MAHARASHTRA NATIONAL LAW UNIVERSITY, NAGPUR

Reading Material

Module 4 Student Notes

BBA1.3 BUSINESS STUDIES

BBA.LL.B.(Hons.) Five-Year Integrated Degree Course

Academic Year: 2022-23
1st YEAR, SEMESTER-I

Designed and Developed by:

Raman R. Tirpude
Assistant Professor of Management
Dr. Purnima Singh
Assistant Professor of Management

Course Instructor:
Raman R. Tirpude
Assistant Professor of Management
Dr. Purnima Singh
Assistant Professor of Management

(For Internal Circulation Only)

Module-IV: Entrepreneurship development
The word ‘entrepreneur’ is derived from the French verb enterprendre. It means “to undertake.”
The entrepreneur is defined as someone who has the ability and desire to establish, administer
and succeed in a startup venture along with risk entitled to it, to make profits. The entrepreneurs
are often known as a source of new ideas or innovators, and bring new ideas in the market by
replacing old with a new invention.
The New Encyclopedia Britannica considers an entrepreneur as “an individual who bears the
risk of operating a business in the face of uncertainty about the future conditions.”
Characteristics of Entrepreneur:
Not all entrepreneurs are successful; there are definite characteristics that make
entrepreneurship successful. A few of them are mentioned below:
 Risk taker- Starting any new venture involves a considerable amount of failure risk.
Therefore, an entrepreneur needs to be courageous and able to evaluate and take risks,
which is an essential part of being an entrepreneur.
 Visionary and Leadership quality- To be successful, the entrepreneur should have a
clear vision of his new venture. However, to turn the idea into reality, a lot of resources
and employees are required. Here, leadership quality is paramount because leaders
impart and guide their employees towards the right path of success.
 Decision-making Ability- Quick decision-making power is among the key skills and
characteristics of an entrepreneur. This quality also identifies the potential of a business
to succeed or fail. A successful entrepreneur not only has great decision-making skills
but they also know how to implement the decision in the right channel to reach their
objective. Further, it is also important to understand that quick decision-making should
be done considering the facts and the current situation of the organisation. Any decision
that is related to change in the working pattern of the company would also have a
considerable amount of effect on productivity.
 Flexible- An entrepreneur should be flexible and open to change according to the
situation. To be on the top, a businessperson should be equipped to embrace change in
a product and service, as and when needed.
 Passion- It is one of the important qualities of a good entrepreneur. Drive for producing
better products and services requires a tremendous amount of passion which all
successful entrepreneurs possess. Without being consistent towards the goals of the
company, any entrepreneurship organisation is bound to fail. Hence, passion for an
entrepreneur is a must to achieve success. It helps in sustaining crises and overcoming
the hurdles.
 Confidence- Above all, the most important characteristics of an entrepreneur is
confidence. The history of successful entrepreneurship does not have any entrepreneurs
who had self-doubt. When an individual is looking forward to becoming an
entrepreneur, he must learn how to believe in himself and his products or services. It is
essential in a business because it helps in overcoming the hurdles and the
 discouragement that comes in the way. Further, risk situations can be mitigated to a
large extent.
Concept of Entrepreneurship:
Entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created
by individuals who assume the major risks in terms of equity, time, and/or career commitment
of providing value for some product or service. The product or service itself may or may not
be new or unique but value must somehow be infused by the entrepreneur by securing and
allocating the necessary skills and resources.
Also, it was generally recognized that entrepreneurs serve as agents of change, provide
creative, innovative ideas for business enterprises and help businesses grow and become
profitable.
Whatever the specific activity they engage in, entrepreneurs in the twenty-first century are
considered the heroes of free enterprise.
Many of them have used innovation and creativity to build huge enterprises. Entrepreneurship
is now regarded as “pioneer ship” of business. According to Peter E Drucker “Entrepreneurship
is defined as ‘a systematic innovation, which consists in the purposeful and organized search
for changes, and it is the systematic analysis of the opportunities such changes might offer for
economic and social innovation”
The concept of Entrepreneurship refers to a special skill or ability to mobilize the factors of
production – Land, labour & capital and use them to produce new goods and services. The
history of the early industrial development and trade and subsequent innovation in any country
is largely the history of its entrepreneurs.
It describes people with the pioneering spirit, intuitive and inspiration and a willingness to work
hard and take risks. They are the energetic self-starters who make it their mission to meet
business challenges, independently and are restless in working for someone else, for a salary.
In a nutshell, concept of entrepreneurship can be understood as under:
(i) Entrepreneurship involves decision making, innovation, implementation, forecasting of the
future, independency, and success.
(ii) Entrepreneurship is a discipline with a knowledge base theory and is an outcome of
complex socio-economic, psychological, technological, legal and other factors.
(iii) It is a dynamic and risky process.
(iv) It involves a fusion of capital, technology and human talent.
(v) Entrepreneurship is equally applicable to big and small businesses, to economic and non-
economic activities.
(vi) Different entrepreneurs might have some common traits but all of them will have some
different and unique qualities.
(vii) Entrepreneurship is a process. It is not a combination of some stray incidents.
(viii) It is the purposeful and organized search for change, conducted after systematic analysis
of opportunities in the environment.
(ix) Entrepreneurship is a philosophy – it is the way one thinks, one acts and therefore it can
exist in any situation, be it business or government or in the field of education, science &
technology.
(x) Entrepreneurship can be described as a process of action that an entrepreneur undertakes to
establish his enterprise.
(xi) Entrepreneurship is a creative activity.
(xii) It is the ability to create and build something from practically nothing.
(xiii) It is a knack of sensing opportunity where others may see chaos, contradiction and
confusion.
(xiv) Entrepreneurship is the attitude of mind to seek opportunities, take calculated risks and
derive benefits by setting up a venture.
(xv) It comprises of numerous activities involved in conception, creation and running an
enterprise.
(xvi) Entrepreneurship is a dynamic process of vision, change, and creation. It requires an
application of energy and passion towards the creation and implementation of new ideas and
creative solutions.
(xvii) Essential ingredients include the willingness to take calculated risks-in terms of time,
equity, or career; the ability to formulate an effective venture team; the creative skill to marshal
needed resources;
Therefore “Entrepreneurship is a dynamic process of vision, change, and creation. It requires
an application of energy and passion towards the creation and implementation of new ideas
and creative solutions. Essential ingredients include the willingness to take calculated risks-in
terms of time, equity, or career, ability to formulate an effective venture team, creative skill to
organize needed resources, the fundamental skill of building a solid business plan and, above
all, the vision to recognize opportunity where others see chaos, contradiction, and confusion.”
Characteristics of Entrepreneurship:
 Knowledge of Product-A company owner should know the product offerings and also
be aware of the latest trend in the market. It is essential to know if the available product
or service meets the demands of the current market, or whether it is time to tweak it a
little. Being able to be accountable and then alter as needed is a vital part of
entrepreneurship.
 Innovative in approach- It should be highly innovative to generate new ideas, start a
company and earn profits out of it. Change can be the launching of a new product that
is new to the market or a process that does the same thing but in a more efficient and
economical way.
 Consistency- To achieve any kind of objective in life, consistency is crucial. It is one
of the key characteristics of an entrepreneur when it comes to business. Be it
 entrepreneurship or partnership business, the importance of consistency remains intact.
Successful entrepreneurs remain motivated and focused on their business operations.
They are well aware of the fact that how the show must go on through time and tide.
They accept challenges and failures and move on with sheer consistency.
 Open-Minded- In a business, every circumstance can be an opportunity and used for
the benefit of a company. For example, Paytm recognised the gravity of demonetization
and acknowledged the need for online transactions would be more, so it utilised the
situation and expanded massively during this time.

