CU-BBA-SEM-V-Entrepreneurship Development-Second Draft

LaghuUdyog 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 undertaking entrepreneurial training, providing support for technology up gradation and marketing services. LUB performs following functions. 1. Entrepreneurial training. 2. Technology up gradation. 3. Marketing services. 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. 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 missionto 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. Federation of Associations of Small Industries of India (FASII) It was promoted in 1959 to represent the problems of SSIs with the Government and liaising with other agencies involved in promotion of SSI sector. Its objectives are as follows: 1. To promote the development of small scale, tiny and cottage industries; 2. To cooperate with industrial business, educational institutions in collecting and exchanging information pertaining to the small scale sector; 3. To undertake professional, technical and management consultation services; 4. To undertake studies, surveys and research assignments; 5. To further the cause of small industries by interacting with Union and State Governments and other bodies; 151 CU IDOL SELF LEARNING MATERIAL (SLM)

6. To establish and operate trade centre’s display centres, sub-contracts exchanges and other promotional institutions for the benefit of the small scale sector and 7. To establish test centres, laboratories and common facility centres for the SSI sector. 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 1. Technology transfer 2. Manpower training 3. Maintaining a register of experts/consultants, organising seminars and conferences 4. And acts as a clearing house of information and marketing services etc. 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. 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 organizes i. Seminars ii. Conferences iii. Workshops and training programs 152 CU IDOL SELF LEARNING MATERIAL (SLM)

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. 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. 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. 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 1. Settlement of trade disputes arising in the course of foreign trade 2. And advises Government on all matters relating to export trade. 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 153 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Providing management and technical support to current and prospective micro and small entrepreneurs in rural areas. 2. Organizing several programmes on rural entrepreneurship, skill up gradation workshops, mobile clinics and trainers training programmes, awareness and counselling camps in various villages of North India. 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 1. 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 conceptual skills of social and economic development. 154 CU IDOL SELF LEARNING MATERIAL (SLM)

2. 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. 3. 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. 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 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. 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. It informs and assists foreign entrepreneurs on matters pertaining to financial and technical collaborations in India. The Indian Investment Centre advises foreign investors on setting up industrial projects in India. 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. 155 CU IDOL SELF LEARNING MATERIAL (SLM)

Overseas the Government body assists Indian companies in discovering source of capital and technology, hence facilitating foreign collaborations. 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. It is functioning as a sole agency for projects with NRI investment and provides all the necessary services for setting up such projects. The Indian Investment Centre apprises them of Government policies and procedures and the services and inducements available to them. The necessary data for the selection of projects is made available to the NRIs and Overseas Corporate bodies. The nodal agency also assists them in obtaining the approval of the Government authorities. 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 156 CU IDOL SELF LEARNING MATERIAL (SLM)

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 1. Organizing seminars workshops, extending support for trade fairs and exhibitions organized by various Industries associations. 2. 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) 1. To identify prospective entrepreneurs to take up viable projects. 2. 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. 3. To prepare viable and feasible project reports. 4. To strengthen the guidance cell to solve the problems of the entrepreneurs. 5. To maintain up to date data on SSI Sector. 6. To recommend financial proposals to Orissa State Financial/ Corporation/Financial Institutions/Banks etc. 7. To allot Govt, land/shed in Industrial Estates 8. To recommend for power connection. 9. To arrange for EDP training 10. To arrange exhibition, fair and publicity and visit of industrialists to Trade Fairs and different Industrial Estates of other States. 11. To solve the problems of the industrial units at the district level 12. To monitor the health of existing SSI units and the progress of those in the pipeline. 13. To provide necessary marketing assistance. 157 CU IDOL SELF LEARNING MATERIAL (SLM)

14. To monitor the implementation of the Prime Minister’s Rozgar Yojana. 15. To assist revival of sick SSI Units. 16. 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: 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.  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.  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.  Purchases of fixed assets - The DIC’s recommend loan applications of the prospective entrepreneur to various concerned financial and developmental institutions e.g. NSIC, 158 CU IDOL SELF LEARNING MATERIAL (SLM)

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.  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.  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.  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.  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.  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.  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.  Training programmes - DIC organizes training programs to rural entrepreneurs and also assists other institutions or organization imparting training to train the small entrepreneurs.  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. 159 CU IDOL SELF LEARNING MATERIAL (SLM)

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. They want to create more of job providers than job seekers. The entrepreneurs should make use of the facilities provided by the Governmental organisations and agencies in order to grow economically and become more competitive globally. 9.3 NEW SCHEMES INITIATED TOWARD ED New Schemes Initiated Toward ED India is gradually building a robust start-up ecosystem. In order to promote and support entrepreneurs, the government has created a ministry (department) dedicated to helping new businesses. The ruling party has introduced many schemes to bolster entrepreneurship in India and to assist emerging start-ups financially. “Take up one idea. Make that one idea your life, think of it, dream of it, live on that idea, let the brain, muscles, nerve, every part of your body be full of that idea and just leave every other idea alone. This is the way to success.”- Mr Narendra Modi, Prime Minister of India Government Schemes for Start-ups 25 May 2021 -The imposed restrictions and lockdown strategy of the government as a prevention measure of the deadly second wave of Coronavirus has badly affected some sectors including Hospitality, Tourism, and Aviation. The government of India is preparing a stimulus package for these sectors to support the economic struggle these sectors are going through. The ministry of finance is working on proposals to support Tourism Industry, Aviation Industry, Hospitality sectors, and other small and medium-sized organizations which got troubled badly. The Finance Ministry has also given relaxations in cash management and removed imposed restrictions to encourage departments to carry out capital expenditure with an aim to boost the economy. Here is a list of government schemes launched to develop and encourage entrepreneurship in India. 1. Start-up India seed fund On 16 January 2021, Prime Minister Narendra Modi announced the launch of the 'Start- up India Seed Fund' worth INR 1,000 crores to help start-ups and support ideas from 160 CU IDOL SELF LEARNING MATERIAL (SLM)

aspiring entrepreneurs. PM Modi said that the government is taking important measures to ensure that start-ups in India do not face any capital shortage. 2. Start-up India initiative The Prime Minister of India launched the Start-up India Initiative in the year 2016. The idea is to increase wealth and employability by giving wings to entrepreneurial spirits. The government gives tax benefits to start-ups under this scheme and 798 applicants have made use of this scheme to date. The Department of Industrial Policy and Promotion is maintaining this initiative and is treating it as a long term project. Moreover, the overall age limit for start-ups has been increased from two years to seven years. And for biotechnology firms, the age limit is ten years from the date of incorporation. It is one of the best government-sponsored start-up schemes for entrepreneurs as it is providing several concessions. 3. ASPIRE (Aspire | Small business ideas for rural areas in India) The government has made continuous efforts to improve the social and economic aspects of life in rural areas of India. Since 56% of the Indian population lives in the rural areas, the government is promoting entrepreneurship and innovation in the rural sector. The ASPIRE scheme aims at increasing employment, reducing poverty, and encouraging innovation in rural India. However, the main idea is to promote the Agro-business industry. The Ministry of Medium and Small Enterprises has tried to boost economic development at the grassroots level. The total budget of the scheme was INR 62.5 crores for the period of 2014-2016. 4. MUDRA bank Micro Units Development Refinance Agency (MUDRA) banks has been created to enhance credit facility and boost the growth of small business in rural areas. The government has introduced this scheme to support small businesses in India. In 2015, the government allocated INR 10,000 crores to promote start-up culture in the country. The MUDRA banks provides start-up loans of up to INR 10 lakhs to small enterprises, business which are non-corporate, and non-farm small/micro enterprises. MUDRA comes under Pradhan Mantri Mudra Yojana (PMMY) which was launched on 8 April 2015. The loans have been categorized as Tarun, Kishore, and Shishu. The assets are created through the bank’s finance and there is no collateral security. 5. Ministry of skill development and entrepreneurship The task of promoting entrepreneurship was earlier given to different departments and government agencies. In 2014, the Prime Minister decided to dedicate an entire ministry to build this sector as he felt that skill development required greater push from the government's side. Furthermore, the idea is to reach 500 million people by the year 2022 through gap-funding and skill development initiatives. 161 CU IDOL SELF LEARNING MATERIAL (SLM)

