entrepreneurs by providing them funds called 'developmental funds on

heip small Develop prototype of ma

industries for commerci
and liberal terms and conditions. Admittedly, finance is an important reso
but not the only condition to run an enterprise. In order to start any .Distribute basic raw ma
econ material depots.
activity, a minimum level of prior built-up of infrastructural facilities is neod.
Financial assistance and concessions cannot, in any case, adequately compencaeeded Help in development anc
for the deficiencies of infrastructure such as transport and communication, Th of modernization progra.
is one of the reasons why industries have not been developing in backwa Impart training in vario-
areas in spite of financial assistance and concessions given by the Government
ward
ents .Set up small-scale indu-
to the entrepreneurs to establish industries there (Khanka 1994: 26-34). Creation
eation basis.
of infrastructural facilities involves huge funds which the small entrepreneim
neurs Undertake theconstruct
do lack. In view of this, various central and state Government institutions have
come forward to help small entrepreneurs in this regard by providing them NSIC carries forward its
various kinds of support and facilities. Availability of the institutional support specially tailored schemes desig
helps make the economic environment more conducive to business or industy Dosition. The schemes compris
We are, therefore, presenting in this chapter an overview of various kinds of technology support, and other-
support and facilities provided by various institutions to the entrepreneurs b follows:
help them establish and run their enterprises.
Marketing Support
Marketing, a Strategic tool
21.2 INSTITUTIONAL SUPPORT TO SMALL ENTREPRENEURS and survival of small enterpr
21.2.1 National Small Industries Corporation Ltd (NSIC) acts as facilitator to promc
a
number of schemes to
The National Small Industries Corporation Ltd. (NSIC), an ISO 9000 certified in and outside the
suppo
company, since its establishment in 1955, has been working to fulfill it mission country. T
of promoting, aiding and fostering the growth of small-scale industries an Consortia and Tender -
industry related small-scale services/businesses in the country. Over a period capacity face problems to
of six decades of transition, growth and development, the NSIC has provet and restrict
their growth.
its strength within the country and abroad by promoting modernizaio torms consortia
of units mar
upgradation of technology, quality consciousness, strengthening linkages wi
marketing problems
problems of SSls.
of
large and medium enterprises and enhancing export projects and products ro Dulk quantities. These SSls.
her production capacity. order:
small-scale enterprises.
At present, the NSIC operates through 6 Zonal Offices, 26 ungle Point Registratiorn
BrancoRNaount
15 Sub-offices, 5 Technical Services Centres, 3 Extension Centres and 2 Sofwa Registration Scheme
Registrati
spread ac he un
Technology Parks supported by a team of 5000 professionals
over

in Gulf and African countries, the NSo* registered

Rrogramme, SSI units 8
the country. To mange operations
operates from its offices in Dubai and Johannesburg. gstered underexemption
ption from
fron-
this scheme
Issue of
Functions of NSIC tender sets fre
NSIC provides a wide range of services, predominantly promou
nalu
Advance intimation o.
character, to small--scale industries. Its main functions are to:
scheme to small-scale industrne
Exemption
Vaiver of
from pay
Provide machinery on hire-purchase security de
Provide equipmentleasing facility. registered.
Issue of competency
Help in export marketing of the products of small-scale industries npetency
Monetary limit, after
 Support
to Entrepreneurs 405
tional
rticipate
in bu
icipate in bulk purchase programme of the Government.
Pa
rolop prototype of machines and equipments to pass on to small-scale
D e r

ndustries for.commercial production.

