UNIT-1

Entrepreneurs are people who start new businesses and enterprises Entrepreneurs are important to our economy because they create jobs by starting businesses that need employees. Another advantage to our economy is the new ideas and technologies that are introduced to our society.

The importance of entrepreneurship to any economy is like that of entrepreneurship in any community. Entrepreneurial activity and the resultant financial gain are always of benefit. The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. Entrepreneurship is one of the most important input in the economic development of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in the development of farm and service sector.

Importance of an entrepreneur in economic development..

The major roles played by an entrepreneur in the economic development of an economy are discussed in a systematic and orderly manner as follows.

(1) Promotes Capital Formation:

Entrepreneurs promote capital formation by mobilizing the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities leads to value addition and creation of wealth, which is very essential for the industrial and economic development of the country.

(2) Creates Large-Scale Employment Opportunities:

Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of underdeveloped nations. With the setting up of more and more units by entrepreneurs, both on small and large-scale numerous job opportunities are created for others. As time passes, these enterprises grow, providing direct and indirect employment opportunities to many more. In this way, entrepreneurs play an effective role in reducing the problem of unemployment in the country which in turn clears the path towards economic development of the nation.

(3) Promotes Balanced Regional Development:

Entrepreneurs help to remove regional disparities through setting up of industries in less developed and backward areas. The growth of industries and business in these areas lead to a large number of public benefits like road transport, health, education, entertainment, etc. Setting up of more industries lead to more development of backward regions and thereby promotes balanced regional development.

(4) Reduces Concentration of Economic Power:

Economic power is the natural outcome of industrial and business activity. Industrial development normally lead to concentration of economic power in the hands of a few individuals which results in the growth of monopolies. In order to redress this problem a large number of entrepreneurs need to be developed, which will help reduce the concentration of economic power amongst the population.

(5) Wealth Creation and Distribution:

It stimulates equitable redistribution of wealth and income in the interest of the country to more people and geographic areas, thus giving benefit to larger sections of the society. Entrepreneurial activities also generate more activities and give a multiplier effect in the economy.

(6) Increasing Gross National Product and Per Capita Income:

Entrepreneurs are always on the lookout for opportunities. They explore and exploit opportunities,, encourage effective resource mobilisation of capital and skill, bring in new products and services and develops markets for growth of the economy. In this way, they help increasing gross national product as well as per capita income of the people in a country. Increase in gross national product and per capita income of the people in a country, is a sign of economic growth.

(6) Improvement in the Standard of Living:

Increase in the standard of living of the people is a characteristic feature of economic development of the country. Entrepreneurs play a key role in increasing the standard of living of the people by adopting latest innovations in the production of wide variety of goods and services in large scale that too at a lower cost. This enables the people to avail better quality goods at lower prices which results in the improvement of their standard of living.

(7) Promotes Country's Export Trade:

Entrepreneurs help in promoting a country's export-trade, which is an important ingredient of economic development. They produce goods and services in large scale for the purpose earning huge amount of foreign exchange from export in order to combat the import dues requirement. Hence import substitution and export promotion ensure economic independence and development.

(8) Induces Backward and Forward Linkages:

Entrepreneurs like to work in an environment of change and try to maximise profits by innovation. When an enterprise is established in accordance with the changing technology, it induces backward and forward linkages which stimulate the process of economic development in the country.

(9) Facilitates Overall Development:

Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise is established, the process of industrialisation is set in motion. This unit will generate demand for various types of units required by it and there will be so many other units which require the output of this unit. This leads to overall development of an area due to increase in demand and setting up of more and more units. In this way, the entrepreneurs multiply their entrepreneurial activities, thus creating an environment of enthusiasm and conveying an impetus for overall development of the area.

Defining EntrepreneurshipSome experts think of entrepreneurs as people who are willing to take risks that other people are not. Others define them as people who start and build successful businesses.

Thinking about the first of these definitions, entrepreneurship doesn't necessarily involve starting your own business. Many people who don't work for themselves are recognized as entrepreneurs within their organizations.

Regardless of how you define an "entrepreneur," one thing is certain: becoming a successful entrepreneur isn't easy.

So, how does one person successfully take advantage of an opportunity, while another, equally knowledgeable person does not? Do entrepreneurs have a different genetic makeup? Or do they operate from a different vantage point, that somehow directs their decisions for them?

Though many researchers have studied the subject, there are no definitive answers. What we do know is that successful entrepreneurs seem to have certain traits in common.

We've gathered these traits into four categories:

Personal characteristics. Interpersonal skills.

Critical and creative thinking skills.

