E-Cell

Startup India campaign is based on an action plan aimed at promoting bank financing for start-up ventures to boost entrepreneurship and encourage start ups with jobs creation.

Key points:
1)Single Window Clearance even with the help of a mobile application
2)10,000 crore fund of funds
3)80% reduction in patent registration fee
4)Modified and more friendly Bankruptcy Code to ensure 90-day exit window
5)Freedom from mystifying inspections for 3 years
6)Freedom from Capital Gain Tax for 3 years
7)Freedom from tax in profits for 3 years
8)Eliminating red tape
9)Self-certification compliance
10)Innovation hub under Atal Innovation Mission
11)Starting with 5 lakh schools to target 10 lakh children for innovation programme new schemes to provide IPR protection to start-ups and new firms encourage entrepreneurship.
12)Stand India across the world as a start-up hub.

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Give your Comments or Suggestions on Recommendations of Committee on Net Neutrality A Committee on Net Neutrality has submitted its report to the Department of Telecommunications. Its recommendations broadly contain technical, regulatory and public policy related measures required with respect to Net Neutrality issue. Telecom Regulatory Authority of India (TRAI) is also currently e…

Congratulation to Nikita Dhiman, Jyotsna Singh and Nirzar Bhaidkar who finished as semi finalist amongst 2500+ teams around the globe from 100 countries in AdWords Business category in Google Online Marketing Challenge 2015.

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ENTREPRENEURSHIP RELATED SCHEMES AND FACILITIES PROVIDED BY GOVERNMENT

Provided below are the list of schemes and facilities provided by Government Of India (GoI) :

Schemes for the development and promotion of women entrepreneurs :-

TRADE RELATED ENTREPRENEURSHIP ASSISTANCE And DEVELOPMENT SCHEME FOR WOMEN (TREAD)

The scheme envisages economic empowerment of women through the development of their entrepreneurial skills in nonfarm activities. There are three major components of the scheme:
(i) GoI grant upto 30% of the total project cost to the Non-Government Organisations (NGOs) for promoting entrepreneurship among women. The remaining 70% of the project cost is financed by the lending agency as loan for undertaking activities as envisaged in the project.
(ii) GoI grant upto Rs.1 lakh per programme to training institutions / NGOs for imparting training to the women entrepreneurs, subject to these institutions/NGOs bring their share to the extent of minimum 25% of GOI grant and 10% in case of NER.
(iii) Need-based GoI grants upto Rs.5 lakh to National Entrepreneurship
Development Institutions and any other institutions of repute for
undertaking field surveys, research studies, evaluation studies,
designing of training modules etc.

MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT PROGRAMME (MSE-CDP :

Existing Clusters:

A cluster is defined as a group of enterprises, ideally having 100 members, producing same/similar products/services. Depending upon the density of the population the cluster can increase further. The Cluster Development Programme (CDP) being implemented envisages diagnostic study of identified clusters of traditional skill-based MSEs to identify appropriate technologies and their providers and to facilitate adoption of available technology meeting the specific needs of the end users.

Creation of physical infrastructure:

This Ministry implemented the IID Scheme to provide developed sites
with infrastructural facilities like power distribution network, water, telecommunications, drainage and pollution control facilities, roads, exhibition/display centres, raw materials, storage and marketing outlets, common service facilities and technological back-up services, etc. This scheme has been subsumed in the MSME-Cluster Development Programme. All the features of IID Scheme have been retained. To create physical infrastructure exclusively for women enterprises central grant of 40% of the project cost subject to a maximum of Rs.2 crore is available. The Ministry of MSME is making efforts to enhance the quantum of grant to 80% in a project of Rs.10 crore.

CREDIT GUARANTEE FUND SCHEME FOR MICRO AND SMALL ENTREPRISES :

Under the scheme, guarantee cover is provided to collateral free credit facility extended by member lending institutions (MLIs) to the new as well as existing micro and small enterprises on loans up to Rs.50 lakh. The guarantee cover available is up to 75% of the loans extended.