6. ATAL innovation mission In the budget session of 2015, the Indian government announced the Atal Innovation Mission (AIM); with the name coming from Atal Bihari Vajpayee, the Former Prime Minister of India. Atal Innovation Mission was established to create a promotional platform involving academicians and draw upon national and international experiences to foster a culture of innovation, research, and development. The government allocated AIM about INR 150 crores in the year 2015. 7. eBizportal This is the first electronic government-to-business (G2B) portal. The main purpose of the portal is to transform and develop a conducive business environment in the country. eBiz Portal was developed by Infosys in a public-private partnership model. It is a communication centre for investors and business communities in India. The portal has launched 29 services in 5 states of India, viz., Andhra Pradesh, Delhi, Haryana, Maharashtra, and Tamil Nadu. The government will add more services to the scheme with time. 8. Dairy processing and infrastructure development fund (DIDF) National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India. The Government of India announced the creation of Dairy Processing and Infrastructure Development Fund under NABARD in the Union Budget of 2017-18 for the sustained benefit of farmers. The total corpus for this fund is INR 8000 crores over a period of 3 years (i.e. 2017-18 to 2019-20). Milk Unions, multi-state milk cooperatives, state dairy federations, milk producing companies, and NDDB subsidiaries meeting the eligibility criteria under the project can borrow loan from NABARD. The loan component would be 80% (maximum rate) with the end borrower's contribution at 20 % (minimum rate). Borrowers shall get the loan at an interest rate of 6.5% per annum. The period of repayment will be 10 years. The respective state government will be the guarantor of loan repayment. Moreover, if the borrower is not able to contribute his or her share in the scheme, the state government shall step in. 9. Support for international patent protection in Electronics & Information Technology (SIP-EIT) The Department of Electronics and Information Technology (DeiTY) has launched a scheme entitled “Support for International Patent Protection in E&IT (SIP-EIT)”. This scheme provides financial support to MSMEs and Technology Start-ups for international patent filing. Features and benefits of the SIP-EIT scheme are 162 CU IDOL SELF LEARNING MATERIAL (SLM)

1. Financial support is provided for international filing in Information Communication Technologies and Electronics sector. 2. The Reimbursement limit has been set at a maximum of INR 15 lakhs per invention or 50% of the total charges incurred in filing and processing of a patent application, whichever is lesser. 3. The SEP-EIT scheme can be applied at any stage of international patent filing by the applicant. Multiplier Grants Scheme (MGS) Department of Electronics and Information Technology (DeitY) started the Multiplier Grants Scheme (MGS). The scheme aims to encourage collaborative Research & Development (R&D) between industry and academics/institutions for the development of products and packages. Under the scheme, if the industry supports the R&D of products that can be commercialized at the institutional level, the government shall provide financial support which will be up to twice the amount provided by industry. MGS promotes and expedites the development of aboriginal products and packages. The government grants would be limited to a maximum amount of INR 2 crores per project and the duration of each project could considerably be less than 2 years. It would be INR 4 crores and 3 years for industry associations. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE ) was set up by the government of India to provide business loans to micro-level businesses, small-scale industries, and start-ups with zero collateral. It allows businesses to avail loans at highly subsidized interest rates without requiring security. By working along with SIDBI (Small Industries Development Bank of India), the government provides a maximum amount of up to INR 100 lakhs under this scheme for boosting new enterprises as well as rehabilitating the existing ones. Primarily meant for manufacturing units, this loan can be availed in the form of working capital or term loan. Software Technology Park (STP) The Software Technology Park (STP) scheme is a totally export-oriented scheme for the development and export of computer software. This includes the export of professional services using communication links or media. The scheme is unique in its nature as it focuses on only one sector, i.e., computer software. The scheme integrates the government concept of \"100% Export Oriented Units\" (EOU), \"Export Processing Zones\" (EPZ), and the concept of Science Parks or Technology Parks as operating elsewhere in the world. The sales in the Domestic Tariff Area (DTA) shall be permissible up to 50% of the export in value terms. STP gives total depreciation on capital goods over a period of five years. 163 CU IDOL SELF LEARNING MATERIAL (SLM)

The Venture Capital Assistance Scheme (VCA) Small Farmer’s Agri-Business Consortium (SFAC) has launched the Venture Capital Assistance (VCA) scheme for the welfare of farmer-entrepreneurs and to develop their agri- business. The scheme is approved by the banks and financial institutions regulated by the RBI. It intends to provide assistance in the form of term loans to farmers so that the latter can meet the capital requirements for their project's implementation. VCA promotes the training and nurturing of Agri-entrepreneurs. The quantum of the loan will be 26% (40% for hilly regions) of the promoter’s equity. The maximum amount of loan provided under this scheme will be INR 50 lakhs. Loan for Rooftop Solar Pv Power Projects To build reliance on non-conventional sources of power, the government of India has decided to set up 40,000 MWp of Grid-Interactive Rooftop Solar PV Plants in the next five years. These rooftop solar PV plants will be set up in residential, commercial, industrial, and institutional sectors in the country and shall range from 1 kWp to 500 kWp in terms of capacity. Such rooftop plants are economically viable since they can produce electricity using solar energy at about INR 7 per kWh without any subsidy. The government also provides a subsidy of 15% on these plants to the associations or individual companies, making the scheme even more lucrative. NewGen Innovation and Entrepreneurship Development Centre (NewGen IEDC) NewGen IEDC is an initiative launched by the National Science and Technology Entrepreneurship Development Board under the Department of Science and Technology, Government of India. The initiative aims to inculcate the spirit of innovation and entrepreneurship among the Indian youth. It also endeavours to support and encourage entrepreneurship through guidance, mentorship, and support. NewGen IEDC is a five-year programme that would be implemented in educational institutions. It will support up to 20 new projects. Single Point Registration Scheme (SPRS) The Single Point Registration Scheme (SPRS) was launched in 2003. It is managed by the National Small Industries Corporation (NSIC). NSIC registers all Micro & Small Enterprises (MSEs) in India under the Single Point Registration Scheme to enable them to participate in government purchases. Enterprises are classified as Micro, Small, or Medium based on the limit of investment. Eligible MSME units are provided with Udyog Aadhar registration certificate. All central ministries, departments, and PSUs shall set an annual goal of minimum 20% of the total annual purchases of products produced or rendered by MSMEs. About 358 items are reserved for exclusive purchase from MSMEs. 164 CU IDOL SELF LEARNING MATERIAL (SLM)

Modified Special Incentive Package Scheme (M-SIPS) The government of India has approved a special incentive package to promote large-scale manufacturing in the Electronic System Design and Manufacturing (ESDM) sector. The scheme is called the Modified Special Incentive Package Scheme (M-SIPS). Under M-SIPS, the Indian government will provide a subsidy of 20% on capital investments in special economic zones (SEZs) and 25% on capital investments in non-SEZs for individual companies. It also provides the re-imbursement of CVD/excise on capital equipment for non- SEZ units. Re-imbursement of central taxes and duties is also provided for high technology and high capital investment units. The government is promoting these schemes not only to increase the number of people who are benefitting from them but also to highlight the work they have done in the last 5 years. These initiatives have been introduced for the development of the Indian start-up ecosystem. India seems to be heading towards the golden era of entrepreneurship. If things go as planned, India may host as many successful start-ups as the USA or any other leading nation by 2030. 9.4 SUMMARY  Entrepreneurship and Entrepreneurs being the catalysts of change and innovation need to be streamlined in a proper way for the economic development of the nation. Entrepreneurship as potential support to support economic growth and social cohesion, it is the policy goal of many governments to develop a culture of entrepreneurial thinking. This can be done in a number of ways; either by integrating entrepreneurship into education systems, legislation to encourage risk-taking, and national campaigns.  Moreover, there is a dire need for initiating more Entrepreneurship Development Institutions in the Country in order to promote a culture of entrepreneurship among the youngsters and inclusion of Entrepreneurship Development Education at the School Level will make the youngsters to take up entrepreneurship as a career. By this, entrepreneurship can be a powerful tool to help fight youth unemployment  Entrepreneurship Development is defined as a process of enhancing the skillset and knowledge of entrepreneurs regarding the development, management and organization of a business venture while keeping in mind the risks associated with it. This is carried out through training programs and sessions which are aimed at accentuating entrepreneurial acumen. Pursuing this field as a career, you will be working towards facilitating skill development amongst budding entrepreneurs and assisting them tackles their struggles with building their businesses. 165 CU IDOL SELF LEARNING MATERIAL (SLM)

 Entrepreneurship development is a strategic process which incorporates various tools that concentrate on skill development of the individual in an array of ways. Given below is a detailed guide of creating an effective entrepreneurship development program to help you understand what it’s all about:  Before starting the entrepreneurship development program, it is imperative to set a clear objective and draft a plan as to what the program is aiming to accomplish. As someone who is organising this program, having a clear direction and objectives play an important role in making it a success. Absence of both will result in loss of time, money, effort and most of all, valuable potential of the individual.  The entrepreneurship development process has been efficient and effective in the local markets and on the local entrepreneurs who know about it. If you have planning to conduct sessions and programs related to this, the best way to begin is to reach out to local markets. These localities can understand and absorb the knowledge more quickly and can apply it in the current scenario, the effects of the program can easily and quickly see within the community.  For any successful event, the choice of location and resources plays an imperative role. These developmental programs must be launched in the areas where the program can attract a large number of people, who want to take advantage of the program.  At the conclusion of your entrepreneurship development session, ensure that you ask people for their honest feedback and how it could have been better. Analyse how effective it has been to help budding entrepreneurs find solutions to their issues. 9.5 KEYWORDS  G2B: It termed as Government to Business which is refers to the relationships between organizations of public administration and enterprises.  Incentive: An incentive is something that motivates or drives one to do something or behave in a certain way.  Subsidies: A subsidy is a benefit given to an individual, business, or institution, usually by the government. It is usually in the form of a cash payment or a tax reduction.  Seed Fund: The term seed fund or seed capital refers to the type of financing used in the formation of a start-up.  Portal: A portal is a web-based platform that collects information from different sources into a single user interface and presents users with the most relevant information for their context. 166 CU IDOL SELF LEARNING MATERIAL (SLM)

