Suggested Text Books: 1

1.Dynamics of Entrepreneurship
Development : Vasant Desai
ED UNIT 4
2.Entrepreneurship: New ROLE OF GOVERNMENT
Venture Creation : David H. Holt

3.Entrepreneurship
Development New Venture
Creation : Satish Taneja,
S.L.Gupta

4.Project management, K.
Nagarajan.

5.Entrepreneurship: Strategies
and Resources : Marc J.
Dollinger

Prof. Aditi Gosain (SIBAR)

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2 ROLE OF GOVERNMENT

Syllabus
 Role of Central Government and State Government in
promoting Entrepreneurship: Introduction to various
incentives, subsidies and grants, Export Oriented Units,
Fiscal and Tax concessions available,
 Women Entrepreneurs - Role, Problems and Prospects,
Reasons for low women Entrepreneurs
 Assistance Programme for Small Scale Units – Institutional
Framework – Role of SSI Sector in the Economy – SSI Units
– Failure, Causes and Preventive Measures – Turnaround
Strategies. Future of Entrepreneurship Development and
Government, Start Up India, Make in India. (5)

Prof. Aditi Gosain (SIBAR)

 OB - Unit - 3
3 Group and Team Dynamics,
Leadership

Role of Central Government and State

Government in promoting Entrepreneurship

Role of Government
 Training
 Marketing assistance
 Promotional Schemes
 Concessions on excise duty

Government Initiatives:
 Incentives
 Subsidies
 Grants
 Export Oriented Units (EOUs)

Prof. Aditi Gosain (SIBAR)

 ED UNIT 4
4 ROLE OF GOVERNMENT

 TheGovernment (both at the Central and

State level) has been undertaking several
steps for the promotion and development
of small and medium enterprises like in
various sectors :
 Setting up of banks and financial institutions
 Formulating various policies and schemes
 Declaration of several policy measures
 Implementing schemes and programmes to
enhance the global competitiveness of
small enterprises across the country

Prof. Aditi Gosain (SIBAR)

 ED UNIT 4
5 ROLE OF GOVERNMENT

 Besides, several schemes and

programmes have been undertaken by
the Government with the aim of
facilitating access to:-
 adequate credit from financial institutions;
 funds for technology upgradation and
modernization
 integrated infrastructural facilities;
 modern testing facilities and quality
certification laboratories;
 modern management practices,
entrepreneurship development and skill up
gradation through appropriate training
facilities
Prof. Aditi Gosain (SIBAR)
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 Tax Holiday Scheme

 Composite Loan Scheme
 Industrial Estate Scheme
 Scheme for International Cooperation
 Scheme of Surveys, Studies and Policy
Research
 Scheme of Fund for Regeneration of
Traditional Industries (SFURTI)
 Scheme of Product Development, Design
Intervention and Packaging (PRODIP)
 Scheme of Khadi Karigar Janashree Bima
Yojana for Khadi Artisans
 Scheme of Interest Subsidy Eligibility
Certification (ISEC)
Prof. Aditi Gosain (SIBAR)
 OB - Unit - 3
7 Group and Team Dynamics,
Leadership

Introduction to various incentives,

subsidies and grants
Incentives for SSI (small scale industries):

 Investment allowance :25% discount on purchase of new plant and

machinery

 Tax concessions : Section 80J, Income tax act 1961,A newly started
industry need not pay income tax on profits till profits exceed 6
percent per year of the capital of the unit

 Depreciation : Section 32 Income Tax Act 1961 , an SSI having block

of assets at prescribed rate is entitled to a deduction on
depreciation account. A maximum amount of 20 lac is allowed to
be deducted from the actual cost of the plant and machinery

Prof. Aditi Gosain (SIBAR)

 ED UNIT 4
8 ROLE OF GOVERNMENT

Subsidies
 Subsidies are financial assistance by government to
individuals , institutions and businesses to promote
economic and social welfare

