Institutions Supporting Small Business enterprise: Central Level, State Level, Other agencies, Industry associations

Central Level

SSI BOARD

Government of India constituted the Small-Scale Industries Board in 1954 to advice on the programmes and policies for the development of small-scale sector. This board is also known as the Central Small Industries Board. The SSIB consists of 50 members including the representatives of the Central and State Governments, the Reserve Bank of India, the State Bank of India, State Financial Corporations and non-officials.

Measures include:

(i) Bank credit to artisans, village and cottage industries would be treated as composite term loan for equipment or working capital or both. But the maximum limit of the credit with a repayment period or 7 to 10 years or more has been fixed at Rs. 25000 only.

(ii) The rate of interest for all term loans has been brought down to 16 per cent.

(iii) Application forms for credit have been simplified.

(iv) Reserve Bank of India has instructed banks to bifurcate the credit accounts to show separately the dues of the SSI units and those remaining unpaid for over four months.

KVIC

Khadi and Village Industries Commission was established in 1953 with the primary objective of developing khadi and village industries and improving rural employment opportunities. Its wide range of activities include training of artisans, extension of assistance for procurement of raw materials, marketing of finished products and arrangement for manufacturing and distribution of improved tools, equipment’s and machinery to producers on concessional terms.

KVIC provides assistance to Khadi and Village Industries which require low capital investment and ideally suited for manufacturing utility goods by using locally available resources. There are many specified village industries such as processing of cereals and pulses, leather, matches, gur and khandsari, non-edible oils and soaps, bee-keeping, village pottery, carpentry and blacksmithy etc.

KVIC’s policies and programmes are executed through State Khadi and Village Industries Boards registered under the Societies Registration Act, 1960 and Industrial Cooperative Societies registered under State Cooperative Societies Act. Activities involving pioneering type of work such as developing new industries in hilly, backward and inaccessible areas are undertaken by KVIC directly.

SIDO

Small Industries Development Organisation (SIDO) is the apex level organisation set up for policymaking, coordinating and monitoring agency for the development of small-scale industries. It maintains a close liaison with government, financial institutions and other agencies which are involved in the promotion and development of small-scale industrial units.

Function:

(i) Securing items reserved for production by small-scale industries;

(ii) Assessing the requirements of indigenous and imported raw materials and components for the small-scale sector and also arranging their supply;

(iii) Collecting data on consumer items which are imported ones and encourage the setting up of new industrial units by providing them coordinated assistance.

(iv) Preparing model schemes, project reports and other technical literature for prospective entrepreneurs;

(v) Rendering support for the development of ancillaries.

(vi) Encouraging small units to actively participate in the Government Stores Purchase Programme.

NSIC

NISC was set up in 1955 as a public undertaking. It is engaged in promoting and developing small- scale industries in the country. For this purpose, it has special schemes to meet the needs of technocrats, physically handicapped, scheduled castes and scheduled tribe entrepreneurs.

The main functions of NSIC are as follow:

(i) Supplying machinery on hire purchase basis;

(ii) Procuring Government orders for small-scale units;

(iii) Developing small-scale units as ancillaries to large industries;

(iv) Arranging the marketing of products of small-scale units and promoting exports;

(v) Importing and distributing scarce raw materials, components and parts among actual users in the small-scale sector;

(vi) Developing prototype of machinery and equipment for transfer of technology and know how for commercial production;

(vii) Undertaking the construction of industrial estates;

(viii) Providing training in selected trades and technologies through prototype development and training centers;

(ix) Developing and upgrading technology particularly for projects based on wastes; and

(x) Cooperating with the developing countries in setting up small-scale projects on turnkey basis.

NSTEDB

Established in 1982 by GOI, is an institutional mechanism to help promote knowledge driven and technology-intensive enterprises.

Major objectives are:

Promote and develop high-end entrepreneurship for S&T.
Manpower as well as self-employment by utilizing S&T infrastructure and by using S&T methods.
Facilitate and conduct various informational services relating to promotion of entrepreneurship.
Network agencies of support system, academic institutions and R&D organizations to foster self-employment.
Using S&T with special focus on backward areas.
Act as a policy advisory body with regard to entrepreneurship

NPC

Autonomous institution functioning under the overall supervision of the Ministry of Industry, GOI
Primary objective is to act as a catalyst in enhancing the productivity of all sectors of the economy,
including industry and agriculture
Administered by a tripartite Governing Council (GC) which has equal representation from the government, industry and trade unions
Active in the field of consultancy and training and has a number of specialized divisions to provide tailormade solutions to agriculture and industry. These divisions, manned by trained consultants, deal with issues related to industrial engineering, plant engineering, energy management, HRD, informal sector, agriculture and so on
NPC is a member of the Asian Productivity Organization (APO), Tokyo, an umbrella body of all productivity councils in Asian region.
To channelise expertise of NPC to small-scale and informal sector, SIDBI has tied-up with NPC for enhancing technology in small units

NISIET

It was set up in 1956. It runs courses in business management for entrepreneurs and employees of small-scale industries.

Its main functions are as follows:

(a) Providing training to persons engaged in small business.

(b) Undertaking research programmes in connection with development of small-scale industries.

(c) Entering into technical assistance agreements with international or other organisations for provision of services for the development of small-scale industries.

NIESBUD

NIESBUD is an autonomous body under the administrative control of the Office of the DC(SSI).

NIESBUD established in 1983 by the Ministry of Industry, GOI, as an apex body for coordinating and overseeing the activities of various institutions/agencies engaged in Entrepreneurship Development particularly in the area of small industry and business.

The policy, direction and guidance to the institute is provided by its Governing Council whose chairman is the Minister of SSI. Besides conducting national and international training programs, the institute undertakes research studies, consultancy assignments, development of training aids, etc.

