promoting other allied economic
activities in rural areas. NABARD functions to promote sustainable rural development for attaining
prosperity of rural areas in India.
Central Government Institutions:
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.
National Small Industries Corporation (NSIC)
The National Small Industries Corporation (NSIC) Ltd. was established by the Government as a
Public Sector Company in 1955. It deals with arrange supply of machinery and equipments,
provision of financial assistance, arrangement of raw materials, establishment of technology
transfer centres. etc.
Industrial Development Bank of India
The objective of the IDBI includes: Coordinating, supervising, and controlling the activities of
Finacial Institutions like ICICI, LIC, etc. The Collection of resources for other financial
institutions and providing financial assistance. Planning and promoting key industries to
enhance industrial growth.
Central Government Projects:
Startup India
Launched in 2016,to promote and support start up ventures in the country. Include benefits
such as tax exemptions, funding, and other support services for eligible start ups.
Stand-Up India
Launched in 2016 to provide financial support to women and SC/ST entrepreneurs. This
Include loans offered between Rs. 10 lakh and Rs. 1 crore for setting up new enterprises.
Atal Innovation Mission
Started in 2016 , to promote innovation and entrepreneurship in the country by facilitating
initiatives such as Atal Tinkering Labs, Atal Incubation Centers, and Atal New India Challenges
to support startups and innovators.
Pradhan Mantri Mudra Yojana
Commenced in the year 2015 , to provide financial support to small and micro enterprises. By
this,loans offered up to Rs. 10 lakh to eligible entrepreneurs.
Central Government Projects:
Make in India
To promote manufacturing in India, the project launched in 2014 .Include incentives and
benefits offered to entrepreneurs who set up manufacturing units in the country.
Digital India
To promote digital literacy and e-governance in the country, Digital India scheme is
launched in 2015. In this project, benefits offered to entrepreneurs who use digital
technology for their businesses.
State Government Institutions:
Various schemes are available in different states to promote, support and assist
entrepreneurship.
List of few agencies under Govt of Kerala are:
• Kerala Institute for Entrepreneurship Development – KIED
• Kerala Startup Mission
• Directorate of Industries and Commerce
• Innovation and Entrepreneurship Development Centres (IEDC)
Technical Consultancy Organizations (TCOs)
Technical Consultancy Organizations
TCOs provide a complete set of consultancy services to small and medium
enterprises, individual entrepreneurs, Government departments and
agencies, various state level institutions ,Banks etc.
Technical Consultants bring current and relevant knowledge to their
clients, solving technical problems in computers and information systems.

