Institutions Supporting Small Business Enterprises

Mr. Suthagar S /AP/ECE/Kongu Engineering College

Institutions Supporting Small-scale Industries

CENTRAL LEVEL

• SSI BOARD
• KVIC
• SIDO
• NSIC
• NSTEDB
• NPC
• NISIET
• NIESBUD
• IIE
• EDI

STATE LEVEL

• DIs
• DICs
• SFCs
• SIDCs/SIICs
• SSIDCs

OTHERS

• Industry Association
• Non Governmental Organizations
• R & D Laboratories

Mr.Suthagar S /AP/ECE/Kongu Engineering College

Small-scale Industries Board (SSI Board)

• Constituted in 1954 to facilitate the coordination and inter-institutional linkages for the development of SSI sector
• The Board is an apex advisory body constituted to render advice to the government on all issues pertaining to the SSI sector
• The office of the Development Commissioner (Small-Scale Industry) serves as the secretariat for the board
• The Board operates broadly in the following areas: - Policies & programs - Development of industries in specific region like Northeast - Ancillary development, quality improvement, mktg. assistance - Credit facilities, taxation and modernization - Industrial sickness

Mr.Suthagar S /AP/ECE/Kongu Engineering College

Khadi and Village Industries Commission (KVIC)

• Statutory body created by an act of Parliament
• It is charged with planning, promotion, organization and implementation of the program for the development of Khadi and other village industries in the rural areas in coordination with other agencies engaged in rural development
• KVIC’s functions also comprise building up a reserve of raw materials and implements for supply to producers, creation of common service facilities for processing of raw materials and provision of marketing of KVIC products
• KVIC is entrusted with the task of providing financial assistance to institutions or persons engaged in the development and operation of Khadi and village industries and guide them through supply of designs, prototypes and other technical information

Mr.Suthagar S /AP/ECE/Kongu Engineering College

Small Industries Development Organization (SIDO)

• Established in 1954 on recommendation of Ford Foundation
• Over the years, it had seen its role evolve into an agency for advocacy, handholding and facilitation for the small industries sector
• SIDO provides facilities for testing, tool mending, training for entrepreneurship development, preparation of project and product profiles, technical and managerial consultancy, assistance for export, pollution and energy audits, and so on
• SIDO provides economic information services and advises the government in policy formulation for the promotion and development of SSIs

Mr.Suthagar S /AP/ECE/Kongu Engineering College

National Small Industries Corporation Ltd. (NSIC)

• Established in 1955 by GOI with the main objectives to promote, aid and foster the growth of SSIs in the country
• Over four decades of transition and growth in the SSI sector, NSIC has provided strength through a progressive attitude of modernization, upgradation of technology, quality consciousness, strengthening linkages with large and medium-scale enterprise and boosting exports of products from small enterprises
• Main services provided by NSIC are: - Machinery and Equipment (Hire Purchase / Lease scheme) - Financial Assistance Scheme - Assistance for Procurement of Raw Material - Government Store Purchase Program - Technology Transfer Centre (TTC) - Marketing Assistance

Mr.Suthagar S /AP/ECE/Kongu Engineering College

National Science and Technology Entrepreneurship Development Board (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

Mr.Suthagar S /AP/ECE/Kongu Engineering College

National Productivity Council (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 tailor-made 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

Mr.Suthagar S /AP/ECE/Kongu Engineering College

National Institute for Small Industry Extension and Training (NISIET)

• Set up in early 1950s, NISIET acts an important resource and information centre for small units and undertakes research and consultancy for small industry development
• An autonomous arm of the Ministry of Small Scale Industries, the institute achieves its objectives through training, consultancy, research and education, to extension and information services
• In 1984, UNIDO has recognized NISIET as an institute of meritorious performance under its Centre of Excellence Scheme to extend aid

Mr.Suthagar S /AP/ECE/Kongu Engineering College

National Institute for Entrepreneurship and Small Business Development (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.

Mr.Suthagar S /AP/ECE/Kongu Engineering College

State Level Institutions – DIs and DICs

• Directorate of Industries (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
• District Industries Centers (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

Mr.Suthagar S /AP/ECE/Kongu Engineering College

State Level Institutions - SFCs

State Financial Corporations (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

Mr.Suthagar S /AP/ECE/Kongu Engineering College

State Level Institutions – SIDC / SIIC and SSIDC

• State Industrial Development / Investment Corporation (SIDC/SIIC) – 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
• State Small Industrial Development Corporations (SSIDC) – 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 and (vi) providing management assistance to production units

Mr.Suthagar S /AP/ECE/Kongu Engineering College

Other State-level agencies Extending Facilities for SSI Promotion

• State Infrastructure Development Corporations
• State Cooperative Banks
• Regional Rural Banks
• State Export Corporations
• Agro Industries Corporations
• Handloom and Handicrafts Corporations

Mr.Suthagar S /AP/ECE/Kongu Engineering College

Other Agencies

Mr.Suthagar S /AP/ECE/Kongu Engineering College