SUPPORT FOR ENTREPRENEURIAL AND MANAGERIAL DEVELOPMENT :

MSME-DIs regularly organize a number of Entrepreneurship Skill Development Programme (ESDPs)/ Entrepreneurship Development Programme (EDPs)/ Management Development Programmes (MDPs) to train the potential entrepreneurs in improving their techno/managerial knowledge and skill with a view to facilitating them to start MSEs in various fields. Many of the programmes are tailor made for the target group for SC,ST, OBC,Women,

Minorities and other weaker sections and exclusively for women also. These programmes are also called “Out-reach Programmes” as they are conducted in rural / less developed areas.

EXHIBITIONS FOR WOMEN UNDER PROMOTIONAL PACKAGE FOR MICRO & SMALL ENTERPRISES APPROVED BY CCEA UNDER MARKETING SUPPORT :

DC (MSME) has formulated a scheme for women entrepreneurs to encourage Small & Micro manufacturing units owned by women and register in DI/DIC in their efforts at tapping and developing overseas markets, to increase participation of representatives of small/micro manufacturing enterprises under MSME stall at International Trade Fairs/Exhibitions, to enhance export from such units.
With a view to encourage women entrepreneurs to participate in the International Exhibitions under MDA scheme it has been decided to:
i) provide rent free space (6/9 Sq Mts) in the exhibitions
ii) reimburse 100% economy class air fare for one representative.

Government Funding and Schemes
The public sector banks are the major source of financial assistance to the industrial sector. They extend credit support to the firms in the form of loans, advances, discounting bills, project financing, term loans, export finance, etc. Some of the major examples of such banks are:-
State Bank of India (SBI) provides a wide range of financial products and services that can cater to any business or market requirement. It deploys multiple channels to deliver integrated solutions for all financial challenges faced by the corporate universe. Its various funding schemes are:-

Working capital finance, extended to all segments of industries and services sector.
Corporate term loans to support capital expenditures for setting up new ventures as also for expansion, renovation, etc.
Deferred payment guarantees to support purchase of capital equipments.
Project finance
Structured Finance
The bank also provides financial assistance to agriculturists through a network of rural and semi-urban branches. These specialized branches have been set up in different parts of the country exclusively for the development of agriculture through credit deployment. Their schemes cover a wide range of agricultural activities like crop loan, finance to horticulture, farm mechanization schemes, land development schemes, minor irrigation projects, agricultural term loans, etc.

Bank of Baroda offers various products and services that meet the specific requirements of business enterprises, particularly the small scale units. Various schemes relating to the provision of loans and advances by the bank include:-

Working Capital Finance
Term Finance
Small and Medium Enterprise (SME) Loan Pack
Small Business Borrowers
Traders Loan

Andhra Bank has also devised a host of loan schemes to meet the financial requirements of an enterprise. These particularly cater to the corporate and agricultural sector. Some of its important funding options include:-

Working Capital Loans
Export & Import Finance
Advance against Shares
Term Finance
Corporate Loans
Project Finance
Infrastructure Project Finance
Kisan Vikas Card
Kisan Sampathi
Self Help Groups-Bank Linkage Programme
Kisan Green Card

Small scale industries need credit support on a continuous basis for running the enterprise as well as for its diversification and modernisation. Recognising the need for a focused financial assistance to such industries, the Government of India, together with the State Governments, has formulated several policy packages including schemes and funds for their growth and development. Most of these programmes of the Central Government are implemented through two principal organisations:-
Small Industries Development Organisation (SIDO) is an apex body for promotion and development of small scale industries in the country. Its major activities include:-

