4.

RESOURCE MOBILIZATION

A.1A) Introduction: Resources are

many. We should be able to tap them. We may not know some
O tne
resources. In decision
making we require alternative resources. We use the resources on
cOntinuous basis. Resources are defined as
those material and human attributes that satisty our
wants. They may be
tangible felt by touch or intangible cannot be touched. Resources are used to
achieve the organizational
goals. They
are our reservoirs.

B) Meaning of resource and resource mobilization:

Meaning: Resource is a tool or means in the hands of an entreprenear for achievement of goal for
successful handling of the business and increase progressively. All the resources are very important
and useful to the management. If any one of them is not available, the business will come to a
stand-still. Here comes the skill of the management. Management should list out all their
requirements and keep them ready before hand and should not wait till the last moments. There
are two types of resources (1) Human resources and (2) Non-human resources.

Resource Mobilization; Once the lists of requirements i.e. resources are ready, they should be
acquired and brought together. Resource mobilization means bringing together and collecting
all necessary things and keep them ready for utilization. Itis necessary to keep alternate resources
at hand. The previous resources get exhausted. ") *T

42A) Types of Resources

Resources are of two types (1) Human resources (2) Non-human resources. The mobilization of
these resources is very important to an entrepreneur. Human resources comprise of (i) knowledge

)Abilities (Gii) Skils (iv) Interest in work (v) Attitude (vi) Energy and (vi) Time. Non -human
resources comprise of materials and they are tangible. Non-human resources are (i) Money (i)
Material- equipment, machinery, raw-material,gonds etc. (ii) Community facilities like parks,

libraries, Clubs etc. (iv) Energy electric, wind, thermal, atomic etc.
-

Rescurces. These are to be harnessed

Haman Resources: Time and energy are two impertant
of the organization. If the employee
properly. Skills of the workers have to be used for the benefit
shows interest in work and he is work conscivus, he should be given ample opportunities to
have cheerful and optimistic
grow. The organization get benefit from his growing. Some
will
Others just pass on the time. They just ill
attitude and this attitude has value in the organization.
work.
the hours and do not suggest may improvement in

generally material goods, money and community

Non human resources: Non human
resources are
are of vital importance.
process material goods
facilities. In any production and manufacturing
is the blood stream of the
be carefully preserved and used. Money
These resources are to

36
 organization. Without money organization cannot run.
The success of the organization depends upon careful selection of resources and mobilizing

them effectively.

Classification of resources
Human Resources Non-human Resources
year, life time
Matertal Gois Machines, equip-
Time An hour a day, week, a
ments, vehicles, raw materials, tools.
Energy Energy for walking, working, playing,
studying etc.
Money cash, saving, investments.
Community facilities - Gardens,
Interest interest in reading, work,play, debates.
excellent work, for taking| library, Health services, safety ser-

Abilities- Ability for doing vices, Post office, Police, Fire brigade,
extra labour.
Telephone, Railways etc.
skills - in work, profession.

collection ofinformation. Assets- Buildings, Agriculture land,

Knowledge
Attitude wiilingness to do work, acceptance of facts.
Investment, Property. A

Differentiate between human andnon-humanresources

Non-buman Resources
Human Resources
resources are material resources,
those which are 1. These
1. Human Resources are
These are not inborn in a person.\
inherentin a person (Me
cni nq)
2. These resources are internal 2. These resources are not interna.
them.
cannot 3. These are tangible, You can touch
n 3. These areintangible i.e. you
4. These comprise of person or fanily
Sn

touch them
faciliäes like
possessions, Comrunity
4. Example -Time, Energy, Knowledge,
Interest, Skills, Attitude garden, parks, libraries, post office, police
station, fire brigade,ete.)Ag