UNIT 2-

Intrapreneur and Entrepreneur

Meaning of Intrapreneur:
An intrapreneur is an employee with entrepreneurial skills and is responsible for developing
innovative ideas, products, or services for their company. Their goal is to enhance the
sustainability of the business and help it stay ahead in the competition.
The employer provides such passionate job crafters, also known as inside entrepreneurs, the
resources and capabilities needed to complete the project. Intrapreneurs also get the freedom
and flexibility to work without worrying about the risks or rewards. Part of their task involves
exploring company policies, analyzing market trends, and making changes to or introducing
new concepts.
As per the intrapreneur definition, these are the employees that use their innovative, business-
level skills to help improve the performance of their companies. An intrapreneur can be anyone
from an entry-level executive to a vice-president. They are free to work on the assigned projects
without any intervention from their employers. They utilize company resources to experiment,
explore, create, and develop new products.
Lately, the concept of intrapreneurship has got a lot of attention from companies worldwide in
the wake of challenges posed by the COVID-19 pandemic. The organizations have realized the
potential of intrapreneurial leadership in bringing innovation to their processes and strategies.
It is helping businesses to accelerate changes in their products and services in a recession-hit
world.
Unlike entrepreneurs, inside entrepreneurs operate under the label of their organization with
no risk or reward attached. And hence, the organization is accountable for everything that
follows the experiment.

Timeline Of Intrapreneurship
  1978 – Gifford Pinchot III, the founder of sustainable business school, coined the term
“intrapreneur”.
 1982 – Howard Edward Haller, the founder of the Intrapreneurship Institute, published
the first formal academic case study of intrapreneurship.
 1985 – Time Magazine published the article Here Come the Intrapreneurs. It was when
the term started gaining popularity.
 1985 – Steve Jobs quoted the term during an interview with Newsweek. It was then
intrapreneurs began getting recognition worldwide.
 2011 – The first conference on intrapreneurship was held in London, England.
Examples
 One of the very first instances of intrapreneurship can be traced back to 1974. Then
3M, an American multinational corporation, introduced a policy in which employees
were allowed to devote 15% of their working hours to their project ideas.
As part of this policy, Spencer Silver, an engineer at 3M Co., created a lightweight
repositionable adhesive and promoted it within the company, but it did not work. Another 3M
engineer Art Fry observed during his regular choir practice that his bookmark was coming out
of the hymnal every time he tried to fix it. Both the engineers, under the same program,
collaborated and created the Post-It Note together.
 In another intrapreneur example, Ken Kutaragi, a junior employee at Sony Corp.,
devoted hours to tweak a Nintendo game console to make it more user-friendly. His
idea was rejected by many. But the group chief executive officer Norio Ohga trusted
his creativity and let him work the way he wanted. The combined efforts led to the
emergence of Sony PlayStation in 1994, the most trusted gaming brand across the globe
today.
 Google Inc. favors both open and closed innovation models. While the former is an
approach that allows collaboration with outside companies, the latter is an innovative
process with no external influence. As part of its closed innovation program, the tech
giant gives the in-house resources a chance to use their ideas in developing new tech
products. Google Wave is a perfect example of a product developed without any
external involvement.
Characteristics of Intrapreneur:
1. Intrapreneurs conduct themselves in a highly ethical manner:
Intrapreneurs conduct themselves in a highly ethical manner. Intrapreneurs put their personal
emotions aside, and act with objectivity by doing what is right. Intrapreneurs recognize and
encourage others for their involvement and contributions. They behave authentically and with
utmost integrity. The value system of each Intrapreneur will eventually turn into the
organization’s culture.
2. Intrapreneurs are less distracted:
Time is a valuable entity. Intrapreneurs are aware of all the distractions that could consume
their valuable time. We are not short of distractions at workplaces in this day and age - Cell
phones, Social media, Office gossips, etc. Intrapreneur stays away from any distractions that
could potentially hinder their creativity at their respective workplaces. Lesser the distractions,
better the creativity and productivity.
3. Intrapreneurs are Mentors:
Mentoring is one of the best and proven forms of influence and knowledge sharing.
Intrapreneurs are on the constant look out for mentors who can influence their creative vision.
Intrapreneurs make great mentors as well. At the onset of an opportunity, they are ready to
share their knowledge with others. Organizations see dramatic improvements in the creativity
and productivity with mentorship and knowledge sharing.
4. Intrapreneurs are Constant learners:
Intrapreneurs are constant learners. Whether it is personal or professional growth, they
constantly learn to better their art of being creative and productive. Intrapreneurs take not only
proactive steps to identify their next learning step but also identify valuable things to learn in
every situation. The more we learn, better we operate on a daily basis.
5. Intrapreneurs provides value to the organization:
Intrapreneurs recognize that they are an investment to the Organization. So, they not only
provide value to the Organization but also to themselves for their growth. Intrapreneurs
acknowledge that while their job duties provide measurable outcomes for the Organization, the
way they discharge their functions with integrity provides overall value to the Organization.
Intrapreneurs are indispensable human resources to an Organization, and it’s growth.
Intrapreneurs take responsibility for their career and empower themselves to be creative for the
organization’s greater good.
Difference between Intrapreneur and Entrepreneur:

POINT
ENTREPRENEUR INTRAPRENEUR
COMPARISON

Meaning Entrepreneur refers to a person Intrapreneur refers to an employee

who set up his own business of the organization who is in charge
with a new idea or concept. of undertaking innovations in
product, service, process etc.

Resources Uses own resources. Use resources provided by the

company.

Capital Raised by him. Financed by the company.

Enterprise Newly established An existing one

 POINT
ENTREPRENEUR INTRAPRENEUR
COMPARISON

Dependency Independent Dependent

Risk Borne by the entrepreneur Taken by the company.

himself.

Works for Creating a leading position in Change and renew the existing
the market. organizational system and culture.

Innovation and Entrepreneur:

Point of Innovation Entrepreneurship
Difference

Definition Innovation is the process of Entrepreneurship identifies the

creating something new. opportunities in great innovations and
creates opportunity, adds value, and keeps
the value improving over a period of time.

Risk-Taking In innovation, there is no major In converting an idea into a business

risk involved. opportunity, risk-taking cannot be
avoided. Risk-taking is a key factor in
entrepreneurship.

Durability Innovation generally has a short Entrepreneurship has long durability,

durability which adds and improves the value of the
opportunity created.

Interest Innovators lose interest after the Entrepreneurs fail, rethink and work hard
idea stage. to make the venture more successful.
Skills Innovators have a passion for Entrepreneurs need skills like planning,
inquiry and experiment with leading, managing, and decision-making.
creative thinking. Entrepreneurs take risks, work hard, and
are committed to achieving success in
their business.

Cause Innovation is the outcome of new Entrepreneurship is the process of making

thinking. innovation a business opportunity.

