Page 195 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes Introduction

Government has recognized the important role of entrepreneurs in the industrial development
of the country, especially through the Small Scale Industries (SSIs). SSIs are essential for Indian
economy in terms of employment generation, foreign exchange earnings, and its share in
industrial output, and contribution to national income. The government of India and state
governments provides a number of special facilities and incentives.
The incentives not only motivate entrepreneurs to set up industries in the small scale sector, but
also strengthen the entrepreneurial base in the economy. The new entrepreneurs face a number
of problems on account of inadequate infrastructure facilities and other support services.
The government offers a package of services through its specialized institutions and motivates
entrepreneurs to take advantage of the various facilities and establish enterprises and flourish.
This package includes assistance in obtaining finance, help in marketing, technical guidance,
training, and technology up gradation etc. It is hoped that institutional incentives would play a
key role in the promotion of small enterprises and ensure their self-sustained growth.

13.1 Central Level Institutions

Following are the various central level institutions that support small business enterprises:

13.1.1 Small Scale Industries Board

SSI Board is the apex non-statutory advisory body constituted by the Government of India to
render advice on all issues pertaining to the SSI sector. It provides a forum to its members for
interaction to facilitate cooperation and inter-institutional linkages and to render advice to the
Government on various policy matters, for the development of the sector.

Notes The Board was first constituted in 1954. Its term is for two years. The Board was last
constituted on 18th January 2003, with 101 members and held its 48th meeting on
17 January, 2004.

13.1.2 Small Industry Development Organization

The Office of the Development Commissioner (Small Scale Industries) is also known as the
Small Industry Development Organization (SIDO). It is an apex body, established in 1954, for
assisting the Ministry in formulating, coordinating, implementing and monitoring policies and
programmes for the promotion and development of small scale industries. It has over 60 offices
and 21 autonomous bodies under its management, including Tool Rooms, Training Institutions
and Project-cum-Process Development Centres etc. Functions of such main bodies are as follows:
(a) Small Industries Service Institutes (SISIs) are operational one in each state. They provide
technical support and consultancy services, conduct entrepreneurship development
programmes, and export promotion and liaison activities Emphasizes is also placed on
implementation of programmes on modernization, energy conservation, quality control/
up gradation and pollution control for the benefit of entrepreneurs.
(b) Regional Testing Center (RTC) provides Testing facilities for product quality up gradation.

(c) Tool Rooms/Tool Design Institutes (TRs/TDI) assist SSIs in technical up gradation, and
provide good quality tooling by designing and producing tools, moulds, jigs & fixtures,
components, etc.

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