Practical skills.

We'll now examine each category in more detail, and look at some of the questions you will need to ask yourself if you want to become a successful entrepreneur.

Personal CharacteristicsFirst, examine your personal characteristics, values, and beliefs. Do you have the mindset that's typical of successful entrepreneurs?

Optimism: Are you an optimistic thinker?   Optimism is truly an asset, and it will help get you through the tough times that many entrepreneurs experience as they find a business model that works for them.

Vision: Can you easily see where things can be improved? Can you quickly grasp the "big picture," and explain this to others? And can you create a compelling vision of the future, and then inspire other people   to engage with that vision?

Initiative: Do you have initiative  , and instinctively start problem-solving or business improvement projects?

Desire for Control: Do you enjoy being in charge and making decisions? Are you motivated to lead   others?

Drive and Persistence: Are you self-motivated   and energetic? And are you prepared to work hard, for a very long time, to realize your goals?

Risk Tolerance: Are you able to take risks, and make decisions   when facts are uncertain?

Resilience: Are you resilient  , so that you can pick yourself up when things don't go as planned? And do you learn and grow from your mistakes and failures? (If you avoid taking action because you're afraid of failing, our article on Overcoming Fear of Failure   can help you face your fears and move forward.)

Interpersonal SkillsAs a successful entrepreneur, you'll have to work closely with people – this is where it is critical to be able to build great relationships   with your team, customers, suppliers, shareholders, investors, and more.

Some people are more gifted in this area than others, but, fortunately, you can learn and improve these skills. The types of interpersonal skills you'll need include:

Leadership and Motivation: Can you lead   and motivate others   to follow you and deliver your vision? And are you able to delegate   work to others? As a successful entrepreneur, you'll have to depend on others to get beyond a very early stage in your business – there's just too much to do all on your own!

Communication Skills: Are you competent with all types of communication  ? You need to be able to communicate well to sell your vision of the future to investors, potential clients, team members, and more.

Listening: Do you hear what others are telling you? Your ability to listen can make or break you as an entrepreneur. Make sure that you're skilled at active listening   and empathetic listening  .

Personal Relations: Are you emotionally intelligent  ? The higher your EI, the easier it will be for you to work with others. The good news is that you can improve your emotional intelligence!

Negotiation: Are you a good negotiator  ? Not only do you need to negotiate keen prices, you also need to be able to resolve differences between people in a positive, mutually beneficial way.

Ethics: Do you deal with people based on respect, integrity  , fairness, and truthfulness? Can you lead ethically  ? You'll find it hard to build a happy, committed team if you deal with people – staff, customers or suppliers – in a shabby way.

Critical and Creative Thinking SkillsAs an entrepreneur, you also need to come up with fresh ideas, and make good decisions about opportunities and potential projects.

Many people think that you're either born creative or you're not. However, creativity is a skill that you can develop if you invest the time and effort.

Creative Thinking: Are you able to see situations from a variety of perspectives and come up with original ideas?

Problem Solving: How good are you at coming up with sound solutions to the problems you're facing?

Recognizing Opportunities: Do you recognize opportunities   when they present themselves? Can you spot a trend  ? And are you able to create a plan to take advantage of the opportunities you identify?

Practical SkillsYou also need the practical skills and knowledge needed to produce goods or services effectively, and run a company.

Goal Setting: Do you regularly set goals , create a plan to achieve them, and then carry out that plan?

Planning and Organizing: Do you have the talents, skills, and abilities necessary to achieve your goals? Can you coordinate people to achieve these efficiently and effectively? (Here, effective project management skills   are important, as are basic organization skills  .) And do you know how to develop a coherent, well thought-through business plan  , including developing and learning from appropriate financial forecasts  ?

Decision Making: How good are you at making decisions?   Do you make them based on relevant information and by weighing the potential consequences? And are you confident in the decisions that you make?

Core decision-making tools include Decision Tree Analysis, Grid Analysis, and Six Thinking Hats.

You need knowledge in several areas when starting or running a business. For instance:

o Business knowledge: Do you have a good general knowledge of the main functional areas of a business (sales, marketing, finance, and operations), and are you able to operate or manage others in these areas with a reasonable degree of competence?

o Entrepreneurial knowledge: Do you understand how entrepreneurs raise capital? And do you understand the sheer amount of experimentation and hard work that may be needed to find a business model that works for you?

o Opportunity-specific knowledge: Do you understand the market you're attempting to enter, and do you know what you need to do to bring your product or service to market?

o Venture-specific knowledge: Do you know what you need to do to make this type of business successful? And do you understand the specifics of the business that you want to start? (This is where it's often useful to work for a short time in a similar business.)