9.6 LEARNING ACTIVITY 1. List few start-up established under ASPIRE scheme? ___________________________________________________________________________ _____________________________________________________________________ 2. Write the eligible criteria to access the MUDRA loan for establishing the start-up? ___________________________________________________________________________ _____________________________________________________________________ 9.7 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. What do you mean by entrepreneurship development? 2. Name the institutional support system for entrepreneurship development in our country 3. What do you mean by Industries Board (SSIB)? 4. Expand: NABARD and SIDO? 5. What do you mean by ICSI? Long Questions 1. Explain the role of NABARD and various service offered by NABARD? 2. Explain briefly features of NSIC? 3. Explain in detail Entrepreneurship Development Institute of India? 4. Explain the scheme initiate by the Government for entrepreneurship development? 5. Explain KVIC and its objective? B. Multiple Choice Questions 1. Why are small businesses important to a country’s economy? a. They give an outlet for entrepreneurs b. They can provide specialist support to larger companies c. They can be innovators of new products d. All of these 2. Which of the following is the reason for business failure? 167 a. Lack of market research b. Poor financial control CU IDOL SELF LEARNING MATERIAL (SLM)

c. Poor management d. All of these 3. Which of the following is least likely to influence the timing of new business births? a. Government policies b. Profitability c. Consumer expenditure d. Weather conditions 4. Which of the following is not a part of funding innovation? a. Incubation centre b. Start-up yatra funds c. Research parks d. Manak 5. When was NABARD Established? a. 1992 b. 1982 c. 2002 d. 1882 Answers 1-d, 2-d, 3-d, 4-b, 5-b 9.8 REFERENCES Reference  Gnyawali, D. R., & Fogel, D. S. (1994). Environments for entrepreneurship development: key dimensions and research implications. Entrepreneurship theory and practice, 18(4), 43-62.  Gordon, E., Natarajan, K., & Arora, A. (2009). Entrepreneurship development. Himalaya publishing house.  Awogbenle, A. C., &Iwuamadi, K. C. (2010). Youth unemployment: Entrepreneurship development programme as an intervention mechanism. African Journal of business management, 4(6), 831-835. 168 CU IDOL SELF LEARNING MATERIAL (SLM)

Textbook  Whittington, R., Regnér, P., Angwin, D., Johnson, G., & Scholes, K. (2020). Exploring Strategy Text and Cases. Pearson UK.  BABU, D. A. S. ENTREPRENEURSHIP AND INCUBATION (TEXT AND CASES).  Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring corporate strategy: Text and cases. Pearson education. Websites  https://www.earlytorise.com/entrepreneurship-development/  http://ddeku.edu.in/Files/2cfa4584-5afe-43ce-aa4b-ad936cc9d3be/Journal/ac537afa- c8f5-4f3a-9140-e0b234204c62.pdf 169 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 10: GOVERNMENT POLICY STRUCTURE 10.0 Learning Objectives 10.1 Introduction 10.2 Agencies Supporting Entrepreneurial Development 10.3 Financial Incentives 10.4 Backward Area Benefits 10.5 Summary 10.6 Keywords 10.7 Learning Activity 10.8 Unit End Questions 10.9 References 10.0 LEARNING OBJECTIVES After studying this unit, you will be able to  Illustrate the agencies involved in supporting entrepreneurial development.  Explain the financial incentives available for the entrepreneur.  Explain the financial incentives benefits for backward area.  Illustrate insight view of initiative taken by government towards entrepreneurship development. 10.1 INTRODUCTION The contribution of entrepreneurship in any country economic development has become an indispensable factor of employment over the past several decades. The major factor for the growth of economy is entrepreneurship alone. Every new innovative business in a market has an impact on economy and the socio-economic profile of people who around it. The creation of every new business improves the long run of the companies and quality of living of individuals. The development of entrepreneurship helps to alleviate the disparities among people and regional imbalances by implementing the industrialization in a less developed or socially backward area in all the aspects. The industrial development leads to societal enhancement services like road and transportations, hospital, education, entertainment and so on. The 170 CU IDOL SELF LEARNING MATERIAL (SLM)

implementation of those industrial activities resulted in the development of a more vibrant economy. Entrepreneurs acquire capital from their family and relative sources or loans from banks to build their business which adds value to the creation of wealth, influencing the economy and industrial structure of a country directly. Henceforth, the government has set up various centres or institutes to impart training and development to entrepreneurs, so as to improve their knowledge, attitudes, and skills. Government provides many types of incentives to entrepreneurs. These incentives help to increase productivity. It acts as a motivating force for the entrepreneur. These incentives are categorized as concession, subsidies and bounties. Subsidies are a onetime lump sum amount given to the entrepreneur by the government. It is a financial help to cover the cost. Bounty is a financial help provided to an industry so that it can compete with other units of the country as well as any foreign industry in the same business. Government acts as entrepreneur when its involvement in market activities is both innovative and characterized by entrepreneurial risk. Thinking of government as entrepreneur is a unique lens through which is characterized in this book a specific subset of government policy actions. Entrepreneurial Government is a government philosophy strongly resembling that of for profit companies, arguing that government instructions can and must compete with for-profit businesses, non-profit agencies, and other units of government. The government has already launched the I-MADE programme to assist Indian entrepreneurs in creating 10 lakh (1 million) mobile app start-ups, as well as the MUDRA Bank's scheme (Pradhan Mantri Mudra Yojana) to provide micro-finance, low-interest rate loans to entrepreneurs from low socioeconomic backgrounds. A 10,000 crore rupees fund is set-up by government to provide funds to the start-ups as venture capital. The government is also giving guarantee to the lenders to encourage banks and other financial institutions for providing venture capital. 10.2 AGENCIES SUPPORTING ENTREPRENEURIAL DEVELOPMENT The Government has set up various centres or institutes to impart training and development to entrepreneurs, so as to improve their knowledge, attitudes, and skills. For the development of entrepreneur, a number of specialized agencies have been set up by the state and central governments which are as follows: 1. Small Industries Service Institutes (SISI) 2. Small Industries Development Organisations (SIDO) 3. National Small Industries Corporation 171 CU IDOL SELF LEARNING MATERIAL (SLM)

4. Small Industries Extension Training Institute. 5. Entrepreneurship Development Institute of India 6. Institute for Rural Management and Administration 7. National Institute for Entrepreneurship and Small Business Development (NIESBUD) 8. National Alliance of young entrepreneurs (NAYA) 9. Maharashtra Centre for Entrepreneurship Development (MCED) Government plays a very important role in developing entrepreneurship. Government develops industries in rural and backward areas by giving various facilities with the objective of balances regional development. The government set programmes to help entrepreneurs in the field of technique, finance, market and entrepreneurial development so that they help to accelerate and adopt the changes in industrial development. Various institutions were set up by the central and state governments in order to fulfil this objective. A. Institutions set up by Central Government  Small industries development organization (SIDO) SIDO was established in October 1973 now under Ministry of Trade, Industry and Marketing. SIDO is an apex body at Central level for formulating policy for the development of Small-Scale Industries in the country, headed by the Additional Secretary & Development Commissioner (Small Scale Industries) under Ministry of Small-Scale Industries Govt. of India. SIDO is playing a very constructive role for strengthening this vital sector, which has proved to be one of the strong pillars of the economy of the country. SIDO also provides extended support through Comprehensive plan for promotion of rural entrepreneurship.  Management development Institute (MDI) MDI is located at Gurgaon (Haryana). It was established in 1973 and is sponsored by Industrial Finance Corporation Of India, with objectives of improving managerial effectiveness in the industry. It conducts management development programs in various fields. In also includes the programmes for the officers of IAS, IES, BHEL, ONGC and many other leading PSU’s.  Entrepreneurship development institute of India (EDI) Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profit institute, set up in 1983, is sponsored by apex financial institutions – the IDBI Bank Ltd., IFCI Ltd., ICICI Bank Ltd. and the State Bank of India (SBI). EDI has helped set up twelve state-level exclusive entrepreneurship development centres and institutes. One of the satisfying achievements, however, was taking entrepreneurship to a large number of schools, colleges, science and technology institutions and management schools in several states by 172 CU IDOL SELF LEARNING MATERIAL (SLM)

