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Chapter No. 04:
Government Policies and Programmes
for Entrepreneurship and Industrial
Development.
ß Introduction. ß Entrepreneurial Scenario in India. ß Role of Government in Entrepreneurship Development. ß Ministry of Micro, Small and Medium Enterprises. ß Entrepreneurship Development Institute of India (EDI). ß Centre for Entrepreneurship Development (CED). ß Small Industrial Development Bank of India (SIDBI). ß Scheme for Assistance for Strengthening of Training Infrastructure of Existing and New Entrepreneurship Development Institutes. ß National Institute for Micro, Small and Medium Enterprises (NI-MSME), Hyderabad. ß Indian Institute of Entrepreneurship (IIE), Guwahati. ß National Institute for Entrepreneurship and Small Business Development (NIESBUD). ß Maharashtra Industrial and Economic Development Association (MIEDA). ß MITCON Centre for CSR & Skill Development.
ß The National Skill Certification and Monetary Reward Scheme. ß Micro, Small, and Medium Enterprises Development Act 2006. ß Maharashtra Industrial Development Corporation (MIDC). ß Achievements by Maharashtra Industrial Development Corporations. ß Contribution of MIDC in the Development of Entrepreneurship in Maharashtra. ß Maharashtra Centre for Entrepreneurship Development (MCED). ß EDP Training Centre in Maharashtra. ß Government of Maharashtra Agro Industrial Policy 2010. ß Maharashtra's Information Technology / Information Technology Enabled Services Policy – 2015.
The Government had in 1954 set up the Small Industries Development Organization (SIDO) besides starting the setting up of its field organizations, Small Industries Service Institutes SISIs which had come to be known as Micro, Small and Medium Enterprises Development Institutes-MSME-DIs - effective from 2nd October, 2006 after the MSME Development Act,1996 came into force -in the same year whose number had gone up to 58 by end of the tenth five year plan spread in every state and union territory for imparting skills needed to unemployed persons to become self-employed or wage-employed through the conduct of Awareness campaigns, Entrepreneurship Development Programmes, Skill Development Programmes, Management Development Programmes etc., covering different trades in the manufacturing, business and services sectors.
SIDO had set up 18 autonomous Tool Rooms around the country to serve interests of small entrepreneurs in the manufacturing / services sectors. But, these MSME-DIs have been found to have been obliged to handle only a minor section of the unemployed persons in the country and hence a need was felt for encouraging the establishment of entrepreneurship development institutes at the state/UT level (under the Entrepreneurship Development Institution Scheme of the Government of India of
- so that with active involvement of states/UTs more number of unemployed persons could be encouraged to take up entrepreneurial activities.^1
Entrepreneurial Scenario in India: During post-independence era, entrepreneurship has begun to grow faster. The Government of India has spelt through industrial policy statements steps for rapid and balanced industrialization of the country. The government recognizes the vital role of the private sector in accelerating industrial development especially after the economic liberalization in 1991.^2 The government pursues the following objectives: · ∑ To maintain a proper distribution of economic power between public and private sectors. ∑ To disseminate the entrepreneurial acumen concentrated in a few dominant communities to a large number of industrially potential people of varied social strata. ∑ To encourage the spirit of industrialization by spreading entrepreneurship from the existing centers to other cities, towns and villages.
To achieve the above objectives the government has decided to encourage the development of small scale units. It provides various incentives and concessions to SSI in the form of capital, technical knowhow, markets and land to establish industrial units particularly in the backward areas of the country.
Role of Government in Entrepreneurship Development: India is a country with over 1.2 billion people, 379 million (31%) of which are between the ages of 18 and 35 ( Census of India, 2011 ) and, many of these young people are in search of jobs, despite being educated. For example, only one in every four urban males under 29 years is employed even though they hold at least a
unpredictable South-West monsoon. Given the large population, it is a considerable task for the government ensures adequate and affordable supplies of food, drinking water, clothing, housing, education, and healthcare.