A wide range of competences are seen as entrepreneurial and useful to entrepreneurs, these include knowledge, skills and personal traits:

Management skills – the ability to manage time and people (both oneself and others) successfully Communication skills (e.g. the ability to sell ideas and persuade others)

The ability to work both as part of a team and independently

Able to plan, coordinate and organise effectively

Financial literacy

Able to research effectively (e.g. available markets, suppliers, customers and the competition)

Self-motivated and disciplined

Adaptable

An Innovative and creative thinker

The ability to multi-task

Able to take responsibility and make decisions

The ability to work under pressure

Perseverance

Competitiveness

Willingness to take risks (or at least not risk averse)

Ability to network and make contacts

Many, if not all of these skills and traits are also useful to intrapreneurs, those who are entrepreneurial within an existing organisation (internal entrepreneurs). These skills and traits would also benefit all employees within a business and so are useful for graduates to have. Many of these skills, for example, communication skills and the ability to work as part of a team, are already promoted within existing degrees.

In addition to those more general skills listed above, other more specific or business related skills, will be of use to entrepreneurs, these may include:

being able to draw up a business plan for a new venture being able to market and sell a new product or idea

financial skills, such as book-keeping and calculating tax

awareness of intellectual property and possibly patent law

An entrepreneur should have personal skills which include vision, drive and initiative. He or she should also have interpersonal skills which include communication skills, teamwork, leadership and motivation skills. He or she should be critical and creative in thinking and have practical skills. The number of duties the entrepreneur must perform require skills in time management. Operating a business requires hard work, long days and dedication, and time-management skills.

THEORIES OF ENTREPRENEURSHIP.

Economic, sociological and psychological Entrepreneurship.

Innovation theory. Theory of Achievement Motivation.

Motivation theory by McClelland (Acquired Needs theory). The Kakinada Experiment Motivating factors for entrepreneur-

Economic Theory

Entrepreneurship and economic growth take place when the economic conditions are favorable

Economic incentives are the main motivators for entrepreneurial activities Economic incentives include taxation policy, industrial policy, sources of finance and raw material,

infrastructure availability, investment and marketing opportunities, access to information about market conditions, technology etc.

Sociological Theory

Entrepreneurship is likely to get a boost in a particular social culture

•Society’s values, religious beliefs, customs, taboos influence the behavior of individuals in a society

•The entrepreneur is a role performer according to the role expectations by the society

Psychological Theory

Entrepreneurship gets a boost when society has sufficient supply of individuals with necessary psychological characteristics

•The psychological characteristics include need for high achievement, a vision or foresight, ability to face opposition

•These characteristics are formed during the individual’s upbringing which stress on standards of excellence, self reliance and low father dominance

Barriers for entrepreneurship

The personal barriers to entrepreneurship can be classified into two types.

1. Motivational : Once the venture starts functioning, the obstacles faced in the initial stages can make the entrepreneurs to lose their commitment and consequently their level of motivation dips. The entrepreneurs who lack toughness and perseverance often quit.

2. Perceptional : Certain perception barriers cn hamper the progress of the entrepreneur. Lack of a clear vision and misunderstanding can result in faulty perception. If the entrepreneur demands everything to be clear and well-defined in order to develop a perception, it will lead to disappointment. As entrepreneur’s world is basically disorderly and ambiguous, the people who excessively depend on order will find it a barrier to entrepreneurship.

The economic environment can create barriers for an entrepreneur because of the following reasons.

3. The capital for setting up the new venture is not accessible for the entrepreneur

4. Non-availability of labour at reasonable cost.

5. If the labour market is unreliable and and is fraught with undescipline and selfishness, it will also become a barrier for entrepreneurship.

6. Shortfall in the availability of raw materials in the desired quality and quantity.

7. Inadequate infrastructure to transport the raw material to the factory.

8. Non-availability of easy access to the market for the finished goods.

UNIT-2

Industrial Development Bank of India (IDBI)

The Industrial Development Bank of India (IDBI) was established on July 1, 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 16 February 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in the country. Although Government shareholding in the Bank came down below 100% following IDBI's public issue in July 1995, the former continues to be the major shareholder (current shareholding: 52.3%). During the four decades of its existence, IDBI has been instrumental not only in establishing a well-developed, diversified and efficient industrial and institutional structure but also adding a qualitative dimension to the process of industrial development in the country.

IDBI has played a pioneering role in fulfilling its mission of promoting industrial growth through financing of medium and long-term projects, in consonance with national plans and priorities.