including entrepreneurship inputs in their curricula. In the international arena, efforts to develop entrepreneurship by way of sharing resources and organizing training programmes, have helped EDI earn accolades and support from the World Bank, Commonwealth Secretariat, UNIDO, ILO, British Council, Ford Foundation, European Union, ASEAN Secretariat and several other renowned agencies. EDI has also set up Entrepreneurship Development Centre at Cambodia, Lao PDR, Myanmar and Vietnam and is in the process of setting up such centres at Uzbekistan and five African countries.  All India Small Scale Industries Board (AISSIB) The Small-Scale Industries Board (SSI Board) is the apex advisory body constituted to render advice to the Government on all issues pertaining to the small-scale sector. It determines the policies and programmes for the development of small industries with a Central Government Minister as its president and the representatives of various organization i.e., Central Government, State Government, National Small Industries Corporations, State Financial Corporation, Reserve Bank of India, State Bank of India, Indian Small Industries Board, Non-government members such as Public Service Commission, Trade and Industries Members.  National Institution of Entrepreneurship and Small Business Development (NIESBUD), New Delhi It was established in 1983 by the Government of India. It is an apex body to supervise the activities of various agencies in the entrepreneurial development programmes. It is a society under Government of India Society Act of 1860.The major activities of institute are i. To make effective strategies and methods ii. To standardize model syllabus for training iii. To develop training aids, tools and manuals iv. To conduct workshops, seminars and conferences. v. To evaluate the benefits of EDPs and promote the process of Entrepreneurial Development. vi. To help support government and other agencies in executing entrepreneur development programmes. vii. To undertake research and development in the field of EDPs.  National Institute of Small Industries Extension Training It was established in 1960 with its headquarters at Hyderabad. The main objectives of national Institute of Small Industries Extension Training are: i. Directing and co-ordinating syllabi for training of small entrepreneurs. ii. Advising managerial and technical aspects. 173 CU IDOL SELF LEARNING MATERIAL (SLM)

iii. Organizing seminars for small entrepreneurs and managers. iv. Providing services regarding research and documentation.  National Small Industries Corporation Ltd. (NSIC) The NSIC was established in 1995 by the Central Government with the objective of assisting the small industries in the Government purchase programmes. The corporation provides a vast-market for the products of small industries through its marketing network. It also assists the small units in exporting their products in foreign countries. 10.3 FINANCIAL INCENTIVES Entrepreneurs Incentives and Subsidies Entrepreneurs Incentives and Subsidies In India Entrepreneurs are offered a number of incentives because they fulfil two main objectives of economic development. Firstly, they facilitate the decentralization of industries. They assist in the dispersal of industries over the entire geographical area of the country. Secondly, they facilitate the transformation of a traditional technique into a modern technique characterized by improved skills, high production, and a higher standard of living. Why does the Government Give Subsidies and Incentives? This is the financial and promotional assistance provided by the government to the industries for boosting up industrial development in all regions particularly in backward areas. Incentives include concessions, subsidies, and bounties. ‘Subsidy’ denotes a single lump-sum that is given by a government to an entrepreneur to cover the cost. It is granted to an industry that is considered essential in the national interest. The term Bounty denotes bonus or financial aid that is given by a government to industry to help it compete with other units in the home market or in a foreign market. Bounty offers benefits to a particular industry while a subsidy is given in the interest of the nation. The object of incentives is to motivate entrepreneurs to start new ventures in the larger interest of the nation and society. What is the Advantages of Incentives & Subsidies? For this, the following six offers you the following advantages: Which you need to look at. 1. They encourage the entrepreneur to start industries in backward areas. 2. They help to develop new enterprises which lead to economic development They make the entrepreneur face competition successfully. 3. They act as a motivational force that makes the potential entrepreneur enter into business activities. 4. They help the government to get a balanced regional development. 174 CU IDOL SELF LEARNING MATERIAL (SLM)

5. They help to reduce the overall problems of small scale entrepreneurs. Why Need For Incentives and Subsidies? Incentives and subsidies are required for the following four reasons given below. Which you need to see. 1. To generate more employment and remove unemployment: Market adjustments and external economies play a significant role in the economic development of a country. Subsidies cause the movement of entrepreneurs from developed areas to developing or backward areas. In short, incentives and subsidies serve as a catalyst to start a dynamic process of development. 2. To promote entrepreneurship: Industrial estates, availability of power, concessional finance, capital investment subsidy, transport subsidy, etc, are few examples of subsidies which are aimed at encouraging entrepreneurs to take up new ventures. 3. To remove regional disparities in development: Industries may be concentrated and overcrowded in some regions, in order to correct this regional balance, incentives are provided to entrepreneurs. They will start new ventures in such backward areas. Thus the backward areas become developed and regional imbalances are corrected. 4. To provide competitive strength, survival, and growth: several other incentives are provided for the survival and growth of industries. For example, reservation of products, price preference, etc. will improve the competitive strength. Other concessions like concessional finance, tax relief, etc., contribute their survival and growth. Problems Relating To Subsidies Some problems may arise in formulating and implementing the subsidy system. They are as follows. Which you should take a look.  Subsidies may lead to inefficiency in the long run.  Subsidies once introduced are difficult to withdraw.  The administrative procedure must be effective.  A subsidy may remain unutilized.  The quantum of subsidy should be adequate to produce the desired results.  The target groups to whom the subsidy is to benefit should be clearly determined.  If the administration is inefficient or corrupt, the subsidy will not produce the desired results. 175 CU IDOL SELF LEARNING MATERIAL (SLM)

 It is very difficult to measure the impact of subsidies.  The cost of administering a subsidy should be considered.  The subsidy scheme should be communicated to prospective beneficiaries. Advantages of Providing Incentives to Entrepreneurs Following are the advantages of providing incentives to entrepreneurs. 1. Decentralization of economic power Incentives encourages prospective entrepreneurs to take up industrial ventures and results in decentralization of economic power in few hands. 2. Balanced regional development Incentives are given to entrepreneurs establishing industries in backward areas. Hence, it results in the dispersal of industries over India’s geographical area and contributes to regional balanced development. 3. Transformation of technology Incentives help in the transformation of traditional technology into modern technology. Traditional technology is characterized by low skill; low productivity and low wages, whereas modern technology is subsequently characterized by improved skills, high productivity, raising wages and a higher standard of living. 4. Overcomes difficulties The package of incentives and concessions are given to entrepreneurs for setting up units both in backward as well as developed districts. But generally it is given for setting up units in backward area. It is provided to offset the disadvantages prevailing in such places. 5. Generates industrialization Industrial policy uses incentives both to correct the market imperfections and to accelerate the process of industrialization in the country. Regional balances can also lead to effective utilization of regional resources, removal of disparities in income and levels of living and contribute to a more integrated society. 6. Encourages entrepreneurship The new entrants in the field face many obstacles on account of inadequate infrastructures. The new entrepreneur is supported by the government agencies through various incentives. Being a new entrant, an entrepreneur may lack marketing and entrepreneurial skills. An entrepreneur requires support from government agencies to compete with competitors. The subsidies and concessions motivate the entrepreneur both 176 CU IDOL SELF LEARNING MATERIAL (SLM)

financially and non-financially and promotes entrepreneurship in the country by removing economic constraints. 7. Helps to overcome competition Incentives help the entrepreneur to survive and compete with the competitors. Some of the incentives are concerned with the survival and growth of industries. Several incentives are confined to the first few years of the establishment of the unit while a few of them are made available over a long period. Schemes of State Governments All the state governments also provide technical and other support services to small enterprises through their directorate of industries and district industries centre. In general all the state governments extend support of following types.  Deferment/ suspension of sales tax.  Power subsidy.  Capital investment subsidies to new enterprises established in some selected districts.  Margin money/seed capital assistance schemes.  Priority in providing power connection/water connection.  Technical and consultancy support. The Government has set up various centres or institutes to impart training and development to entrepreneurs, so as to improve their knowledge, attitudes, and skills. For the development of entrepreneur, a number of specialized agencies have been set up by the state and central government’s which are as follows:  Small Industries Service Institutes (SISI)  Small Industries Development Organisations (SIDO)  National Small Industries Corporation  Small Industries Extension Training Institute  Entrepreneurship Development Institute of India  Institute for Rural Management and Administration  National Institute for Entrepreneurship and Small Business Development (NIESBUD)  National Alliance of young entrepreneurs (NAYA)  Maharashtra Centre for Entrepreneurship Development (MCED) Government plays a very important role in developing entrepreneurship. Government develop industries in rural and backward areas by giving various facilities with the objective 177 CU IDOL SELF LEARNING MATERIAL (SLM)