UNIT 3-
Entrepreneurship is important for growing the economy, creating jobs and improving the
quality of life while adapting to modern societal needs. Innovative entrepreneurship can
provide ideas that help grow new and existing businesses, develop products to improve local
communities and encourage change to enhance customer experiences. Innovation is a primary
component of successful businesses, so it's beneficial to understand what it entails.
Innovation refers to an individual or organization creating new ideas, such as new products,
workplace processes and upgrades to existing services or products. In business, innovation can
promote growth, help ensure the organization can compete with new market trends and help
generate profit. Implementing innovative ideas can help a business become a successful
organization in its industry.
Innovative entrepreneurship is the practice of establishing creating new business ideas
intending to generate profit, assist their community and accomplish company goals. Innovative
entrepreneurs develop business models to identify to meet the needs of an organization and
improve their competitiveness in the market. Most entrepreneurs use innovative ideas to help
create these business models or make upgrades to their current model. They can use this
motivation to design innovative strategies for business success. There are many types of
innovative business entrepreneurs.
Social entrepreneurs
This type of entrepreneur often aims to solve community problems with their product or
services. These products can promote positive developments in community behaviors. Social
entrepreneurs often measure success in improving their community rather than success in
profits.
Startup entrepreneurs
Startup entrepreneurs innovate a single product or service that's unique to an industry. To
promote success in their startup business, they may use innovative marketing strategies to keep
customers. This can include creating strategies to provide exceptional customer experiences
during the purchase or use of the product.
Enterprise entrepreneurs
Enterprise entrepreneurs may use innovation to develop new ideas for corporations that have
been in business for many years. This can help an enterprise business stay relevant and
competitive in its market. Enterprise entrepreneurs help enterprise businesses or corporations
adapt to market changes by creating strategies to combine new technologies and systems in
their business model. They use their innovative ideas to upgrade current products or services
to generate positive user experiences and maintain their wide customer base.
Characteristics of Innovative entrepreneur
Some successful innovative entrepreneurs have specific personality traits that contribute to
their innovative ways of thinking.
Proactive: Proactive individuals often attempt to find a solution to financial or organizational
challenges using innovative ideas in their business model or products. They often take
additional steps to ensure success in their new business idea. Examples of being proactive can
include taking additional courses to develop skills, creating solutions to obstacles before they
occur and asking for feedback to improve their ideas.
Communication Skill: Entrepreneurs use communication skills to inform companies of
innovation ideas and distribute plans to all employees working on a product. They also use
communication skills to network with others in their industry to expand brand awareness and
their consumer base.
Determined to find solutions to challenges: Entrepreneurs may have to overcome many
challenges before they reach success. Challenges can include market changes or new research
on global issues. They often create innovative products that resolve issues or meet market
demands.
Flexible: It's important to be flexible and adaptable as an entrepreneur to incorporate changing
market trends into business plans. Entrepreneurs usually can adapt to these changes to update
products so the product can still be competitive in its market.
Adoptive Entrepreneurship: Adoptive/Imitative is the imitative entrepreneurs copy or
adopt suitable innovations made by the innovative entrepreneurs. These entrepreneurs
imitate the existing entrepreneurs and setup their enterprise in the same manner. Instead of
innovating, they just imitate the technology and methods innovated by others.
Fabian Entrepreneurship: These are entrepreneurs that are very careful in their approaches
and cautious in adopting any changes. They are not prone to sudden decisions and try to shy
away from any innovations or change that doesn’t fit their narrative.
Drone Entrepreneurship: These are entrepreneurs who do not like a change. They are
considered as ‘old school’. They want to do business in their own traditional or orthodox
methods of production and systems. Such people attach pride and tradition to even outdated
methods of doing business.
Entrepreneurial traits:
1. Vision: Successful entrepreneurs have a clear vision of what their business will be and
can concisely articulate its purpose, goals and market position. They have identified
(and can succinctly describe) the who, what, where, when and why of their business.
2. Passion: A successful entrepreneur is passionate about their business. It is hard work,
and putting in long hours will be tough if you don’t love what you are doing. People
with passion know what it is that drives them to keep working to achieve their vision.
3. Tenacity: Entrepreneurs remain tough when the going gets rough. They don’t give up
easily. They can accept rejection and are willing to learn from their mistakes. They are
willing and able to adapt and modify their plan in order to be successful the next time
around.
4. Willingness to work hard: Being an entrepreneur is harder than being an employee.
To be successful, the entrepreneur must be willing to put in the time and effort required,
often for little or no pay at the beginning. Successful entrepreneurs recognize the risk
and necessary work that achieving their goals will entail.
5. Confidence: Successful entrepreneurs have confidence in themselves and in their
business. They must believe in their ability and in their idea. Every entrepreneur will
face rejection along the way and successful entrepreneurs are those with the confidence
to keep going and bounce back after a setback.
6. Flexibility: Things do not always go as planned. A successful entrepreneur is flexible.
They learn from their mistakes and are willing to adapt and change as they go along.
They take advice from others and are open to trying new approaches.
7. Can sell: An entrepreneur must be comfortable selling. Even with a sales team, the
leader must be an expert at networking and be able to promote themselves and their
business to bankers, customers, suppliers and staff.
8. Prudent with money: Successful entrepreneurs are good money managers. They
prudently invest in overhead and always keep track of the money and manage their cash
flow.
9. Willing to ask for and accept help: An entrepreneur needs to be a jack of all trades,
but the most successful entrepreneurs know their limitations, realize they can’t do
everything and are willing to delegate to others. They are willing to ask for help. They
seek out and pay for expert advice when needed.
10. Resilience: No matter how successful your business, there will be bumps along the
road. A successful entrepreneur is resilient and can bounce back from a setback. They
use setbacks as an opportunity to learn and grow. They understand that failure is part
of the game.
UNIT 4-

Institutional support system has been designed at following four levels: 1. Central Government
2. State Government 3. Non-Government Support System 4. District Industries Centres (DIC).