Over the years, IDBI has enlarged its basket of products and services, covering almost the entire spectrum of industrial activities, including manufacturing and services.

IDBI provides financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. In the wake of financial sector reforms unveiled by the government since 1992, IDBI evolved an array of fund and fee-based services with a view to providing an integrated solution to meet the entire demand of financial and corporate advisory requirements of its clients.

IDBI also provides indirect financial assistance by way of refinancing of loans extended by State-level financial institutions and banks and by way of rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred payment terms.

IDBI has played a pioneering role, particularly in the pre-reform era (1964-91),in catalyzing broad based industrial development in the country in keeping with its Government-ordained 'development banking' charter. In pursuance of this mandate, IDBI's activities transcended the confines of pure long-term lending to industry and encompassed, among others, balanced industrial growth through development of backward areas, modernisation of specific industries, employment generation, entrepreneurship development along with support services for creating a deep and vibrant domestic capital market, including development of apposite institutional framework.

In September 2003, IDBI diversified its business domain further by acquiring the entire shareholding of Tata Finance Limited in Tata Home finance Ltd., signaling IDBI's foray into the retail finance sector.

Recent developments

To meet emerging challenges and to keep up with reforms in financial sector, IDBI has taken steps to reshape its role from a development finance institution to a commercial institution. With the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003, IDBI attained the status of a limited company viz. "Industrial Development Bank of India Limited" (IDBIL). Subsequently, the

Central Government notified October 1, 2004 as the 'Appointed Date' and RBI issued the requisite notification on September 30, 2004 incorporating IDBI Ltd. as a 'scheduled bank' under the RBI Act, 1934. Consequently, IDBI, the erstwhile Development Financial Institution of the country, formally entered the portals of banking business as IDBIL from October 1, 2004, over and above the business currently being transacted.

Main function of IDBI

IDBI is vested with the responsibility of co-ordinating the working of institutions engaged in financing, promoting and developing industries. It has evolved an appropriate mechanism for this purpose. IDBI also undertakes/supports wide-ranging promotional activities including entrepreneurship development programmes for new entrepreneurs, provision of consultancy services for small and medium enterprises, upgradation of technology and programmes for economic upliftment of the underprivileged.

IDBI role as catalyst

IDBI's role as a catalyst to industrial development encompasses a wide spectrum of activities. IDBI can finance all types of industrial concerns covered under the provisions of the IDBI Act. With over three decades of service to the Indian industry, IDBI has grown substantially in terms of size of operations and portfolio.

Development activities of IDBI and promotionl activities

In fulfilment of its developmental role, the Bank continues to perform a wide range of promotional activities relating to developmental programmes for new entrepreneurs, consultancy services for small and medium enterprises and programmes designed for accredited voluntary agencies for the economic upliftment of the underprivileged. These include entrepreneurship development, self-employment and wage employment in the industrial sector for the weaker sections of society through voluntary agencies, support to Science and Technology Entrepreneurs' Parks, Energy Conservation, Common Quality Testing Centres for small industries.

IDBI Ltd. is registered as a company under the Companies Act, 1956 to carry out banking business in accordance with the provisions of the Banking Regulation Act, 1949. The IDBI Repeal Act, 2003 enabled IDBI to become a banking company without the need to obtain a separate banking licence under the Banking Regulation Act, 1949. IDBI Ltd. will enjoy certain regulatory forbearance, including exemption from compliance with SLR requirements (mandated under the Banking Regulation Act) for the first five years. All existing shareholders of the erstwhile IDBI, including the Central Government, have become pro-rata shareholders of IDBI Ltd. from the 'appointed date'. Further, the provisions of the Memorandum and Articles of Association of IDBI Ltd. require that the Central Government, as a shareholder of the Company, shall, at all times, maintain not less than 51% of the issued capital of the company.

The authorized capital of IDBI Ltd, has been reduced to Rs.1250 crore from Rs.1500 crore (the authorized capital of erstwhile IDBI) in conformity with the provision of the Banking Regulation Act. The paid-up capital of the Company, at Rs.653 crore, however, remains the same as the paid-up capital of the erstwhile IDBI

Role of Financial Institutions in Foreign Investment in India

The main role of the financial institutions in India in respect to foreign investments is to aid foreign investors in investment activities in India. The funds from overseas countries come in two forms: Foreign direct Investments and Joint Ventures of the foreign companies with Indian companies.