of balances regional development. The government set programmes to help entrepreneurs in the field of technique, finance, market and entrepreneurial development so that they help to accelerate and adopt the changes in industrial development. Various institutions were set up by the central and state governments in order to fulfil this objective. A. Institutions set up by Central Government 1. Small industries development organization (SIDO) - SIDO was established in October 1973 now under Ministry of Trade, Industry and Marketing. SIDO is an apex body at Central level for formulating policy for the development of Small Scale Industries in the country, headed by the Additional Secretary & Development Commissioner(Small Scale Industries)under Ministry of Small Scale Industries Govt. of India. SIDO is playing a very constructive role for strengthening this vital sector, which has proved to be one of the strong pillars of the economy of the country. SIDO also provides extended support through Comprehensive plan for promotion of rural entrepreneurship. 2. Management development Institute (MDI) - MDI is located at Gurgaon (Haryana).It was established in 1973 and is sponsored by Industrial Finance Corporation Of India, with objectives of improving managerial effectiveness in the industry. It conducts management development programs in various fields. In also includes the programmes for the officers of IAS,IES, BHEL, ONGC and many other leading PSU’s. 3. Entrepreneurship development institute of India (EDI) - Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profit institute, set up in 1983, is sponsored by apex financial institutions – the IDBI Bank Ltd., IFCI Ltd., ICICI Bank Ltd. and the State Bank of India (SBI). EDI has helped set up twelve state-level exclusive entrepreneurship development centres and institutes. One of the satisfying achievements, however, was taking entrepreneurship to a large number of schools, colleges, science and technology institutions and management schools in several states by including entrepreneurship inputs in their curricula. In the international arena, efforts to develop entrepreneurship by way of sharing resources and organizing training programmes, have helped EDI earn accolades and support from the World Bank, Commonwealth Secretariat, UNIDO, ILO, British Council, Ford Foundation, European Union, ASEAN Secretariat and several other renowned agencies. EDI has also set up Entrepreneurship Development Centre at Cambodia, Lao PDR, Myanmar and Vietnam and is in the process of setting up such centres at Uzbekistan and five African countries. 4. All India Small Scale Industries Board(AISSIB) - The Small Scale Industries Board (SSI Board) is the apex advisory body constituted to render advise to the 178 CU IDOL SELF LEARNING MATERIAL (SLM)

Government on all issues pertaining to the small scale sector. It determines the policies and programmes for the development of small industries with a Central Government Minister as its president and the representatives of various organization i.e. Central Government, State Government, National Small Industries Corporations, State Financial Corporation, Reserve Bank of India, State Bank of India, Indian Small Industries Board, on-government members such as Public Service Commission, Trade and Industries Members. 5. National Institution of Entrepreneurship and Small Business Development (NIESBUD), New Delhi - It was established in 1983 by the Government of India. It is an apex body to supervise the activities of various agencies in the entrepreneurial development programmes. It is a society under Government of India Society Act of 1860. The major activities of institute are  To make effective strategies and methods  To standardize model syllabus for training  To develop training aids, tools and manuals  To conduct workshops, seminars and conferences.  To evaluate the benefits of EDPs and promote the process of Entrepreneurial Development.  To help support government and other agencies in executing entrepreneur development programmes.  To undertake research and development in the field of EDPs. 6. National Institute of Small Industries Extension Training - It was established in 1960 with its headquarters at Hyderabad. The main objectives of national Institute of Small Industries Extension Training are  Directing and Coordinating syllabi for training of small entrepreneurs.  Advising managerial and technical aspects.  Organizing seminars for small entrepreneurs and managers.  Providing services regarding research and documentation. 7. National Small Industries Corporation Ltd. (NSIC) - The NSIC was established in 1995 by the Central Government with the objective of assisting the small industries in the Government purchase programmes. The corporation provides a vast-market for the products of small industries through its marketing network. It also assists the small units in exporting their products in foreign countries. 179 CU IDOL SELF LEARNING MATERIAL (SLM)

10.4 BACKWARD AREA BENEFITS Benefits of Government policy towards backward area  To eliminate Economic constraints: Entrepreneurs face many types of constraints. e.g. lack of adequate infrastructure, far flung locations of supporting offices for projects, lack of related knowledge by entrepreneurs viz., managerial know how, market intelligence, etc. Thus government incentives in the form of availability of power, concessional finance, capital investment subsidies, transport subsidies etc aims at eliminating such constraints and promote entrepreneurship.  To bring about regional parity in development: In our country there is imbalance in the development across different regions. Some are well established and some are underdeveloped. In order to see that there is equal development of all the regions, government provides special incentives for establishing entrepreneurs in the backward regions.  To enhance competitive capability: In this competitive world small scale enterprises established by entrepreneurs face stiff competition from big firms. If they are not provided appropriate support from the government then they cannot survive and grow. Thus certain incentives are required. e.g. reservation policy, price preference, preferential purchase, etc., help to improve their competitive strength. Entrepreneurs in the present globalized market economies are the engine of economic development. Due to their private ownership for majority of cases, entrepreneurial spirit, their flexibility and adaptability and also their capability to react to challenges and changing environments, enterprises lead to sustainable growth and employment generation in a significant manner. Enterprises, especially small and medium enterprises are considered to have strategic importance in national economy for many reasons. Therefore government helps enterprises including small and medium ones by supporting entrepreneurs. By doing so, it is possible to create new job positions, increase gross domestic product (GDP) and rising living standard of population. Government provides support to entrepreneurs in the following ways.  Training: Basic training varies from product to product but will necessarily emphasise on sharpening of entrepreneurial skills. In this regard central and state government’s technical institutions provide need based technical training. Entrepreneurship development programmes are conducted by many government organizations and non- government institutions.  Marketing assistance: Government and non-government agencies provide marketing assistance to entrepreneurs. Government promotes MSME products through exhibitions. NSIC directly markets the MSME product in the national and international market, NSIC manages single point registration scheme for 180 CU IDOL SELF LEARNING MATERIAL (SLM)

manufacturers for government purchases. Enterprises registered under this scheme obtain the benefit of free tender documents and exemption from earnest money deposit and performance guarantee.  Promotional schemes: Government provides highest preference for development of MSME by formulating and implementing conducive policies and government schemes. Government provides development land and sheds on actual cost basis with appropriate infrastructure. The government has designed the special schemes for specific purposes such as quality upgradation, common facilities, entrepreneurship development and consultancy services at minimal charges. The government provides financial support to entrepreneurs to obtain ISO 9000 certificate by providing up to 75% of actual cost with maximum ceiling of Rs 75000/-.  Concession of Excise duty: Government provides exemption to MSME units for a particular level of annual turnover from paying excise duty. The limit of turnover is variable.  Credit facility: Credit to micro, medium and small scale sector is covered under priority sector lending by banks. Small industries development bank of India (SIDBI) is mainly responsible for implementing various schemes of providing financial support to small entrepreneurs. Loans are also provided to small entrepreneurs by scheduled banks without collateral security. This limit is variable. 10.5 SUMMARY  The industrial promotional agencies undertake the crucial role in entrepreneurship development in India. It adopts considerable and significant contribution in providing large financial and supporting assistance to the small and medium sized industries. It widened their domain across all the sectors of the Indian industries to develop employment opportunities and entrepreneurship development of the county by fostering entrepreneurship opportunities. Hence, the study attempted to identify the contribution of industrial promotional agencies in Indian economy and it has been found that the promotional agencies have accounted vibrant contribution in employment generation and entrepreneurship development in India.  An entrepreneur is a person who has possession of a new enterprise, venture or idea and is accountable for the inherent risks and the outcome.  Entrepreneurship refers to the concept of developing and managing a business venture in order to gain profit by taking several risks in the corporate world. Simply put, entrepreneurship is the willingness to start a new business.  The National Science and Technology Entrepreneurship Development Board (NSTEDB), Department of Science and Technology (DST), Government of India, has 181 CU IDOL SELF LEARNING MATERIAL (SLM)

inaugurated the New Generation Innovation and Entrepreneurship Development Centre (NewGen IEDC).  The scheme is divided into three modules: Shishu : covering loans up to Rs 50,000/- Kishor : covering loans above Rs 50,000/- and up to Rs 5 lakh. Tarun : covering loans above Rs 5 lakh and up to Rs 10 lakh.  The federal government does not offer grants for starting or growing a business. It only provides grants for non-profit and educational institutions. Some state and local programs offer business grants. They usually require you to match the funds.  Financial Hardship Grants are a group of grants offered by the Federal Government and state Government to help low income family’s needy peoples in their financial Emergencies, The financial Hardship Grants are Can be availed during any personal hardship situation through various Programs Run By the government.  Successful people are confident and can lead themselves, as well as others. They have their own vision and mission and seek to bring it to life on a daily basis. They also know who they aren't and don't waste time on things that they aren't good at or they aren't satisfied with of entrepreneurship.. 10.6 KEY WORDS  Bounty: The term bounty can refer to a generous amount of something, a reward for capturing or even killing an undesirable person, or a reward, premium, or subsidy meant to incentivize a specific action(s).  Tax Relief: Tax relief is any government program or policy initiative designed to reduce the amount of taxes paid by individuals or businesses. It may be a universal tax cut or a targeted program that benefits a specific group of taxpayers or bolsters a particular goal of the government.  Deferment: Deferment is a temporary suspension of loan / financing payment obligations (principal and interest / profit) for a limited period of time. During this period, borrowers / customers with loan / financing that meet the conditions do not need to make any payment, and no late payment charges will be imposed. Borrowers / customers will need to honour the deferred payments in the future. Loan / financing payments resume after the deferment period or penalties will be imposed.  Regional Disparity: Regional disparity means divergence or inequality of characters, phenomena or processes having specific territorial allocation and occurring at least in two entities of the territorial structure. 182 CU IDOL SELF LEARNING MATERIAL (SLM)

