ENTREPRENEURSHIP & SMALL BUSINES MANAGEMENT

(BBA-406)

BBA V SEMESTER

DR. MOHIT SAHARAN

ASSISTANT PROFESSOR
BBA DEPARTMENT
SYLLABUS
 BBA-406: ENTREPRENEURSHIP & SMALL BUSINESS MANAGEMENT
 
 Unit- I: Introduction: Concept of entrepreneurship, theories of entrepreneurship, traits of
entrepreneur, Different types of entrepreneurs, problems faced by entrepreneurs.
 Unit – II: Entrepreneurial Development, Role and functions of measure support institutions such as
SIB, CSIO, SSDO, SISIs etc., EDPs and Role of Women Entrepreneurs.
 Unit- III: Concept, definition and framework of small business, Social benefits and incentives for
small industry in India; Elementary knowledge of Make in India, Start up, stand up India, Mudra Loan,
Schemes of Union Government and it’s initiative on ATAMNIRBHAR BHARAT and Vocal for Local.
 Unit – IV: Transformation of Idea into reality: Project classification, identification and selection,
project formulation and Project Appraisal and Preparing Project Report.
 Unit- V: Steps in starting a small industry, incentives and subsidies available, export possibilities.
Teething problem in setting small units: location, technology, marketing, labour and planning.

Suggested Readings:
1. Entrepreneurship Development and Small Business Enterprises- Poornima M. Charantimath (Pearson Publication)
UNIT - II
 TOPICS COVER

1) Introduction to Entrepreneurial Development

2) Meaning of Entrepreneurial Development
3) Need/Importance for Training and Development to Entrepreneurs
4) Meaning of Entrepreneurial Development Programs (EDP)
5) Objectives of the EDP
6) Phases/Approach of EDP
7) Problems of EDP
8) Entrepreneurial Development Cycle
9) Relevance of EDP
10) Importance of Entrepreneurship Development
11) Institutions in the Aid of Entrepreneurship Development
12) EDP’s and Role of Women Entrepreneur
 1. Introduction to Entrepreneurial Development

 Itis rightly remarked that entrepreneurs are not born; they can be
developed and trained to undertake creative actions. It is also correct
that each individual cannot be an entrepreneur.
 Thus, Entrepreneurial development is essentially an educational
process to develop human resource process.
 Entrepreneurial development is a process in which persons are
injected with motivational drives of achievement and in right to tackle
uncertain and risky situations especially in business undertakings.
 The process of Entrepreneurial development focuses on training,
education, re-orientation and creation of conductive and healthy
environment for the growth of enterprises.
 Entrepreneurship requires an environment in which entrepreneur
can learn and discharge his assigned responsibility in an efficient
manner.
 The following are the prerequisites for the entrepreneurial
development:
 Identification of problems
 Intelligence approach
 Motivation to followers
 Knowledge of facts
 Appropriate opportunity
 2. Meaning of Entrepreneurial Development

 The development of entrepreneurship covers four

issues such as:
i. To avail sources of materials;
ii. The selection of real entrepreneurships
iii. The formation of industrial units; and
iv. Policy framing and decision-making.
NOTE : Of course, the above four are inter-related.
 For Example, utilisation of raw materials and its marketing the first two points
are covered. The other issues depends on the policy which needs close control
and direction. It can be summed up as that inculcate entrepreneurial traits into
a person, imparting the knowledge, developing the technical, financial,
marketing and managerial skills.
 Entrepreneurial development is thus an organised and systematic development.
 It is now regarded as a tool of industrialisation and a solution to unemployment
problem.
 The objective of Entrepreneurial development is to motivate a person for
entrepreneurial carrier and make capable of perceiving and exploiting
successfully opportunities for enterprises.
 One trained entrepreneur can guide others on how to start their own enterprises
and approach various institutions. In fact trained entrepreneurs become
catalysts for developing industry and economic progress.
 3. Need/Importance for Training and Development to
Entrepreneurs