Central Government Institutions

(i) Small Scale Industries Board (SSIB):
It was established in 1954 to provide effective coordination and inter- institutional linkages for
the benefit of small scale sector.
It consists of the following members:
a. Union Industry Minister
b. State Industry Minister
c. Selected members of Parliament
d. Secretaries of department concerned
e. Eminent experts in the field
(ii) National Bank for Agriculture and Rural Development (NABARD):
NABARD is designated as an apex development bank in the country. This national bank was
established in 1982 by a Special Act of the Parliament, with a mandate to uplift rural India by
facilitating credit flow in agriculture, cottage and village industries, handicrafts and small-scale
industries. It is also required to support non-farm sector while promoting other allied economic
activities in rural areas. NABARD functions to promote sustainable rural development for
attaining prosperity of rural areas in India.
It is basically concerned with “matters concerning policy, as well as planning and operations
in the field of credit for agriculture and other economic activities in rural areas in India”. It is
worth noting with reference to NABARD that RBI has sold its own stake to the Government
of India. Therefore, Government of India holds 99% stake in NABARD.
Role of NABARD:
It is an apex institution which has power to deal with all matters concerning policy, planning
as well as operations in giving credit for agriculture and other economic activities in the rural
areas.
I. It is a refinancing agency for those institutions that provide investment and production credit
for promoting the several developmental programs for rural development.
II. It is improving the absorptive capacity of the credit delivery system in India, including
monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, and
training of personnel.
III. It co-ordinates the rural credit financing activities of all sorts of institutions engaged in
developmental work at the field level while maintaining liaison with Government of India, and
State Governments, and also RBI and other national level institutions that are concerned with
policy formulation.
IV. It prepares rural credit plans, annually, for all districts in the country.
V. It also promotes research in rural banking, and the field of agriculture and rural development.
Various services offered by NABARD are:
a. Attracting youth to rural non-farm sector
b. District Industries Rural Project (DRIP)
c. Rural Entrepreneurship Development Programme (REDP).
(iii) Small Industries Development Organisation (SIDO):
It was constituted in 1954 to develop support services for promotion of SSS. Over the years, it
has seen its role evolve into an agency for advocacy, hand holding and facilitation for the small
industries sector. It has over 60 offices and 21 autonomous bodies under its management.
These autonomous bodies include:
i. Tool Rooms
ii. Training Institutions
iii. And Project-cum-Process Development Centres.
The SIDO provides a wide spectrum of services to the small industries sector.
These include:
i. Facilities for testing, tool making, training for entrepreneurship development, preparation of
project and product profiles, technical and managerial consultancy, assistance for exports,
pollution and energy audits etc.
ii. The SIDO provides economic information services and advises Government in policy
formulation for the promotion and development of SSIs.
Consequent to the increased globalization of the Indian economy, small industries are required
to face new challenges. The SIDO has recognised the changed environment and is currently
focusing on providing support in the fields of credit, marketing, technology and infrastructure
to SSIs. Global trends and national developments have accentuated SIDO’s role as a catalyst
of growth of small enterprises in the country.
The Institutions/Centres Administered by SIDO:
The SIDO has promoted the following institutes and centres and is responsible for their
management:
I. Small Industries Service Institutes (SISI):
The institute functions under the Ministry of SSI, Government of India and it provides services
such as preparation of project reports, training programmes in different activities, extending
technical assistance and offering guidance on Industrial policy of Government of India. It is a
pioneer organisation, to develop small scale industries through counselling,
consultancy/training. It also assists the industries in marketing the products and acquiring
quality standards.
SISI also provides various types of extension services and assistance in setting up of units,
promoting and developing product and services by the Small Scale Industries. The small
industries service institutes have been set up in state capitals and other places all over the
country to provide consultancy and training to small entrepreneurs both existing and
prospective. At present the SIDO has been administering 28 SISIs and 30 branch SISIs working
in different parts of the country.
II. Product-cum-Process Development Centres:
These have been promoted to provide specific service to different types of small scale units
concentrated in different locations. These centres are responsible for serving as research and
development institutions in areas of dense industry clusters, to encourage product design and
innovation, to develop new processes and upgrade the existing level of technology, to act as
centres of excellence in respective areas and • to provide technical and managerial support
services.
III. Regional Training Centres (RTCs):
These centres are located in major cities and are responsible for quality awareness programme
among the small units. For this purpose, they are engaged in systematic testing and technical
consultancy services. These centres are also responsible for assisting field testing stations
which are expected to provide testing services to SSI units.
IV. Establishment of Training Institutes:
The SIDO also controls the affairs of NISIET (Hyderabad), NIESBUD (New Delhi) and
integrated training centre (Industries) at Nilokheri. These institutions are responsible for
arranging training facility to entrepreneurial trainers.
Main Objectives of SIDO are:
i. To formulate policy for promotion of SSI
ii. To Provide coordination of policies of state government
iii. To collect and disseminate information
iv. To provide wide range of extension services through allied institutions
v. To promote facilities for technology up gradation
vi. To offer consultancy services
Various Services Rendered by SIDO:
i. Entrepreneurship development and Management training.
ii. Efforts for skill development.
iii. Preparation of feasibility reports for different products.
iv. Provision of testing services.
v. Availability of tool room facilities.
(iv) National Small Industries Corporation (NSIC):
The National Small Industries Corporation (NSIC) Ltd. was established by the Government as
a Public Sector Company in 1955.
Its main functions are:
i. To arrange for Supply of machinery and equipment.
ii. To arrange Provision of financial assistance.
iii. To provide Assistance for arrangement of raw materials.
iv. To aid establishment of technology transfer centres.
v. To make arrangement of marketing assistance.
vi. To ensure priority in government purchase programme
vii. To promote, aid, and foster the growth of micro and small enterprises in the country,
generally on a commercial basis
viii. To provides a variety of support services to micro and small enterprises catering to their
different requirements in the areas of raw material procurement; product marketing; credit
rating; acquisition of technologies; adoption of modern management practices, arranging for
business partners, ensuring technology transfer programmes through missions, delegations and
expositions etc.
The Technical Service Centres (TSCs), established by NSIC are functioning in different parts
of the country, providing diverse technical support to the small scale sector.
Some of which are:
Entrepreneurship Development Institute of India:
Entrepreneurship development and training is one of the key elements for the promotion of
micro, small and medium enterprises, especially for creation of new enterprises by the first
generation entrepreneurs. In order to inculcate the entrepreneurial culture amongst the first
generation of entrepreneurs on a regular basis, the Ministry has set up
Three national entrepreneurship development institutes namely:
1. National Institute for Micro, Small and Medium Enterprises (NI-MSME) at Hyderabad,
2. National Institute for Entrepreneurship and Small Business Development (NIESBUD) at
NOIDA (Uttar Pradesh)
3. And Indian Institute of Entrepreneurship (IIE) at Guwahati, as autonomous societies.
These institutes are engaged in developing training modules; undertaking research & training;
and providing consultancy services for entrepreneurship development & promotion of
MSMEs, including enhancement of their competitiveness.
1. National Institute for Micro, Small and Medium Enterprises (NI-MSME):
The National Institute of Micro, Small and Medium Enterprises was established with the
mission of promoting the growth and development of MSMEs through services in the areas of
policy, entrepreneurship, technology, information, education, management and extension.
NIMSME has designed specialized and need-based programmes, workshops and seminars in
tune with the current developments in policy and the economy.
NIMSME has been providing unstinted support, in terms of offering services like research,
consultancy, information, training and extension not only to enterprises but also to concerned
developmental agencies. It deserves all appreciation for its outstanding work and contribution
to MSMEs, the demand for more such institutes in the country is gathering momentum.
2. National Institute for Entrepreneurship and Small Business Development (NIESBUD):
NIESBUD is an apex body established by Ministry of Micro, Small & Medium Enterprises.
The 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. Its main activities are to evolve effective training strategies and
methodology, standardising model syllabi for training various target groups, formulating
scientific selection procedure, developing training aids, manuals and tools, facilitating and
supporting Central/State/ Other agencies in organising entrepreneurship development
programmes, conducting training programmes for promoters, trainers and entrepreneurs and
undertaking research and exchange experiences globally
3. Indian Institute of Entrepreneurship (IIE):
The Indian Institute of Entrepreneurship (HE) was established in the year 1993 in Guwahati by
the erstwhile Ministry of Industry (now the Ministry of Micro, Small and Medium Enterprises),
Government of India as an autonomous national institute with an aim to undertake training,
research and consultancy activities in small and micro enterprises focusing on entrepreneurship
development.
The main objectives of the institute are:
(1) To organize and conduct training for entrepreneurship development,
(2) To evolve strategies & methodologies for different target groups & locations & conduct
field tests,
(3) To identify training needs and offer training programmers to Government and non-
Government organisations engaged in promoting and supporting entrepreneurship etc.
(v) Small Industries Development Bank of India (SIDESI):
It is a Subsidiary of IDBI and was setup as an act of parliament, for ensuring larger flow of
financial and non-financial assistance to the small scale sector.
The SIDBI has taken over the outstanding portfolio of the IDBI relating to the small scale
sector for promotion, financing and development of the SSI sector and for coordinating the
activities of other institutions. It is the principal financial institution for the promotion,
financing and development of industry in the small, tiny and cottage sectors and for co-
coordinating the functions of the institutions engaged in similar activities.
Over the years SIDBI has striven to fulfill the role enshrined in its charter by formulating and
reorienting its policies, gearing up operations and enlarging the profile of its promotional and
developmental activities aimed at facilitating entrepreneurial entry and strengthening the small
scale sector to enable them to meet the emerging challenges.
From being a mere traditional refinancing institution, it has emerged stronger in meeting the
varied requirements of the SSI sector by exploring new areas and seeding option for the future
growth, like launching new financial products and instruments and support service
programmes.
It has also devised tailor-made schemes for direct lending to small scale sector so as to
supplement the efforts of Primary Lending Institutions (PLIs), which includes:
i. State Financial Corporation’s (SFCs), State Industrial Development Corporations (SIDCs),
Scheduled Commercial Banks (SCBs) both in the public and the private sector.
ii. State Co-operative banks, scheduled urban co-operative banks and regional rural banks
SIDBI – Venture Capital Ltd.
iii. SIDBI has also encouraged the growth of the venture capital industry for hi-tech SME units
in India by promoting 13 State/regional level funds and setting up an all India Venture Fund.
It provides assistance for:
i. Setting up of new SSI units, small hotels, hospitals and so on.
ii. Technological up gradation and modernization, expansion and diversification.
iii. Quality up gradation
iv. Development of markets
v. Development of infrastructure.
vi. Discounting of bills of manufacturer-seller in selling either equipments or components.
(vi) National Board for Micro, Small and Medium Enterprises (NBMSME):
In pursuance of the MSME Development Act, 2006, the National Board for Micro, Small &
Medium Enterprises consisting of a total of 47 members have been constituted. The 20 non-
official members on the Board represent industry associations of MSMEs from all over the
country while the other 27 members comprise Members of Parliament, Ministers of six State
Governments, representatives of RBI, Banks etc.
The main purpose of the board is:
i. To solve the various issues relating to development of MSMEs
ii. To come out with remedial measures which are undertaken in consultation with the
concerned departments/agencies.
(vii) Khadi and Village Industries Commission (KVIC):
The Khadi & Village Industries Commission (KVIC), established under the Khadi and Village
Industries Commission Act, 1956, is a statutory organisation engaged in promoting and
developing khadi and village industries for providing employment opportunities in rural areas,
thereby strengthening the rural economy.
Main reasons for its formation are:
i. The KVIC has been identified as one of the major organisations in the decentralized sector
for generating sustainable rural nonfarm employment opportunities at low per capita
investment.
ii. This also helps in checking migration of rural population to urban areas in search of
employment opportunities.
iii. New reform programmes are undertaken which aim at revitalizing the khadi sector for
enhanced sustainability of khadi; increasing incomes for spinners and weavers; increasing
employment; enhancing artisan’s welfare and gradually enabling khadi institutions to stand on
their own feet.
(viii) Mahatma Gandhi Institute for Rural Industrialisation (MGIRI):
In order to strengthen the R& D activities in khadi and village industry sectors, a national level
institute namely ‘Mahatma Gandhi Institute for Rural Industrialization (MGIRI)’ has been
established at Wardha, Maharashtra in association with IIT, Delhi by revamping the erstwhile
Jamnalal Bajaj Central Research Institute.
A brief account of these organisations is given below:
The national level institute namely Mahatma Gandhi Institute for Rural Industrialization
(MGIRI) has been established at Wardha, Maharashtra, to strengthen the R&D activities in
khadi and village industry sectors.
The main functions of the Institute are:
To improve the R&D activities under rural industrial sector through encouraging research,
extension of R&D, quality control, training and dissemination of technology related
information.
(ix) Coir Board:
The Coir Board is a statutory body established under the Coir Industry Act, 1953 for promoting
overall development of the coir industry and improving the living conditions of the workers
engaged in this traditional industry.
The activities of the board for development of coir industries include:
i. Undertaking scientific, technological and economic research and development activities
ii. Developing new products & designs and marketing of coir and coir products in India and
abroad.
iii. Promoting co-operative organisations among producers of husks, coir fibre, coir yarn and
manufacturers of coir products; ensuring remunerative returns to producers and manufacturers,
iv. Promoting two research institutes namely; Central Coir Research Institute (CCRI),
Kalavoor, Alleppey, and the Central Institute of Coir Technology (CICT), Bengaluru for
undertaking research activities on different aspects of coir industry, which is one of the major
agro based rural industries in the country
(x) National Institute for Small Industry Extension Training (NISIET):
The NISIET, since its inception in 1960 by the Government of India, has taken gigantic
strides to become the premier institution for:
i. The promotion, development and modernisation of the SME sector. An autonomous arm of
the Ministry of Small Scale Industries (SSI)
ii. The Institute strives to achieve its avowed objectives through a gamut of operations ranging
from training, consultancy, research and education, to extension and information services.