 Seed Capital: The term seed capital refers to the type of financing used in the formation of a start-up. Funding is provided by private investors—usually in exchange for an equity stake in the company or for a share in the profits of a product. 10.7 LEARNING ACTIVITY 1. List any few initiatives taken by Government towards entrepreneurship development. ___________________________________________________________________________ _____________________________________________________________________ 2. Collect the information about the supporting agencies for entrepreneurship development and list the companies who have benefited from these agencies? ___________________________________________________________________________ _____________________________________________________________________ 10.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions 1. Name any two institutions set up by Central Government? 2. What do you mean by financial incentives? 3. What is NSIC? 4. Name any two advantages of financial incentives to backward area? 5. Expand NAYA; MCED? Long Questions 1. Why the Government does give subsidies and incentives? 2. What are the advantages of incentives and subsidies? 3. What are the problems relating to subsidies? 4. What are the scheme provided by State Government? Explain in detail? 5. How Government schemes are promoting the entrepreneur? B. Multiple Choice Questions 1. Who operated Seed Capital Scheme? a. SBI b. IDBI c. NSCI d. None of these 183 CU IDOL SELF LEARNING MATERIAL (SLM)

2. When was SIDO established? a. 1995 b. 1991 c. 1990 d. 1978 3. When was IPR initiated the modern SSI in India? a. 1956 b. 1952 c. 1990 d. 1948 4. When was Entrepreneurial Guidance Bureau (EGB) set up ? a. SISI b. SIPCOT c. IIC d. SIDCO 5. What is the term which denotes bonus or financial aid which is given by a government to an industry to help it compete with other units? a. Incentive b. Subsidy c. Bounty d. Concession Answers 1-b, 2-c, 3-a, 4-c, 5-c 10.9 REFERENCES Reference  Li, W. (2002). Entrepreneurship and government subsidies: A general equilibrium analysis. Journal of Economic Dynamics and control, 26(11), 1815-1844.  Bartlett, D., & Dibben, P. (2002). Public sector innovation and entrepreneurship: Case studies from local government. Local government studies, 28(4), 107-121. 184 CU IDOL SELF LEARNING MATERIAL (SLM)

 Perren, L., & Jennings, P. L. (2005). Government discourses on entrepreneurship: Issues of legitimization, subjugation, and power. Entrepreneurship Theory and Practice, 29(2), 173-184. Textbooks  Mellor, R. (Ed.). (2008). Entrepreneurship for everyone: A student textbook. Sage.  Ajmeri, S. R. (2012). Entrepreneurship development. Lulu. com.  Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley & Sons. Websites  https://sites.google.com/somaiya.edu/entrepreneurshipdevelopment/process-of- entrepreneurship-development/specialised-entrepreneurship-development-agencies  http://ddeku.edu.in/Files/2cfa4584-5afe-43ce-aa4b-ad936cc9d3be/Journal/ac537afa- c8f5-4f3a-9140-e0b234204c62.pdf  https://www.99businessideas.com/distribution-business-ideas/ 185 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 11: SCHEMES STRUCTURE 11.0 Learning Objectives 11.1 Introduction 11.2 Government Schemes for Educated Unemployed 11.2.1 Ministry of Skill Development AndEntrepreneurship 11.2.2 Ministry of Labour and EmploymentSchemes 11.2.3 Ministry of Heavy Industries and PublicEnterprises Schemes 11.3 Summary 11.4 Keywords 11.5 Learning Activity 11.6 Unit End Questions 11.7 References 11.0 LEARNING OBJECTIVES After studying this unit, you will be able to:  Explain the different varieties of schemes available for entrepreneurship.  Explain the ministry of skill development and entrepreneurship scheme.  Define ministry of labour and employment scheme.  Describe heavy industries and public enterprises. 11.1 INTRODUCTION start-up is a fledgling firm started by one or more entrepreneurs with the goal of developing and marketing a unique product or service. The average start-up is, by definition, a shoestring company, with early money provided by the founders or their friends and family. Start-ups raised $7.8 billion in the first four months of this calendar year, accounting for about 70% of the total corpus of $12.1 billion raised in 2020 and more than half of the $14.2 billion raised in 2019, according to Pitchbook, a US-based research organization. A start-up is defined as a company based in India that was founded less than ten years ago and has annual revenue of less than Rs 100 crore (US$14million). The imposed restrictions and lockdown strategy of the government as a prevention measure of the deadly second wave of Coronavirus has badly affected some sectors including Hospitality, Tourism, and Aviation. The government of India 186 CU IDOL SELF LEARNING MATERIAL (SLM)

is preparing a stimulus package for these sectors to support the economic struggle these sectors are going through. The ministry of finance is working on proposals to support Tourism Industry, Aviation Industry, Hospitality sectors, and other small and medium-sized organizations which got troubled badly. The Finance Ministry has also given relaxations in cash management and removed imposed restrictions to encourage departments to carry out capital expenditure with an aim to boost the economy. Govt. of India and the Ministry of MSME have launched several unique Government schemes and programs designed to empower start-ups and MSMEs in India. We have covered the top 5 Government Schemes for Start-ups and MSMEs, which can help them trigger growth, and more business.” When it comes to Micro, Small, and Medium Enterprises (MSMEs) and start-ups, then the Govt of India is very clear: They need to be nurtured, protected, and encouraged for India’s betterment. Govt of India wants MSME’s contribution to India’s GDP to reach 50% by 2024, from the current 29%, and provide jobs to 15 crore Indians, up from 11 crores currently. This is why the Ministry of Micro, Small, and Medium Enterprises has introduced several Government schemes for start-ups, and small businesses, which aim to provide them with more resources and a platform for triggering more growth. Start-ups and MSMEs are the foundation based on which Govt’sAtmaNirbhar mission and Make In India vision will succeed – Generating more employment, increasing exports, improving the standard of living for millions of Indians, and making India strong globally. When it comes to start-ups, especially tech start-ups, India ranks among the fastest-growing ecosystems. Last year, Venture Capitalists infused record-breaking $48 billion into Indian companies and ideas for expanding their presence. Hence, right now, India is in a unique position wherein both Govt and private investors want Indian entrepreneurs and start-ups, MSMEs to succeed and make their presence felt across the world. In this endeavour, the Govt of India and the Ministry of Micro, Small, and Medium Enterprises have launched several unique Government schemes and programs designed to empower start-ups and MSMEs in India. 11.2 GOVERNMENT SCHEMES FOR EDUCATED UNEMPLOYED 11.2.1 Ministry Of Skill Development and Entrepreneurship The Ministry of Skill Development and Entrepreneurship is a Ministry of Government of India set up on 9 November 2014 to coordinate all skill development efforts across the country. The ministry is headed by Union Minister Dharmendra PradhanIndustrial training, apprenticeship and other skill development responsibilities were transferred from the Ministry of Labour and Employment to this newly made ministry on 16 April 2015. It aims to remove the disconnect between demand and supply of skilled manpower, to build the new skills and innovative thinking not only for existing jobs but also for jobs that are to be created. Pradhan Mantri Kaushal Vikas Yojana 187 CU IDOL SELF LEARNING MATERIAL (SLM)

Pradhan Mantri Kaushal Vikas Yojana aims to offer 10 million Indian youth meaningful, industry relevant, skill based training. Under this scheme, the trainees will be offered a financial reward and a government certification on successful completion of training and assessment, which will help them in securing a job for a better future. The scheme is implemented through the National Skill Development Corporation (NSDC). Nature of Assistance  As part of the scheme, training and boarding and lodging costs and assessment and certification fee of the candidates is borne by the government.  Post placement support of Rs 1450/ month for 1-3 months as per scheme norms paid on newly skilled persons.  Conveyance allowance - Upon successful completion and certification of non- residential skill training programmes, all women candidates and PWD will be provided an allowance of Rs 1000 - Rs 1500 per month for expenses incurred in travelling to and from the Training Centre. Who can Apply? Scheme is applicable to any candidate of Indian nationality who  Is an unemployed youth or, school/college dropouts?  Possesses an Aadhaar cardand a bank account.  Any other criteria as defined by the sector skill councils for respective job roles. How to Apply? Any eligible candidate can get registered with any of the approved Training Providers for the approved courses. District wise Kaushal Meals are also being organized by Training Partners for mobilization and enrolment. Apprenticeship Training Scheme (ATS) There are five categories of apprentices namely - trade apprentice, graduate, technician, technician (vocational) and Optional trade apprentices. Only trade apprentices fall under the purview of DGT, MSDE. DGT is responsible for implementation of the Apprenticeship Act in respect of Trade Apprentices in the Central Government Undertakings and Departments. This is done through its six Regional Directorates of Apprenticeship Training (RDATs) located at Kolkata, Mumbai, Chennai, Hyderabad, Kanpur and Faridabad. Nature of Assistance Monthly stipend is paid to candidates by the employer. Who can apply? 188 CU IDOL SELF LEARNING MATERIAL (SLM)