IIE

With an aim to undertake training, research and consultancy activities in small and micro enterprises focusing on entrepreneurship development, the Indian Institute of Entrepreneurship (IIE) was established in the year 1993 in Guwahati by the erstwhile Ministry of Industry (now the Ministry of Micro, Small and Medium Enterprises), Government of India as an autonomous national institute.

The institute began operating from April 1994 with the North East Council (NEC), Governments of Assam, Arunachal Pradesh and Nagaland and SIDBI as its other stakeholders.

The policy direction and guidance to the institute is provided by its Board of Management whose Chairman is the Secretary to Government of India, Ministry of Skill development. The Governing Council of the institute is headed by Chairman, NEC and the Executive Committee is headed by the Secretary, Ministry of MSD, Government of India.

Objectives

To organize and conduct training for entrepreneurship development.
To evolve strategies & methodologies for different target groups & locations & conduct field tests.
To identify training needs and offer training programmers to Government and non-Government organizations engaged in promoting and supporting entrepreneurship.
To document and disseminate information needed for policy formulation and implementation related to self-employment.
To identify, design and conduct training programmes for existing entrepreneurs.
To prepare and publish literature related to entrepreneurship and industrial development.
To organize seminars, workshops and confer conferences for providing a forum for interaction and exchange of views by various agencies and entrepreneurs.
To conduct research for generating knowledge to accelerate the process of entrepreneurship development.
To act as a catalyst for development of self-employment/entrepreneurship, industry/business
To evolve, design and help in the utilization of various media for creating entrepreneurship.

EDI

The Entrepreneurship Development Institute of India (EDI), an autonomous body and not-for-profit institution, set up in 1983, is sponsored by apex financial institutions, namely the IDBI Bank Ltd, IFCI Ltd. ICICI Ltd and State Bank of India (SBI). The EDI has been selected as a member of the Economic and Social Commission for Asia and the Pacific (ESCAP) network of Centres of Excellence for HRD Research and Training. EDI’S mission is to become a catalyst in facilitating emergence of competent first generation entrepreneurs and transition of existing SMEs into growth-oriented enterprises through entrepreneurship education, training, research & institution building. EDI has been spearheading entrepreneurship movement throughout the nation with a belief that entrepreneurs need not necessarily be born, but can be developed through well-conceived and well-directed activities. In consonance with this belief, EDI aims at:

Creating a multiplier effect on opportunities for self-employment.
Augmenting the supply of competent entrepreneurs through training.
Augmenting the supply of entrepreneur trainer-motivators.
Participating in institution building efforts.
Inculcating the spirit of ‘Entrepreneurship’ in youth.
Promoting micro enterprises at rural level.
Developing and disseminating new knowledge and insights in entrepreneurial theory and practice through research
Facilitating corporate excellence through creating intrapreneurs (entrepreneurial managers).
Improving managerial capabilities of small-scale industries.
Sensitizing the support system to facilitate potential and existing entrepreneurs establish and manage their enterprises.
Collaborating with similar organisations in India and other developing countries to accomplish the above objectives.

State Level

DIs

At the State level, the Commissioner/ Director of Industries implements policies for the promotion and development of small-scale, cottage, medium and large scale industries. The Central policies for the SSI sector serve as guidelines but each State evolves its own policy and package of incentives. The Commissioner/ Director of Industries in all the States/UTs, oversee the activities of field offices, that is, the District Industries Centers (DICs) at the district level.

DICs

In order to extend promotion of small-scale and cottage industries beyond big cities and state capitals to district headquarters, DIC program was initiated in May, 1978, as a centrally sponsored scheme. DIC was established with the aim of generating greater employment opportunities especially in rural and backward areas in the country. At present DICs operate under respective Sate budgetary provisions.

DICs extend services of the following nature:

(I) Economic investigation of local resources.

(ii) Supply of machinery and equipment.

(iii) Provision of raw materials.

(iv) Arrangement of credit facilities

(v) Marketing

(vi) Quality inputs

(vii) Consultancy

SFCs

Main objectives are to finance and promote small and medium enterprises in their respective states for achieving balanced regional growth, catalyze investment, generate employment and widen ownership base of industry. Financial assistance is provided by way of term loans, direct subscription to equity/debentures, guarantees, discounting of bills of exchange and seed capital assistance. SFCs operate a number of schemes of refinance of IDBI and SIDBI and also extend equity type assistance. SFCs have tailor-made schemes for artisans and special target groups such as SC/ST, women, ex-servicemen, physically challenged and also provide financial assistance for small road transport operators, hotels, tourism-related activities, hospitals and so on. Under Single Window Scheme of SIDBI, SFCs have also been extending working capital along with term loans to mitigate the difficulties faced by SSIs in obtaining working capital limits on time.

SIDCs/SIICs

Set up under the Companies Act, 1956, as wholly owned undertakings of the State governments, act as catalysts in respective states. SIDC helps in developing land providing developed plots together with facilities like roads, power, water supply, drainage and other amenities. They also extend assistance to small-scale sector by way of term loans, subscription to equity and promotional services. 11 out of 28 SIDCs in the country also function as SFCs and are termed as Twin-function IDCs.

SSIDCs

Established under Companies Act, 1956, as State government undertaking, caters to small, tiny and village industries in respective states. Being operationally flexible undertakes the activities like:

(i) Procure and distribution of scarce raw materials.

(ii) Supply of machinery to SSI units on hire-purchase basis.

(iii) Product marketing assistance.

(iv) Construction of industrial estates, allied infrastructure facilities and their maintenance.

(v) Extending seed capital assistance on behalf of State government.

(vi) Providing management assistance to production units

Others