The people of India, especially the young, crave employment. There is a limitation to employment opportunities offered by the various sectors of economy, but the government does provide employment guarantee programs. However, these programs are targeted at providing basic needs and tend to provide labour- intensive jobs that have no link with innovation. There is a realization that, to sustain rapid growth and alleviate poverty, India needs to aggressively harness its innovative potential, relying on innovation-led, rapid, and inclusive growth to achieve economic and social transformation. The innovative potential of the young Indian population, if supported through an effective innovation ecosystem, holds potential for developing entrepreneurship and providing the growth and job opportunities that India needs.
To develop and nurture the entrepreneurial sector, the support of the government is crucial. Policies need to be adopted that can give a fillip to this sector. The Indian government has taken several steps to ensure the growth of this sector and instituted several bodies to promote entrepreneurial development in the country. SIDBI was set up in 1990 as the main financial institution for financing the small scale sector, providing development and support services for promoting small industries, and engaging with other institutions engaged in similar activities.
The National Science and Technology Entrepreneurship Board promote entrepreneurship development through Science and Technology. This initiative has encouraged researchers and academicians in the field of Science and Technology to take interest in socially relevant entrepreneurial roles. Under the flagship of NSTEB, various institutes and training programmes have been formulated such as Science and Technology Entrepreneurs Park, Innovation and Entrepreneurship Development Cell, Entrepreneurship Development Program and many more. 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 in addition to resolving many other issues.^5
Ministry of Micro, Small and Medium Enterprises: The Scheme envisages financial assistance for establishment of new institutions (EDIs), strengthening the infrastructure of the existing EDIs and for supporting entrepreneurship and skill development activities. The main objectives of the scheme are development of indigenous entrepreneurship from all walks of life for developing new micro and small enterprises, enlarging the entrepreneurial base and encouraging self-employment in rural as well as urban areas, by providing training to first generation entrepreneurs and assisting them in setting up of enterprises. The assistance shall be provided to these training institutions in the form of capital grant for creation/strengthening of infrastructure and programme support for conducting entrepreneurship
- Consulting on behalf of India’s central government to foster and develop specific industries with large employment potential for India’s developing economy.
In 2007, the central government of India nominated EDI to work as an implementing agent in executing a series of strategic goals for the industry. As such, EDI has been assigned the job of formalizing clusters, creating shareholding entities, and maintaining employment within the handloom economy.
EDI's success led by its strong sense of commitment culminated in recognition of its achievements by the Government of India and various state governments. In the international arena, efforts to develop entrepreneurship by way of sharing resources and organising training programmes, have helped the EDI earn accolades and support from the World Bank, Commonwealth Secretariat, UNIDO, ILO, FNSt, British Council, Ford Foundation, European Union and several other renowned agencies. The Institute has also successfully carried out the prestigious task assigned by the Ministry of External Affairs, Govt. of India, to set up Entrepreneurship Development Centres in Cambodia, Lao PDR, Myanmar and Vietnam. The Institute is presently working towards creating ED Centres in Uzbekistan & Kazhakistan.^8
Centre for Entrepreneurship Development (CED): Recognizing that a quantitative increase in the number of entrepreneurs and a qualitative improvement in entrepreneurship could considerably accelerate the industrial and there by economic development, the Industrial Development Corporations first
thought of developing small entrepreneurs in a systemic manner long back in 1969. In the year 1970 a small cell was created within GIIC to impart the entrepreneurship training. The pioneering step- it was the first attempt of its kind in the whole of country and this experiment turned out to be a phenomenal success. Later on, over a period of nine years, 80 Entrepreneurship Development Programmes (EDPs) were conducted and over 50 per cent after completing the training successfully set up their own industrial ventures.^9
In order to strike a deep and long lasting impact on the State economy, CED has constantly been on an innovating spree, consistently coming out with imaginative programs aimed at specified target groups. The Myth ‘ Entrepreneurs are born, not made’ was believed by too many, for too long, This perpetrated a perennial shortage of entrepreneurs and entrepreneurship, inputs perhaps more vital to economic development than even the physical infrastructures. Recognizing the myth for what it was and upon realizing that a quantitative increase in the number of entrepreneurs and a qualitative improvement in entrepreneurship could considerably accelerate industrial development and growth.