Foreign direct investments inflows are approved through automatic route or through government route. Those units that require government approval to get funds require the FIPB approval. Foreign Direct Investment through automatic route, on the other hand, does not require FIPB approval. All these allocation of financial assistance to various industrial units in India are guided by the financial institutions set up in various parts of India. Some of the leading financial institutions in India that play an important role in foreign investments in India are RBI, IDBI Bank, IFCI Bank, ICICI Limited and EXIM Bank.

Role of IDBI in Foreign Investment

The role of IDBI in Foreign Investment is mainly to provide financial assistance on a consortium basis to various industrial units in India which are mainly involved in manufacturing or processing of goods, mining, transport generation and distribution of power.

Main Functions of IDBI

IDBI coordinates between various financial institutions who are highly involved in provide financial assistance, promoting, and developing various industrial units

IDBI is also engaged in a variety of promotional activities such as development programs for the fresh entrepreneurs, planning of consultancy services for both the small scale enterprises and the medium sized industrial units

IDBI works for the advancement of technology and other welfare schemes to ensure economic development.

Industrial Development Bank of India acts as a catalyst in various industrial development programs

IDBI provides financial assistance to all kinds of industrial units which comes under the provisions of the IDBI Act

IDBI has served various industrial sectors in India for about three years and has grown leaps and bounds in its size and operating unitsRole of IDBI in Foreign Investment

It manages various financial institutions working under IDBI bank

Provides financial assistance to various industrial units in terms of developments

It also offers refinancing options including term loans to the suitable financial institutions

It provides funding to the industrial units that are involved in manufacture or processing of goods, mining, transport generation and distribution of power both in private and public sectors

It also provides finance to various projects, expansion of any project, diversifications, or even developing the projects which will exceed Rs. 30 million and it also provides funding to those projects which cost less than Rs. 30 million through indirect means as it offers refinancing to the main financial institutions such as SFC/SIDC/Commercial Banks

SIDBIWhat are the main functions of Small Industries Development Bank of India?

Small Industries Development Bank of India (SIDBI) was established in October 1989 and commenced its operation from April 1990 with its Head Office at Lucknow as a development bank, exclusively for the small scale industries. It is a central government undertaking. The prime aim of SIDBI is to promote and develop small industries by providing them the valuable factor of production finance. Many institutions and commercial banks supply finance, both long-term and short-term, to small entrepreneurs. SIDBI coordinates the work of all of them.

Functions of Small Industries Development Bank of India (SIDBI):

Over the years, the scope of promotional and developmental activities of SIDBI has been enlarged to encompass several new activities. It performs a series of functions in collaboration with voluntary organisations, non-governmental organisations, consultancy firms and multinational agencies to enhance the overall performance of the small scale sector. The important functions of SIDBI are discussed as follows:

(i) Initiates steps for technology adoption, technology exchange, transfer and upgradation and modernisation of existing units.

(ii) SIDBI participates in the equity type of loans on soft terms, term loan, working capital both in rupee and foreign currencies, venture capital support, and different forms of resource support to banks and other institutions.

(iii) SIDBI facilitates timely flow of credit for both term loans and working capital to SSI in collaboration with commercial banks.

(iv) SIDBI enlarges marketing capabilities of the products of SSIs in both domestic and international markets.

(v) SIDB1 directly discounts and rediscounts bills with a view to encourage bills culture and helping the SSI units to realise their sale proceeds of capital goods / equipments and components etc.

(vi) SIDBI promotes employment oriented industries especially in semi-urban areas to create more employment opportunities so that rural-urban migration of people can be checked.

Financial Assistance Scheme of SIDBI

It is the general observation that the main obstacles and problems in the growth of industrial units are the paucity of primary infrastructure, unavailability of suitable market for selling the products, working capital requirement and difficulties arising out of the delays in receiving the bills. Looking to the above problems SIDBI has included many provisions into its various schemes.

1. Loan assistance to the institutions providing market or marketing avenues to the small entrepreneurs.

2. Loan to ancillary units and also for modernisation and upgrading technology.

3. Loan to institutions providing primary services and infrastructure and developing the growth centres.

4. Loan assistance to NSIC.

Apart from the above loan assistance, SIDBI also serves the following:

(a) Refinance to SSIDCs which supply raw material to small units and provide them market avenues.

(b) Bill discounting facility

(c) Refinance for loan given by state level institutions and banks under the single window system for fixed and working capital.

(d) Refinance of loan given to certified professionals and self-employed people for business like small clinics and hospitals, nursing homes, development of tourism etc.

5. Refinance for loan given by banks and concerned institutions for new projects, expansion and modernisation of existing units, quality improvement and rehabilitation of the units.