State Government Institutions

The State Governments also execute different promotional and developmental projects and
schemes to provide number of supporting incentives for development and promotion of
MSMEs in their respective states. These are executed through the State Directorate of
Industries, which has District Industries Centres (DICs) under it, for implementing the
central/state level schemes.
(i) State Financial Corporation (SFC):
Its main objectives are:
i. To provide term loans for the acquisition of land, building, plant and machinery.
ii. To promote of self-employment.
iii. To encourage women entrepreneurs
iv. To bring about expansion of industry
v. To provide seed capital assistance.
(ii) State Small Industries Development Corporation (SSIDC):
The State Small Industries Development Corporations (SSIDC) were set up in various states
under the companies’ act 1956, as state government undertakings to cater to the primary
developmental needs of the small tiny and village industries in the state/union territories under
their jurisdiction.
Incorporation under the companies act has provided SSIDCs with greater operational flexibility
and wider scope for undertaking a variety of activities for the benefit of the small sector, such
as procuring and distributing the scarce raw materials, supplying machinery on hire purchase
system, providing assistance for marketing of the products of small-scale industries,
constructing industrial estates /sheds, providing allied infrastructure facilities and their
maintenance and to extend seed capital assistance on behalf of the state government concerned
etc.
SSIDC provides the following important functions:
i. Procurement and distribution of raw materials.
ii. Supply of machine on hire-purchase basis
iii. Construction of industrial estates.
iv. Providing assistance for marketing of products of SSI.
(iii) Technical Consultancy Organisations (TCOs):
Services of TCOs include:
i. Preparation of project profiles.
ii. Undertaking industrial potential surveys.
iii. Identification of potential entrepreneurs.
iv. Undertaking market research.
v. Project supervision and rendering technical and administrative assistance.
vi. Conducting EDPs.
(iv) Khadi and Village Industries Commission (KVIC):
It is engaged in the development of khadi and village industries in rural areas. Main
objectives of KVIC are:
i. To provide employment in rural areas.
ii. To help in skill improvement.
iii. To bring about rural industrialization.
iv. To facilitate transfer of technology.