.
Dictribute basic raw
Distribute
material among small-scale industries through raw

material depots.
Help in development and up-gradation of technology and implementation
of modernization programmes of small-scale industries.
in various industrial trades.
Impart training
Set up small-scale industries in other developing countries on turn-key
basis.
Undertake the construction of industrial estates.
with a set of
NSIC carries forward its mission to assist small enterprises
to them in competitive and advantageous
gecially tailored schemes designed put
Nsition. The schemes comprise of facilitating marketing support, credit support,
and other support services. These are discussed in seriatim
technology support,
s follows:

Marketing Support
Marketing, a Strategic tool for business development, is critical to the growth
d survival of small enterprise in today's intensely competitive market. NSIC
AS aS a facilitator to promote small industries products and has devised a

umber of schemes to support small enterprises in their marketing efforts, both

ad outside the country. These schemes are briefly discussed as under:
in their individual
Lonsortia and Tender Marketing: Small enterprises
orders, which inhibit
nd
ry face problemns to procure and execute large
restrict their growth. NSIC accordingly adopts Consortia approach and
Ra isortia of units manufacturing the same products; thereby easing out
hullng problems of SSls. NSIC explores the market and secures orders for
ulk then distributed to small units in tune with
Seir es. These
eir production
orders are
capacity.

Single Point Regi

int P o i n t Registration for Government Purchase: NSIC operates a Single
oint Registration Scheme
te reg
Sc under the Government Purchase Programme, wherein
Tepieration
tog Tegistered
red sSI
SSI units get purchase
units get preference in Government Purchase
Ptogrammeunder
stere EXemption
P\
from payment of Earnest Money Deposit etc. The units
Jse this scheme get the following facilities:
Issue of tender sets free of cost.
Advance ce
intimation of tenders issued by DGS&D.

xemption from payment of earnest money.

aiver of secu up to the monetary limit for which the unit
egistero security deposit
registered.
Issue of comf
Competency certificate in case the value of an order exceeds the

monetary limit, after due verification.

 Entrepreneurs
to En 409
Support
nal
shtnon Industries Development Organisation (SIDO0)
mall Industries

2 2S m a l l ,

iustries Development Organization (SID0) is a subordinate office of

S i m a l lI n d

& Auxiliary and Rural

artment of S
Industry (ARI). It is an apex body
ial agency for or formulating, coordinating and monitoring the policies
nd
niou mes for promotion and development of small-scale industries.
pTnt C
Prelopment Commissioner
o is the head of the SIDO. He is assisted by various
and
advisers in evolving and implementing various programmes or
torsand
diret management, consultancy, industrial investigation, possibilities
raining a r

of
development of types of small-scale industries, industrial estates,
jopment different
L main funetions of the SIDO are classified into: (1) co-ordination, (i)
a l development, and (i7) extension. These functions are performed
ndustria

h national network of institutions and associated agencies created for

ugh a n a t i o n
a
functions. At present, the SIDO functions through 27 offices, 31 Smal
ries Service Institutes (SISI), 37 Extension Centres, 3 Product-cum -Process
elopment Centres, and 4 Production Centres.
All small-scale industries except those falling within the specialized boards
ni agencies like Khadi and Village Industries (KVI), Coir Boards, Central Silk
Rard, etc, fall under the purview of the SIDO.
The main functions performed by the SIDO in each of its three categories of
anctions are:

anctions Relating to Co-ordination

To evolve a national policy for the development of small-scale industries,
To co-ordinate the policies and programmes of various State Governments,
To maintain a proper liaison with the related Central Ministries, Planning
Commission, State Governments, Financial Institutions etc., and
0 cO-Ordirnate the programmes for the development of industrial estates.
Itions Relating to Industrial Development
0 reserve items for production by small-scale industries,
10 collect data on consumer items imported and then, encourage the setting
austrial units to produce these items by giving coordinated assistance,
To r
ToTer required support for the development of ancillary units, and
Stourage small-scale industries to actively participate in Government
tores Purchase Program by giving them necessary guidance, market
advice, and assistance.
unction Relating to Extension
To make prov
ProduProvision to technical services for improving technical process,
production
actoru
ctory
planning, selecting appropriate machinery, and preparing
lay-ou
provide
and design,
consultancy and training services to strengthen the competitive
ity of small-scale
industries,
 Provide management assistance to production units.
21.2.5 Small Industries Service Institutes
(SISIs)
The Small Industries Services Institutes (SISIs) are set up to p
consultancy and training to small entrepreneurs- both existingandprosp
The activities of SISls are co-coordinated by the Industrial Management1
Division of the DCSSI's office. There are 28 SISIs and 30 branches SIs5
in State capitals and other places all over the country.
 al Development al Support to Entrepreneurs
I n s t l t u t o n a lS u p

