Entrepreneur

NATIONAL SMALL INDUSTRIES CORPORATION:

The National Small Industries Corporation (NSIC), an ISO 9000 certified company, has been working to
fulfill its mission of promoting, aiding, and fostering the growth of the small-scale industries and
industry-related small services/businesses the country.
The Corporation is manned by the dedicated team of professionals at different levels. It operates through
123 offices located all over India and one office located in Johannesburg (South Africa)
To enhance the competitiveness of MSMEs, the NSIC provides integrated support services in the areas of
Marketing, Technology, Finance, etc.
The NSIC occupies a unique position among the Institutions set up to aid Small Scale Industries. NSIC
has been working to fulfill its mission of aiding, promoting, and fostering the growth of small scale
industries, now commonly known micro, small and medium enterprises – MSMEs in the country
It provides equipment, plant and machinery on a hire-purchase basis. Under this, entrepreneurs can
procure indigenous and imported machinery. With NSIC Registration, entrepreneurs can procure
government orders for various items of stores. New entrepreneurs are provided with special incentives.
Role and Responsibility of NSIC
National Small Industries Corporation (NSIC) was set up in the year 1955 as the central government
undertaking. The main aim is to fulfill the machinery and equipment requirements for the development of
small entrepreneurs. It has been observed that the primary constraint faced by entrepreneurs is the
shortage of investible funds to purchase machinery and equipment. The non-availability of finance
deprives many new entrepreneurs of availing entrepreneurial opportunities.
NSIC has been established to cater to this need of the entrepreneur. NSIC provides equipment, plant, and
machinery on a hire-purchase basis. Under its scheme, entrepreneurs can procure indigenous as well as
imported machinery. But the scheme does not include second-hand machinery and machinery costing less
than Rs. 1000. NSIC Registration helps to assists the entrepreneurs in procuring government orders for
various items of stores.
It was established in 1955 by the Government of India with a view to promote, aid and foster the growth
of small industries in the country. NSIC continues to remain at the forefront of industrial development
throughout the country with its various programmes and projects to assist the small-scale sector in the
country.
FUNCTIONS:
Schemes of National Small Industries Corporation (NSIC)

 Single Point Registration.

 Bank Credit Facilitation.
 Raw Material Assistance.
 Consortia & Tender Marketing Scheme.
 Infomediary Services/B2B.
 Exhibitions.
 Infrastructures Development.
 Marketing Intelligence Services.

SIDO
Small Industries Development Organization (SIDO) is a subordinate office of the Department of SSI &
Auxiliary and Rural Industry (ARI). It is an apex body and nodal agency for formulating, coordinating
and monitoring the policies and programmes for promotion and development of small-scale industries.
Development Commissioner is the head of the SIDO. He is assisted by various directors and advisers in
evolving and implementing various programmes of training and management, consultancy, industrial
investigation, possibilities for development of different types of small-scale industries, industrial estates,
etc.

Functions Relating to Co-ordination:

a. To evolve a national policy for the development of small-scale industries,
b. To co-ordinate the policies and programmes of various State Governments,
c. To maintain a proper liaison with the related Central Ministries, Planning Commission, State
Governments, Financial Institutions etc., and
d. To co-ordinate the programmes for the development of industrial estates.

Functions Relating to Industrial Development:

a. To reserve items for production by small-scale industries,
b. To collect data on consumer items imported and then, encourage the setting of industrial units to
produce these items by giving coordinated assistance,
c. To render required support for the development of ancillary units, and
d. To encourage small-scale industries to actively participate in Government Stores Purchase Program by
giving them necessary guidance, market advice, and assistance.
Function Relating to Extension:
a. To make provision to technical services for improving technical process, production planning, selecting
appropriate machinery, and preparing factory lay-out and design,
b. To provide consultancy and training services to strengthen the competitive ability of small-scale
industries.
c. To render marketing assistance to small-scale industries to effectively sell their products, and
d. To provide assistance in economic investigation and information to small- scale industries
The main functions of the SIDO are classified into:
(i) Co-ordination,
(ii) Industrial development, and
(iii) Extension.
These functions are performed through a national network of institutions and associated agencies created
for specific functions. At present, the SIDO functions through 27 offices,
Its main objective is to plan, coordinate, promote and offer every form of services to small industries.
Some of the best-known activities are the Industrial Estates, Technology Development Centres, Training
cum Production Centres, hire purchase schemes for equipment, technology development, technology
transfer through twinning arrangements and exchanges with industries in Europe and Asia, and direct
marketing.
What is small scale industries in India?
Small Scale Industries (SSI) are those industries in which the manufacturing, production and rendering of
services are done on a small or micro scale. These industries make a one-time investment in machinery,
plant, and equipment
Essentially the small scale industries are generally comprised of those industries which manufacture,
produce and render services with the help of small machines and less manpower. These enterprises must
fall under the guidelines, set by the Government of India.
The SSI’s are the lifeline of the economy, especially in developing countries like India. These industries
are generally labour-intensive, and hence they play an important role in the creation of employment. SSI’s
are a crucial sector of the economy both from a financial and social point of view, as they help with the
per capita income and resource utilisation in the economy.
xamples and Ideas of SSIs in India
Bakeries
School stationeries
Water bottles
Leather belt
Small toys
Paper Bags
Photography
Beauty parlours
Spinning and weaving industry
Clay products
Chalk making
Toys making
Honey processing
Slippers making
Detergent powder making
Spices making
Water bottles manufacturing
Xerox and printing
Pickle manufacturing industry
Incense stick manufacturing industry
Paper plate manufacturing industry
Candle manufacturing

Objectives of SSI
The objectives of the small scale industries are:

 To create more employment opportunities.

 To help develop the rural and less developed regions of the economy.
 To reduce regional imbalances.
 To ensure optimum utilisation of unexploited resources of the country.
 To improve the standard of living of people.
 To ensure equal distribution of income and wealth.
 To solve the unemployment problem.
 To attain self-reliance.
 To adopt the latest technology aimed at producing better quality products at lower costs.
Characteristics of SSI
Ownership
SSI’s generally are under single ownership. So it can either be a sole proprietorship or sometimes a
partnership.
Management
Generally, both the management and the control is with the owner/owners. Hence the owner is actively
involved in the day-to-day activities of the business.
Labor Intensive
SSI’s dependence on technology is pretty limited. Hence they tend to use labour and manpower for their
production activities.

Flexibility
SSI’s are more adaptable to their changing business environment. So in case of amendments or
unexpected developments, they are flexible enough to adapt and carry on, unlike large industries.

Limited Reach
Small scale industries have a restricted zone of operations. Hence, they can meet their local and regional
demand.
Resources Utilisation
They use local and readily available resources which helps the economy fully utilise natural resources
with minimum wastage.