KITCO Ltd was established in 1972 as the first Technical Consultancy

Organisation (TCO) in India, jointly by Industrial Development Bank of
India, Government of Kerala and public sector banks.
Functions of TCO
• Conducting surveys on industrial potential
• Preparing project profiles
• Undertaking techno-economic appraisal of projects
• Carrying out market research
• Providing technical and managerial assistance to entrepreneurs, assistance in
• modernization
• Technology up gradation and rehabilitation programs.
• organizing information cell and data bank
• concerning industrial and economic activities and provide these to
entrepreneurs.
• Development of Industry Clusters
• Vocational training
• Offering Merchant Banking Services
• Offering Consultancy for Export oriented Enterprises
Major TCOs in India.
• KITCO Ltd. (Kerala)
• APITCO Ltd. (Andhra Pradesh)
• GITCO Ltd. (Gujarat)
• HIMCON Ltd. (Himachal Pradesh)
• TICOT Consultancy and Services Ltd. (Tamil Nadu)
• TECSOK Ltd. (Technical Consultancy of Karnataka)
• MPCON Ltd. (Madhya Pradesh Consultancy Organization Ltd.)
• MITCON Consultancy and Engineering Services Ltd. (Maharashtra)
• NITCON Ltd. (North India Technical Consultancy Organization Ltd.)
• UPICO Ltd. (UP Industrial Consultants Ltd.)
• WEBCON Ltd. (West Bengal Consultancy Organization Ltd)
Govt. Programs and policies
Govt. Programs and policies
• Entrepreneurs in the context of globalized market economy are the
vehicles of economic development.
• Small and medium enterprises carry strategic importance in national
economy.
• Government helps enterprises including small and medium ones by
supporting entrepreneurs.
• It makes possible to create new job positions, increase gross domestic
product (GDP) and rising living standard of population.
 Types of Government Support
Government provides various incentives to entrepreneurs to
• Encourage and support entrepreneurs
• Enhance their productivity, and
• Motivate entrepreneurs
These incentives are given in the form of concession, subsidies and bounties.
Subsidies are a one time lump sum amount given to the entrepreneur by the
government. It is a financial help to cover the cost.
Bounty is a financial help provided to an industry so that it can compete with
other units of the country as well as any foreign industry in the same business.
 Aims and Objectives of Incentives
1. Solving Economic Constraints
Entrepreneurs often encounter several problems like lack of adequate infrastructure, locations
of supporting offices for projects, lack of managerial skills and technical know how, lack of
Market intelligence, etc.
Provision of Government incentives like availability of power, concessional finance, capital
investment subsidies, transport subsidies, etc. aims at eliminating such constraints and promote
entrepreneurship.
2. Inculcate regional parity in development
Regional disparity is one of the concerning features of Indian economy. Government provides
special incentives for establishing entrepreneurs in the backward regions.
3. To prepare entrepreneurs for competition
Small Scale Enterprises started by entrepreneurs observe strong competition from big firms.
Incentives like reservation policy, price preference, preferential purchase, etc., help to improve
their competitive strength.
 Government Support to Entrepreneurs
Industrial extension services
- institutional support in respect of credit facilities,
- provision of developed sites for construction of sheds,
- provision of training facilities,
- supply of machinery on hire-purchase terms-
- assistance for domestic marketing as well as exports,
- special incentive for setting up enterprises in backward areas etc.
- technical consultancy & financial assistance for technological upgradation.
Training
Trainings aims at improving the entrepreneurial skills.
Marketing Assistance
Government and non government agencies provide marketing assistance to entrepreneurs.
Government promotes MSME products through exhibitions.
Promotional schemes
MSMEs are accorded highest priority. For their development conducive policies and schemes are
formulated and implemented. Government provides land and sheds on actual cost basis with
appropriate infrastructure.
 Government Support to Entrepreneurs
Excise duty Concession
Government provides exemption to MSME units for a particular level of annual
turnover from paying excise duty.
Credit facility
Credit to MSME sector is covered under priority sector lending by [Link]
industries development bank of India (SIDBI) is mainly responsible for
implementing various schemes of providing financial support to small
entrepreneurs. Loans are also provided to small entrepreneurs by scheduled banks
without collateral security.
 Schemes of State Governments
The state governments also provide technical and other support services to
MSME through their directorate of industries and district industries centre.
In general all the state governments extend support of following types:
a) Deferment/ suspension of sales tax.
b) Power subsidy
c) Capital investment subsidies to new enterprises established in some
selected districts.
d) Margin money/seed capital assistance schemes.
e) Priority in providing power connection/water connection.
f) Technical and consultancy support.
Government incentives for enterprise setting
Incentives
Government provides various incentives to entrepreneurs to
• Encourage and support entrepreneurs
• Enhance their productivity, and
• Motivate entrepreneurs
• These incentives are given in the form of concession, subsidies and
bounties.
• Subsidies are a one time lump sum amount given to the entrepreneur by
the government. It is a financial help to cover the cost.
• Bounty is a financial help provided to an industry so that it can compete
with other units of the country as well as any foreign industry in the
same business.
 Aims and Objectives of Incentives
1. Solving Economic Constraints
Provision of Government incentives like availability of power, concessional
finance, capital investment subsidies, transport subsidies, etc. aims at
eliminating such constraints and promote entrepreneurship.
2. Inculcate regional parity in development
Government provides special incentives for establishing entrepreneurs in the
backward regions, to inculcate equitable growth and development of all regions.
[Link] entrepreneurs for competition
Small Scale Enterprises started by entrepreneurs observe strong competition
from big [Link] make them able to thrive and survive under competitive
environment some sort of support is required.
 Advantages of providing Incentives to Entrepreneurs
1. Decentralization of economic power
Incentives encourages prospective entrepreneurs to take up industrial ventures and results in
decentralization of economic power in few hands.