Small Industrial Development Bank of India (SIDBI): The aim of SIDBI’s EDP is to build and nurture a reservoir of entrepreneurs. Such EDP is conducted through the specialized agencies in Entrepreneurship Development Institute of India, Institute of Entrepreneurship Development (IEDs), Centre for Entrepreneurship Development (CEDs), Technical Consultancy Organization (TCOs) and Non-Government Organizations (NGOs).
The financial assistance provided under this scheme is only catalytic and supportive to the contribution and efforts of State / Union Territory Governments and other agencies. Under no circumstances grant funds provided under the scheme can be used to meet the recurring expenditure of the institute. The institutions seeking assistance under this scheme should be registered as not- for-profit organization with entrepreneurship development as its main objective, should possess a clear title of the land required for setting up of the proposed/ existing institution, have a separate bank account in a scheduled bank in which all receipts/funds received by the institute should be credited and payments made on the basis of authorization by the Governing Council of the institute. All the proposals under this scheme are required to be recommended by and routed through the concerned State Government.
National Institute for Micro, Small and Medium Enterprises (NI-MSME), Hyderabad: NI-MSME, formerly known as National Institute of Small Industry Extension Training (NISIET), was set up in 1960 at New Delhi as a Department of Central Government under the Ministry of Commerce and Industry and was initially known as Central Industrial Extension Training Institute (CIETI). Subsequently, in 1962, it was shifted to Hyderabad and converted into an autonomous society. In 1984, the Institute was renamed as National Institute of Small Industry Extension Training (NISIET). After enactment of the MSMED Act, 2006, the Institute has been renamed as National Institute for Micro, Small and Medium Enterprises (NI-MSME), w.e.f. 11th April 2007.^12
The Institute has benefited not only the Indian micro, small and medium enterprises (MSMEs) but also those in other developing countries through a plethora of activities and thus helped in promoting self-employment and enterprise development. The Institute is constantly evolving in accordance with the changing times, modifying its focus with the emerging needs of MSMEs and providing solutions in the form of consultancy, training, research, and education. NI-MSME’s programmes are designed to have universal relevance for successfully training the entrepreneurs to face challenges and emerging competition in the era of globalization. The academic activities of the Institute are organized through centres of excellence focusing on specific needs of the MSMEs. The Academic Council of the Institute is the central coordinating body for benchmarking, formulation and evaluation of academic activities and programmes.
Over the years, the Institute has gained immense experience and expertise in the areas of entrepreneurship development, technology, management and information services. NI-MSME’s inherent capacity to innovate, together with its modern infrastructure, has enabled the Institute to excel in its endeavour of MSME promotion. NI-MSME has always been conceiving specialized need-based programmes, workshops and seminars in tune with the changing policy and economic scenario. The primary aim of these activities has been to enable the enterprises and the supporting systems to deal effectively with aspects that directly or indirectly affect the success of enterprises. NI-MSME has developed profitable interface with several international agencies like CFTC (Commonwealth Fund for Technical Co-operation),
and Assam, the Institute also started its RIP at Nongpoh in Meghalaya with the help of SIDBI. The Institute also organized two programmes on handloom sector under SFURTI, where 32 participants were benefitted.^14
Creating awareness amongst college and university teachers and students about entrepreneurship has been one of the focus areas of the Institute. The Institute organized one faculty development programme in entrepreneurship for school, college and university teachers in which 18 teachers participated. During the year, the Institute organized 10 awareness camps for the students of colleges and 2 such programmes for polytechnic students. The Institute has also been instrumental in setting up Information and Career Guidance Cell (ICGC) in a number of colleges through its Teachers’ Training Programmes. Till the year 2015, 80 colleges have opened such ICGCs in different parts of the Region.