Non-Government Institutions
Besides the Central Government and the State Government agencies, there are some Non-
Governmental agencies that are also supporting the cause of small scale industries in the
country. These agencies include Non- Government organisations and industry associations.
They provide a common platform to voice SSI needs and initiate co-operative efforts.
Government policies have stressed the increasing role of these associations and NGO’s in
setting up common facilities and other cooperative ventures in technology, marketing and other
support systems. Some of these major associations are as follows:
(I) Indian Council of Small Industries (ICSI):
It was established in 1979 to help tiny, cottage and small industries and artisans of rural areas.
Membership of ICSI constitutes about 1500 associations of the decentralized sector.
Main functions of ICSI are:
i. Information dissemination.
ii. Entrepreneurship development.
iii. Consultancy and managerial support.
iv. Training and research.
(II) Laghu Udyog Bharti (LUB):
Laghu Udyog Bharti (LUB) was founded in 1995 to promote and safeguard the interest of tiny
and small scale industries. It has been given representation on the national and the state level
government bodies responsible for the development of SSIs. It is also responsible for undertak-
ing entrepreneurial training, providing support for technology up gradation and marketing
services.
LUB performs following functions:
i. Entrepreneurial training.
ii. Technology up gradation.
iii. Marketing services.
(III) India SME Technology Services Ltd.:
India SME Technology Services Ltd. (ISTSL) provides a platform where micro, small and
medium enterprises can tap opportunities at the global level for acquisition of new and
emerging technology or establish business collaboration.
Their mission is:
To render professional services for technology transfer and attendant support services in order
to enhance market competitiveness of micro, small and medium enterprises and promote
sustainable development.
(IV) Credit Guarantee Fund Trust for Micro and Small Industries:
A Credit Guarantee Fund Scheme for small industries was launched by the Government and
the SIDBI set up the Credit Guarantee Fund Trust for Small Industries (CGTSI), with a mission
to implement the credit guarantee fund scheme for micro and small enterprise in August 2000
to ensure better flow of credit to micro and small enterprises by minimising the risk perception
of banks/ financial institutions in lending without collateral security.
(V) Federation of Associations of Small Industries of India (FASII):
It was promoted in 1959 to represent the problems of SSIs with the Government and liaisoning
with other agencies involved in promotion of SSI sector.
Its objectives are as follows:
i. To promote the development of small scale, tiny and cottage industries;
ii. To cooperate with industrial business, educational institutions in collecting and exchanging
information pertaining to the small scale sector;
iii. To undertake professional, technical and management consultation services;
iv. To undertake studies, surveys and research assignments;
v. To further the cause of small industries by interacting with Union and State Governments
and other bodies;
vi. To establish and operate trade centres display centres, sub-contracts exchanges and other
promotional institutions for the benefit of the small scale sector and
vii. To establish test centres, laboratories and common facility centres for the SSI sector.
(VI) World Association of Small and Medium Enterprises (WASME):
The World Association for Small and Medium Enterprises was founded in 1981 to ensure
business cooperation among its members. Its membership represents chamber of commerce,
small industries development corporations, financial institutions and commercial banks and
other State Government agencies of developing countries.
It facilitates:
i. Technology transfer
ii. Manpower training
iii. Maintaining a register of experts/consultants, organising seminars and conferences
iv. And acts as a clearing house of information and marketing services etc.
(VII) Federation of Indian Chambers of Commerce and Industry (FICCI):
The FICCI was established in 1927 as the national agency through which the chambers of
commerce and trade association in India could crystallize their views on current economic
problems.
It serves as the coordinating agency for the commercial and industrial interests as represented
by various chambers of commerce and trade associations. The Federation maintains very close
relations with the Union Government and is also represented on over 65 advisory committees
appointed by the Government and other leading organisations.
(VIII) Small and Medium Business Development Chamber of India (SME Chamber of
India):
The chamber puts all its efforts for the development and growth of MSMEs by organising
various activities to accomplish its objectives. The Chamber provides information and
guidance to new and existing entrepreneurs in effectively managing and growing their business.
The Chamber has developed key strategies to promote and support the MSME sector. The
Chamber also gives importance to and encourages MSMEs to adopt innovative ideas and
concepts for the promotion of their business.
The chamber organises:
i. Seminars
ii. Conferences,
iii. Workshops and Training Programs
iv. And other trade promotional activities to educate & create awareness among MSMEs.
v. The Chamber recognises successful entrepreneurs by conferring National & International
Level MSME and Entrepreneurship Excellence Awards for their outstanding achievements in
the fields of Manufacturing, Services, International Trade, Finance, Agro & Food Processing,
IT and IT Enabled Services, Telecommunication, Research, Technology Development and
other sectors.
(IX) Associated Chambers of Commerce and Industry of India (ASSOCHAM):
Assocham is another apex organisation like FICCI to which some of the older chambers of
commerce are affiliated. It was founded in December 1920. It seeks to make the businessmen’s
voice heard and to ensure that their views are taken into account in the moulding of the nation’s
economic life. It also undertakes persuasive activities directed at the administrative
departments and to the law makers with a view to acquainting themselves with the view point
of the members.
(X) Confederation of Indian Industry (CII):
It was created in 1992 by changing the name of Confederation of Engineering Industry. It is
responsible for advisory, consultative and representative services to industry and the
Government. It has been given representation on major policy formulating bodies, related with
the industry. It also works like a nodal agency for international industrial cooperation.
(XI) Federation of Indian Exporters Organisation (FIEO):
This is an apex organisation set up by the Ministry of Commerce in the year October 1965. It
represents the Indian entrepreneur’s spirit of enterprise in the global market. The Federation
performs activities of common nature such as sending trade delegations abroad and inviting
trade delegations from foreign countries, sponsoring commodity and market surveys and
collection and dissemination of commercial intelligence.
It provides facilities for:
i. Settlement of trade disputes arising in the course of foreign trade
ii. And advises Government on all matters relating to export trade.
(XII) Rural Small Business Development Centre (RSBDC):
It is the first of its kind set up by the world association for small and medium enterprises and
is sponsored by NABARD. It works for the benefit of socially and economically disadvantaged
individuals and groups.
It aims at:
i. Providing management and technical support to current and prospective micro and small
entrepreneurs in rural areas.
ii. Organizing several programmes on rural entrepreneurship, skill up gradation workshops,
mobile clinics and trainers training programmes, awareness and counseling camps in various
villages of North India.
(XIII) Entrepreneurship Development Institute of India (EDI):
The Entrepreneurship Development Institute of India (EDII), an autonomous body and not-for-
profit institution, set up in 1983, is sponsored by apex financial institutions, namely the IDBI
Bank Ltd, IFCI Ltd. ICICI Ltd and State Bank of India (SBI).
The Institute is registered under the Societies Registration Act 1860 and the Public Trust Act
1950. The Government of Gujarat pledged twenty-three acres of land on which stands the
majestic and sprawling EDII campus.
The institute is located close to Ahmedabad Airport at the village Bhat in Gandhinagar District.
Its buildings, designed by Bimal Hasmukh Patel, are set in a 23-acre (93,000 m2) lush green
campus and received the Aga Khan Award for Architecture in 1992.
The EDII has been selected as a member of the Economic and Social Commission for Asia and
the Pacific (ESCAP) network of Centres of Excellence for HRD Research and Training.
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.
The University Grants Commission appointed the EDI as an expert agency to develop a
curriculum on Entrepreneurship. In the international arena, the development of
entrepreneurship by sharing resources and organising training programmes, have helped the
EDI earn support from the World Bank, Commonwealth Secretariat, UNIDO, ILO, FNSt,
British Council, Ford Foundation, European Union and other agencies.
The institute has carried out the task assigned by the Ministry of External Affairs (India), to set
up Entrepreneurship Development Centres in Cambodia, Lao PDR, Myanmar and Vietnam.
The institute is working towards creating ED Centres in Uzbekistan and Kazakhstan.
Courses offered by EDI:
(a) Post Graduate Diploma in Management Development Studies (PGDM-DS):
Post Graduate Diploma in Management – Development Studies is designed as a broad and
multi-disciplinary focused programme to equip students with knowledge, analytical and con-
ceptual skills of social and economic development.
(b) Post Graduate Diploma in Management Business Entrepreneurship (PGDM-BE):
The PGDM-BE two-year, full-time, residential programme at the EDI, has been designed for
entrepreneurs and entrepreneurial managers.
(c) Post Graduate Diploma in Management Development Studies (PGDM-DS):
The institute has launched a new course – Post Graduate Diploma in Management –
Development Studies in market, which makes sure that the youth is equipped with instruments
to bring about ‘change’ in society. Of the many fundamentals and theories, the Development
Studies course imbibes Mahatma Gandhi’s principle- “Be the change you want to see in the
world”. Development Studies (DS) may be considered an MBA equivalent course that creates
social entrepreneurs. Social entrepreneurship is a gutsy, enterprising and challenging concept.
The entrepreneurship process at EDI:
Students are taught to identify opportunities and check on their feasibility. Through mentoring
and guidance the students prepare a business plan. They are given a platform to pitch their ideas
to banks and investors, so that they can launch their own venture.
(XIV) Indian Investment Centre (IIC):
The Indian Investment Centre is a Government of India organization and enjoys nearly more
than three decades of rich understanding in investment promotion. It is the body which is to be
contacted first for investment and is the single window agency for bona fide information or any
assistance that may be required for investments, technical collaborations and joint ventures.
All the services provided by the Indian Investment Centre are free of charge.
Role of Direct Foreign Investment:
i. The Indian Investment Centre is the body which is known to generate wider knowledge about
conditions, laws, policies, procedures and incentives pertaining to investment and the
infrastructural facilities available; and of investment opportunities in India.
ii. The Indian Investment Centre functions as a single reference point for foreign investment
projects and aids Indian and foreign entrepreneurs in meeting the procedural requirements of
project approvals. It also aids them in over-coming bottlenecks, if any, in the process for
implementation of the project.
iii. It informs and assists foreign entrepreneurs on matters pertaining to financial and technical
collaborations in India.
iv. The Indian Investment Centre advises foreign investors on setting up industrial projects in
India.
v. It provides them information regarding investment environment and opportunities. It also
apprises the investors about Government, industrial and foreign investment policies, facilities
and incentives taxation laws and assists them in identifying collaborators in India.
vi. Overseas the Government body assists Indian companies in discovering source of capital
and technology, hence facilitating foreign collaborations.
vii. It undertakes promotional work and guides entrepreneurs abroad via diplomatic officers in
the external affairs office and other relevant organizations.
Role in Non-Resident Indian Investment:
The Indian Investment Centre is the main organization responsible for promoting investment
in India by Non-Resident Indians (NRIs) and Overseas Corporate Bodies with NRI holdings,
providing them lead services.
i. It is functioning as a sole agency for projects with NRI investment and provides all the
necessary services for setting up such projects.
ii. The Indian Investment Centre apprises them of Government policies and procedures and the
services and inducements available to them.
iii. The necessary data for the selection of projects is made available to the NRIs and Overseas
Corporate bodies.
iv. The nodal agency also assists them in obtaining the approval of the Government authorities.
v. The Indian Investment Centre stands on the State Level Review Committees, which monitors
the execution of the projects and thus help them in removing complicatedness, if any, in the
process of implementation.