 Subsidies can be given in the form of tax reduction ,

discounts or cash

 Important government subsidies for entrepreneurs

are:
 Government subsidy for small businesses from NISC (
National small industries corporation)
 Credit Guarantee fund scheme fro micro and small
entrepreneurs – CGMSE
 Government Subsidy for small business- organic farming
 Technology Upgradation Fund Scheme – Textile industry
etc

Prof. Aditi Gosain (SIBAR)

 ED UNIT 4
9 ROLE OF GOVERNMENT

Grants
 Grant is a financial assistance provided by government
without the expectation of receiving back the fund

 This does NOT include loans and services other than money

 Government provides grants for conducting R&D and

research in technology based projects

 SIBR – Small Business Innovation is one such government

initiative which provides grants to startups

 Sectors which receive grants include healthcare, software

etc

 Grants are also given to communities with low income to

support national objectives like housing , economic
development, eliminating poverty etc

Prof. Aditi Gosain (SIBAR)

 ED UNIT 4
10 ROLE OF GOVERNMENT

Export Oriented Units (EOU)s

Scheme
 EOU scheme launched in 1980
 Procurement of goods from domestic tarrif
areas
 Exemption from duties
 Income tax concession
 Exemption from industrial licencing
 Sub Contracting
 Inter Unit Transfer
 Supplies from DTA
Prof. Aditi Gosain (SIBAR)
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Fiscal and Tax concessions

available
 Complete tax exemption for first three
years
 Abolition of angel investment tax
 Setting up of fund of funds
 Exemption of capital gain tax
 Other tax exemptions and fund
allocations for sc/st/women/transport
sector etc
Prof. Aditi Gosain (SIBAR)
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12 ROLE OF GOVERNMENT

Women Entrepreneurs - Role

Note : Refer unit 1 PPT

“ woman or group of women who establish

a new business venture and operate it”

Characteristics of women entrepreneurs :

Imagination, Hard Work, Perseverance, Risk
Taking, Flexibility, Analytics, Efficacy,
Learning, Leadership

Prof. Aditi Gosain (SIBAR)

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13 ROLE OF GOVERNMENT

Problems and Prospects

 Common problems faced by women entrepreneurs :
 1. Family restriction
 2. Lack of Finance
 3. Lack of Education
 4. Role Conflict
 5. Unfavorable Environment
 6. Lack of persistent Nature
 7. Lack of Mental strength
 8. Lack of Information
 9. Stiff Competition
 10. Mobility

 Possible prospects of resolution :

 1. Promotional Help
 2. Training
 3. Selection of Machinery and Technology
 4. Finance
 5. Marketing Assistance
 6. Family support
Prof. Aditi Gosain (SIBAR)
 ED UNIT 4
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Reasons for low women

Entrepreneurs
 Socio-Cultural Atmosphere.
 Balance between Work and Home
 Women: Not to be taken Seriously !!!
 Lack of Exposure
 An Everyday Battle: Receiving Finance
 Lack of Self-Confidence
 Risk Taking
 Safety issues

Prof. Aditi Gosain (SIBAR)

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Assistance Programme for Small Scale

Units – Institutional Framework

The following Institutions support Small Scale units

 SIDBI – SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

 SIDO – SMALL INDUSTRIES DEVELOPMENT ORGANISATION
 NABARD – NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
 ICECD – INTERNATIONAL CENTRE FOR ENTREPRENEURSHIP AND CARRER DEVELOPMENT
 MSME DO – MICRO, SMALL AND MEDIUM ENTERPRISE DEVELOPMENT ORGANISATION
 KVIC- KHADI AND VILLAGE INDUSTRIES COMMISION

Prof. Aditi Gosain (SIBAR)

 ED UNIT 4
16 ROLE OF GOVERNMENT

Institutional Support for

Women Entrepreneurs
The following institutions support women entrepreneurship:

 Federation of Indian women entrepreneurs - FIWE

 Consortium of Women entrepreneurs of India - CWEI
 Self Employed Women's Association - SEWA
 Women Entrepreneurs Promotion Association –WEPA
 The “Marketing Organization of Women Enterprises - MOOWES
 Mahakaushal Association of Woman Entrepreneurs - MAWE
 SAARC Chamber of women entrepreneurship Council - SCWEC
 Women Empowerment Corporation -WEC

