Showing posts with label Micro. Show all posts
Showing posts with label Micro. Show all posts

FUNCTIONS OF NIESBUD

Posted by pm brothers On Saturday, April 6, 2013 0 comments

(a) Evolving effective training strategies and methodology.
(b) Standardizing model syllabi for training various target groups.
(c) Formulating scientific selection procedures.
(d) Developing training aids, manuals and tools.
(e) Facilitating and supporting central/state/other agencies in organizing entrepreneurship
development programmes.
(f) Conducting training programmes for promoters, trainers and entrepreneurs.
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OBJECTIVES OF NIESBUD

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The objectives of the institute include the following:
 To evolve standardized materials and processes for selection, training, support and
sustenance of entrepreneurs, potential and existing.
 To share internationally, its experience and expertise in entrepreneurship development.
 To train the trainers, promoters and consultants in various areas of entrepreneurship
development.
 To provide national/international forums for the interaction and exchange of experiences
helpful for policy formulation and modification at various levels.
 To provide vital information and support to trainers, promoters and entrepreneurs by
organizing research and documentation relevant to entrepreneurship development
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It is an apex body established in 1983 by the ministry of Industries, Government of India,
for coordinating, training 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 Government of India Societies Act 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 SSI. It has an executive committee.
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FUNCTIONS OF SIDBI

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1) Taking steps for technological upgradation and modernization of existing units.
2) Providing services like factoring, leasing etc. to industrial concerns in the small scale sector.
3) Extending financial support to National Small Industries Corporation for providing leasing hirepurchase
and marketing support to SSI units.
4) Expanding the channels for marketing the products of SSI sector in domestic and international
markets.

5) Promoting employment oriented industries especially in semi-urban areas to create more
employment opportunities and thereby checking migration of people to urban areas.
6) Refinancing of loans and advances extended by the primary lending institutions to industrial
concerns in the small scale sector and also providing resource support to them.
It also offers bills discounting and rediscounting facilities. It also has a few schemes of direct
assistance.

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SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)

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SIDBI was set up on April 2, 1990 as a wholly owned subsidiary of IDBI. It is operating
through its Head Office at Lucknow and a network of 5 Regional Offices and 25 Branch Offices in
all the states. It is an apex institution for promotion, financing and development of industries in
small scale sector and co-ordination of functions of other institutions engaged in similar activities.
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SCIENCE AND TECHNOLOGY ENTREPRENEUR PARKS (STEP)

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STEP is an area where applied research on high tech projects is conducted with the
collaboration of multinational companies, universities, technological and research institutes. In
1972 a conventional ‘Techno Park’ was set up by the Birla Institute of Scientific Research
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FUNCTIONS OF KVIC

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(1) To train the artisans.
(2) To assist village industries in procuring raw materials.
(3) To assist and support through marketing of finished products of village industries.
(4) To provide equipment and machinery to producers on concessional terms.
(5) To undertake R and D programmes for improved implements for silk reeling, more
efficient extraction of oil in power ghanis, manufacture of panel boards from banana stems
and improved ‘charka’ and looms.
The main thrust of KVIC is to alleviate rural poverty and to make the village artisan more
productive through improved technology and market support.
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KHADI AND VILLAGE INDUSTRIES COMMISSION

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KVIC makes finance available to the implementing agencies in the form of capital expenditure
loans. It also extends assistance for setting up of retail sales outlets and also for strengthening of the
capital base of the registered institutions and cooperatives. It also assists individual artisans besides
formulating liberal pattern of assistance for identified hill, border and weaker sections. The loans
for Khadi are interest free, while those for village industries have an interest at the rate of 4% per
annum.
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SMALL INDUSTRIES SERVICE INSTITUTES (SISIs)

