ARUSHI GAIROLAJOYITA DEY
SUMEDHA RAMANAN
Government Initiatives to promote Entrepreneurship
Introduction
It is a known fact that India, today, is an emerging economy.
However, for India, to acquire the status of a "developed" nation, statistics point out that it needs to create 100 million jobs.
The last 3 decades have brought about changes in the government’s thinking leaning towards a market oriented economy.
Various support mechanisms have been designed by the government to nurture the entrepreneurial mindset.
MSMED Act, 2006
To boost the services and manufacturing sectors, the Govt. of India chalked out a separate SMSE department so that these industries could receive sufficient attention and support. The MSMED Act was passed in 2006 which aims at:
Providing guidelines for skill development of employees, management and entrepreneurs
Issue guidelines from time-to-time for ease of credit to MSMEs
Work on minimisation of sick units and enhance their competitiveness through various support mechanisms
Preference policy for procurement of goods or services by Central Govt. produced or provided by MSMEs.
Resolution of delayed payment related issues
The Ministry of Micro, Small and Medium Enterprises (MSME) ahs been initiating and implementing several schemes which the MSMEs can take benefit of in order to boost their business. Some these schemes include:
Scheme of Surveys, Studies and Policy Research
Entrepreneurship Development Institution Scheme
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Rajiv Gandhi Udyami Mitra Yojana (RGUMY)
Marketing Assistance Scheme (Implemented through NSIC)
Performance and Credit Rating Scheme (Implemented through NSIC)
Prime Minister's Employment Generation Programme (PMEGP) (Implemented through KVIC)
Product Development, Design Intervention and Packaging (PRODIP) (Implemented through KVIC)
Khadi Karigar Janashree Bima Yojana for Khadi Artisans (Implemented through KVIC)
Interest Subsidy Eligibility Certification (ISEC).
National Entrepreneurship Institutes
National Institute for Entrepreneurship and Small Business Development (NIESBUD), NOIDA
National Institute of Micro, Small and Medium Enterprises (NIMSME), Hyderabad(Formerly National Institute of Small Industry Extension Training (NISIET))
Indian Institute of Entrepreneurship (IIE), Guwahati
Others
National Small Industries Corporation
MSME Development Institutes
Tool Rooms
Central Footwear Training Centres, Agra & Chennai
Fragrance and Flavour Development Centre, Kannauj
Process-cum-Product Development Centre, Agra
Electronics Service & Training Centre, Ram Nagar
Institute for Design of Electrical Measuring Instruments, Mumbai
National Science and Technology Entrepreneurship Board
National Science and Technology Entrepreneurship Board promotes entrepreneurship development through Science & Technology.
This program has encouraged researchers and academicians in the field of Science & Technology to take interest in socially relevant entrepreneurial roles.
Under the flagship of NSTEB, various institutes and training programmes have been formulated.
Technological Business Incubators have been established to ensure that technology and knowledge driven enterprises are established and research outputs are utilised in a commercial manner for benefit of all stakeholders.
NMCP Schemes to Enhance Competitiveness of SMEs
National Competitiveness Programme was formulated in 2005 with an objective to support the Small and Medium Enterprises (SMEs) in their endeavor to become competitive and adjust the competitive pressure caused by liberalization and moderation of tariff rates
SIDBI
SIDBI was established in April 1990 under an Act of Parliament as a wholly-owned subsidiary of Industrial Development Bank of India (IDBI). It is the principal financial institution for the following three-fold activities:
- Financing the small scale sector by providing indirect assistance to primary lending institutions (PLIs) and direct assistance to small scale units.
- Development and support services for promoting small industries.
- Liaisoning with other institutions engaged in similar activities.
Entrepreneurship Development Institute of India
The Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profit institute, set up in 1983, is sponsored by the IDBI Bank Ltd., IFCI Ltd., ICICI Bank Ltd. and State Bank of India (SBI).
The government of Gujarat pledged twenty-three acres of land on which stands the EDI campus.
