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Unit 13: Institutions Supporting Small Business Enterprises

(c) Foreign currency loan for import of equipment are also available to export oriented small Notes
scale enterprises.
(d) SIDBI also provide venture capital assistance to the entrepreneurs for their innovative
ventures if they have a sound management team, long term competitive advantage and a
potential for above average profitability leading to attractive return on investment.

New Initiatives of SIDBI

Two Subsidiaries viz. SIDBI Venture Capital Limited and SIDBI Trustee Company Limited
formed to oversee Venture Capital.
Technology Bureau for Small Enterprise formed to oversee Technology Transfer, Match
making Services, Finance Syndication and facilitating Joint Ventures.
SIDBI Foundation for Micro Credit has been launched to provide financial assistance to
the poor and to meet emerging needs of the micro finance sector especially in rural areas.

Self Assessment

State whether the following statements are true or false:
6. Central Level Institutions execute different promotional and developmental projects/
schemes.

7. SIDC’s were set up in different states as wholly owned companies for promoting industrial
development in their respective states.
8. Under the constitution of India promotion and development of small scale industries is a
State subject.
9. The District Industries Centers programme was launched in 1980 for effective promotion
of cottage and small scale industries.

10. The SIDBI is operating different programmes and schemes through 6 Regional Offices and
34 Branch Offices.

13.3 Other Agencies

Following are the other independent agencies that support Small business enterprises:

13.3.1 National Bank for Agriculture and Rural Development

NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for
promotion and development of agriculture, small-scale industries, cottage and village industries,
handicrafts and other rural crafts. It also has the mandate to support all other allied economic
activities in rural areas, promote integrated and sustainable rural development and secure
prosperity of rural areas. In discharging its role as a facilitator for rural prosperity NABARD is
entrusted with:
1. Providing refinance to lending institutions in rural areas.

2. Bringing about or promoting institutional development.
3. Evaluating, monitoring and inspecting the client banks.

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