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Small Industries Service Institutes have been established in each state in 1956 as agencies
of SIDO. The objective is to develop small scale industries. The functions performed may be
summarized as follows:
1) It promotes entrepreneurship and development of SSIs in rural and other underdeveloped areas.
2) It supplies market information in selected cases and undertakes market distribution surveys for
industrial enterprises.
3) It conducts various programmes for workers in other organizations as well as in small industry in
certain trades.
4) It assesses the capacities of small units for imported/controlled materials.
5) It provides technical guidance on the efficient use of wastages and scraps.
6) It prepares designs and drawing for production equipment and accessories.
7) It ensures that small industry development in India is being done in right lines.
8) It provides workshop common facilities to industrialists at reasonable charges.
9) It conducts detailed plant studies to locate production and other problems. It initiates and coordinates
modernization of selected industries.
10) The institute assists in rehabilitation of sick units.
11) It helps to develop ancillary industries. It registers SSI units with NSIC to supply their products
to government.
12) The institute conducts modernization studies for technology upgradation.
13) It undertakes quality control, energy conservation and pollution control, specialized training
programmes on export marketing.
14) The institutes also conduct surveys and studies for identification of industries having scope of
promotion and development.

15) It advises the Govt. of India and state government on policy matters relating to small industry
development.
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TECHNICAL CONSULTANCY ORGANISATION (TCOs)

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It was established in different parts of the country to provide consultancy services to small
and medium enterprise at reasonable costs. The TCO was established in Kerala( KITCO) in June
1972.Functions and activities of TCOs include:
(a) Industrial potential surveys.
(b) Preparation of profits and feasibility studies.
(c) Evaluation of project.
(d) Conduct of EDPs.
(e) Assisting in the modernization, technical upgradation and rehabilitation programmes etc.
(f) Undertaking market research and surveys for specific products.
(h) Offering merchant banking services.
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NATIONAL ALLIANCE OF YOUNG ENTREPRENEURS (NAYE)

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It is a national level apex organization of young entrepreneurs. It assists in promoting new
enterprises through first generation entrepreneurs. NAYE sponsored an Entrepreneur Development
Scheme with Bank of India in August 1972 on pilot basis. The scheme is known as BINEDS. It is
operative in the states of Punjab, Rajasthan, Himachal Pradesh and Union Territories of Chandigarh
and Delhi. NAYE has entered into similar arrangement with Dena Bank, Central Bank Of India and
Union Bank of India .NAYE strives hard for upliftment of young entrepreneurs especially women.
It holds workshops, conferences, training programmes etc. to create awareness in entrepreneurs.
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FUNCTIONS OF NATIONAL SMALL INDUSTRIES CORPORATION

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Its functions are as follows:
1) To develop small scale units as ancillary units to large scale industries
2) To impart training to industrial workers.
3) To market the product of SSIs at home and abroad.
4) To help the small scale industries in procurement of scarce and imported raw material.
5) To obtain orders for SSI units from government department and offices.
6) To provide machinery to SSI units on hire purchase basis.
7) To construct Industrial Estate and establish and run proto-type production-cum-training
centres.
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NATIONAL SMALL INDUSTRIES CORPORATION (NSIC)

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It was set up in 1995 to provide machinery to small scale units on hire purchase basis and
to assist these units in obtaining orders from government departments and officies. Its head office is
at Delhi. It has four regional offices at Delhi, Mumbai, Chennai and Calcutta. It has eleven branch
offices also.
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FUNCTIONS OF SIDO

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The main functions are co-ordination, industrial development and industrial extension service, other
functions are summarized as follows:
1) To estimate the requirements of raw material for the small scale sector and to arrange their
supply.
2) To collect data on consumer items which are imported and encourage the setting up of
new units by giving them co-ordinated assistance?
3) To prepare project reports and other technical literature for prospective entrepreneurs.
4) To secure reservation of certain products for the SSIs.
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SMALL INDUSTRIAL DEVELOPMENT ORGANISATION (SIDO)

