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Overview of SIDO and Its Role in India

The document discusses various government institutions set up in India to promote entrepreneurship through training and development programs. It outlines several agencies established at the central and state level to provide services like training, counseling, funding, and policy support to entrepreneurs. Some of the key central government institutions mentioned are Small Industries Development Organisation (SIDO), Entrepreneurship Development Institute of India (EDI), National Institution of Entrepreneurship and Small Business Development (NIESBUD), and National Small Industries Corporation (NSIC). The government aims to develop entrepreneurship to reduce unemployment, promote balanced regional growth, and maximize the use of local resources.
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0% found this document useful (0 votes)
356 views7 pages

Overview of SIDO and Its Role in India

The document discusses various government institutions set up in India to promote entrepreneurship through training and development programs. It outlines several agencies established at the central and state level to provide services like training, counseling, funding, and policy support to entrepreneurs. Some of the key central government institutions mentioned are Small Industries Development Organisation (SIDO), Entrepreneurship Development Institute of India (EDI), National Institution of Entrepreneurship and Small Business Development (NIESBUD), and National Small Industries Corporation (NSIC). The government aims to develop entrepreneurship to reduce unemployment, promote balanced regional growth, and maximize the use of local resources.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

The Government has set up various centres or institutes to impart training and

development to entrepreneurs, so as to improve their knowledge, attitudes, and


skills.

For the development of entrepreneur a number of specialized agencies have


been set up by the state and central goverenments which are as follows:
 Small Industries Service Institutes (SISI)

 Small Industries Development Organisations (SIDO)


 National Small Industries Corporation
 Small Industries Extension Training Institute.
 Entrepreneurship Development Institute of india
 Institute for Rural Management and Adminstration
 National Institute for Entrepreneurship and Small Business Development
(NIESBUD)
 National Alliance of young entrepreneurs (NAYA)
 Maharashtra Centre for Entrepreneurship Development (MCED)

Government plays a very important role in developing entrepreneurship.


Government develop industries in rural and backward areas by giving various
facilities with the objective of balances regional [Link] government
set programmes to help entrepreneurs in the field of technique,finance,market
and entrepreneurial development so that they help to accelerate and adopt the
changes in industrial [Link] institutions were set up by the
central and state governments in order to fulfill this objective.

A. Institutions set up by Central Government

1. Small industries development organization (SIDO)

SIDO was established in October 1973 now under Ministry of Trade, Industry
and Marketing. SIDO is an apex body at Central level for formulating policy for
the development of Small Scale Industries in the country,headed by the
Additional Secretary & Development Commissioner(Small Scale Industries)under
Ministry of Small Scale Industries Govt. of India. SIDO is playing a very
constructive role for strengthening this vital sector, which has proved to be one
of the strong pillars of the economy of the country. SIDO also provides extended
support through Comprehensive plan for promotion of rural entrepreneurship.

2. Management development Institute(MDI)

MDI is located at Gurgaon(Haryana).It was established in 1973 and is sponsored


by Industrial Finance Corporation Of India,with objectives of improving
managerial effectiveness in the [Link] conducts management development
programs in various [Link] also includes the programmes for the officers of
IAS,IES,BHEL,ONGC and many other leading PSU’s.

3. Entrepreneurship development institute of India (EDI)

Entrepreneurship Development Institute of India (EDI), an autonomous and not-


for-profit institute, set up in 1983, is sponsored by apex financial institutions –
the IDBI Bank Ltd., IFCI Ltd., ICICI Bank Ltd. and the State Bank of India (SBI). EDI
has helped set up twelve state-level exclusive entrepreneurship development
centres and institutes. One of the satisfying achievements, however, was taking
entrepreneurship to a large number of schools, colleges, science and technology
institutions and management schools in several states by including
entrepreneurship inputs in their curricula. In the international arena, efforts to
develop entrepreneurship by way of sharing resources and organizing training
programmes, have helped EDI earn accolades and support from the World Bank,
Commonwealth Secretariat, UNIDO, ILO, British Council, Ford Foundation,
European Union, ASEAN Secretariat and several other renowned agencies. EDI
has also set up Entrepreneurship Development Centre at Cambodia, Lao PDR,
Myanmar and Vietnam and is in the process of setting up such centres at
Uzbekistan and five African countries.

4. All India Small Scale Industries Board(AISSIB)

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 [Link] determines the policies and programmes for the
development of small industries with a Central Government Minister as its
president and the representatives of various organization i.e. Central
Government,State Government,National Small Industries Corporations,State
Financial Corporation,Reserve Bank of India,State Bank of India,Indian Small
Industries Board,Non government members such as Public Service
Commission,Trade and Industries Members.