i. As we know that entrepreneurship plays a key role in the

economic development of a country. Entrepreneurship
development has, therefore, become a matter of great concern
in all developed and developing countries.
ii. Here comes the problem that how to develop entrepreneurship.
Entrepreneurship possess certain types of traits or
competencies. Such traits are not always in born qualities of
every entrepreneur.
iii. Behavioural scientist have suggested that certain traits can be
induced in any person through specific programs.
iv. Based on the belief that potential entrepreneurs can be
identified and trained, the training and development programs
have been designed to promote small enterprises by tapping
this latent talent.
v. One of the factors contributing to the success of this training
intervention in entrepreneurship development is that it is
based on experience.
vi. In entrepreneurship training, learning by discovery is usually
preferred. Here one is able to learn from one’s actions and
behaviour in training.
 4. Meaning of Entrepreneurial Development Programs (EDP)

 As the term itself denotes, EDP is a programme meant to develop entrepreneurial

abilities among the people.
 In other words, it refers to inculcation, development, and polishing of
entrepreneurial skills into a person needed to establish and successfully run his /
her enterprise.
 Thus, the concept of entrepreneurship development programme involves
equipping a person with the required skills and knowledge needed for starting and
running the enterprise.
 Entrepreneurial Development Programs (EDP) designed to help a person in
strengthening and fulfilling his entrepreneurial motive and in acquiring skills and
capabilities necessary for playing his entrepreneurial role effectively.
 EDP has been recognised as an effective human resource development tool,
many a time there are very many expectations from a single programme, like
removing unemployment, enhancing industrial development, promoting small
scale industries, developing industrially under-developed regions, etc.
 EDP is primarily meant for development those first-generation entrepreneurs,
who on their own cannot become successful entrepreneur.
 It covers three major variables: location, target group and enterprise. Any of
these become the focus or starting point for initiating and implementing an EDP.
 5. Objectives of the EDP

i. To develop Entrepreneur’s qualities.

ii. To provide knowledge about government planning and programs.
iii. To help in formulation of projects.
iv. To provide knowledge about advantages and disadvantages.
v. To develop enterprises in all areas of country.
vi. To develop small and cottage industries.
vii. To promote the development of small and medium enterprises
that would encourage self-employment among potential
entrepreneurs;
viii. To provide in the rural areas special programmes designed to
stimulate new ventures and encourage expansion of existing
activities of small and medium industries;
ix. To develop entrepreneurial opportunities for potential
entrepreneurs and upgrade managerial skills for existing
entrepreneurs.
x. Analyse environment related issues to small industry and small
business.
xi. To understand the process and procedure of setting up of small
enterprise.
xii. Acquire the basic management skills.
xiii. To know the pros and cons of being an entrepreneur.
 6. Phases/Approach of EDP

The Entrepreneurship Development Programme (EDP)

normally pass through three important phases:
i. Pre-Training Phase or Initial Phase
ii. Training Phase or Development Phase
iii.Post- Training Phase or Follow-Up Phase
 i. Pre-Training Phase or Initial Phase

This is the preparatory phase for launching the programs.

It includes:
a) Creation of infrastructure for training.
b) Preparation of training syllabus.
c) Tie up of guest faculty.
d) Arrangement for inauguration of the programme.
e) Designing tools and techniques for selecting the trainees.
f) Formation of selecting committee.
g) Publicity campaign for the programme.
h) Development of application form.
i) Pre-potential survey of environmental opportunities.
Note- Thus, initial stage involves the identification and
selection of potential entrepreneurs and providing initial
motivation to them.
 ii. Training Phase or Development Phase

 In this phase the training programme is implemented to develop

motivation and skills among the participants. The objective of
this phase is to bring desirable change in the behaviour of the
trainees. The trainers have to judge how much and how far the
trainees have moved in their entrepreneurial pursuits.
A trainer should see the following changes in the
behaviour of participants:
a) Is there any change in his entrepreneurial outlook, role and skill?
b) How should he behave like an entrepreneur?
c) What kind of entrepreneur behaviour does the trainee lack?
d) Does he posses the knowledge of technology, resources and
other related entrepreneurial knowledge?
e) Is he skilful in choosing the right project, mobilising the right
resources at the right time?
 iii. Post- Training Phase or Follow-Up Phase