 Eligible Employers: Any establishment where trade, occupation or subject field in engineering or technology is carried out in terms of the Apprentices Act 1961 as amended from time to time.  Eligible Apprentices: Anyone who is above 14 years of age, Qualifications vary from Class VIII pass to XII class pass (10+2) system and fulfil the requirements of the Apprentices Act, 1961. How to apply? The Regional Directors/ State Apprenticeship Advisers conduct surveys in various establishments under the Central & State Governments (Including PSUs and Private Sector) to identify seats in vocational trades for which the infrastructure is available. The Establishments advertise for registering the Apprentices. Regional Directorates and State Directorates also publish necessary information in this regard. Interested persons may approach the establishment s for registration. Craftsmen Training Scheme Training courses under Craftsmen Training Scheme are being offered through a network of 15,042 Government and Private Industrial Training Institutes (ITIs) located all over the country with total seating capacity of 22.82 Lakh with an objective to provide skilled workforce to the industry in 138 NSQF compliant trades. ITIs are functioning under the administrative control of the respective State Governments/UTs/Private Organizations. The Scheme is implemented through Directorate General of Training. Who can Apply? Candidates with Minimum age of 14 years with no upper limit. How to Apply? Interested candidates can apply through prescribed application form. Application from can be obtained from respective State Directorate dealing with Craftsmen Training Scheme or from the Principal of the concerned Industrial Training institutes conducting training programme under Craftsmen Training Scheme. Skill Development Initiative (SDIs) The SDls aims to provide vocational training (courses based on Modular Employable Skills) to develop skilled manpower for the industry since May 2007 through a network of Vocational Training Providers (VTPs) located across the country. The scheme provides vocational training to school leavers, existing workers, ITl graduates, etc. to improve their employability by optimally utilizing the infrastructure available in Government, private institutions and the industry. Existing skills of the persons are also tested and certified under this scheme. Training is provided by registered Vocational Training Providers (VTPs) under 189 CU IDOL SELF LEARNING MATERIAL (SLM)

the Govt., Private Sector and Industrial establishments. NCVT certification is granted under the scheme. The Scheme is implemented through Directorate General of Training. Nature of Assistance 100% centrally sponsored scheme. The SDI Scheme has the provision of reimbursement of Training cost to the Vocational Training Providers. Who can Apply? Priority will be given to the candidates above the age of 14 years who have been or withdrawn as child labour to enable them to learn employable skills in order to get gainful employment. 11.2.2 Ministry Of Labour and Employment Schemes Labour policies are devised to maintain economic development, social justice, industrial harmony and welfare of labour in the country. To promote these activities, various reforms and initiatives have been brought upon by the government. This section covers employment oriented programmes, activities, schemes, recruitment, notifications, labour welfare acts, rules, laws, online services, grievance cells, etc. Details of organised and unorganised sector workers are also available.The Ministry of Labour & Employment is among one of the oldest and crucial Ministries of the Government of India. The major responsibility of this Ministry is the protection and safeguarding the interests of workers with special emphasis on poor, deprived and disadvantage sections of the society. This along with making sure of creating a healthy work environment for enhanced production as well as productivity and further to develop vocational skill training and employment services Scheme Objective Few Points to remember DEEN DAYAL  A dedicated ShramSuvidha Provide a conducive Portal: UPADHYAY  Allocating Labour Identification environment for the Number (LIN) to almost six lakhs’ units and enabling them to SHRAMEV file online compliance with 16 of development of Industries in 44 labour laws. JAYATE  Transparent Labour Inspection India and labour reforms. Scheme for random selection of Units for inspection: KARYAKRAM  Utilizing technology to eliminate human discretion in the selection of units for Inspection o Uploading of Inspection Reports 190 CU IDOL SELF LEARNING MATERIAL (SLM)

within 72 hours of inspection mandatory.  Universal Account Number is allotted to EPF beneficiary which makes Provident Fund account portable and universally accessible The objective is to  It is being introduced through the Provident Fund Organization of PRADHAN incentivize employers to Employees (EPFO) by the Ministry of Labour and Work. MANTRI ROJGAR promote employment  Under the scheme, the PROTSAHAN generation and to provide government pays 12 percent full employers' contribution (to both YOJANA social security benefits to the the Provident Fund for Workers and the Pension Scheme for workers. Retirees) for a period of 3 years for new workers who were enrolled with the EPFO on or after April 1, 2016, with salaries of up to Rs. 15,000 per month.  The whole program is online, and AADHAR is based on the application of the scheme with no human interface. The object is to eliminate all  The overall Motive of the project is to create an encouraging NATIONAL CHILD forms of child labour. atmosphere in the target area where children are inspired and LABOUR encouraged by various interventions to enrol and refrain PROJECT Raising awareness amongst from working in schools, and alternatives are given to SCHEME stakeholders and target households to increase their income levels. communities.  It is an online portal that connects PLATFORM FOR The objective is to foster the the Centre to the state 191 CU IDOL SELF LEARNING MATERIAL (SLM)

EFFECTIVE creation of a child labour government, district, and to all project societies to combat the ENFORCEMENT free India, which will menace of child labour and trafficking. FOR NO CHILD seamlessly integrate  It has five components -- Child Tracking System, Complaint LABOUR implementing and Corner, State Government, NCLP, and Convergence. (PENCIL) PORTAL monitoring mechanisms for  It is the transformation of both enforcement of the National Employment Service to provide a variety of employment- legislative provisions and related services like job matching, career counselling, vocational effective implementation of guidance, information on skill development courses, etc. which the National Child Labour are offered through the Employment Exchanges Project (NCLP).  The scheme also provides for part The goal is to bridge the gap funding to states for IT up- gradation as well as minor between the two who need refurbishing of employment exchanges and for organizing job work and those who want to fairs. NATIONAL recruit them, between those CAREER SERVICE who need career guidance and training and those who can offer advice and training. It aims to provide  It is a scheme approved by the Employees’ State Insurance ATAL BIMIT unemployment allowance to Corporation (ESIC) that aims to benefit its subscribers, who are VYAKTI KALYAN workers rendered jobless mainly formal sector workers who have become unemployed for YOJNA due to the \"changing whatever reason, by providing cash through bank account employment pattern.\" transfer. PM SHRAM-YOGI The objective is to provide a  Pension: They shall receive a minimum assured pension of Rs MAANDHAN pension to the unorganized 3000/- per month after the age of 192 CU IDOL SELF LEARNING MATERIAL (SLM)

YOJANA sector. 60 years.  In case of death during the receipt of a pension, his/her spouse, shall have the right to earn 50 percent of the pension earned as a family pension.  In the event of death before the age of 60, his / her spouse shall consequently be entitled to enter and continue the scheme by paying monthly contributions or leaving the scheme as provided for in exit and withdrawal provisions. The family pension is for partners only.  Contribution by the Subscriber: He/she is required to contribute the prescribed contribution amount from the age of joining PM-SYM till the age of 60 years  Matching contribution by the Central Government: PMSYM is a voluntary and contributory pension scheme on a 50:50 basis where prescribed age-specific contribution shall be made by the beneficiary and the matching contribution by the Central Government.  11.2.3 Ministry Of Heavy Industries and Public Enterprises Schemes The Ministry of Heavy Industries and Public Enterprises focuses on promoting the development and growth of capital goods and engineering industry in the country besides framing policy guidelines for Central Public Sector Enterprises (PSEs) and administratively dealing with 48 PSEs. The Ministry comprises the Department of Heavy Industry and the Department of Public Enterprises. Department of Heavy Industry (Dhi) 193 CU IDOL SELF LEARNING MATERIAL (SLM)

The Department of Heavy Industry is concerned with the development of the heavy engineering industry, machine tool industry, heavy electrical industry, industrial machinery and auto-industry and administers 48 Central PSEs. The industries covered by this Department meet the requirements of equipment for basic industries such as steel, non- ferrous metals, fertilizers, refineries, petrochemicals, shipping, paper, cement, sugar, etc. The Department is responsible for development of a wide range of intermediate engineering products like castings, forgings, diesel engines, industrial gears and gear boxes. They cater to the need of goods and services for almost all sectors of the economy, including power, rail, road transport etc. The Department also administers a national level Laboratory i.e. the Fluid Control Research Institute at Palakkad which caters to the needs of the flow industry for standardization of calibration.The Department consults various Industry Associations and evolves plans for the growth of industry. The Department also assists industry through policy initiatives, resolution of problems relating to tariffs and trade, promotion of technological collaboration and up-gradation, research & development, etc. The Department of Heavy Industry is headed by a Secretary to the Government of India who is supported by an Economic Adviser and an Integrated Finance Wing. The organizational chart of the Department is given at The Department closely interacts with PSEs under its administrative control to monitor their performance. The Department also serves as an interface between these enterprises and other agencies of the Government and helps establish Min of Heavy - 1long term linkages to improve their order book and ensure timely supplies to core sector customers. 11.3 SUMMARY  Indian Government, at all levels, announces Welfare Schemes for a cross section of the society from time to time. These schemes could be either Central, State specific or a joint collaboration between the Centre and the States. In this section, we have attempted to provide you an easy and single point access to information about several welfare schemes of the Government and their various aspects including eligible beneficiaries, types of benefits, scheme details etc.  Getting a loan is usually a tedious process, even for salaried individuals. Several factors are taken into consideration: like your credit score, company history, and past pay slips while appraising a loan application.  Indian Government, at all levels, announces Welfare Schemes for a cross section of the society from time to time. These schemes could be either Central, State specific or a joint collaboration between the Centre and the States. In this section, we have attempted to provide you an easy and single point access to information about several welfare schemes of the Government and their various aspects including eligible beneficiaries, types of benefits, scheme details etc. 194 CU IDOL SELF LEARNING MATERIAL (SLM)

