SMALL SCALE SERVICE INSTITUTIONS (SISI)

• Set up to provide consultancy and training to small entrepreneurs- both existing and prospective
• Activities of SISIs are coordinated by Industrial management training division of the DCSSI’s
office
Functions
i. To serve as interface between central and state governments
ii. To render technical support services
iii. To conduct entrepreneurship developmental programmes
iv. To initiate promotional programmes
v. To assist in preparing project profiles, training, trade & market information. Economic
consultancy, state industrial potential survey and modernization studies
IFCI (Industrial Finance corporation of India Ltd.)
 Setup in 1948 under the IFCI Act was brought under companies Act, 1956
 It extends financial assistance to the industrial sector through rupee and foreign currency loans,
underwriting subscriptions to share debentures and guarantees, offering equipment procurement
and provide merchant banking activities
 Shareholders of IFCI – IDBI, scheduled banks, insurance companies, investment trusts &
cooperative banks
 Started new promotional schemes
i. Interest subsidy scheme for entrepreneurs
ii. Consultancy fee subsidy schemes for providing marketing assistance to SSI
iii. Encouraging modernising of tiny and Small scale Industries
iv. Control of pollution in the small and medium case industries
v. Promoting research for the development of industries
vi. Setting up management developmental institute for providing management
CRITICISMS
 IFCI’s lending operations have only encouraged the concentration of wealth and capital
 It pursues a discriminatory policy to the disadvantage of medium and small scale units
 Delays in sanctioning loans and making the loan amount available
 Failed to exercise necessary control over the defaulting borrowers
 Assistance has been used for the specific purpose for which it is given and IFCI has failed to take
any actions against such practices
COMMERCIAL BANKS
 It plays a key role in the economic and social transformation and in the development of our
country
 The banks have expanded their network remarkably in respect of number of branches as well as
in diversifying their services in several directions
 Apart from discharging their economic functions the banks are entrusted with the challenging
task of responding to certain social problems
 Through various schemes they are catering to the needs of retail traders, rural artisans, village
craftsmen, small businessmen, transport operators & self-employed
ROLE OF COMMERCIAL BANKS FOR ENTREPRENEURIAL DEVELOPMENT

 For Assisting SSI sector

A. Credit to small scale industries
B. Financing the establishment of small scale units
C. Financing and development of khadi and village industries
D. Finance to Tiny sector of SSI

And also assisting SSI sector schemes

 Schemes related to traders and small entrepreneurs
 Schemes relating to self-employed and professionals
Thank you