 Past-training
support services are rendered to the participants
who have successfully completed the entrepreneurship.
 This phase involves assessment to judge how far the objectives of
the programme have been achieved.
 Monitoringand follow up reveal drawbacks in the earlier phases
and suggests guidelines for framing the future policy.
 Inthis phase infrastructural support, counselling and assistance in
establishing new enterprise and in developing the existing units
can also be reviewed.
 It’s objectives are:
a) Toprovide a meaningful direction to the trainees in
grounding the enterprise.
b) Toreview the progress made by the trainees in
implementation of the project.
c) To review the past-training approach.
d) Toprovide escort services to the trainees by involving
financial institutions and promotional.
 7. Problems of EDP

 EDPs suffer on many counts. The problems are on the part of all those who
are involved in the process, be it the trainers and the trainees, the ED
organizations, the supporting organizations, and the state governments
 The operational problems of entrepreneurs development are as follows:
i. Trainer-motivations are not found up to the mark in motivating
the trainees to start their own enterprises.
ii. ED organizations lack in commitment and sincerity in conducting
the EDPs. In some cases, EDPs are used as means to generate
surplus (income) for the ED organizations.
 iii. Non-conducive environment and constraints make the
trainer-motivators’ role ineffective.
iv. The antithetic attitude of the supporting agencies like
banks and financial institutions serves as stumbling block in
the success of EDPs.
 Thus,it is clear that the problems are not with the strategy but
with its implementation.
 8. Entrepreneurial Development Cycle

STIMULATOR
Y

SOCIO-
ECONOMIC SUPPORT
ROLE

SUSTAINING
 i. Stimulatory

a) Entrepreneurial education
b) Planned publicity for entrepreneurial opportunity
c) Identification of potential entrepreneurs through
scientific method
d) Motivational training of new entrepreneurs
e) Help and guidance in selecting products and preparing
project required.
f) Making available techno-economic information and
product profits.
g) Evolving locally suitable new products
h) Availability of local agencies with trained personnel for
entrepreneurial counselling and promotion
i) Creation entrepreneurial forum
j) Recognition of entrepreneurial skills.
 ii. Support

a) Registration of unit
b) Arranging finance
c) Providing land, shed, power, water etc.
d) Guidance for selecting/obtaining machinery
e) Supply of raw materials
f) Getting licenses
g) Providing common facilities
h) Granting tax relief or other subsidy
i) Offering management consultancy
j) Help marketing product
k) Providing information
 iii. Sustaining

a) Help modernization
b) Help diversification/expansion/substitute production
c) Additional financing for full capacity utilization
d) Deferring repayment/interest
e) Production units legislation/policy change
f) Product reservation
g) Quality testing and improving services
h) Need-based common facilities Centre.
 iv. Socio-Economic Role

a) Augmenting latent qualities of the persons to become

entrepreneurs in thoughts and actions.
b) Utilizing the latent and unutilized resources like hoarded wealth
for enterprise building.
c) Helping dispersal of industries to promote balanced regional
development.
d) Creating immediate employment opportunities in small
enterprises and business sector.
e) Ensuring more equitable distribution of national income and
wealth.
 9. Relevance of EDP

a) Entrepreneurship development proved that entrepreneur can be made

they are not born.
b) Entrepreneurship developments are expected to bring about economic
and social change in the entrepreneur’s behavior.
c) Entrepreneurship development can convert ordinary persons into risk
takers innovators, employers, and above all, the leader a business and
industries.
d) Entrepreneurship developments are relevant from the point of view of
assisting the trainee entrepreneurs in converting their idle savings.
e) Entrepreneurship developments are expected to create the sense of
social responsibility in the minds of the building entrepreneurs.
 10. Importance of Entrepreneurship Development