4-2(B)REQUIREMENTOF RESOURCES
the unit
human and non-human resources. Before establishing
Ia any organization, we require
or consultants in the field help in managing
the requirement should be carefully finalized. Experts

resources
The stages in
SELECTIONOFHUMAN RESOURCES First a feasibility report is prepared.
are noted in the bar-chart.
According
production process are decided. The dates various phases
of
staff is prepared phase
to phases, requirement of staff is noted. The timetable of recruitment of
37
wISe. The types of staff are also shown in the requirement Chart. This chart shows at which time
which staff is to recruited. The following table represents the requirements.
SCHIEDULEOFSTAFFRECRUITMENT AND MACHINERY REQUIREMENT
Phase Progress Staff Material
No. Work Requirement Requirement
ILand acquired 1 Manager 1 Station Wagon
1 Steno
2 Clerks
1Peon
Land acquired Additional Staff Grder for machinery to be
and compound 1Accounts Officer prepared, civil work to be started.

wall erected 1 Stores Officer

2 Clerks
2 Civil Engineers
2 Mechanical
Engineers
2 Peons

III Shed erected, Machinery order to be placed

toilets & water on the supplier.

connection received.

V Office constructed 1 HR Manager

1 Steno
10 Technicians
Garden Gardener
Places Provided 1 Sweeper

V Production 1 Production Machinery Received

Manager Raw Materials received

started, selling
prc ess to be 10 Technicians
started. Thrust in

the 10 Helpers
Market 2 Sales Executives

20 Salesmen
38
 According to the above chart, the staff will be recruited, material to be procured, at the appropriate
time as shown against the phase. Once the production starts in full swing, procurement of
machinery and recruitment of staff will come to an end. Only raw materials are to be procured as
per requirements of Production Department.
A4.3( NetWork Analysis
Net work analysis is a technique of sequences and scheduling of a project. In a Network Analysis
sequences and schedulingare treated separately and also their interrelationships. Networks are
diagrams. A large variety of problems in particular those involving sequential analysis of
operations are conveniently described diagrammatically as networks. Net work plays an
inportant role as quite often the problem of determining an optimum solution can be looked
upon as the problem of selecting the best sequence of operations out of the available alternatives
but can be represented as a network. The technique provides a method of minimizing the trouble
spots such as production bottlenecks, delays and interruption by determining critical factors and
co-ordinating various parts of overall jobs.
Net Work Diagram
Event Cement, sand Foundation Wall Slab Windows Colour Occupation
to site site work W e t e r
7
0- - - > 0---> 0-- > 0- - >

O-->Sanitation o ->
fime June
Electricity
July September October Nov. January-March April May

The above diagram shows the events and Scheduled time for completing tihe events in respect of
construction ef building project. Cement its scheduled to be brought to site in June, sand in July,
foundation to be completed by September, pillars and slab by November, Windows and doors to
be provided by January, Water, Sanitation, electricity by Feb-March, and the building will be
ready for occupation by April.
Foundation of the building is to be completed by September. But if the cement and sand delivery
is delayed by one month, then the whole
project will be delayed by one month. What should the
entrepreneur do'? He must .keep his promise of completing the building by April. Otherwise he
will lose his credibiity. So he should take a decision to
employ double the workers on foundation
laying or start two shifts and complete it by September as per Progranune. The diagram helps the
entrepreneur to take corrective steps.
Advantages Of Network Analysis
1. It forces a thorcugh
pre-planaing
2. It increases coordination of the tasks
3. It identifies trouble
spots, often in advance and enables to apply remedial measures

39
 4. Tt helps to revise thinking and increasing the users awareness of the problems involved

and their relative importance in the overall operation

5. t tocuses management's attention to those activities which are likely to be in difficuities

rather thaa to the activities which are progressing smoothly.

