Professional Documents
Culture Documents
DIGITAL ASSIGNMENT-2
S.G.SAI SARATH
15BBA0036
ENTREPRENURESHIP
DIGITAL ASSIGNMENT-2
15BBA0036
S.G.SAI SARATH
TOPIC: - Institutional Assistance to SSI
(ii) Management and control: A small-scale unit is normally a one man show
and even in case of partnership the activities are mainly carried out by the
active partner and the rest are generally sleeping partners. These units are
managed in a personalised fashion. The owner is activity involved in all the
decisions concerning business.
(iv) Technology: Small industries are fairly labour intensive with comparatively
smaller capital investment than the larger units. Therefore, these units are
more suited for economics where capital is scarce and there is abundant
supply of labour.
(v) Gestation period: Gestation period is that period after which teething
problems are over and return on investment starts. Gestation period of small
scale unit is less as compared to large scale unit.
(vi) Flexibility: Small scale units as compared to large scale units are more
change susceptible and highly reactive and responsive to socio-economic
conditions.
(vii) Resources: Small scale units use local or indigenous resources and as such
can be located anywhere subject to the availability of these resources like
labour and raw materials.
(viii) Dispersal of units: Small scale units use local resources and can be
dispersed over a wide territory. The development of small scale units in rural
and backward areas promotes more balanced regional development and can
prevent the influx of job seekers from rural areas to cities
5. Management Development:
To improve the professional management the IFCI sponsored the Management
Development Institute in 1973. It established the Development Banking Centre
to develop managerial, manpower in industrial concern, commercial and
development banks.
2. Leasing:
The leasing operations of the ICICI commenced in 1983. Leasing assistance is
given for computerization, modernization/replacement, equipment of energy
conservation, export orientation, pollution control etc.
Functions of IDBI:
(i) To provide financial assistance to industrial enterprises.
(ii) To promote institutions engaged in industrial development.
(iii) To provide technical and administrative assistance for promotion
management or expansion of industry.
(iv) To undertake market and investment research and surveys in connection
with development of industry.
Activities of IRBI:
IRBI provides term loans and working capital finance to medium, large, sick,
small and tiny sector units.
It also provides ancillary services, such as consultancy, preparation of schemes
of amalgamation, merger, sale, reconstruction, equipment leasing, merchant
banking etc.
IRBI has full power to take any step to remove industrial sickness.
Functions
TIIC as a State Level Financial Institution, offers long and medium term
financial assistance to various industries including service sector in the
following forms:
Term Loans
Term Loan and Working Capital Term Loans under the Single Window
Scheme.
Special types of assistance like Bill Financing Scheme, etc.
The National Small Industries Corporation Ltd. (NSIC), an ISO 9000 certified
company, since its establishment in 1955, has been working to fulfill its mission
of promoting, aiding and fostering the growth of small-scale industries and
industry related small-scale services/businesses in the country.
Activates of NSIC
The major areas of operation are:
a. Exports of products such as handicrafts, leather items, hand tools, pipes/
fittings, builders hardware etc.
b. Supply of small industry products on turnkey basis.
Credit Support:
NSIC provides credit support to small enterprises in the following areas:
Equipment Financing:
The Corporation is facilitating small enterprises in securing loans for purchase
of equipment and machinery.
Tie-up with Commercial Banks:
To meet the credit requirements of small enterprises, NSIC has tied up with
commercial banks for sanction of term loans and working capital facilities as
per the convenience of the small enterprises. The accreted small enterprises
under the performance and credit rating scheme of NSIC will stand at a good
chance to get the credit from these commercial banks at liberal rates.
Financing for Procurement of Raw Material (Short-Term):
NSICs Raw Material Assistance Scheme aims at helping small-scale
industries/enterprises by way of financing the purchase of raw material (both
indigenous and imported).
Functions of NSIC:
NSIC provides a wide range of services, predominantly promotional in
character, to small-scale industries.
Its main functions are to:
a. Provide machinery on hire-purchase scheme to small-scale industries.
b. Provide equipment leasing facility.
c. Help in export marketing of the products of small-scale industries.
d. Participate in bulk purchase programme of the Government.
e. Develop prototype of machines and equipments to pass on to small-scale
industries for commercial production.
f. Distribute basic raw material among small-scale industries through raw
material depots.
g. Help in development and up-gradation of technology and implementation of
modernization programmes of small-scale industries.
h. Impart training in various industrial trades.
i. Set up small-scale industries in other developing countries on turn-key basis.
j. Undertake the construction of industrial estates.