Advising the Government on formulation of policies and programmes for the small-scale industries.
Conducting periodical census/survey of the small scale industry and generating data/reports on various important parameters/indicators of growth and development of the sector.
Maintaining close liaison with other Central Ministries, Planning Commission, State Governments, Financial Institutions and other organisations concerned with the development of small-scale industries.
Facilitating linkage of small-scale industries as ancillaries to large and medium scale industries.
Developing human resource base through training and skill upgradation.
For achieving its objectives, SIDO has devised a comprehensive range of schemes for providing credit facilities, technology support services and marketing assistance, etc. Some of the major schemes are:-
Credit Linked Capital Subsidy Scheme for Technology Upgradation
Credit Guarantee Scheme
ISO 9000/ISO 14001 Certification Reimbursement Scheme
Integrated Infrastructure Development (IID Scheme)
SSI MDA Scheme
Assistance to Entrepreneurship Development Institutes
Micro Finance Programme
National Small Industries Corporation Ltd (NSIC), has been established with the objective of promoting, aiding and fostering the growth of small scale industries in the country. It has been assisting small enterprises through a set of specially tailored schemes which facilitate marketing support, credit support, technology support and other support services.
Marketing support schemes :-
Sound marketing is critical for the growth and survival of small enterprises. NSIC acts as a facilitator to promote small industries products and has devised a number of schemes to support small enterprises in their marketing.
Credit support schemes:-
NSIC facilitates credit requirements of small enterprises in several areas. These include:-
Equipment financing:- through schemes like 'Hire Purchase' and 'Term Loan' for the procurement of equipments.
Financing for procurement of raw material:- by facilitating bulk purchase of basic raw materials at competitive rates, import of scares raw materials,etc. NSIC also takes care of all the procedures, documentation and issue of letter of credit in case of imports.
Financing for marketing activities:- such as internal marketing, exports and bill discounting, etc.
Financing through syndication with banks:- by entering into strategic alliances with commercial banks so as to facilitate fund requirement of the small enterprises. It involves an arrangement of forwarding the loan applications of the interested small enterprises to the banks.
Performance and credit rating scheme for small industries:- so as to enable the small enterprises to ascertain the strengths and weaknesses of their existing operations and take corrective measures accordingly. NSIC is operating the scheme through agencies like ICRA, ONICRA, Duns & Bradstreet(D&B), CRISIL, FITCH, CARE and SMERA.
Technology support schemes:-
NSIC offers small units various support services through its 'Technical Services Centres' and 'Extension Centres'. The services provided include advise on application of new techniques; material testing facilities through accredited laboratories; energy and environment services at selected centres; classroom and practical training for skill upgradation, etc.
At the State level, various State Financial Corporations (SFCs) have been set up by the respective State Governments for providing financial assistance to the industrial units. For this purpose, these institutions have brought out several funds and schemes, from time to time. There are 18 State Financial Corporations (SFCs) in the country. For example:-
Kerala Financial Corporation (KFC), incorporated under the State Financial Corporations Act of 1951, is a trend setter in the field of industrial finance. It has been playing a major role in the development and industrialisation of Kerala by extending financial assistance well-suited for the requirements of the entrepreneurs. Its main objective is to extend term loan assistance for establishing new industrial units or to extend credit assistance for meeting expansion/diversification/modernisation costs of the existing units, in small scale or medium sectors. Some of its major schemes include:-
General Scheme For SSI Units
General Scheme For SME Units
National Equity Fund (Nef) Scheme
Working Capital Finance
Scheme For Assistance To Information Technology And Software Development Sector
Financial Assistance For Infrastructure Projects

Madhya Pradesh Financial Corporation is the premier institution in the State of Madhya Pradesh engaged in providing financial assistance to small and medium industries. This assistance has been extended in the form of a wide range of fund and non fund based services/ schemes. The fund based schemes are available for setting up of business ventures within the State, whereas, non fund based schemes are available throughout the country.
The fund based schemes include:-
Term Loan
Equipment Finance
Asset Credit
Short Term Loan
Working Capital
Loan Replenishment
Finance for Market Activities
Composite Loan
Credit Linked Capital Subsidy for SSI
The non-fund based schemes include:-
Public Issue Appraisal
Credit Syndication
Corporate Advisory Services