District Industries Centres (DIC) & Industrial Estates

In each district, there is one agency to deal with all requirements of small and village Industries.
This is called “District Industries Centre”, The District Industries Centres have undertaken
various programmes for investment promotion at the grass root level such as organizing
seminars workshops, extending support for trade fairs and exhibitions organized by various
Industry’s associations.
All the services and support required for MSME units under was the single roof of the District
Industries Centre. The Centre has a separate wing to look after the special needs of cottage and
household industries as district from small industries.
The Department of Industries & Commerce is the anchor department as far as development of
industries is concerned. This department is responsible for formulating and implementation of
industrial policies in the State.
The Directorate of Industries and Commerce (DIC) which has its headquarters at Bangalore,
has a network of District Industries Centres in all the 27 Districts.
The Directorate of Industries & Commerce is the first State Government Department in the
country to get the ISO Certificate which affirms the quality, efficiency, productivity and service
standards. The mission of the Department is to provide prompt and efficient services to the
entrepreneurs/industrialists for smooth and time-bound implementation and operation of
industrial projects and schemes.
In each district one agency to deal with all requirements of small and village Industries. This
is called “District Industries Centre”
The District Industries Centres have undertaken various programmes for investment
promotion at the grass root level such as:
i. Organizing seminars workshops, extending support for trade fairs and exhibitions organized
by various Industries associations.
ii. All the services and support required by for MSME units under the single roof of the District
Industries Centre. The Centre has a separate wing to look-after the special needs of cottage and
household industries as district from small industries.
Administration:
General Manager is the head of the District Industries Centre. The post of General Manager is
of Joint/Deputy Commissioner Level. The General Manager has senior officers to assist him,
such as Managers, Officers of all related fields.
Objectives of District Industries Centres (DIC):
(i) To identify prospective entrepreneurs to take up viable projects.
(ii) To identify viable projects and make demand survey on the available resources of the
district and plan for promotion of viable industries in the area.
(iii) To prepare viable and feasible project reports.
(iv) To strengthen the guidance cell to solve the problems of the entrepreneurs.
(v) To maintain up to date data on SSI Sector.
(vi) To recommend financial proposals to Orissa State Financial/ Corporation/Financial
Institutions/Banks etc.
(vii) To allot Govt, land/shed in Industrial Estates
(viii) To recommend for power connection.
(ix) To arrange for EDP training
(x) To arrange exhibition, fair and publicity and visit of industrialists to Trade Fairs and
different Industrial Estates of other States.
(xi) To solve the problems of the industrial units at the district level
(xii) To monitor the health of existing SSI units and the progress of those in the pipeline.
(xiii) To provide necessary marketing assistance.
(xiv) To monitor the implementation of the Prime Minister’s Rozgar Yojana.
(xv) To assist revival of sick SSI Units.
(xvi) To update the library in different DICs by procuring different hand books relating to
industries
Functions of DICs:
The DICs art funded by the State government concerned and the Centre jointly. The
Government has provided substantial assistance to the DIC’s which can be spent by DICs on
construction of an office building, expenditure on furniture, fixtures, equipment, vehicles and
other recurring expenses.
With this basis facility, DIC’s in the district level undertakes various promotional measures
with a view to bringing out all development of SME in the district.
In starts from exploration of potential entrepreneurs to marketing the products produced by the
SMEs. The DICs provide and arrange a package of assistance and facilities for credit guidance,
raw materials, training, marketing etc. including the necessary help to unemployed educated
young entrepreneurs in general.
Thus it may be said that DIC extends promotional, technical, physical, financial, marketing and
all other type of services, required for growth and development of SSI.
The important functions of DICS are discussed as follow:
(i) Identification of Entrepreneurs:
DIC’s develop new entrepreneurs by conducting entrepreneurial motivation programmes
throughout the district particularly under SEEUY scheme. DICs also take association of SIS’s
and TCOs for conducting EDPs.
(ii) Provisional Registration:
Entrepreneurs can get provisional registration with DICs which enable them to take all
necessary steps to bring the unit into existence. The entrepreneur can get assistance from term
lending institutions only after getting provisional registration.
(iii) Permanent Registration:
When the entrepreneur completes all formalities required to commence the production like
selection of site, power connection, installing machinery etc. they can apply to DIC for
permanent registration. It is only after getting the permanent registration that the entrepreneur
can apply for supply of raw materials on concessional rates. Permanent registration is essential
to avail all types of benefits extended by the government from time to time.
(iv) Purchases of Fixed Assets:
The DIC’s recommend loan applications of the prospective entrepreneur to various concerned
financial and developmental institutions e.g. NSIC, SISI etc. for the purchase of fixed assets.
It also recommend to the commercial banks for meeting the working capital requirement of
SSI to run day-to-day operations.
(v) Clearances from Various Departments:
DIC takes the initiative to get clearances from various departments which is essential to start a
unit. It even takes follow up measures to get speedy power connection.
(vi) Assistance to Village Artisans and Handicrafts:
In spite of inherent talent and ability, village artisans are not better off because they lack
financial strength to strive in the competitive market. DIC in support with different lead banks
and nationalized banks extends financial support to those artisans.
(vii) Incentives and Subsidies:
DIC helps SMEs and rural artisans to subsidies granted by government under various schemes.
The different types of subsidies are power subsidy, interest subsidy for engineers and subsidy
under IRDP etc. from various institutions.
(viii) Interest Free Sales Tax Loan:
SIDCO provides interest free sales tax loan up to a maximum limit of 8per cent of the total
fixed assets for SSI units set up in rural areas. But the sanction order for the same is to be issued
by DIC. The DIC recommends the case of SME to National Small Industries Corporation
Limited for registration for Government purchase programme.
(ix) Assistance of Import and Export:
Government is providing various types of incentives for import and export of specific goods
and services. These benefits can be availed by any importer or exporter provided the same is
routed through the concerned DIC. Export and import license is also issued to the importer or
exporter only on the basis of recommendation of DIC.
(x) Fairs and Exhibitions:
The DIC inspires and facilitates the SSI units to participate in various fairs and exhibitions
which are organized by the Government of India and other organizations to give publicity to
industrial products. DICs provide free space to SMEs for the display of their products and
provide financial assistance for the purpose.
(xi) Training Programmes:
DIC organizes training programs to rural entrepreneurs and also assists other institutions or
organization imparting training to train the small entrepreneurs.
(xii) Self-Employment for Unemployed Educated Youth:
The DICs have launched a scheme to assist the educated unemployed youth by providing them
facilities for self-employment. The youth should be in the age group of 18 to 35 years with
minimum qualification of Metric or Middle with I.T.I. in engineering or Technical Trade.
Technocrats and women are given preference.
Thus the above mentioned organisations in all the categories have been set up and are steadily
working towards the development of small industries. The entrepreneurs would indeed be
benefited, provided they take benefit from the services provided by these organisations. The
assistance provided ranges from setting up of the business unit, financing, training, procuring
of raw materials, purchase of plant and machinery, marketing of their products, selling, and
exporting their products.
It is seen that the Government of India and the Government of Karnataka are indeed setting up
these agencies to help the entrepreneurs, to motivate them in setting up more units which will
not only help them but also help the economy.
Business Plan:
A good business plan guides you through each stage of starting and managing your business.
You’ll use your business plan as a roadmap for how to structure, run, and grow your new
business. It’s a way to think through the key elements of your business.
Business plans can help you get funding or bring on new business partners. Investors want to
feel confident they’ll see a return on their investment. Your business plan is the tool you’ll use
to convince people that working with you — or investing in your company — is a smart choice.
Sections included in Traditional Business Plan (Format)
 • Executive Summary
• Company Description
• Market Analysis
• Organization and Management
• Service or Product Line
• Marketing and Sales
• Funding Request
• Financial Projections
• Appendix

