Government initiatives to promote enterpreneurship, details on policy

1. Government Initiatives to
promote Entrepreneurship
ARUSHI GAIROLA
JOYITA DEY
SUMEDHA RAMANAN

2. Introduction
 It is a known fact that India, today, is an emerging
economy.
 However, for India, to acquire the status of a
"developed" nation, statistics point out that it needs
to create 100 million jobs.
 The last 3 decades have brought about changes in the
government’s thinking leaning towards a market
oriented economy.
 Various support mechanisms have been designed by
the government to nurture the entrepreneurial
mindset.

3. MSMED Act, 2006
 To boost the services and manufacturing sectors, the Govt. of India chalked out a
separate SMSE department so that these industries could receive sufficient
attention and support. The MSMED Act was passed in 2006 which aims at:
 Providing guidelines for skill development of employees, management and
entrepreneurs
 Issue guidelines from time-to-time for ease of credit to MSMEs
 Work on minimisation of sick units and enhance their competitiveness through
various support mechanisms
 Preference policy for procurement of goods or services by Central Govt.
produced or provided by MSMEs.
 Resolution of delayed payment related
issues

5.  The Ministry of Micro, Small and Medium Enterprises (MSME) ahs been initiating and implementing several
schemes which the MSMEs can take benefit of in order to boost their business. Some these schemes include:
Scheme of Surveys, Studies and Policy Research
Entrepreneurship Development Institution Scheme
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Rajiv Gandhi Udyami Mitra Yojana (RGUMY)
Marketing Assistance Scheme (Implemented through NSIC)
Performance and Credit Rating Scheme (Implemented through NSIC)
Prime Minister's Employment Generation Programme (PMEGP) (Implemented through KVIC)
Product Development, Design Intervention and Packaging (PRODIP) (Implemented through KVIC)
Khadi Karigar Janashree Bima Yojana for Khadi Artisans (Implemented through KVIC)
Interest Subsidy Eligibility Certification (ISEC).

6. National Entrepreneurship Institutes
 National Institute for Entrepreneurship and Small Business Development (NIESBUD), NOIDA
 National Institute of Micro, Small and Medium Enterprises (NIMSME), Hyderabad
(Formerly National Institute of Small Industry Extension Training (NISIET))
 Indian Institute of Entrepreneurship (IIE), Guwahati
Others
 National Small Industries Corporation
 MSME Development Institutes
 Tool Rooms
 Central Footwear Training Centres, Agra & Chennai
 Fragrance and Flavour Development Centre, Kannauj
 Process-cum-Product Development Centre, Agra
 Electronics Service & Training Centre, Ram Nagar
 Institute for Design of Electrical Measuring Instruments, Mumbai

7. National Science and Technology
Entrepreneurship Board
 National Science and Technology Entrepreneurship Board promotes
entrepreneurship development through Science & Technology.
 This program has encouraged researchers and academicians in the
field of Science & Technology to take interest in socially relevant
entrepreneurial roles.
 Under the flagship of NSTEB, various institutes and training
programmes have been formulated.
 Technological Business Incubators have been established to ensure
that technology and knowledge driven enterprises are established
and research outputs are utilised in a commercial manner for
benefit of all stakeholders.

8. NMCP Schemes to Enhance
Competitiveness of SMEs
National Competitiveness Programme was
formulated in 2005 with an objective to support
the Small and Medium Enterprises (SMEs) in their
endeavor to become competitive and adjust the
competitive pressure caused by liberalization and
moderation of tariff rates

9. SIDBI
 SIDBI was established in April 1990 under an Act of
Parliament as a wholly-owned subsidiary of Industrial
Development Bank of India (IDBI). It is the principal financial
institution for the following three-fold activities:
- Financing the small scale sector by providing indirect
assistance to primary lending institutions (PLIs) and direct
assistance to small scale units.
- Development and support services for promoting small
industries.
- Liaisoning with other institutions engaged in similar
activities.

10. Entrepreneurship Development Institute of
India
 The Entrepreneurship Development Institute of
India (EDI), an autonomous and not-for-profit institute, set
up in 1983, is sponsored by the IDBI Bank Ltd., IFCI
Ltd., ICICI Bank Ltd. and State Bank of India (SBI).
 The government of Gujarat pledged twenty-three acres of land
on which stands the EDI campus.
 EDI has helped set up twelve state-level
exclusive entrepreneurship development centres and
institutes.
 Entrepreneurship has been taken to schools, colleges, science
and technology institutions and management schools in the
water performance sector by including entrepreneurship in
their curricula.