6. It indicates optimum start and finish times for each activity in an operation.

7. It enables the plan to be revised quickly in the best way to suit the changed and the changing
circumstances.
A
8.
8 1t allows progress reporting and the issue of taking corrective step[. )4
A.4
Role ofvariousschemes and institutions for self-employment
Maharashtra State FinancialCorporationM.S.E.C)
Long term loan -5 years or 10 years or 15 years Maximum amount ofloan given by MSFC
Rs.75,00,000/- (Rupees seventy five lacs only).
Loan is given for fixed capital investment in purchasing land and building. Purchasing
Finances hire
plant & machinery like lathe M/c, drilling M/c., Milling M/c. etc. MSFC
scheme. Loans ere given to entrepreneur for developing small scale industries.
Commercial Bank.: Commercial banks provide a lot of facilities to the entrepreneurs.
Account
These banks have current Account, Savings Bank Account and Fixed Deposit
interest
facilities. Cominercial organizations open Current Accounts with these banks. No
is paid on amounts in Current Account but the bank gives overdraft
facilities to the
customers. S.B. account carries interest @6% may vary per annum and the Fixed Deposit

Account carries higher rate of interest. Banks give short term loans, cash credit, overdrafts
for less than one year for working capital such as payment of wages, electricity bill,
advertisement bills, printing expenses, etc. They also give loans for short period for

purchasingraw maierial.
commercial banks but they give higher
Co-op. banks: Co-op. banks carry out the somefunctions as
of interest to borrowers. All the above
rate of interest on the deposits and charge higher rate
hanks have a net work of their branchesaíd through them they provide demand draft facilities,
collect amounts of bills behalf of the
give bank guarantees, pay telephone and electricity bills,
on

customer sand render otheruseful services.

3 Maharashtra Industrial Development Corporation (MIDO:

T on 'August, 1962 with a
Maharashtra Industrial Development Corporation was set up
view to promote and assist rapid development of industries in the state of Maharashtra by

suitably encouraging them.

1. To assist industrial development in all possible ways

40
 develop condusive atmosphere for the growth of industries
To

A6 Function: The following main functions are carried out by MIDC

1. Providing land and sheds: For starting any industry, land is necessary. Exchuding the
developed parts of Mumbai and Pune, it is difficult to find land for industries,To solve this
problem, MIDC has set up 277 industrial estates and these are only reserved for industries.
New entrepreneur gets Land in he industrial area on lease agreement basis for a period of
99 years. If necessary MIDC builds sheds for entrepreneur and gives built up sheds.
L WaterSupply: MIDC supplies water to the industrial estates at a reasonable rate and at
concessional rate to developing areas.
IIL Disposalofindustrialwaste water: MIDC helps the entreprencur to dispose ofT industrial
efmuents. Some areas have been specially reserved for chemical industries. MIDC takes
advice from Maharashtra Pollution Board and Pollution is avoided.

V Common facilities: MIDC provides common facilities like:

i) Post Ofice and Banks: Banking facilities are very essential for carrying out bank operations.
Post office is necessary for all postal works connected with the business.
of view.
ii) Police Chowky &Fire Brigade.: These are provided from safety point
Hospital: For any sickness, accident, hospital facility is necessary.
ii)
for the recreation of the workers and
iv) Community Development Centre: This is provided
their families.
V Special Industrial Estates: MIDC has set up specific estates for the industries like
some

