Institutitional Support

SUPPORT FUNCTIONS TO SMALL ENTREPRENEURS
 Need and Importance of Support Functions

 NSIC (National Small Industries Corporation Ltd.)
 SIDO (Small Industries Development Organisation)
 SSIB (Small Scale Industries Board)
 SSIDC (Small Scale Industries Development
Corporations)
 SISI (Small Industries Service Institutes)
 DIC (District Industries Centres)
 SIDBI (Small Industries Development Bank of India)
 Specialised Institutions
 TCO (Technical Consultancy Organisation)

Need And Importance Of Support
Functions
 small-scale sectors have technology related knowledge to
take care of production and quality aspects.
 require lot of guidance and support in the beginning
 The support functions will extends necessary guidance
 An entrepreneur should be able to consider the advantages
of various Government subsidies and assistance given for
backward areas
 An elaborate frame work exists in India to provide
necessary assistance to SSI units.
NSIC(National Small Industries
Corporation Ltd.)
 NSIC was started by the Central Government in 1955 with
the objective of promoting and developing SSI units
throughout the country.
 Objectives of helping SSI units for : a) providing machinery
on hire purchase, b) assisting, marketing and exports, c)
enlisting SSI units for tender participation in Government
purchases, d) organizing supply of raw-materials, e)
training of personnel and
f) assistance in modernization.
The important functions of NSIC can be summed as under :
 Financial assistance by way of hire purchase scheme for
purchase of local and imported machinery.

 Provision of various equipments on lease basis.
 Assistance for marketing the produce in the country and
also to help in exporting the products of SSI units.

 Enlisting quality conscious good SSI units for sending
enquiries of Govt. stores and purchase departments.

 Training of workers in various trades required for SSI units.
 Assistance in up-gradation of technology, processes and
modernization of plant and machinery.

 To make bulk purchases of important raw-materials and
distribute to SSI units at reasonable rates. This avoids

speculation and exploitation by the traders.
 To develop industrial estates and testing facilities in the
industrial areas.
SIDO (Small Industries Development
Bank)
 created for development of various small-scale units in
different areas.
 SIDO is a nodal agency for identifying the needs of SSI
units, coordinating and monitoring the policies

Co-ordination activities of SIDO
 To co-ordinate various programmes and policies of
various State Governments pertaining to small industries.

 To maintain relation with the Central Industries Ministry,
Planning Commission, State Level Industries Ministry and

Financial Institutions.
 Implement and co-ordinate in the development of
industrial estates.
Industrial development activities of SIDO
 Develop import substitutions for components and products based on
the data available for various volume wise and value wise imports.
 To give essential support and guidance for the development of
ancillary units.
 To provide guidance to SSI units in terms of costing market
competition and to encourage them to participate in the Government

Stores and Purchase Tenders.
 To recommend the Central Government for reserving certain items to
produce at SSI level only.
Management activities of SIDO

 To provide training, development and consultancy services to SSI to
develop their competitive strength.

 To provide marketing assistance to various SSI units.
 To assist SSI units in selection of plant and machinery, location, layout
design and appropriate process.

 To help them get updated in various information related to the small-
scale industries activities.

SSIB (Small Scale Industries Board)
 SSIB was started in 1954 by the Central Government
with the objective of developing small-scale industries
through out the country.
 SSIB advices to the Government about various
development activities of small industries and the
related matters.
 takes policy decisions on all matters related to small
industries.
SSIDC (State Small Industries
Development Corporations)
The main functions of SSIDC are as under :
 Assist for procurement of machineries on hire purchase
scheme.
 Assist in marketing of the products.
 Keep stock of vital and scares raw-materials and
distribute to small industries.
 Develop industrial sheds, estates and godowns for use
of small industries.
SISI (Small Industries Service
Institutes)
The functions of SISI can be written as under :
 Provide technical and entrepreneurial support services.

 Guide entrepreneurs in setting up their industries.
 Assist in project reports and market information.
 Work as a link between State and Central Government
industrial departments.
 Undertake study of requirements on facilities, training
needs and modernization.
DIC (District Industries Centres)
 DICs were started in 1978 to focus on district level and rural
level promotion of small-scale industries
 provided through a single window in DICs.
The main functions of DICs are as follows :

 To conduct service about industrial growth possibilities with
reference to skilled work force, market infrastructure etc.

 Organize techno commercial reports on the identified lines
and then give advice to new entrepreneurs on these aspects.

 Provide technical guidance to entrepreneurs regarding
selection of machinery, imports, imports substitution and

raw-materials.
 Advice entrepreneurs about favorable and unfavorable
factors pertaining to various schemes and projects put up to

them.
 To help small industries in marketing their products.

Institutitional Support

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SUPPORT FUNCTIONS TO SMALL ENTREPRENEURS

 Need and Importance of Support Functions

 SIDO (Small Industries Development Organisation)

 SSIB (Small Scale Industries Board)

 SSIDC (Small Scale Industries Development

 DIC (District Industries Centres)

 SIDBI (Small Industries Development Bank of India)

 TCO (Technical Consultancy Organisation)

purchase of local and imported machinery.

also to help in exporting the products of SSI units.

enquiries of Govt. stores and purchase departments.

modernization of plant and machinery.

distribute to SSI units at reasonable rates. This avoids

units, coordinating and monitoring the policies

various State Governments pertaining to small industries.

Planning Commission, State Level Industries Ministry and

competition and to encourage them to participate in the Government

produce at SSI level only.

Management activities of SIDO

develop their competitive strength.

 To assist SSI units in selection of plant and machinery, location, layout

design and appropriate process.

scale industries activities.

 Provide technical and entrepreneurial support services.

The main functions of DICs are as follows :

reference to skilled work force, market infrastructure etc.

and then give advice to new entrepreneurs on these aspects.

selection of machinery, imports, imports substitution and

factors pertaining to various schemes and projects put up to

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