Similarly, SIDBI provides assistance to women entrepreneurs and ex-servicemen under its various schemes. So in the above way SIDBI makes a good platform for the budding entrepreneurs

NIESBUDNIESBUD is an apex body under the Ministry of Micro, Small & Medium Enterprises, Government of India for coordinating and overseeing the activities of various institutions/agencies engaged in entrepreneurship development particularly in the area of small industry and small business. The Institute which is registered as a Society under Societies Registration Act, 1860 (XXI of 1860), started functioning from 6th July, 1983.

The policy, direction and guidance to the Institute is provided by its Governing Council whose Chairman is the Minister of MSME.The Executive Committee consisting of Secretary (Micro, Small & Medium Enterprises) as its Chairman and Director General of the Institute as its Member-Secretary, executes the policies and decisions of the Governing Council through its whole-time Director General.

Assisting/Supporting EDP's

Evolving Standardized Materials, Research, Publications. Formulation of standardised procedures of identification and selection of potential entrepreneurs.

Preparation of Training Aids Materials

o Manuals

o Handbooks

o Lesson Plans

o Learning Text

o Case Studies

o EMT Kits etc.

Training Of Trainers'/Promoters'

Accredition Programme for Entrepreneurial Motivation Trainers Trainers' Training Programme for Enterprise Launching & Management.

Trainers'/Promoters' Programme for Support Organisations such as SISIs, DICs, Development Corporations etc

Small Business Promotion Programme

Entrepreneurship Orientation Programme for HODs and Senior Executives

Research & Publications

Research on topics related to entrepreneurship and allied areas. Widely disseminates the findings. The Status Analysis Study on Entrepreneurship in India; Potential of Women Entrepreneurship in India; Successful Women Entrepreneurs: Their identity; Expectations and Problem and Directory of EDP Institutions in India are some of the notable    research publications by the Institute.

Information materials for entrepreneurs like Handbooks on Industrial Laws; Commercial Laws; Ready Reckoner for Product Selection etc. have been prepared.

Directory of Experts.

Newsletter covering Schemes; News; Views; Forthcoming Activities; Agency Profile; Entrepreneurial Profile etc.

Creation & Capacity Building Of EDP Institutions

The Institute provides support and guidance in establishing EDP institutions. The assistance covers developing programmes & faculty, providing training,library facilities and sharing experiences of conducting programmes at the initial stage(s).

Small Business In Focus

The Institute focuses its attention on small business development by encouraging and supporting arrangements in remote and backward areas. The number and percentage of small business among small entrepreneurs is very large. The Institute concentrates its efforts on evolving methodology for training, supporting and sustaining this Group.

National/International Forum For Exchange Of Ideas & Experiences

The Institute organises National as well as International Meets for sharing experiences with a view to enhance success in implementation of entrepreneurship development programmes.

Organises Workshops and Seminars on comtemporary topics/issues such as sustaining entrepreneurship, emerging entrepreneurial opportunities etc.

Encourages foreign delegations for mutual exchange of experiences.

Developing Entrepreneurial Culture

The Institute strives to creating climate conducive to emergence of entrepreneurs from all strata of society.

Conducts awareness campaigns for students of school and college and Institutions of Higher Learnings.

Produces and distributes material for use by mass media like TV, AIR etc.

Organises group discussions representing a variety of cross-sections of the society.

Services To Affiliate Members

The Institute affiliates individuals/ institutions/ organisations engaged in entrepreneurship development and related activities such as Ordinary, Associate and Corporate Members. The Institute offers the following services to the Members:-

Besome Member of the Society and thus contribute towards discussing strategy for propogating entrepreneurship.

Provision of consessional Facilities.

Free Services(Library, Documentation etc.)

Free Academic Advice/Guidance.

Sustaining Entrepreneurship

Sustaining existing entrepreneurs is an important activity. In this direction, the Institute organises Continuing Education Programmes for SSI Entrepreneurs besides providing counselling and consultancy. Short duration training programmes on Working Capital Management, Marketing, Project Identification & Selection, Accounting etc. are conducted on campus while counselling / consultancy is provided on and off campus.

MSMEs

The Micro, Small and Medium Enterprises (MSME) sector has been recognised as engine of growth all over the world.  Many countries of the world have established a SME Development Agency as the nodal agency to coordinate and oversee all Government interventions in respect of the development of this sector.  In the case of India, also Medium establishment has for the first time been defined in terms of separate Act, governing promotion and development of Micro, Small and Medium Enterprises (MSME) i.e. Micro, Small and Medium Enterprises (MSME) development Act, 2006 (which has come into force from 02nd Oct, 2006) the Office of Development Commissioner (Micro, Small and Medium Enterprises) functions as the nodal Developmet Agency under the Ministry of Micro, Small and Medium Enterprises(MSME).