5. National Institution of Entrepreneurship and Small Business


Development(NIESBUD),New Delhi

It was established in 1983 by the Government of [Link] is an apex body to


supervise the activities of various agencies in the entrepreneurial development
program// [Link] is a society under Government of India Society Act of
[Link] major active ,vpities of institute are:

i) To make effective strategies and methods


ii) To standardize model syllabus for training

iii) To develop training aids,tools and manuals

iv) To conduct workshops,seminars and conferences.

v) To evaluate the benefits of EDPs and promote the process of Entrepreneurial


Development.

vi) To help support government and other agencies in executing entrepreneur


development programmes.

vii) To undertake research and development in the field of EDPs.

6. National Institute of Small Industries Extension Training

It was established in 1960 with its headquarters at [Link] main


objectives of national Institute of Small Industries Extension Training are:

i) Directing and Coordinating syllabi for training of small entrepreneurs.

ii) Advising managerial and technical aspects.

iii) Organizing seminars for small entrepreneurs and managers.

iv) Providing services regarding research and documentation.

7. National Small Industries Corporation Ltd. (NSIC)

The NSIC was established in 1995 by the Central Government with the objective
of assisting the small industries in the Government purchase [Link]
corporation provides a vast-market for the products of small industries through
its marketing [Link] also assists the small units in exporting their products in
foreign countries.

Entrepreneurial Development Programme (EDP)


Success of an entrepreneurship depends on the foresight, knowledge, optimum
hard work, persistence and efficient management. The knowledge about various
aspects of business can be acquired from the entrepreneurial development
programme. The government plays a positive role in the emergence and
development of entrepreneurship by providing training, incentives and
concessions.

Entrepreneurial development programme may be defined as “a programme


designed to help an individual in strengthening his or her entrepreneurial motive
and in acquiring skills and capabilities necessary for playing the entrepreneurial
role effectively”.
The objective of entrepreneurial development programme is presented in the
figure 13.5
 

Need for Entrepreneurial Development Programme


Entrepreneurial Development Programme is needed for the following reasons;

Eliminate Poverty and Unemployment


Most of the under developed countries are facing the problem of
unemployment. The EDP can help in creating self-employment for the
unemployed. The programmes initiated by the government for managing the
problem of unemployment are as follows
·               NREP (National Rural Employment Programme)
·               IRDP (Integrated Rural Development Programme)
Prevents Industrial Slums
EDPs help in removal of those slums as the entrepreneurs are provided with
various schemes, incentives, subsidies and other infrastructural facilities. It
helps in controlling overcrowding in the developed areas.

Balances Regional Development


Successful entrepreneurial development programme helps in accelerating the
industrialization which results in reducing the concentration of economic power.
It aims at promoting Small Scale Units which are useful for balanced regional
development.
Use of Locally Available Resources
The entrepreneurial development programme helps in controlling and utilizing
the locally available resources through training and educating them. EDPs also
help in minimizing excessive scraps and wastage in the production process.

Ease Social Tension


Entrepreneurial development programmes help in channelizing the talents and
energies of unemployed youth. It helps and teaches the entrepreneurs to create
self-employment thereby easing social tension amongst youth.
 

Phases of Entrepreneurial Development Programme


There are three broad phases of Entrepreneurial Development Programme. They
are as follows;

Pre-Training Phase
The success of EDP depends on the training carried out by the training
organization. Various activities undertaken by an organization are
·               designing of course curriculum
·               selection of faculty
·               insertion of advertisement and
·               selection of potential entrepreneurs.

Training Phase
During this phase, the participants are motivated and required skills are
developed in them. They are also given practical exposures in the areas like
market surveys, project preparation, report feasibility and marketing of products
and services. This training is imparted by methods such as individual training,
group training, and lecture method, written instruction method, demonstration
method, conference method and meetings.

Post Training or Follow up Phase


This phase aims at developing the right type of ability and motivation amongst
potential entrepreneurs so as to enable them to set up their own enterprises.
Through follow- up, the weakness and problems may be remedied in the future.
Appraisal helps in understanding the extent of which the entrepreneurs have
selected suitable jobs. It guides them to identify right type of project. It also
aims in promoting the entrepreneurial talents.
 

Role of government in developing entrepreneurship


Government has taken so many efforts in developing entrepreneurial
programme through various agencies and institutions. They are as follows;

Institutions at National Level


·               National Institute for Entrepreneurial and Small Business Development
(NIESBUD)
·               Entrepreneurial Development, Institute of India (EDI)
·               Technical Consultancy Organisation (TCO)
·               Indian Investment Centre (IIC)
·               Small Industries Development Corporation (SIDC)
·               Industrial Development Bank of India (IDBI)
·               Industrial Finance Corporate India (IFCI)
·               Industrial Credit and Investment Corporation of India (ICICI)
·               National Small Scale Industrial Development Corporation (NSSIDC)
·               Small Industrial Development Bank of India (SIDBI)
·               Khadi and Village Industrial Centre (KVIC)
·               National Bank of Agencies and Rural Development (NABARD)
·               National Institute of Small Industries Extension Training (NISIET)
·               Science and Technology Entrepreneur Part (STEP).