2. Balanced regional development

Incentives are given to entrepreneurs establishing industries in backward areas. Hence, it results
in the dispersal of industries over India’s geographical area and contributes to regional balanced
development.

3. Transformation of Technology
Incentives help in the transformation of traditional technology into modern technology. Traditional
technology is characterized by low skill; low productivity and low wages, whereas modern
technology is subsequently characterized by improved skills, high productivity, raising wages and a
higher standard of living.

4. Overcomes Difficulties
The package of incentives and concessions are given to entrepreneurs for setting up units both in
backward as well as developed districts. But generally it is given for setting up units in backward
area. It is provided to offset the disadvantages prevailing in such places.
 Advantages of providing Incentives to Entrepreneurs
[Link] Industrialization
Industrial policy uses incentives both to correct the market imperfections and to
accelerate the process of industrialization in the country. Regional balances can also lead
to effective utilization of regional resources, removal of disparities in income and levels
of living and contribute to a more integrated society.

6. Encourages Entrepreneurship
The new entrants in the field face many obstacles on account of inadequate
infrastructures. The new entrepreneur is supported by the government agencies through
various incentives. Being a new entrant, an entrepreneur may lack marketing and
entrepreneurial skills. An entrepreneur requires support from government agencies to
compete with competitors. The subsidies and concessions motivate the entrepreneur both
financially and non financially and promotes entrepreneurship in the country by removing
economic constraints.

7. Helps to Overcome Competition

Incentives help the entrepreneur to survive and compete with the competitors. Some of
the incentives are concerned with the survival and growth of industries. Several
incentives are confined to the first few years of the establishment of the unit while a few
of them are made available over a long period.
Entrepreneurial Networks
Entrepreneurial Networks
“Networking is the No. 1 unwritten rule of success in business.”

Entrepreneurial Networks (EN) are social organizations offering different

types of resources to start or improve entrepreneurial projects. Having
adequate human resources is a key factor for entrepreneurial achievements.
Entrepreneurial networks refer to the channels and carriers of information,
knowledge, and resource exchange, and interaction. These networks are
important for entrepreneurs to deal with the uncertainty, urgency, and
pressure of identifying entrepreneurial opportunities, and reduce
transaction costs
Entrepreneurial Networking
Types of Entrepreneurial Networks
Benefits of Entrepreneurial Networks
1. Strong Professional Ties
2. Access to Job Opportunities
3. Career And Profile Advancement
4. Exchanging New Ideas
5. Gained Knowledge
6. Higher Confidence
7. Improved Creative Intellect
8. An Answer to Most Questions
9. Polished Communication And Social Skills
10. Career Advice and Support
Advantages & Disadvantages
Women entrepreneurship development in India
Women entrepreneurship
• Women Entrepreneurs may be defined as the women or a group of
women who initiate, organize and operate a business enterprise.

• A woman entrepreneur is therefore a confident, creative and innovative

woman desiring economic independence individually and simultaneously
creating employment opportunities for others.
Women entrepreneurship- Statistics
Factors Influencing Women Entrepreneurship
1. Family culture and traditions
2. Geographical factors and social factors
3. Caste system
4. Government aids and policies
5. Inherent capabilities and efficiency
Women Entrepreneurship – Push & Pull factors
Easy Scope
• Travel and tourism
• Kitchens for communities
• Beauty firms
• Readymade garments
• Food industry
• Embroidery
• Training and coaching classes
Challenges
• Lack of social and institutional support
• Pressure to stick to traditional gender roles
• Low risk bearing ability
• Limited funding
• Work-life balance
• Lack of education
Govt. schemes for women entrepreneurship
• Bharathiya Mahila Bank Business Loan
• Dena Shakti Scheme
• Udyogini Scheme
• Women Entrepreneurship Platform (WEP)
• Annapurna Scheme
• Pradhan Mantri Mudra Yojana Scheme
Emerging Women Entrepreneurs….National
Women Entrepreneurs….. Kerala