EDI has helped set up twelve state-level exclusive entrepreneurship development centres and institutes.
Entrepreneurship has been taken to schools, colleges, science and technology institutions and management schools in the water performance sector by including entrepreneurship in their curricula.
STEP – Science and Technology Entrepreneurs Park aims to provide link between universities, academic and R&D institutions, provide R&D support to the small-scale industry and promotes innovation based enterprises
IEDC – Innovation and Entrepreneurship Development Cell is
promoted in educational institutes to create entrepreneurial culture and encourage innovation amongst students
EDP – Entrepreneurship Development Program, a training program of 6-8 weeks duration aims to train students in various aspects of starting an enterprise
FDP – Faculty Development Program is aimed at training faculty members of S&T institutions so that they in turn can inspire students to take up entrepreneurial career options
TEDP – Technology-based Entrepreneurship Development Program is 6-weeks duration training developed jointly in association with R&D institutions, CSIR labs etc. This training focuses on specific products and technologies.
OLPE – Open Learning Program in Entrepreneurship is a distance learning programme that helps potential entrepreneurs through study materials and contact programmes which impart knowledge on end-to-end processes involved in running an entrepreneurship
EAC – Entrepreneurship Awareness Camp is a 3 days duration training that exposes students to entrepreneurship as a career option
STEDS – Science and Technology Entrepreneurship Development Scheme aims at socio-economic development of an area by optimising the usage of natural & human resources of an area.
Business Portal of India
For dissemination of information, the Business Portal of India has been developed under the National e-Governance Plan of the govt. in association with FICCI.
The portal provides various modules and sub-modules with respect to starting & running business in India.
It also provides guidance on the paperwork required, taxation related information, trade related policies etc.
Efforts by State Governments
Entrepreneurship is also promoted at the state government level through various schemes and subsidies varying from one state to another, the common mechanisms are:
Infrastructural: development and management of industrial estates, priority in allotment of power/water connection, power subsidies
Financial : Capital investment subsidies for new units set up in a particular district, seed capital /Margin Money Assistance Scheme
Guidance: Consultancy and technical support
National Competitiveness Programme
National Competitiveness Programme was formulated in 2005 with an objective to support the Small and Medium Enterprises (SMEs) in their endeavor to become competitive and adjust the competitive pressure caused by liberalization and moderation of tariff rates
Udayami Helpline
Call centre 'Udyami Helpline' will provide all the relevant information and details to the interested entrepreneurs regarding the scope of the business operations they may want to venture into, loan facilities, government schemes and other modalities of setting small units.
It aims to serve the needs of the entrepreneurs who face problems on a wide range of issues which include - credit availability, technology, marketing, various MSME schemes and other important subjects through a single point facility.
The services are available on this number between 6 am in the morning to 10 pm in the night everyday all throughout the year including Sundays and holidays.
IPR Facilitation Center
Apex industry chamber, FICCI, launched an IPR facilitation centre at Federation House (FICCI), New Delhi, in association with the ministry of Micro-Small and Medium Enterprises (MSME).
The FICCI-IPR facilitation centre is equipped to offer quality services in all areas of Intellectual Property Rights
National Strategy for Manufacturing
The Union Government has decided to implement a National Strategy for Manufacturing, drawn up by the National Manufacturing Competitiveness Council (NMCC), which will enable SMEs to achieve competitiveness.
The Strategy has identified various priority areas for action viz., textiles & garments, food processing, IT hardware & electronics, leather & footwear, automobiles & auto-components and chemicals & petrochemicals and pharma sectors.
The Cluster Concept clearly seems to be India's answer to global competition. Last year the government had proposed to increase financial assistance to existing clusters of Micro, Small and Medium Enterprises (MSME) up to as high as 80 per cent of their financial requirements under the 11th Plan.
The government also proposes to build a pool of consultants under its National Manufacturing Competitiveness Programme to enable MSMEs to become competitive. The consultants would be deployed to a cluster of 8-10 companies for about one year to a year-and-a-half, with their cost being borne by the government.
Thank You!