i. Achievement of Entrepreneurial goals: It is the entrepreneurship which

makes the entrepreneurs realise the objectives of the enterprise and directs
their efforts towards the achievement of these objectives. It brings human
and material resources together to mobilize the people for the achievement
of the goals of the enterprise.
ii. Optimum use of the resources: No entrepreneurial activity can be
undertaken without the factors of production like labour, land, capital and
entrepreneurship. The three factors may prove ineffective in the absence of
the fourth which is entrepreneurship. It makes optimum utilisation of possible
resources.
iii. Provides Innovation: Entrepreneurship provides new ideas, imagination and
visions to the enterprise.
iv. Minimisation of Cost: In the present days of increasing competition,
only those enterprises can survive which can produce quality of goods
at the lower costs. Through better planning, sound organisation and
effective control, entrepreneurs enables enterprise to reduce costs
and enables an enterprise to face cut throat competition.
v. Increased Profits: Profits can be increased in any enterprise either
by increasing the sales revenue or reducing costs. To increase the
sales revenue is beyond the control of enterprise. Entrepreneurship
by reducing costs increases its profits and provides opportunities for
future growth and development.
vi. Smooth Running of Enterprise: Entrepreneurship ensures
efficient and smooth running of enterprise through better
planning, sound organisation, effective control and various tools
of entrepreneurship.
11. Institutions in the Aid of Entrepreneurship Development

Role of Government in Organizing EDPs:

 Entrepreneurship Development Programs are the Human Resource Development Programs of
the highest order which basically deal with human motivation, skill competencies, creativity,
social and economic risks and investment of financial and physical resources of the state.
 Therefore, the role of government in organizing EDP’s much significance in the country like
ours which requires the conversion of surplus labor force into real entrepreneurs to tackle
the problems of unemployment and poverty by means of the EDP mechanism
 Efforts so far put by the Union and State Governments in this regard are really
commendable.
 For organizing EDP’s on a sustained manner, the following activities have been undertaken by
the Union and State Governments right from the beginning of the EDP movement in Gujarat
since 1970.
 There are several organizations engaged in conducting Entrepreneurship Development
Programs (EDP) in India, which are as follows:-
S.No Specialized Institutions at National Other Specialized Support Financial Support Institutions
Level Institutions

1 National Institute for Entrepreneurship and Centre Institute of Tool Design (CITD)- Industries Development Bank of India (IDBI)
Small Business Development (NIESBUD)- Hyderabad
Noida

2 Small Industries Service Institutes (SISIs)- Central Tool Room and Training Centers Industrial Finance Corporation of Indian
various locations (CTTC)- Delhi, Bangalore, Kolkata, (IFCI)
Bhubaneshwar

3 National Institute for Small Industry Central Institute of Hand-tools (CIHT)- Industrial Credit and Investment
Extension and Training (NISIET)- Jalandhar Corporation of India (ICICI)
Hyderabad
4 Entrepreneurship Development Institute of Institute for Design of Electrical Measuring Life Insurance corporation of India (LIC)
India (EDI)- Ahmedabad Instruments (IDEMI)- Mumbai

5 National Science and Technology Management Development Institute (MDI)- Unit Trust of India (UTI)
Entrepreneurship Development Board Gurgaon
(NSTEDB)
6 Institute of Entrepreneurship Development Technical Consultancy Organization (TCO) Small Industrial Development Bank of India
(IEDs)- Bhubaneshwar, Lucknow, Patna, (SIDBI)
Guwahati
7 Centre for Entrepreneurship Development Xavier Institute of Social Sciences- Delhi Industrial Reconstruction Bank of India
(CEDs)- Hyderabad, Gandhinagar, Shimla, (IRBI)
Bhopal, Jaipur, Madurai
8 Small Industries Development Organization Science and Technology Entrepreneurship National Bank for Agricultural and Rural
(SIDO)- New Delhi Parks (STEP) Development (NABARD)
S.No Specialized Institutions at National Other Specialized Support Financial Support Institutions
Level Institutions