Unit 5-
The super competitive business world brings many challenges to entrepreneurs. This is the reason
behind the launch of entrepreneurship programs such as Start-Up India and Make In India by the
government for imparting adequate importance to business minds for our country’s economic
growth. In spite of a blooming startup ecosystem, it is impossible to ignore the challenges that act
as roadblocks.
Problems/ Challenges of Entrepreneurship
1. Cash Flow Management: Cash flow management is one of the most important components
of any business. Still, some entrepreneurs find it difficult to pay their bills, while waiting for
the payment to be done by the clients.
The reason for such an issue can be delayed invoicing, which is a common occurrence in the
entrepreneurial world. The time taken between work done, invoicing and receipt of payment is
significant and in that time the business has to run its daily operations, which requires money.
Solution for this challenge:
Appropriate management of cash flow is essential for entrepreneurs and this can be done by
incorporating a down payment system for the products or services.
The option of down payment will lead to the business owners to be able to pay for the expenses
incurred during the product development.
Another option is to accelerate the invoice payments. Generally, it is 30 days, but with the
advancements in technology, instant payments can be done, which significantly reduces the
burden on entrepreneurs.
2. Hiring Employees: Hiring of employees is another of the major issues faced by the
entrepreneurs. It is one of the most time consuming activities and is therefore often sidelined
by the entrepreneurs.
It will be difficult for business owners to manage daily operations and simultaneously invest
time interviewing candidates.
Solution for this challenge:
It will be easy if candidates are pre-qualified, or it can happen that a walk-in interview can be
conducted, which makes it easier to select the best candidates among the participants. Look for
candidates with prior work experience and relevant skills which reduces the work.
3. Time Management: Time management is one of the most highlighted issues and for modern
entrepreneurs, it is a difficult phase as they need to perform multiple roles.
Solution for this challenge:
Entrepreneurs can manage time effectively by charting out an action plan which sets goals of
the business into weekly, monthly, quarterly and yearly objectives. Tasks that do not have
importance should be eliminated first of all and those that require minimum or no intervention
from the entrepreneur should be delegated to the lower levels.
4. Delegation of Tasks: Delegation of the task is essential for the success of the business.
Finding the appropriate resource is necessary for the proper execution of the task. The process
of finding resources is somewhat complicated.
Solution for this challenge:
For delegation to be successful, the entrepreneur must be very specific in assigning the precise
tasks to the resources. Although it will be time consuming, it will be beneficial for the business
in the long term.
Once everything falls into place, it will bring order into execution which leads to profit for the
organisation.
5. Choosing the product to sell: The most difficult part for an entrepreneur sometimes is
deciding the kind of product or service they want to sell.
Solution for this challenge:
This challenge can be overcome by seeking counselling from experts in the business and also
by performing a SWOT analysis.
Recent trends of entrepreneurship in India
Gone are those days when India had the world's lowest entrepreneurial activity, with just 5%
of Indians owning a business. (Published in 2018 on Economictimes.indiatimes.com). Today
the scenario is entirely different. According to The State of Indian Startup Ecosystem Report
2021, India has over 5,694 active investors and 38K startups. Hence, the trend of
entrepreneurship and startup boom is increasing. However, running a business successfully or
starting a new business makes sense when you stay updated about the entrepreneurship trends
and develop business acumen.
Current Trends in Entrepreneurship Development
 Launch of Startup India
  Increasing spend on social media and digital marketing
 Growth in new technology
 Micro-influencers are helping drive sales
 Growth of Entrepreneur Communities
These trends will help one become aware of the business world's changes that help make
the right business decisions.
Launch of Startup India:
The startup ecosystem in India is changing, and SME's or Small and Medium Enterprises are
privileged today compared to what it was a decade back. The government has taken various
initiatives to establish a favourable Indian Start-up ecosystem, and they have launched a new
portal, Start-up India, to promote the growth of Indian Start-ups. With the latest technology,
customer-friendly approach, new taxation policy, and relaxation in GST, ease of business
registration, the startups in India have become a significant player in the Indian economy. New
innovative businesses are coming up frequently, increasing the need for entrepreneurship
knowledge.
Startups with more significant potential will be adopted faster, and big investors fund small
startups and entrepreneurs. Earlier, such investments in startups were considered fancy
investments. However, today Unicorns startups (private startups with an investment of over $1
billion) can step toward the mid-level business within six months. Premium institutes like IIT
Delhi have emphasized that those who wish to become their own bosses and succeed must also
know about Entrepreneurial Ecosystem and Venture Creation, Entrepreneurial Operations and
Decisions, Entrepreneurial Finance, Growing and Scaling Up Entrepreneurial Ventures,
Entrepreneurial Failure Management and much more. Their Certificate Programme in
Entrepreneurship will help you put your best foot forward.
Increasing spend on social media and digital marketing
Social media users in India are 78 million, which is 21% more between 2020 and 2021.
(Datareportal) As per Statista.com, Social Media Ad spending in India is expected to reach
US$863m in 2021. If we have to pick one of the critical drivers for the startup boom in India,
then social media and digital marketing have an essential role in this. Digitization has paved
the way for a new set of opportunities for entrepreneurs.
Companies are spending more on social and digital media marketing because they can optimize
their ads and marketing strategy on social media according to consumer behaviour. Moreover,
social media platforms such as Facebook, Twitter, and Instagram can provide real-time
statistics of their users, and they will show your ads on their user's profile who are interested
in a similar type of products and services that you offer. So, you can easily reach your potential
customers through these digital marketing platforms, and you can reduce your marketing cost
by promoting your brand and products on social media platforms.
Growth in new technology
Technology has proven to be a boon for entrepreneurs; they can now use it to create
applications and websites to establish their names and generate brand awareness. Indian App
Market is also going strong and is predicted to get stronger in the coming years. India's app
market is leading the world with over 28,000 Indian app publishers on Google Play Store.
Looking at the current trends, entrepreneurs are also vying to have their app on the Play Store
for branding. Further, spend on mobile ads is projected to increase from 45% to 65% in 2022.
Apart from social media entrepreneurs for business networking and attracting customers, some
have built their careers on Social media alone. YouTubers and Bloggers are a good example.
Social media is popular because its reach is impressive.
As per IBEF.org, eCommerce sales increased by 36% in the last quarter of 2020. Also, with
the increasing digital literacy and smartphone users, there is a rise in eCommerce investments,
with several small and big new players all set for their digital presence. Ecommerce sales are
expected to get a further boom in the coming years. As per the Indian eCommerce industry
report, The Indian E-commerce market is most likely to grow to US$ 200 billion by 2026 from
US$ 38.5 billion as of 2017.

Micro-influencers are helping drive sales

Influencers are the people who have a good number of followers on their social media profiles.
It can be a celebrity, music star, or tutor. According to various surveys, consumers trust word-
of-mouth recommendation from friends and family, which is how micro-influencers work.
Micro-influencers are not celebrities, and they are ordinary people who can create specific
content about a topic or theme. They have a small number of followers, a high engagement
rate, and can interact with their followers. If you have a limited budget for your marketing, you
can hire a micro-influencer because they can help you establish your brand through a word-of-
mouth marketing campaign.
Growth of Entrepreneur Communities
Entrepreneur communities are forums where like-minded people from the same industry can
interact with each other. There are many benefits of joining a professional community for
entrepreneurs like knowledge sharing, getting valuable tips, staying updated about the latest
trends, solving business issues, learning from mistakes, learning new skills, getting more
business, getting good ideas, and business networking. Due to so many advantages, there is a
rise in entrepreneurs and business communities.
Conclusion
The above discussion highlights India's changing market scenario and growing opportunities
for entrepreneurs, including startups. Starting a business needs not only funds and a business
plan but also the right plan of action. A good entrepreneurship learning programme covers all
these aspects. It provides you with the proper guidance and mentorship that helps in
establishing the business. Before you start a new business, you need to know about the investor
ecosystem, entrepreneurship development and other related concepts.