and polishing industry, Hosiery

Flectric Industry, Leather industry, Diamond cutting
various sizes small, medium, large are
industry at Pune, Nagpur and Aurangabad. Sheds of
allotted to the entrepreneurs as per their demand.
all the help/assistance at the
MIDC has decentralized its powers and the entrepreneur gets
Now the entrepreneurs need not come to the main
place where the industrial estate exists.
to allot land upto 2 acres. In
office for any work. The Divisional Officer has the full powers
and Deputy Engineer to soive the
each industrial estate, there is an Executive Engineer
dificulties on thespotAb
DISTRICTINDUSTRIES CENTRE:
view to make
The DistrictIndustries Centres (DICS) were established in May 1978 with a
available under one roof assistance relating to project formation, project appraisal,
administration of the incentive schemes. District headquarters are the
focal points for
industries in the concerned district. The district
development of small scale and coitage
in the sanall and tiny sectors.
industries centers (DICS) help entrepreneurs especially
A FUNCTIONS OF D.LC:
41
i. dentification of Entrepreneurs: It conducts entrepreneurial development programme
through out the district and new ones are encouraged.
for the selection of
ii. Selectionof projects: It offers technical advice to new entrepreneur
project suitable to them.
iii. Provisional Registratior CertificatetoSSI: After the Seiection of the project, entrepreneurs
are issued provisional SSI registration certificate, which is essential for obtaining
assistance from the financial institutions.
to the banks and others for the
iv.
Purchase offixed assets: It sponsors loan applications Rural Industries Project
purchase of land and buildings and sanctions margin money under
Loan scheme payable to other financial agencies for the purchase of plant and machinery.

V. Clearance from various departments: It takes initiative to get clearances from various
connection.
departments and takes follow up measures to get speedy power
It makes recommendations to the concerned
vi. Assistance for procuring raw material: of raw material
suppliers of raw materials and issues required certificates for the import
and machinery whenever required.
thefinancial assistance with
Assistance to village artisans and handicrafts: arranges for
It
vii.
nationalized banks.
rural areas can get IFST loan upto a maximuun of
viii. Interest Free Sales Tax Loan: SSI set up in
order for the loan is issued by DIC. The DIC also
8% of the total fixed assets, Sanction
Govt. also.
recommends SSI units to NSIC for registration for
and rural artisans to get subsidies such as power,
ix. Subsidy Schemes: DIC assists SSI units
under IRDP (Integrated Rural Development
interest subsidy for engineers, subsidy
Programme) etc.
to rural entrepreneurs and also assists other
Training progrmmes: DIC gives training
units giving training to small entrepreneurs.
and post-investment assistance to
DIC is supposed to provide pre-in vestment, investment,
entrepreneurs under one roof.
A
SMALLINDUSTRIESSERVICE INSTTTUTE(SIS):
service Institutes in all the states under the
of India has set up small industries
Govt. the development and promotion of Small Scale
ministry of Commerce and Industry for
tte State Government and Co-ordinates various
Industries. SISI provides supportiservices to
m p A

of SISI are as under:

4 activities at the State levelThe fupstions
has workshop. In its workshop
It provides trâining entrepreneurs. It
Yo
1. TRAINING: machines etc. are kept.
saw machines, cutting
such as drilling, milling,
machines SIST has training vans which go
acquire skill in the workshop by practice.
Entrepreneurs
42
 to districts and provide training to artisans, welders, machinist, fitter and other eraftsmen
and working knowledge is provided to them. Anyone who wants to start small scaie
industry
is given guidance, training and usefnl informaton.

2. SISI organizes courses such as marketing management, industrial management, financial

management to new entrepreneurs.

3. SISI helps in the marketng of small scale industrial products. It has a permarient exhibitio
arrangement at its office at Andheri, SISI, Sakinaka.

4. It helps in the preparation of PROJECT REPORT for new units. It has model project reports
for different types of industries at SISI sakinaka.

5. It provides information and guidance for sources of finance available to entrepreneurs for
fixed capital, werking capital.
6. Export guidance is also provided to small scale industrialists.
Provides information about availability of machineries and their sources.

8. It trains and develops entrepreneurss

9. It provides assistance for rehabilitation of sick units.

10. IBRARY; It has good collectionsof books, magazines, project report.

These are available at its library for references with important addresses of machinery
suppliers of small scale industrialists.
11. SISI organizes buyers-sellers meet/vendor development programme cum exhibitions

ROLEOFSMALLINDUSTRIESEXTENSION TRAININGINSTTTUTE(SIETD:
SIETI was formed in July 1962 and its functional role is as under:

i. Training: It provides training to entrepreneurs. Anybody who wants to start a small scale
industry is given guidance and training
ii. Management Consultancy: It provides Management Consu!tancy service to the new
about
entrepreneurs to judge industrial opportunities. It also heips him by advising
industrial, financial and technical management.
iii. Planning: It also helps him in planning thepioject from launching to the manufacturing
stage.
iv. Management counselling for sick units.