Policies and Incentives

The Ministry of Micro, Small and Medium Enterprises is the nodal Ministry for formulation of policies, programmes and schemes, their implementation and related co-ordination, for the promotion and development of small scale industries in India. The role of the Ministry is to assist the States in their efforts for the growth of the small scale sector, by enhancing their competitiveness in an increasingly liberalised economy. It is assisted by an attached office and two public sector enterprise, namely:-
Micro, Small and Medium Enterprises Development Organisation (MSME-DO):- the Office of the Development Commissioner (Micro, Small and Medium Enterprises) [earlier known as the O/o the DC (SSI)] is also known as Micro, Small and Medium Enterprises-Development Organisation (MSME-DO). It is the apex body for assisting the Government in formulating, coordinating, implementing and monitoring policies and programmes for micro, small and medium enterprises (MSMEs) in the country. MSME-DO provides a comprehensive range of common facilities, technology support services, marketing assistance, entrepreneurial development support, etc.
National Small Industries Corporation Ltd (NSIC) :- was established by the Government with a view to promoting, aiding and fostering the growth of micro, small and medium enterprises in the country, with a focus on commercial aspect of their operations. It implements several schemes to help the MSMEs in the areas of raw material procurement, product marketing, credit rating, acquisition of technologies, adoption of improved management practices, etc.
Khadi and Village Industries Commission (KVIC) :- established under the Khadi and Village Industries Commission Act, 1956, as a statutory organisation engaged in promotion and development of khadi and village industries for providing employment opportunities in the rural areas.
Coir Board :- is a statutory body, established under the Coir Industry Act, 1953, for the promotion and development of coir industry in India as well as for uplifting the living conditions of the workers engaged in this industry.
Also, a National Commission on Enterprises in the Unorganised Sector (NCEUS) has been set up for addressing the wide range of issues affecting the productive potential of the unorganised micro and small productive units.
Besides, there are three national level 'Entrepreneurship Development Institutes (EDIs)' for the development of training modules, undertaking research and providing consultancy services for entrepreneurship development in the small scale sector. These include:-
National Institute of Small Industry Extension Training (NISIET) renamed as theNational Institute for Micro, small and Medium Enterprises (NIMSME) at Hyderabad
National Institute of Entrepreneurship and Small Business Development (NIESBUD) at Noida
Indian Institute of Entrepreneurship (IIE) at Guwahati.
The “Micro, Small and Medium Enterprises Development (MSMED) Act, 2006” is the first single comprehensive legislation in India, covering micro, small and medium enterprises. Under the Act, the terms "medium sector" and "micro enterprises" have been defined for the first time.Also, the concept of ‘Industries’ has been widened to that of ‘Enterprises’. Enterprises have been classified broadly into two categories, namely, enterprises engaged in the manufacture/production of goods pertaining to any industry; and enterprises engaged in providing/rendering of services. The term "enterprise" has been defined in terms of investment in plant and machinery/ equipment (excluding land & building). Accordingly, the definition of micro, small and medium enterprise is:-
Investment in plant and machinery/ equipment (excluding land and building)
Manufacturing Enterprises Service Enterprises
Micro Up to Rs. 25 lakh Up to Rs. 10 lakh
Small More than Rs. 25 lakh and up to Rs. 5 crore More than Rs. 10 lakh and up to Rs 2 crore
Medium More than Rs. 5 crore and up to Rs. 10 crore More than Rs. 2 crore and up to Rs. 5 crore
In order to protect, support and promote small enterprises as also to help them become self-supporting, a number of protective and promotional policy measures have been undertaken by the Government. The promotional measures cover:- (i) industrial extension services; (ii) institutional support in respect of credit facilities; (iii) provision of training facilities; (iv) supply of machinery on hire-purchase terms; (v) assistance for domestic marketing as well as exports; (vi) technical consultancy and financial assistance for technological upgradation; etc.
The Reservation Policy is the most important policy of the Government for the sector. It has the twin objectives of ensuring increased production of consumer goods in the small scale sector; and expanding employment opportunities through setting up of small scale industries. Reservation of items for exclusive manufacture in SSI sector is statutorily provided for in the Industries (Development and Regulation) Act, 1951. The overwhelming consideration for reservation of an item is its suitability and feasibility for being made in the small scale sector without compromising the quality aspect. But, with a view to providing to the sector, opportunities for technological upgradation, promotion of exports and economies of scale, items so reserved have been dereserved from time to time. The issue of reservation/de-reservation of product is examined on a continual basis by an Advisory Committee on Reservation constituted under the Act. During the year 2006-07, 180 items reserved for manufacture in small scale industries have been dereserved. As on 13th March, 2007, 125 items were dereserved and as on 8th February, 2008, 79 more were dereserved. At present, the total number of items reserved for exclusive manufacture in the micro and small scale sector are 35.
Recognising the role of credit for the small scale sector, a focused credit policy has been in place since the early days. Priority sector lending is its most important component. Under it, banks are compulsorily required to ensure that defined percentage of their overall lending is made to the priority sectors, which includes small industries. As a part of the institutional arrangement, Small Industries Development Bank of India ( SIDBI )has been set up as the apex refinance bank. Term loans are provided by State Financial Corporations (SFCs) and Scheduled Banks.
The other important policies for the sector relate to:- (i) excise duty; (ii) foreign direct investment approval;and labour laws.
Besides, several schemes and programmes have been undertaken by the Government with the aim of facilitating access to:- (i) adequate credit from financial institutions; (ii) funds for technology upgradation and modernisation; (iii) integrated infrastructural facilities; (iv) modern testing facilities and quality certification laboratories; (v) modern management practices, entrepreneurship development and skill upgradation through appropriate training facilities; etc. The schemes so announced include:-
Tax Holiday Scheme
Composite Loan Scheme
Industrial Estate Scheme
Scheme for International Cooperation
Scheme of Surveys, Studies and Policy Research
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Scheme of Product Development, Design Intervention and Packaging (PRODIP)
Scheme of Khadi Karigar Janashree Bima Yojana for Khadi Artisans
Scheme of Interest Subsidy Eligibility Certification (ISEC)
Small Industry Development Organisation also operates a number of schemes for the sector:-
Credit Linked Capital Subsidy Scheme for Technology Upgradation
Credit Guarantee Fund Scheme for Small Industries
ISO 9000/ISO 14001 Certification Reimbursement Scheme
Scheme for reimbursement of fees to adopt barcoding
Integrated Infrastructure Development (IID Scheme)
Scheme for setting up of Mini Tool Rooms
Scheme for setting up of testing centres
Scheme for Market Development Assistance (MDA) for SSI exporters
Assistance for Strengthening of Training Infrastructure of existing and new Entrepreneurship Development Institutions
Scheme of Micro Finance Programme
National Small Industries Corporation Ltd (NSIC) schemes for small scale industries relate to:-
Bill Financing
Working Capital Finance
Export Development Finance
Equipment Leasing Scheme
Raw Materials Procurement Support
Marketing Assistance Programme and Exports Assistance;
Stores Purchase Programme
Single Point Registration Scheme and other services.

