1. INSTITUTIONAL
SUPPORT TO SMALL AND
MEDIUM ENTERPRISES
Presented by:
Maryam Zafar Ansari
MBA - IIIrd sem

2. 
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Institutional support system is necessary at
three stages enterprise development:
Inception or Promotion
Day-to-day management
Expansion and Diversification

3. 
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Three dimensions of institutional support
system are:
Central Government
State Government
Non-government Support System

4. CENTRAL GOVERNMENT
INSTITUTES

5. SMALL SCALE INDUSTRIES BOARD
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Established in 1954 to provide effective
coordination and inter-institutional linkages for
the benefit of small scale sector.
I c o ns is ts o f the fo llo wing m e m be rs :
t
Union Industry Minister
State Industry Minister
Selected members of Parliament
Secretaries of department concerned

6. 
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Financial Institutions
Selected Public Enterprises
Industry Associations
Eminent experts in the field

7. NATIONAL BANK FOR
AGRICULTURE AND RURAL
DEVELOPMENT (NABARD)
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Se rvic e s o ffe re d by N BA
A RD:
Attracting youth to rural non-farm sector.
District Industries Rural Project (DRIP).
Rural Entrepreneurship Development
Programme (REDP).

8. SMALL INDUSTRIES
DEVELOPMENT ORGANISATION
(SIDO)
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Constituted in 1954 to develop support
services for promotion of SSS.
M in o bje c tive s o f SI a re :
a
DO
To formulate policy for promotion of SSI
Provide coordination of policies of state
government
To collect and disseminate information

9. 
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To provide wide range of extension services
through allied institutions
To promote facilities for technology
upgradation
To offer consultancy services

10. Services Rendered by SIDO:
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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.

11. NATIONAL SMALL INDUSTRIES
CORPORATION (NSIC)

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Set up by government of India in 1955.
M in func tio ns a re :
a
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

12. SMALL INDUSTRIES
DEVELOPMENT BANK OF INDIA
(SIDBI)
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Subsidiary of IDBI, setup as an act of
parliament.
Pro vid e s a s s is ta nc e fo r:
Setting up of new SSI units, small hotels,
hospitals and so on.
Technological upgradation and modernization,
expansion and diversification.
Quality upgradation.

13. 
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Development of markets.
Development of infrastructure.
Discounting of bills of manufacturer-seller in
selling either equipments or components.

14. STATE GOVERNMENT
INSTITUTES

15. STATE FINANCIAL CORPORATIONS
(SFC)
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O bje c tive s :
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.

16. STATE SMALL INDUSTRIES
DEVELOPMENT CORPORATION
(SSIDC)
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I p o rta nt func tio ns p e rfo rm e d a re :
m
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.

17. TECHNICAL CONSULTANCY
ORGANISATON
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Se rvic e s o f TCO s inc lud e :
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.

18. KHADI AND VILLAGE INDUSTRIES
COMMISION (KVIC)
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It is engaged in the development of khadi and
village industries in rural areas.
M in o bje c tive s o f KVI a re :
a
C
Providing employment in rural areas.
Skill improvement.
Rural industrialization.
Transfer of technology.

19. NON-GOVERNMENT
INSTITUTES

20. INDIAN COUNCIL OF SMALL
INDUSTRIES (ICSI)
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It was established in 1979.
M in func tio ns a re :
a
Information dissemination.
Entrepreneurship development.
Consultancy and managerial support.
Training and research.

21. LAGHU UDYOG BHARTI (LUB)
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It was founded in 1995.
I is re s p o ns ible to und e rta ke :
t
Entrepreneurial training.
Technology upgradation.
Marketing services.

22. CONCLUSION
The most important development in the postindependence 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.

23. REFERENCES
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Entrepreneurship and Small Business
Management
-M. B. SHUKLA
The Dynamics of Entrepreneurship
Development and Management
-VASANT DESAI

24. THANK YOU