 Getting a loan is usually a tedious process, even for salaried individuals. Several factors are taken into consideration: like your credit score, company history, and past pay slips while appraising a loan application.  If this is the case for salaried individuals, what do you do when you are unemployed and need a loan to start your venture? You might be in between jobs, or been out of a job recently and planning to start your own venture. What do you do in a situation like this? Let's discuss the options available.  The Government of India has been implementing the Prime Minister Rozgar Yojana scheme since the year 1993 (the period of the 8th five-year plan) with a focus on the creation and provision of sustainable self-employment options to educated but unemployed youth of the country. It relates to the setting up of self-employment ventures in the manufacturing, business, service or trade sector.  It was envisaged that 1 million youth in the country are provided gainful means of self-employment through this scheme. However, the progress has been much more since the time of inception of the program.  The government has already launched the I-MADE programme to assist Indian entrepreneurs in creating 10 lakh (1 million) mobile app start-ups, as well as the MUDRA Bank's scheme (Pradhan Mantri Mudra Yojana) to provide micro-finance, low-interest rate loans to entrepreneurs from low socioeconomic backgrounds.  To assist the first Generation Entrepreneur who are Unemployed educated youth, the Government of Tamil Nadu have formulated a new Scheme called NEW ENTREPRENEUR CUM ENTERPRISE DEVELOPMENT SCHEME (NEEDS) in which educated youth involved.  State Bank of India grants financial assistance to technically qualified, trained and experienced entrepreneurs for setting up new viable industrial projects. Loans are extended to technocrats who are unable to meet the normal margin requirements under the liberalized schemes.  Entrepreneurship Development Programme (EDP) is a programme which helps in developing entrepreneurial abilities. The skills that are required to run a business successfully is developed among the students through this programme. Sometimes, students may have skills but it requires polishing and incubation.  Free Cash. Under Pradhan MantriMatruVandanaYojana, the pregnant women and lactating mothers will get Rs. 5000 as incentive to be paid in 3 instalments from Government of India. Various State governments have also come up with a similar scheme to provide allowances to pregnant women and lactating mothers. 195 CU IDOL SELF LEARNING MATERIAL (SLM)

11.4 KEYWORDS  Ministry of Skill Development and Entrepreneurship: The Ministry is responsible for co-ordination of all Skill Development efforts across the country, removal of disconnect between demand and supply of skilled manpower, building the vocational and technical training framework, skill up-gradation, building of new skills and innovative thinking not only for existing jobs but also jobs that are to be created.  Ministry of Labour and Employment Scheme: The National Child Labour Policy was approved by the Cabinet on 14th August 1987 during the Seventh Five Year Plan Period. The policy was formulated with the basic objective of suitably rehabilitating the children withdrawn from employment thereby reducing the incidence of child labour in areas of known concentration of child labour.  The Ministry of Heavy Industries and Public Enterprises: It is an executive agency of the Government of India that administers 48 central public sector enterprises (PSEs) and assists them in their effort to improve capacity utilisation and increase profitability, generate resources and re-orient strategies to become more competitive.  Start-up eligibility: Is a private limited company or registered as a partnership firm or a limited liability partnership. Has an annual turnover not exceeding Rs. 100 crore for any of the financial years since incorporation/registration.  Failure: Entrepreneurs often fail because their companies are invisible to the world because they cannot bear to spend money on marketing and PR. This is a huge mistake that some entrepreneurs make when the money gets tight 11.5LEARNING ACTIVITY 1. List the Government scheme provided from promoting the youth unemployment? ___________________________________________________________________________ _____________________________________________________________________ 2. Name the benefits and demerits of Government scheme? ___________________________________________________________________________ ____________________________________________________________________ 11.6UNIT END QUESTIONS A. Descriptive Questions 196 Short Questions 1. What is Pradhan Mantri Kaushal Vikas Yojana? 2. Who can apply for PMKVY? CU IDOL SELF LEARNING MATERIAL (SLM)

3. Expand ATS? 4. How to apply ATS? 5. What is craftsmen training scheme? Long Questions 1. Explain in detail PMKVY scheme? 2. Discuss in detail Skill Development Initiative scheme? 3. Describe about Ministry of labor and Employment schemes? 4. Illustrate in detail about ATS? 5. Explain Ministry of Heavy Industries and Public Enterprises Schemes? B.Multiple Choice Questions 1. What is the need of Government schemes? a. Improve the lives of communities b. Greater opportunity for people c. Protects every person right d. All of these 2. What is the start-up scheme providing loans to entrepreneurs? a. The scheduled caste b. The scheduled caste and scheduled tribes c. The scheduled caste and scheduled tribes as well as women d. The scheduled caste, scheduled tribes as well as women and men 3. Which state government has announced pension scheme for journalists? a. Punjab b. Haryana c. Andhra Pradesh d. Tamil Nadu 4. What is a measure of the physical quantity of the goods or services produced through a government scheme or programme? a. Outlay b. Output c. Outcome d. Input 197 CU IDOL SELF LEARNING MATERIAL (SLM)

5. Which state government has launched India’s first state-led incubator for women entrepreneurs “WE-HUB”? a. Andhra Pradesh b. Telangana c. Kerala d. Odisha Answers 1-d,2-c,3-b,4-b,5-b 11.7REFERENCES Reference  Khan, B. Z., & Sokoloff, K. L. (1993). “Schemes of practical utility”: entrepreneurship and innovation among “great inventors” in the United States, 1790– 1865. The Journal of Economic History, 53(2), 289-307.  Antonopoulos, G. A., & Mitra, J. (2009). The hidden enterprise of bootlegging cigarettes out of Greece: two schemes of illegal entrepreneurship. Journal of Small Business & Entrepreneurship, 22(1), 1-8.  Freidberg, S. (1997). Contacts, contracts, and green bean schemes: liberalisation and agro-entrepreneurship in Burkina Faso. The Journal of Modern African Studies, 35(1), 101-127. Textbook  Yagnik, J. (2014). Book Review-Marketing Research: Text and Cases by RajendraNargundkar. Global Journal of Research in Management, 4(2), 96.  Forsyth, G., & Mount, J. (1991). Entrepreneurship and Managing Small Business Development, Text and Cases. Instructor's Manual. Scarborough, Ont.: Prentice-Hall Canada.  Gupta, C. B., & Srinivasan, N. P. (1992). Entrepreneurial Development: Text and Cases. Sultan Chand & Sons. Websites  https://www.msmex.in/learn/government-schemes-for-startups-and-msmes-in-india/ 198 CU IDOL SELF LEARNING MATERIAL (SLM)

 https://vikaspedia.in/social-welfare/skill-development/schemes-for-skill- development/skill-development-schemes/ministry-of-skill-development-and- entrepreneurship-msde  https://gradeup.co/government-schemes-ministry-of-labour-and-employment-i  https://www.creditmantri.com/article-government-loan-scheme-for-unemployed- youth/ 199 CU IDOL SELF LEARNING MATERIAL (SLM)

UNIT – 12: MARKETING SUPPORT STRUCTURE 12.0 Learning Objectives 12.1 Introduction 12.2 Procurement of Industrial Equipment 12.3 Marketing Support 12.4 Summary 12.5 Keywords 12.6 Learning Activity 12.7 Unit End Questions 12.8 References 12.0 LEARNING OBJECTIVES After studying this unit, you will be able to  Describe the marketing support available for entrepreneurial activities.  Explain procurement process of industrial equipment.  Interpret the kinds of supports. 12.1 INTRODUCTION Marketing, a strategic tool for business development, is critical for the growth and survival of MSMEs. Due to the lack of information, scarcity of resources and unorganized ways of selling / marketing, MSME sector often faces problems in exploring new markets and retaining the existing ones. Keeping in view these facts, the Procurement and Marketing support Scheme has been introduced to enhance the marketability of products and services in the MSME sector. To ease the financial burden of Marketing on MSMEs, the Government initiated Procurement and Marketing Support Scheme (P&MS). Accordingly, the lack of information and utilities along with cluttered means of marketing, the sector further dwells into chaos. As a result, it requires a humongous effort to retain the prevailing markets and to explore new markets. Considering the significance of Marketing in the progression of the MSME sector. Marketing is a strategic tool for the development of business as it is critical for the growth and survival of MSMEs. Due to insufficient information, scarcity of resources and 200 CU IDOL SELF LEARNING MATERIAL (SLM)