Government support for small businesses :

Public Sector Banks: Banks are the most accessible source for financial support for SMEs. They offer a range of services and schemes including loans and credit facilities for various business needs. Some of these cover: Working capital finance available to all segments of industries and services; Corporate term loans for new ventures and also for expansion or renovation of existing businesses; Term finance and Deferred payment guarantee for capital expenditure or acquisition of fixed assets.

National Bank for Agriculture and Rural Development (NABARD): NABARD works towards integrated rural development and helps promote rural businesses and small industries, agriculture and cottage industries. They offer various training and development and consultancy services as well as credit facilities to support these businesses.

National Small Industries Corporation Limited (NSIC): Set up with the objective to boost small scale industries in India, NSIC helps import machines on easy hire purchase terms; procure and distribute imported raw materials; export products from small scale industries, etc. They have also started a new scheme to help small businesses understand credit ratings and the importance of maintaining good financial track record.

Small Industries Development Bank of India (SIDBI): As the name suggests, SIDBI was primarily set up to provide financial assistance to small scale industries in India. It is one of the leading government bodies that provides various financial schemes across a range of industries and services. Some of the schemes are Direct Assistance Scheme, Indirect Assistance Scheme, Promotional and Development Activities, National Equity Fund Scheme, Technology Development and Modernization Fund Scheme, Single Window Scheme, Mahila Udyam Nidhi (MUN) Scheme and Equipment Finance Scheme.

National Commission for Enterprises in the Unorganized Sector (NCEUS): This Commission was constituted for the welfare of enterprises in the unorganized and informal sector. Their primary role is to generate business and employment opportunities in the unorganized sector. One of the provisions also includes providing access to micro-credit to the unorganized entrepreneurs.

Rural and Women Entrepreneurship Development (RWED): This programme is focused on encouraging entrepreneurship among women and the rural population. It supports various business and entrepreneurial initiatives by providing timely advice and counselling, initiating training and development programmes and helping secure credit opportunities.

Why dont people pursue entrepreneurship ?

Why dont people pursue entrepreneurship ?