A L
MAHARASHTRA SMALL SCAIE INDUSTRIES DEVELOPMENT CORPORATION
(M.S.S.I.D.C):
This corporation assists small scale industries in the following manner.
1. Assisting individuais in selecting a product to be manufactured.

43
 of a project report
2. Assisting the entrepreneurs in the preparation
3.
3. Organise entrepreneurship development programme

Supplying scarce and raw materials

industries.
5. Arranging import of raw materials to small
6. Providing credit facilities

7. Arranging for export markets

8. Arranging for marketing assistance to preoducts
manufactured by small industries

Circulating information regarding facilities given by

the Government to industries.A
STATE INVESTMENT CORPORATION OFMAHARASIHTRA(SICOM:
with the
State Investment Corporation of Maharashtra (SICOM) wasset up on 31.3.1966
of Maharashtra.
objective of increasinginvestments in industries in the developing part
SICOM works as a development bank and implements variousschemesin parts other than
Mumbai-Pune.
SICOM not only gives financial assistance but also provides schemes for supplies of
machineries and equivments. The folowing schemes are implemented by SicOM:
Per
i. EinancialAsistanceScheme: SICOM gives loans fer the purcháse of machineries and the
land for erecting factory. The assistance is extended to the maxinuum imit of 1.5 crores
and the rate of interest is Rs. 14 to 14.5%. If IDBI has refinanced the project, then the
interest rate is 12.5%. The loan is repayable in nine years.
ii. Market development assistance scheme: SICOM gives loans to the maximum amount of
Rs. 5 Lakhs in the initial stage for processing the product.
iii. Machinery Hire Scheme: The scheme is applicable to the established industries in the
developing area and those which are well established can get advantage of this Scheme.
Machinery for modernization, and for day-today use is supplied on attractive terms. The
profits of these industries who have availed of this scheme are seen increasing
iv. Seed Capital Schemes: This is the Scheme of IDBI. Under this scheme, loan of Rs. 15 Lakhs
is given. The loan is sanctioned to tlie
entrepreneurs whose project is cesting Less than Rs.
5 crores. Ahighly qualiied technocrat
get this loan. Besides, person having past experience
of the vocation, or wlho has qualities of an
entrepreneur car also get koan under Secd Capital
Scheme.
V. Relinance Assistance Scheme.: It is the scheme of IDBI but implemented by SICOM. The
scheme is designed for running industries. Under this
seheme, loan is extended for extension
oftlie unit, modernization, and changing of machinery. The scheme is also
applicable to
imported machinery and energy saving equipments. The entrepreneur gets a loan
upto Rs.

44
 1 crore. But SICOM gives only Rs. 1.5 crores. Entrepreneur has to collect
25% capital.
Interest at the rate of 15% is
charged for the loan under this scheme
SICOM operates all incentive schemes as per IDBI. SICOM tries to encourage medium
and large scale industries SiCOM also tries to obtain the
participation of Indians settled
abroad for the development of the industry in the
country. SICOM has started merchant
banking services since 1976-77 and they help in preparing rules and regulation of the
compeny and handle till public issues. SICOM is devoted to supply the basic amenities and
help in developing amenities and facilities for theindustries. AD

All/ MAHARASTRA INDUSTRIAL AND TECHNICAL CONSULIENCYORGANISAJION.