Prof. Aditi Gosain (SIBAR)

 ED UNIT 4
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Government Schemes for

Women Entrepreneurs
 Indira Mahila Yojna (IMY)
 Swayamsidha
 Swashakti
 Women STEP scheme – (Support to
training and Employment Programme)
 Rashtriya Mahila Kosh (RMK)
 SBI Stree Shakti Package
 IDBI’s Mahila Udyam Nidhi (MUN)
Prof. Aditi Gosain (SIBAR)
 ED UNIT 4
18 ROLE OF GOVERNMENT

Role of SSI (Small Scale Industries)

Sector in the Economy
Role of SSI :
 Employment generation
 Production : 40% of manufacturing in India
 Export : 40-50% comes from SME sector
 Innovation and development
 Efficient utilization of resources
 Developing entrepreneurial capacity
 Low capital output ratio
 Industrial Growth
 Facilitate Large Scale industries

Prof. Aditi Gosain (SIBAR)

 ED UNIT 4
19 ROLE OF GOVERNMENT

SSI Units Failure Causes and Preventive

Measures – Turnaround Strategies
Causes of Failure –
 Selling too cheaply
 Ineffective marketing and Advertising
 Shortage of capital
 Poor planning
 Impractical expectations
 Inappropriate location
 Lack of market and industry knowledge
 Market competition
 Non diversification
 Legal problems
Prof. Aditi Gosain (SIBAR)
 ED UNIT 4
20 ROLE OF GOVERNMENT

 Preventive Measures –
 Acquiring Business insights
 Developing regular feedback systems
 Managing financial resources
 Managing people
 High commitment

 Turnaround Strategies –
 Changing prices
 Re focusing on markets and loyal customers
 New product development
 Rationalizing the product line
 Concentration on sales and advertising
 Restructuring and innovation in matured and
non growing businesses
Prof. Aditi Gosain (SIBAR)
 ED UNIT 4
21 ROLE OF GOVERNMENT

Future of Entrepreneurship
Development and Government
 Government initiatives for entrepreneurship
development :
 Pradhanmantri Kaushal Vikas Yojna (PMKVY)
 Science for equity empowerment and development (SEED)
 Trade related Entrepreneurship Assistance Development
(TREAD)
 Start up India
 Digital India
 Make in India
 Stand up India
 Skill India
 Roll out of mobile app and portals

Prof. Aditi Gosain (SIBAR)

 ED UNIT 4
22 ROLE OF GOVERNMENT

Start Up India – refer unit 1 PPT

 Startup India is an initiative of the Government of India.
 The campaign was first announced by Indian Prime
Minister, Narendra Modi on 15 August 2015
 the following three pillars:
 Simplification and Handholding.
 Funding Support and Incentives.
 Industry-Academia Partnership and Incubation.
 Discards restrictive States Government policies such as License
Raj, Land Permissions, Foreign Investment Proposals, and
Environmental Clearances.
 Under this initiative, the government has launched the
 I-MADE program, to help Indian entrepreneurs build 10 lakh (1
million) mobile app start-ups,
 MUDRA Bank's scheme (Pradhan Mantri Mudra Yojana), an
initiative which aims to provide micro-finance, low-interest rate
loans to entrepreneurs from low socioeconomic backgrounds
 Initial capital of 20,000 crore has been allocated for this scheme.

Prof. Aditi Gosain (SIBAR)

 ED UNIT 4
23 ROLE OF GOVERNMENT

Make in India
 Make in India, a type of Swadeshi
movement covering 25 sectors of the Indian
economy

 It was launched by the Government of India on 25

September 2014 to encourage companies to
manufacture their products in India and "to transform
India into a global design and manufacturing hub".

 India jumped to 63rd place out of 190 countries in

the world Banks' 2019 in the Ease of Doing Business
Index from 130th in 2016

 India emerged as the top destination globally in

2015 for foreign direct investment (FDI), surpassing
the United States and China, with US$60.1 billion FDI.

Prof. Aditi Gosain (SIBAR)