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The SIDO was formed under the Ministry of Industry. It is a policy making, co-ordinating
and monitoring agency for the development of small scale industries. It maintains a close liaison
with the government, financial institutions and other agencies which are involved in the promotion
and development of small scale units. It provides a comprehensive range of consultancy services
and technical, managerial, economic and marketing assistance to the small scale units. It has launched various technology support programmes for the benefit of small scale industries in the
country through a number of steps. The steps include establishment of (a) process-cum-product
development centres, (b) tool rooms and training centres. (c) specialized institutes and (d) regional
testing centres with its field testing stations.
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INDUSTRIAL ESTATES

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 It is defined as a method of “Organizing, housing and servicing industry, a planned clustering of industrial enterprises offering standard factory buildings erected in advance of demand and a variety of services and facilities to the occupants.” In short, industrial estate is place where the required facilities and factory accommodation are provided by the government to the entrepreneurs to establish their industries there. The first and foremost industrial estate was established at Rajkot in Gujarat in 1955
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PROBLEMS RELATING TO SUBSIDIES

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Some problems may arise in devising and implementing a subsidy system. They are as
follows.
 A subsidy may remain unutilized.
 If the administration is inefficient or corrupt, subsidy will not produce the desired results.
 It is very difficult to measure the impact of subsidies.
 Subsidies may lead to inefficiency in the long run.
 Subsidies once introduced are difficult to withdraw.
 The administrative procedure must be effective.
 The cost of administering a subsidy should be considered.
 The subsidy scheme should be communicated to prospective beneficiaries.
 The quantum of subsidy should be adequate to produce the desired results.
 The target groups to whom the subsidy is to benefit should be clearly determined.
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PROBLEMS RELATING TO SUBSIDIES

Posted by pm brothers On 0 comments

Some problems may arise in devising and implementing a subsidy system. They are as
follows.
 A subsidy may remain unutilized.
 If the administration is inefficient or corrupt, subsidy will not produce the desired results.
 It is very difficult to measure the impact of subsidies.
 Subsidies may lead to inefficiency in the long run.
 Subsidies once introduced are difficult to withdraw.
 The administrative procedure must be effective.
 The cost of administering a subsidy should be considered.
 The subsidy scheme should be communicated to prospective beneficiaries.
 The quantum of subsidy should be adequate to produce the desired results.
 The target groups to whom the subsidy is to benefit should be clearly determined.
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NEED FOR INCENTIVES AND SUBSIDIES

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The need for incentives and subsidies arises for the following reasons:
1) To Remove Regional Disparities in Development: Industries may be concentrated and
overcrowded in some regions, in order to correct this regional balance, incentives are provided to
entrepreneurs. They will start new ventures in such backward areas. Thus the backward areas
become developed and regional imbalances are corrected.
2) To Provide Competitive Strength, Survival and Growth: several other incentives are
provided for the survival and growth of industries. For example, reservation of products, price
preference etc. will improve the competitive strength. Other concessions like concessional finance,
tax relief etc., contribute their survival and growth.
3) To Generate More Employment and Remove Unemployment: Market adjustments
and external economies play a significant role in the economic development of a country. Subsidies
cause movement of entrepreneurs from developed areas to developing or backward areas. In short,
incentives and subsidies serve as a catalyst to start a dynamic process of development.
4) To Promote Entrepreneurship: Industrial estates, availability of power, concessional
finance, capital investment subsidy, transport subsidy etc, are few examples of subsidies which are
aimed at encouraging entrepreneurs to take up new ventures.
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ADVANTAGES OF INCENTIVES AND SUBSIDIES

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They offer following advantages:
 They act as a motivational force which makes the potential entrepreneur to enter into
business activities.
 They encourage the entrepreneur to start industries in the backward areas.
 They help the government to get a balanced regional development.
 They help to develop new enterprises which lead to economic development.
 They make the entrepreneur to face competition successfully.
 They help to reduce the overall problems of small scale entrepreneurs.
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