Sunday, February 15, 2015

The various government and local bodies that are involved in the setting up of an enterprise in India

There are many enterprises both in Central as well as local levels to initiate and encourage individuals to set up an enterprise guiding about the procedure to the investment. Ministry of Micro, Small & Medium Enterprises a Government of India initiative is actively involved in furnishing the people with ideas on Entrepreneurship and lays the guidelines that needs to be followed before setting up an enterprise and it also provides the step by step procedure how to go about it systematically starting from product selection, market survey, location, finance to production, marketing, quality assurance etc.
At the Central level there range many State Financial Corporations from each state which promote small and Medium Scale industries under SFC, Act 51. The corporation has many entrepreneur - friendly schemes to provide term loans, working capital term loans , working capital term loans, special and seed capital assistance to suit the needs of various categories of entrepreneurs. The Corporation has completed five decades of dedicated service in industrial financing of tiny, small and medium scale sector units and contributing to the balanced regional development of the state. Their major areas of focus include To industrialize the State through balanced regional development and dispersal of industries. To support promotion and development of tiny, small and medium scale industries and service sector units by extending need based credit to them, nurture entrepreneurship and encourages first generation entrepreneurs and to act as a catalyst for generation of employment
There are many State Development Agencies under which various yojnas exist that seeks to provide gainful employment to the urban unemployed or underemployed poor through encouraging the setting up of self-employment ventures or provision of wage employment. Their target groups include the urban poor, defined as those leaving below the urban poverty line, as defined from time to time. women, persons belonging to Scheduled Castes/ Tribes, disabled person and other such categories as maybe indicated by the Government from time to time. These associations provide an aid of up to 125000. Special assistance may be provided for setting up of community seva kendras which could be used for multifarious activities such as work places/marketing centres etc. for beneficiaries under this programme. States may utilise an amount upto a maximum of 5% of their total allocation for training and capacity building of the personnel involved with the implementation of this programme whether State Government employees, ULB employees, CDS workers or any other involved parties.
National Small Industries Corporation Ltd.A Government of India Enterprise (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/business enterprises in the country. Over a period of five decades of transition, growth and development, NSIC has proved its strength within the country and abroad by promoting modernization, upgradation of technology, quality consciousness, strengthening linkages with large medium enterprises and enhancing exports - projects and products from small industries. NSIC carries forward its mission to assist small enterprises with a set of specially tailored schemes designed to put them in a competitive and advantageous position. The schemes comprise of facilitating marketing support, credit support, technology support and other support service. NSIC is a recognized Export House and exporting products and projects of small industries of India to other countries. The major areas of operation are:
• Export of products such as handicrafts, leather items, hand tools, pipes/fittings, builders’ hardware etc.
• Supply of Small Industry projects on turnkey basis.
NSIC facilitates credit requirements of small enterprises.
DISTRICT INDUSTRIES CENTRE:
These bodies are actively functioning in the district level and their major area of focus is to develop and promote Cottage and Small Scale Industries in the district. It also provides Financial Assistance through Prime Minister Rozgar Yojna, Normal bank Finance Scheme, Loan Under BSAI act. The facilities they provide include Marketing Assistance to handicraft products, National project of Biogas Development, Pollution clearance and the training they provide focuses on craft development and special entrepreneurship programs for women, physically handicapped etc. Loans are provided upto 25 lacs to the people who fit in the eligibility criteria.
People may also chose the popular and easily accessible sources such as Venture Capitals that also help in investing huge amounts. A venture capitalist (also known as a VC) is a person or investment firm that makes venture investments, and these venture capitalists are expected to bring managerial and technical expertise as well as capital to their investments. A venture capital fund refers to a pooled investment vehicle that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans.
Venture capital is most attractive for new companies with limited operating history that are too small to raise capital in the public markets and are too immature to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and less mature companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the company's ownership

SEED CAPITALS: Currently, a lot of the investment is for existing companies that are looking for a second round of investment in order to expand. As a result, seed capital investment has almost been pushed to the background. Seed capital is considered the initial round of investment - the initial source of funding that get things off the ground. The amounts are usually smaller than in the later stages of venture capital investment, but the risks are also higher. Although these investments have the potential to be very rewarding, many investors in India are said to be looking to pay more in later stages for less risk.
PepsiCo India implemented a dual strategy of providing alternative occupations and setting up micro enterprises for individuals and Self Help Groups.
Three operational centres in the district impacted over 1500 youth, of which 1200 youth are gainfully employed across Tamil Nadu with organizations such as Goldmine Hotel in Chennai, Reliance, ICICI and HDFC. Need based training programmes were developed to provide students with life skills and business communication skills, exposure to industrial units and interaction with guest lecturers. A Board, comprised of local body representatives and industrial giants, was set up to ensure the sustainability and effectiveness of the Centres and to assist with placement of the graduates. Training is imparted in a spectrum of fields relevant to the region like refrigeration, electrical and air conditioning, hotel and hospitality management, information technology and IT enabled services, two-wheeler training and customer executive programmes. In addition to this, the programme aims to establish micro enterprises for individuals and Self Help Groups in occupations that include integrated vegetable cultivation, marketing of herbal products and fish vending. More than 200 individuals will benefit from these micro-enterprises. Adding sustainability to the programme is a tie-up with local banks that will provide seed capital to help start up the micro enterprises.
National Resource Centre under Integrated Handloom Cluster Development Programme

Role of NRA
• Facilitate, strengthen and provide support services (Training of Cluster Development Executives) for augmenting cluster development initiatives identified by the Office of Development Commissioner (Handlooms).
• Provide effective monitoring and mentoring services for the development of 20 pilot Handloom clusters at different locations.
• Initiate an interactive forum for Cluster Development Executives (CDEs), Associations, Business Development Service (BDS) providers, others stakeholders, implementing agencies and support organizations by means of a news letter, brochure etc;
• Carry out documentation of ‘best practices’ in clusters that can foster demonstration effect in others.
• Review quarterly the progress, identify the support to be provided, prepare time frame of actions and seek necessary approval from the O/o DC (HL) wherever necessary.
• Convene period meetings in close co-ordination with the Apex committee at National level to appraise progress, seek approval and inputs if need be for technical, design development and other such issues deemed fit.
• Sensitize policy makers about the requirements of Handloom clusters in close co-ordination with the Apex Committee at the National Level.
• On behalf of DC (HL) disburse the project grant with necessary approval of the Apex Committee & evolve suitable guideline towards the same in close co-ordination with Office of Development Commissioner (Handloom)
• Ensure submission of reports, audited statement, action plan from the Implementing Agencies from time to time and submit the same back to Apex Committee for necessary perusal.
• Carry out any other roles as part of IHCDS as assigned by DC (HL) from time to time.

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