411
The main functions
or SISIs include:
fectively sel . Toserve
ass
rve a intertace
between Central and
State Governments.
ion to small. To render technical support services.
3 nduct
To c o n d u c
Entrepreneurshp Development Programmes.
To initiate promotional programs.
SIsls also render assistance in the
ard (SSIB) in
TheSISls following areas:
Econonmic
Consultancy /Information /EDP
. The SSIBis 1.
2 Project profiles.
Consultancy.
mental work
and several 3. District/State industrial potential surveys.
le Industries Workshop facilities.
facilitate co 5 Training in various trades /activities.

ts/ministries 126 District Industries Centres (DICs)

irman ot the The District Industries Centres (DICS) programme was started
on May 8, 1978
inister, some ith aview to provide integrated administrative framework at the district level
Government ir
promotion of
promotion of sr small-scale industries in rural areas. The DICs are envisaged
associations,
associations, single window interacting agency with the entrepreneur at the district level.
nices and support to small entrepreneurs are provided under a single roof
hrough the DICs. They are the implementing arm of the various schemes and
Tgrams including SEEUY/PMRY of the Central and State Governments
Cs) were
seegistration of small industries is done at the District Industries.
Government
The organizational structure of DICs consists of one General Manager, four
e small, tin
Functional Managers, and three Project Managers to provide technical service in
jurisdiction
with greater the area relevant to needs of district concerned. Since 1993-94, the management
of activities o the DIC's is done by the State Governments.
As the promotional and developmental agency, DIC performs the following
main functioNs:
.Toconduct industrial potential surveys.
ale industnes
To prepare techno-economic surveys.
l o prepare an action plan to effectively implement the schemes identified.
infrastructure
Toguide entrepreneurs in matters relating to selecting the most appropriate
Governmen machinery and equipment, sources of its supply and procedures for
procuring imported machinery, if needed, assessing requirementsffor raw
materials etc.
0appraise the worthiness of the various proposals received from
t o provide
entrepreneurs.
T assist the entrepreneurs in marketing their products.
i prospectve

mentTraining
To conduct artisan training programs.
SISIs setu of DRDA in administering IRDPs and
s unction as the technical arms

TRYSEM programmes.
 Entrepreneurial
412 Developme
21.2.7 Industrial Estates
required facilitiec
An industrial
estate is a place
where the

nment to the enro

and tactn
accommodation are provided by the
the government
industrial have
estates
entrepren
heeneu
establish their
industries there. In India,
and growth
of s m a l l - scale ind utliseda
stries. The
for the promotion
an eftective tool
effective tool
to d e c e n t r a l i s e industrial acti ity to rur
have also been used
as an
also known
are by different n
Industrial estates ,
and backward areas.
industrial area,
industrial zone. eto
etc.
region, industrial park,
industrial
"An industrial estate is aon
(1963: 17),
PC. fa coup
Alevander
According to suitable sites with
on an economic scale in
constructed
factories,
bank, post office, canteen, watch
and
electricity, steam, wi
water, transport,
with special arrangements for technical oiidane
and first-aid, and provided
and common service facilities".
10), "An industrial estate is a tract of
In the opinion of Bredo (1962:
according to a comprehensive plan for
which is sub-divided and developed
use of a community
of industrial enterprises."
defined an industrial estate as "a plane
The lnited Nations (1963) has
standard factory buildings erected in advare
clustering of enterprises, offering Ind
and facilities to the occupants."
of demand and variety of services
where the requrn
industrial estate can be defined as a place
Now, an
eith
the Government to
facilities and factory accommodations are provided by unit
industries there.
entrepreneurs to establish their esta
itcT