NPA Resolution
Vocational Training
Activities
Establish National and State level Think Tanks for Policy Advocacy.
Initiating demonstration of Pilots on Business Correspondents,
Branchless banking, Credit bureau etc.
Organizing periodic seminars and workshops on emergent issues and
identified thematic areas
Providing advocacy support to MFIs representative organizations for
effective implementation of code of conduct, sensitizing State and
Central Governments on building and maintaining a conducive
environment for MF sector;
Supporting diverse institutions providing financial services like Micro
Finance Institutions (MFIs), Self Help Groups (SHG) channel, Regional
Rural Banks (RRBs) and other community based organizations.
Encouraging institutions to improve outreach in identified areas with low
MF penetration.
Improving access to other financial services such as savings, insurance,
micro-pensions & remittances.
Supporting new loan product development for women centric loan
products, green products and other loans to meet the requirements of
the clients.
Support for piloting/ up-scaling of new technology led models which
leads to improvement in efficiency and ease of delivery for institutions
and improvement in transparency and convenience for the clients.
Build skills, capacities and confidence of women clients of microfinance
through a training focusing on financial literacy, gender issues such as
health, education and legal entitlements, social development and legal
rights (health, education and legal entitlements).
Gender sensitization training of senior level staff of the institutions to
enable them to mainstream gender within their organizational policies
and processes.
The bank can raise additional resources through borrowing from Government of
India, from RBI and from the market through the issue of bonds and debentures.
Exam bank also provides refinance facilities to the commercial bank and
financial institutions against their export-import financing activities.
During the Year ending on 31 March, 2003, Exim Bank sanctioned loans of Rs.
7,828 crores while disbursements amounted to Rs. 5,320 crores, Net Profit
(before tax) of the bank for the period 2002-03 on account of General Fund
amounted to Rs. 268 crore.
Objectives of SIDCO
The following are the main objectives of SIDCO
1. The main objective of SIDCO is to stimulate the growth of industries in the
small scale sector
2. To provide infrastructure facilities like roads, drainage, electricity, water
supply, etc is one of the primary objective of SIDCO.
3. To Promote industrial estates which will provide industrial sheds of
different sizes with all basic infrastructure facilities.
4. To Provide technical assistance through training facilities to the
entrepreneurs.
5. To Promote skilled labor through the setting up of industrial training
institutes.
Functions of SIDCO
SIDCO supplies scarce raw materials:
Some of the scarce raw materials are procured by the corporation either from
the domestic market or from abroad and are provided to the needy small scale
industries.
SIDCO provides marketing assistance:
In order to provide an efficient marketing support to small scale industries, the
corporation has taken up various schemes. In fact, the corporation participates
in the tenders floated by the state government departments and also with the
DGS & D (Director General of Supplies and Disposal).
SIDCO assists in Bills discounting:
When small scale units supply goods to government departments, there is a
delay in receiving payments. In such a situation, the bills drawn on government
departments will be discounted by SIDCO and upto 80% of the bill value is given
to the supplier. This helps the SSI units in solving their working capital crisis.
SIDCO provides Export marketing assistance:
To promote export marketing among the small scale industries, SIDCO has
developed websites because of which it is able to display the products of the
small scale industries in foreign markets and obtain export orders. Once an
export order is obtained, the Common export manager of SIDCO will make
arrangements for extending various services for export of the product.
SIDCO set up Captive power plants:
In order to provide uninterrupted and good quality power supply, SIDCO has
taken up a plan to set up captive power plants in major industrial estates. It is
now planning to set up these plants in 10 industrial estates.
SIDCO promotes skill development centres:
In an effort to supply skilled laborers to various small scale industries, skill
development centres are being set up in various industrial estates which will be
training workers in varied industrial activities and they will be trained in modern
skill.
SIDCO promotes women entrepreneurs:
In addition to the above, in order to promote women entrepreneurs, a separate
industrial estate for women has been set up at Tirumullaivoyal, near Chennai,
where women entrepreneurs are trained in various fields of small scale
industries.
Conclusion