13.  STEP – Science and Technology Entrepreneurs Park aims to
provide link between universities, academic and R&D institutions,
provide R&D support to the small-scale industry and promotes
innovation based enterprises
 IEDC – Innovation and Entrepreneurship Development Cell is
promoted in educational institutes to create entrepreneurial culture
and encourage innovation amongst students
 EDP – Entrepreneurship Development Program, a training program
of 6-8 weeks duration aims to train students in various aspects of
starting an enterprise

14.  FDP – Faculty Development Program is aimed at
training faculty members of S&T institutions so that
they in turn can inspire students to take up
entrepreneurial career options
 TEDP – Technology-based Entrepreneurship
Development Program is 6-weeks duration training
developed jointly in association with R&D
institutions, CSIR labs etc. This training focuses on
specific products and technologies.

15.  OLPE – Open Learning Program in Entrepreneurship is a distance
learning programme that helps potential entrepreneurs through
study materials and contact programmes which impart knowledge
on end-to-end processes involved in running an
entrepreneurship
 EAC – Entrepreneurship Awareness Camp is a 3 days duration
training that exposes students to entrepreneurship as a career
option
 STEDS – Science and Technology Entrepreneurship Development
Scheme aims at socio-economic development of an area by
optimising the usage of natural & human resources of an area.

16. Business Portal of India
 For dissemination of information, the Business
Portal of India has been developed under the
National e-Governance Plan of the govt. in
association with FICCI.
 The portal provides various modules and sub-modules
with respect to starting & running business
in India.
 It also provides guidance on the paperwork
required, taxation related information, trade related
policies etc.

17. Efforts by State Governments
Entrepreneurship is also promoted at the state
government level through various schemes and subsidies
varying from one state to another, the common
mechanisms are:
 Infrastructural: development and management of
industrial estates, priority in allotment of power/water
connection, power subsidies
 Financial : Capital investment subsidies for new units set
up in a particular district, seed capital /Margin Money
Assistance Scheme
 Guidance: Consultancy and technical support

18. National Competitiveness Programme
 National Competitiveness Programme was
formulated in 2005 with an objective to support the
Small and Medium Enterprises (SMEs) in their
endeavor to become competitive and adjust the
competitive pressure caused by liberalization and
moderation of tariff rates

19. Udayami Helpline
 Call centre 'Udyami Helpline' will provide all the relevant
information and details to the interested entrepreneurs
regarding the scope of the business operations they may
want to venture into, loan facilities, government
schemes and other modalities of setting small units.
 It aims to serve the needs of the entrepreneurs who face
problems on a wide range of issues which include - credit
availability, technology, marketing, various MSME
schemes and other important subjects through a single
point facility.
 The services are available on this number between 6 am
in the morning to 10 pm in the night everyday all
throughout the year including Sundays and holidays.

20. IPR Facilitation Center
 Apex industry chamber, FICCI, launched an IPR
facilitation centre at Federation House (FICCI), New
Delhi, in association with the ministry of Micro-
Small and Medium Enterprises (MSME).
 The FICCI-IPR facilitation centre is equipped to offer
quality services in all areas of Intellectual Property
Rights

21. National Strategy for Manufacturing
 The Union Government has decided to implement a National Strategy for
Manufacturing, drawn up by the National Manufacturing Competitiveness Council
(NMCC), which will enable SMEs to achieve competitiveness.
 The Strategy has identified various priority areas for action viz., textiles & garments,
food processing, IT hardware & electronics, leather & footwear, automobiles & auto-components
and chemicals & petrochemicals and pharma sectors.
 The Cluster Concept clearly seems to be India's answer to global competition. Last
year the government had proposed to increase financial assistance to existing
clusters of Micro, Small and Medium Enterprises (MSME) up to as high as 80 per
cent of their financial requirements under the 11th Plan.
 The government also proposes to build a pool of consultants under its National
Manufacturing Competitiveness Programme to enable MSMEs to become
competitive. The consultants would be deployed to a cluster of 8-10 companies for
about one year to a year-and-a-half, with their cost being borne by the government.

22. Thank You!