Role in the Indian Economy

Employment
SSI’s are a major source of employment for developing countries like India. Because of the limited
technology and resource availability, they tend to use labour and manpower for their production activities.
Total Production
These enterprises account for almost 40% of the total production of goods and services in India. They are
one of the main reasons for the growth and strengthening of the economy.
Make in India
SSI’s are the best examples for the Make in India initiative. They focus on the mission to manufacture in
India and sell the products worldwide. This also helps create more demands from all over the world.
Export Contribution
India’s export industry majorly relies on these small industries for their growth and development. Nearly
half of the goods that are exported from India are manufactured or produced by these industries.
Public Welfare
These industries have an opportunity to earn wealth and create employment. SSIs are also important for
the social growth and development of our country.
Seedbed for Large Scale Industries
SSI acts as the seedbed for Large Scale Industries (LSI) as it provides conducive conditions for the
development and growth of entrepreneurs. Small enterprises require low investment and simple
technology and use local resources to meet local demands through personal contacts. Thus, it creates
scope for the growth and development of LSI.
SIDCO:
The main objective of SIDCO is to stimulate the growth of industries in the small-scale sector. To
Promote industrial estates which will provide industrial sheds of different sizes with all basic
infrastructure facilities. To Promote skilled labor through the setting up of industrial training institutes.
DIC -
The District Industry Center (DIC) under the Directorate of Industries and Commerce offers a subsidy
loan scheme for young professionals under the guidance of the Ministry of Social Justice and
Empowerment. Established in 1978, District Industries Centers’ program was initiated by the central
government to promote tiny, cottage, village, and Small Scale Industries (SSIs) in smaller towns and their
particular areas to make them available with all the basic needs, services, and facilities.
DIC’s primary focus is to generate employment in rural regions of India. District Industries Centers are
managed and operated at the district level to provide all the necessary support services to entrepreneurs or
first-time business owners to start their own Micro Small and Medium Enterprises (MSMEs). DICs also
promote the Registration and Development of Industrial Cooperatives.
Functions - Assist entrepreneurs in obtaining licenses – To set up an industrial unit, various types of
licenses are required- electricity board, no-objection certificate, water supply board, etc.
a programme for setting up District Industries Centres (DICs) was launched by the Government of India,
to be operational from 1st May 1978.
TCOS:
Technical Consultancy Organizations (TCOs) provide a complete set of consultancy services to small and
medium enterprises, individual entrepreneurs, Government Departments and agencies, various state level
institutions, commercial banks etc
What Is an Industrial Park?
An industrial park is a portion of a city that is zoned for industrial use rather than residential or
commercial needs.
An industrial park is a section of the city that has been designated, planned, and zoned for industrial
development.
It is located in locations where land is relatively inexpensive. Industrial parks are common around the
world and are unique in history since the time of the Industrial Revolution.
An industrial park is a variation on a business park or office park, which might have offices and lighter
industry.
Industrial parks may contain oil refineries, ports, warehouses, distribution centers, and factories. Some
industrial parks offer tax incentives for businesses to locate there, such as tax increment financing.
Industrial parks can combine a mix of production, transportation, and storage facilities in the same area.
This can include chemical plants, plastics manufacturers, airports, food and beverage processors, and steel
manufacturers.
Industrial parks can be useful in bringing companies together that provide services and features that are
complementary to each other.
On the downside, industrial parks often create environmental worries, due to increased pollution and the
potential for the grounds and surrounding area to be damaged by contaminants.
Common kinds of businesses that locate in an industrial park can include power plants, incinerators, and
wastewater treatment plants. Each of these facilities can generate a high level of potentially hazardous
waste. Features of Industrial Estates
The following are the salient features of industrial estates:
1. Separate plots and sheds: The entire land area allocated to the estate is divided into different plots and
sheds. These plots and sheds are then allocated to the entrepreneurs at economical costs.
2. Cluster: An industrial estate is a planned cluster of units.
3. Regional development: Industrial estates promote regional development. They have been instrumental
in developing backward areas in the country. They provide employment opportunities to many of the
unemployed youth in the regions in which they are located.
4. Common infrastructure: Infrastructure such as roads, electricity, water, telecommunications, postal
facilities, banks etc. are provided in the industrial estate. All enterprises located in the industrial estate can
access the infrastructural facilities located in the area.
5. Promote industrialization: Industrial estates promote industrialization and economic development.
They provide the necessary facilities for setting up of industries. Since the required infrastructure is made
available, entrepreneurs feel encouraged to set up industrial enterprises.
6. Different sizes: Industrial estates can be promoted in different sizes based on the land availability,
requirements and potential for development.
7. Developed in all areas: Industrial estates can be developed in all areas such as urban, suburban and
rural areas. They can be developed in developed as well as in under developed areas.
8. Promotion through any agency: Industrial estates can be set up by the government, co-operatives or by
the private agencies. It can also be set up by public-private partnership.
A few examples of the private initiative in industrial parks development are Information Technology Park
(ITPL), Bangalore; Infocity, Hyderabad; Technopark, Thiruvananthapuram; etc.