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
THANK YOU