INSTITUTIONAL SUPPORT TO SMALL AND MEDIUM ENTERPRISES

Institutional support system is necessary at three stages enterprise development:

Inception or Promotion Day-to-day management Expansion and Diversification

Three dimensions of institutional support system are:

Central Government State Government Non-government Support System

CENTRAL GOVERNMENT INSTITUTES

SMALL SCALE INDUSTRIES BOARD

Established in 1954 to provide effective coordination and inter-institutional linkages for the benefit of small scale sector.It consists of the following members:

Union Industry Minister State Industry Minister Selected members of Parliament Secretaries of department concerned

Financial Institutions Selected Public Enterprises Industry Associations Eminent experts in the field

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT (NABARD)

Services offered by NABARD: Attracting youth to rural non-farm

sector. District Industries Rural Project (DRIP). Rural Entrepreneurship Development

Programme (REDP).

SMALL INDUSTRIES DEVELOPMENT ORGANISATION (SIDO)

Constituted in 1954 to develop support services for promotion of SSS.Main objectives of SIDO are:

To formulate policy for promotion of SSI Provide coordination of policies of state

government To collect and disseminate information

To provide wide range of extension services through allied institutions

To promote facilities for technology upgradation

To offer consultancy services

Services Rendered by SIDO:

Entrepreneurship development and Management training.

Efforts for skill development. Preparation of feasibility reports for

different products. Provision of testing services. Availability of tool room facilities.

NATIONAL SMALL INDUSTRIES CORPORATION (NSIC)

Set up by government of India in 1955.Main functions are:

Supply of machinery and equipment. Provision of financial assistance. Assistance for arrangement of raw materials. Establishment of technology transfer centers. Arrangement of marketing assistance. Priority in government purchase programme

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)

Subsidiary of IDBI, setup as an act of parliament.Provides assistance for:

Setting up of new SSI units, small hotels, hospitals and so on.

Technological upgradation and modernization, expansion and diversification.

Quality upgradation.

Development of markets. Development of infrastructure. Discounting of bills of manufacturer-

seller in selling either equipments or components.

STATE GOVERNMENT INSTITUTES

STATE FINANCIAL CORPORATIONS (SFC)

Objectives: Provide term loans for the acquisition of

land, building, plant and machinery. Promotion of self-employment. Encourage women entrepreneurs. Expansion of industry. Provide seed capital assistance.

STATE SMALL INDUSTRIES DEVELOPMENT CORPORATION (SSIDC)

Important functions performed are: Procurement and distribution of raw

materials. Supply of machine on hire-purchase

basis. Construction of industrial estates. Providing assistance for marketing of

products of SSI.

TECHNICAL CONSULTANCY ORGANISATON

Services of TCOs include: Preparation of project profiles. Undertaking industrial potential surveys. Identification of potential entrepreneurs. Undertaking market research. Project supervision and rendering

technical and administrative assistance. Conducting EDPs.

KHADI AND VILLAGE INDUSTRIES COMMISION (KVIC)

It is engaged in the development of khadi and village industries in rural areas.Main objectives of KVIC are:

Providing employment in rural areas. Skill improvement. Rural industrialization. Transfer of technology.

NON-GOVERNMENT INSTITUTES

INDIAN COUNCIL OF SMALL INDUSTRIES (ICSI)

It was established in 1979.Main functions are:

Information dissemination. Entrepreneurship development. Consultancy and managerial support. Training and research.

LAGHU UDYOG BHARTI (LUB)

It was founded in 1995.It is responsible to undertake:

Entrepreneurial training. Technology upgradation. Marketing services.

CONCLUSION

The most important development in the post-independence period has been the growth of a number of key institutions to promote, assist and develop entrepreneurs to initiate industrial growth in the country. The country has laid a strong foundation broad based its infrastructure and provided much needed support and assistance.

REFERENCES

Entrepreneurship and Small Business Management

-M. B. SHUKLA The Dynamics of Entrepreneurship

Development and Management-VASANT DESAI

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