LTDPUNE (MITCOON):
Mitcon was established in 1982 with a view to give training to the existing entrepreneurs
and give tochnical advice to them. Mitcon charges reasonable fees for the advice to the
large and medium scale îndustries. Advice on technological and management aspects is
furnished. Goa, Div, Daman and Maharashtra.are the areas of operation of their activities.
Mitcon has been formed in coilaboration with ICICI, DBI, SICOM, MSFC. MFLTRON &
MIDC.
The activities & functions of Mitcon are as under:

1. Assist new entrepreneurs

2. Assist in finding new business opportunities

3. To study various markets
4. To study the projects of the entrepreneurs

5. Supervision over project launching

6. To study the scheme pertaining lo the extension of the project

7. Modernising the project

8. To study the problems of sick units

productivity
and increase. They
9. Mitcon helps by suggesting ways of production increase
finance and they
advise on maintaining the quality of the product, boosting sales, raising
provide organisational information.
date infermation on changes in
10. The entrepreneurs have no time. So Mitcon collects upto
of the product.
technology, market conditions demand and supply position
medium scale industries, their
11. Even though Mitcon gives consultancy services to large and
and to give technical
main aim is to encourage SSI, to help them in setting up an industry
advice.
Mitcon
becomes dificult.
12 Market conditions change fast and hence selection of product

45
 helps the entrepreneur in preparing project report, selection of product for manufacturing
and raising of finance.
13. Mitcon enlightens the entrepreneurs on matters of working capital, documents for loan

and the budget aspects of product launching.

14. Mitcon helps in technology transfer and import-export trade.
work District
15. Mitcon prepares 'Advisors' and trains them. Thereafter, they as

Representatives of Mitcon. Mitcon is thus an organisation to help SSI in improving the

quality of the product and assisting all round development of industries. Mitcon conducts
industrial exhibitions, seminars, workshop andtraining programmes.A!N
10. INDUSTRIALDEVELOPMENT BANKOFINDIA:
It was established in 1964. The bank is under the control of Reserve Bank of India. The
Directors of RBI are the directors of IDBI.L IDB!'s products and services are as under:
Direct finance to industries for project, equipment, Asset Credit, equipment leasing, diret
discount of bills, forex loans, long term working capital loans, energy conservation. It
provides funds to purchase machinery.
IDBI provides raw materials to industries
Indirect finance in the cases of refinancing of industriai loans, bills discounting,

reinvestment in shares and bonds of other financial institutions.

V IDBI provides services like Merchant Banking, forex services, Debenture Trusteeship

IDBI has sponsored technical Consultancy Organisations which are primarily catering
to
V
the needs of new and small entrepreneurs in the arcas such as, identification of projects,
preparation of project profiles, reports, market studies. A12-

13D INDUSTRIALFINANCE CORPORATIONOFINDIAIFCD:

The Industrial Finance Corporation of India (IFC) is the first development bank,
which
was established on ist July, 1948 with the object of making medium and long term credit

more readily available to industries.

Objectives and functions:

promotion and growth of industries.
L To fl! in gaps in the institutional infrastructure for
To provide much needed guidance in project identification, formulation, implementation,
operation, monitoring etc.
and help weaker and under
IL To improve the productivity of human and material resources
with the socio-economic objectives of the Govt.
privileged sections of the society on line
in all matter.
IFCI gives entrepreneurial guidance
IFCI'S eflort are towards:
activities is very conspicuous.
V IFCI's role in developmental
46
a) Broadbasing entrepreneurship
b) Developing village and tribal entrepreneurship
c) Upgrading managerial skills

d) Encouragement to small entrepreneurs

Encouraging adoption of indigenous technology

Developing hio-gas and other renewable energy resources

g) Reviving sick units in tiny and small scale sectors and
h Self-development and Self-employment for unempioyed young persons

Questions
1. What assistance is given by the Government?
N
MIDC (e)NSPC.
2 Explain the functions of (a) DIC b) Mitcom (c) KVÍC (d)
3. Explain the importance of SSL
4. Explain the types of resources.
5. Explain Net-work Analysis.