Office of Development Commissioner (SSI) was established in 1954 on the basis of the recommendations of the Ford Foundation.  Over the years, it has seen its role evolve into an agency for advocacy, hand holding and facilitation for the small industries sector.  It has over 70 offices and 21

autonomous bodies under its management.  These autonomous bodies include Tool Rooms, Training Institutions and Project-cum-Process Development Centres.  Office of the Development Commissioner (MSME) provides a wide spectrum of services to the Micro, Small and Medium Industrial sector.  These include facilities for testing, toolmenting, training for entrepreneurship development, preparation of project and product profiles, technical and managerial consultancy, assistance for exports, pollution and energy audits etc. Office of the Development Commissioner (MSME) provides economic information services and advises Government in policy formulation for the promotion and development of SSIs. The field offices also work as effective links between the Central and the State Governments.

Consequent to the increased globalization of the Indian economy, MSMEs are required to face new challenges.  Office of the Development Commissioner (MSME) has recognised the changed environment and is currently focusing on providing support in the fields of credit, marketing, technology and infrastructure to MSMEs. Global trends and national developments have accentuated Office of the Development Commissioner (MSME)'s role as a catalyst of growth of MSMEs in the country.

The main services rendered by DC (MSME) office are:

1. Advising the Government in policy formulation for the promotion and development of MSMEs. 2. Providing techno-economic and managerial consultancy, common facilities and extension

services to MSMEs.

3. Providing facilities for technology upgradation, modernisation, quality improvement and infrastructure.

4. Developing Human Resources through training and skill upgradation.

5. Providing economic information services.

6. Maintaining a close liaison with the Central Ministries, Planning Commission, State Governments, Financial Institutions and other Organisations concerned with development of MSMEs.

7. Evolving and coordinating Policies and Programmes for development of MSMEs as ancillaries to large industries.

There are 30 MSME-DIs (fromerly SISIs) and 28 Branch MSME-DIs (formerly SISIs) set up in State capitals and other industrial cities all over the country. The main activities of these institutions are as follows:-

1. Assistance/Consultancy to Prospective Entrepreneurs

2. Assistance/Consultancy rendered to existing units

3. Preparation of State Industrial Profiles

4. Preparation/Updation of District Industrial Potential Surveys

5. Project Profiles

6. Entrepreneurship Development Programmes

7. Motivational Campaigns

8. Production Index

9. Management Development Programmes

10. Skill Development Programmes

11. Energy Conservation

12. Pollution Control

13. Quality Control & Upgradation

14. Export Promotion

15. Ancillary Development

16. Common Facility Workshop/Lab

17. Preparation of Directory of Specific Industry

18. Intensive Technical Assistance

19. Coordination with DICs

20. Linkage with State Govt. Functionaries

21. Market Surveys

22. Other Action Plan Activities assigned by Headquarters

SISIs and its Branches have common facility workshops in various trades. There are at present 42 such common facility workshops attached to SISIs/Branch SISIs.

What are the Objectives and Functions of District Industries Centre?

The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place. The finances for setting up DICs in a state are contributed equally by the particular state government and the central government. To facilitate the process of small enterprise development, DICs have been entrusted with most of the administrative and financial powers. For purpose of allotment of land, work sheds, raw materials etc., DICs functions under the 'Directorate of Industries'. Each DIC is headed by a General Manager who is assisted by four functional managers and three project managers to look after the following activities :

Activities of District Industries Centre (DIC):

1. Economic Investigation2. Plant and Machinery

3. Research, education and training

4. Raw materials

5. Credit facilities

6. Marketing assistance

7. Cottage industries

Objectives of District Industries Centre (DIC):

The important objectives of DICs are as follow :

1. Accelerate the overall efforts for industrialisation of the district.2. Rural industrialisation and development of rural industries and handicrafts.

3. Attainment of economic equality in various regions of the district.

4. Providing the benefit of the government schemes to the new entrepreneurs.

5. Centralisation of procedures required to start a new industrial unit and minimisation- of the efforts and time required to obtain various permissions, licenses, registrations, subsidies etc.

Functions of District Industries Centre (DIC):

1. Acts as the focal point of the industrialisation of the district.2. Prepares the industrial profile of the district with respect to :

3. Statistics and information about existing industrial units in the district in the large, Medium, small as well as co-operative sectors.