National Institute for Entrepreneurship and Small Business Development (NIESBUD) : The National Institute for Entrepreneurship and Small Business Development (NIESBUD), NOIDA was set up in 1983 as an apex institution in the field of entrepreneurship development to promote, support and sustains entrepreneurship and small business through training, education, research and consultancy services. The major activities of the Institute include evolving model syllabi for training various target groups; providing effective training strategies, methodology, manuals and tools; facilitating and supporting Central / State Governments and other agencies in
executing programs of entrepreneurship and small business development; maximizing benefits and accelerating the process of entrepreneurship development; and conducting programs for motivators, trainers and entrepreneurs. The Institute helps other Entrepreneurship Development Institutions in various ways, such as developing syllabi in entrepreneurship for different target groups, training of faculty, developing training aids etc.
The performance of the Institute during 2006-07 and actual performance for the first three quarters of 2007-08 along with projections for the last quarter are given in Table 7.5. 7.5.4 In order to strengthen efforts for realizing the cherished goal of inclusive growth with focus on bottom of pyramid, the Institute has made an attempt to organize exclusive training programmes for the officials engaged in implementation of the policies for tribal, backward classes and other down-trodden sections of the society. These programmes included - training programmes on Project Management for Small Business Enterprises in Tribal Areas for officials of Department of Tribal Development, Govt. of Madhya Pradesh; programme on Performance Motivation for the officers of the Department of Sericulture; Government of Madhya Pradesh and Management Development Programmme (MDP) for the officials of West Bengal Backward Classes Development & Finance Corporation (WBCDFC).^15
MIEDA focuses and reviews the growth plan and the needs for developmental activities in various sectors. Though Maharashtra is developing industries and achieving remarkable economic growth, there are many areas that require careful attention viz. projects delays, reviving of sick units, effective water management, improved power supply, skill development amongst young generation, entrepreneurial education, district level industrialisation and reducing the political and bureaucratic bottlenecks in industry and trade to enhance economic growth.
MIEDA regularly organises State, National and International Level Conferences, Exhibitions, Seminars, Workshops and Interactive Meetings with Ministers, Senior Government Officials, Bankers, Industrialists and other eminent personalities to share their viewpoint. MIEDA is actively involved with various State, National and International level organisations and Chambers of Commerce as well as Government Departments, Investment Boards, SME organisations, Young Entrepreneurs Forums, Export Promotion Councils and Importers. MIEDA arranges trade promotion delegations to various countries to promote bi-lateral trade, business opportunities and cooperation, B2B Meets, visits to SEZs, Infrastructure and Power Projects, Food Processing Industry and specific industrial zones as per requirement.
MITCON Centre for CSR & Skill Development: MITCON Centre for CSR & Skill Development is a part of MITCON Consultancy & Engineering Services Ltd., a trusted name acting as a catalyst to industrial & entrepreneurship development for more than 30 years. MITCON Centre for CSR & Skill
Development has well recognized the importance of skilled youth in rapidly changing environment in the industry. The youth should not only be technically skilled in any particular domain but also need to be capable enough to cope up with rapidly changing economy & its global perspectives. Taking this agenda ahead, MITCON Centre for CSR & Skill Development offers various kinds of value added training programmes which are industry endorsed and job oriented. MITCON Centre for CSR & Skill Development is engaged in variety of innovative interventions to address the capacity building, training & other requirements of students, entrepreneurs and executives. As Globalization has propelled India’s economic growth, infusion of capital, technology and know- how in every major sector like , Capital Goods, Telecom, Hospitality & Hotel Industry, Health Care , Travel & Tourism, Banking & Finance, Automobiles, Media And Entertainment, have created vibrant market place. MITCON Centre for CSR & Skill Development offers varied range of programs in above mentioned sectors, which makes an individual employable. Besides this, these varied training programmes support the industries, by providing resourceful and skilled manpower. MITCON Centre for CSR & Skill Development always strive hard to offer the best knowledge and recourses to the participant for the course they have opted with us, along with state-of-art infrastructure and learning ambience ensuring optimum results.^17