Institutions at State Level


·               Small Industries Service institute (SISI)
·               District Industries Centre (DIC)
·               State Finance Corporation (SFC)
·               State Small Industrial Corporation (SSIC)
·               State Industrial Promotion Corporation (SIPC)

Common questions

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The Government of India supports rural entrepreneurship through SIDO by formulating policies specifically aimed at the development of small-scale industries, especially in rural areas. SIDO acts as the apex body at the central level, under the Ministry of Small Scale Industries, and provides comprehensive plans to promote rural entrepreneurship. It strengthens this vital sector by offering various facilities and extended support to entrepreneurs in rural as well as backward regions, enhancing regional development and economic balance .

The National Institute of Entrepreneurship and Small Business Development (NIESBUD) supports entrepreneurial activities through several key strategies, such as developing effective training strategies and methods, standardizing training syllabi, and creating various training aids. It also conducts workshops, seminars, and conferences to promote entrepreneurship. Furthermore, NIESBUD evaluates the benefits of EDPs and assists government and other agencies in executing entrepreneur development programmes, while engaging in research and development to enhance program effectiveness .

Utilizing locally available resources is crucial in entrepreneurial development as it enables the establishment of sustainable business practices, reduces costs, and minimizes waste. EDPs promote this approach by providing training that highlights the advantages of leveraging indigenous resources for production, thereby enhancing efficiency and innovation. This focus not only supports environmental sustainability but also stimulates local economies and reduces dependence on imported materials .

Small Industries Service Institutes (SISI) play a crucial role in entrepreneurial development by assisting in the training and development of entrepreneurs. They focus on improving the knowledge, attitudes, and skills required for entrepreneurship. SISI provides various essential services that enhance the capability of small industries in the country, thereby contributing to the overall economic growth and regional development. Their support helps entrepreneurs to adapt to changing industrial environments and improves their chances of success in business .

The promotion of Small Scale Industries (SSI) is essential for India's economic development because they are pivotal in job creation, income generation, and regional economic balance. SSIs help in optimizing resource utilization, contributing significantly to the country's GDP. They are flexible and adaptable, enabling innovation and resilience in changing market conditions. Moreover, SSIs reduce regional economic disparities by spreading industrial growth to less developed areas .

Government programs play a pivotal role in alleviating unemployment in underdeveloped regions through Entrepreneurial Development Programmes (EDPs). By initiating schemes like the National Rural Employment Programme (NREP) and the Integrated Rural Development Programme (IRDP), the government fosters self-employment opportunities. EDPs train individuals to leverage local resources for entrepreneurship, thus reducing unemployment and stimulating economic growth in these areas .

Entrepreneurial Development Programmes (EDPs) contribute to balanced regional development by promoting the creation and growth of Small Scale Units, particularly in underdeveloped areas. This approach helps reduce the concentration of economic power in urban areas and prevents the development of industrial slums. EDPs incentivize entrepreneurs to set up businesses in rural and backward regions, ensuring economic activities and job creation are spread across different areas, thereby promoting regional balance .

The phases of an Entrepreneurial Development Programme (EDP) include the Pre-Training, Training, and Post-Training phases. The Pre-Training phase involves designing curricula, selecting faculty, and identifying potential entrepreneurs. The Training phase focuses on motivating participants and equipping them with necessary skills through practical exposure and various instructional methods. The Post-Training or Follow-up phase aims at refining abilities and motivations, ensuring participants can effectively establish their own enterprises. This phased approach systematically builds the competencies required for successful entrepreneurship .

The National Small Industries Corporation (NSIC) aids small industries in entering international markets by providing a comprehensive marketing network which supports the export of small-scale products. It facilitates government purchase programs and assists small units in leveraging opportunities in foreign countries, thereby broadening their market reach and enhancing their competitiveness on a global scale .

The Entrepreneurship Development Institute of India (EDI) plays a significant role in the international promotion of entrepreneurship by sharing resources and organizing training programs globally. It has received accolades and support from international organizations such as the World Bank, UNIDO, and the European Union. EDI has established Entrepreneurship Development Centres in countries like Cambodia, Lao PDR, Myanmar, and Vietnam, with plans to expand to Uzbekistan and five African countries. These efforts reflect EDI's commitment to enhancing global entrepreneurship knowledge and capabilities .

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