4. Opportunity guidance to entrepreneurs.

5. Compilation of information about local sources of raw materials and their availability.

6. Manpower assessment with respect to skilled, semi-skilled workers.

7. Assessment of availability of infrastructure facilities like quality testing, research and development, transport, prototype development, warehouse etc.

8. Organises entrepreneurship development training programs.

9. Provides information about various government schemes, subsidies, grants and assistance available from the other corporations set up for promotion of industries.

10. Gives SSI registration.

11. Prepares techno-economic feasibility report.

12. Advices the entrepreneurs on investments.

13. Acts as a link between the entrepreneurs and the lead bank of the district.

14. Implements government sponsored schemes for educated unemployed people like PMRY scheme, Jawahar Rojgar Yojana, etc.

15. Helps entrepreneurs in obtaining licenses from the Electricity Board, Water Supply Board, No Objection Certificates etc.

16. Assist the entrepreneur to procure imported machinery and raw materials.

17. Organises marketing outlets in liaison with other government agencies.

Entrepreneurship Development Institute of India (EDI)

The Entrepreneurship Development Institute of India (EDI), an autonomous body and not-for-profit institution, set up in 1983, is sponsored by apex financial institutions, namely the IDBI Bank Ltd, IFCI Ltd. ICICI Ltd and State Bank of India (SBI). The Institute is registered under the Societies Registration Act 1860 and the Public Trust Act 1950. The Government of Gujarat pledged twenty-three acres of land on which stands the majestic and sprawling EDI campus.

EDI has been spearheading entrepreneurship movement throughout the nation with a belief that entrepreneurs need not necessarily be born, but can be developed through well-conceived and well-directed activities.

In consonance with this belief, EDI aims at: creating a multiplier effect on opportunities for self-employment, augmenting the supply of competent entrepreneurs through training,

augmenting the supply of entrepreneur trainer-motivators,

participating in institution building efforts,

inculcating the spirit of 'Entrepreneurship' in youth,

promoting micro enterprises at rural level,

developing and disseminating new knowledge and insights in entrepreneurial theory and practice through research,

facilitating corporate excellence through creating intrapreneurs (entrepreneurial managers),

improving managerial capabilities of small scale industries,

sensitizing the support system to facilitate potential and existing entrepreneurs establish and manage their enterprises,

Collaborating with similar organisations in India and other developing countries to accomplish the above objectives.

Objectives:

Augment the supply of trained entrepreneurs through training Generate multiplier effect on opportunities for self employment Improve managerial capabilities of small scale industries Contribute to dispersal of business ownership and thus expand social base of the Indian entrepreneurial

class Contribute to the creation and dissemination of new knowledge and insight into entrepreneurial theory

and practice through research. The Augment supply of trainers motivators for entrepreneurship and development Participate in institutional

Promote micro enterprise at rural levelSmall Industries Development Organisation (SIDO)Small Industries Development Organisation (SIDO)an apex body at Central level for formulating policy for the development of Small Scale Industries in the country, is headed by the Additional Secretary & Development Commissioner (Small Scale Industries) under Ministry of Small Scale Industries Govt. of India.SIDO is created for development of various small scale units in different areas.

SIDO is a subordinate office of department of SSI and ARI. It is a nodal agency for identifying the needs of SSI units coordinating and monitoring the policies and programmes for promotion of the small industries. It undertakes various programmes of training, consultancy, evaluation for needs of SSI and development of industrial estates. All these functions are taken care with 27 offices, 31 SISI (Small Industries Service Institute) 31 extension centres of SISI and 7 centres related to production and process development.

Management activities of SIDO: To provide training, development and consultancy services to SSI to develop their competitive

strength. To provide marketing assistance to various SSI units. To assist SSI units in selection of plant and

machinery, location, layout design and appropriate process.

Inculcate the spirit of entrepreneurship among youth

To help them get updated in various information related to the small-scale industries activities

SIDO is playing a very constructive role for strengthening this vital sector which has proved to be one of the strong pillars of the economy of the country. It is rendering the services in the following areas:-

Advising the Govt. in policy matters concerning small scale sector. Providing techno-economic and managerial consultancy, common facilities and extension

services. Providing facilities for technology up-gradation, modernization quality improvement &

infrastructure. Human resources development through training and skill up-gradation. Maintaining close liaison and vital linkage with the Central Ministries, Planning Commission,

Financial Institutions, State Govts. & similar other developmental organizations/agencies related to the promotion and development of SSI Sector.

Evolving and coordinating policies for development of ancillaries. Monitoring of PMRY Scheme Monitoring the working of different Tool Rooms & PPDC's