9 District Industries Centers (DICs) Central Silk Board (CSB) Export Import Bank of India (EXIM)

10 National Small Industries Corporation The Coir Board State Financial Corporations (SFCs)
(NSIC)- New Delhi

11 State Small Scale Industries Rural Development and Self- Regional Rural Bank (RRBs)
Development Corporations (SSIDCs) Employment Training Institute
(RUDSETI)

12 Small Scale Industries Board (SSIB) Electronic Training and Service National Industrial Development
Institute, Nainital. Corporation Ltd. (NIDC)

13 India Investment Centre (IIC) Central Machine Tools Limited, Commercial Banks
Bangalore.

14 Central Institute of Plastics Sports Goods and Leisure Time Khadi and Village Industries
Engineering and Tools, Madras. Equipment, Meerut. Commission (KVIC)
 (I) Specialized Institutions at National Level

1) National Institute for Entrepreneurship and Small Business Development

(NIESBUD)- Noida:
• It is an apex national level institute of its kind set up at New Delhi in 1983.
• It is a society under ministry of MSME engaged in training, consultancy, research, publication etc.
• The institute has been financially self-sufficient since 2007-08
• Operating as an integrated campus in A-23, Sector 62, Noida.
Major Activities of NIESBUD
• Its main functions are to coordinate research and training in entrepreneurship development and
to impart specialized training to various categories of entrepreneurs. It runs different kinds of
training programs including Trainer’s Training Program (TTPs)
• Besides, it also serves as a forum for interaction and exchange of views between various
agencies engaged in activities relating to entrepreneurial development
• Besides the primary/basic research it also undertakes review/evaluation of different
government schemes, training need assessment etc.
• Developed syllabus for EDPs.
• Bringing out different publications and also assembled entrepreneurship motivation training and
bring out a quarterly news journal.
• Incubation Centers: Sponsored by ministry of MSME instrumental in providing hands on training
on area real factory and market conditions and also organized self-employment fair.
• Also developed e-module for EDP and also set up intellectual property facilitation centre for
identification, management and protection of Intellectual Property Right (IPR).
2) Small Industries Service Institutes (SISIs)- various locations:
• The Small Industries Services Institutes (SISIs) are set up to provide consultancy and training to
small entrepreneurs-both existing and prospective.
• The activities of SISIs are coordinated by the Industrial Management Training division of the
DCSSI’s office.
• There are 28 SISIs and 30 branch SISIs set up in State capital and other places all over the
country.
The main functions of SISIs include :
• To serve as interface between Central and State Governments.
• To render technical support services.
• To conduct EDPs all over the country.
• To initiate promotional programs.
• To advice the central and state government on policy.
• To assist in testing of raw materials and products of SSI, their inspection and
control.
• To provide market information to the SSI’s.
• To recommend SSIs for financial assistance from banks.
3) National Institute for Small Industry Extension and Training (NISIET)-
Hyderabad:
This institute was set up in 1956 to develop the required manpower for running
small-scale industries in the country. Accordingly, its main functions are:
a) To impart training to the persons engaged in small-scale industries.
b) To undertake research studies relating to development of small-scale
industries.
c) To enter into agreements relating to consultancy services both with national
and international organizations to provide consultancy services to small
industries in the country. The institute conducts courses in business
management for the benefit of the entrepreneurs and semi-managerial
personnel of small industries. It is located at Hyderabad.
4) Entrepreneurship Development Institute of India (EDI)- Ahmadabad:
• The apex resource agency for promotion of entrepreneurship and small scale
sector, promoted by development financing institutions like IDBI, IFCI, SBI, ICICI,
etc.
• It is located at Ahmadabad.
5) National Science and Technology Entrepreneurship Development Board
(NSTEDB):
• In order to focus on special target groups like science and technology personnel,
the central government has established the NSTEDB, operating under the
department of science and technology, government of India.
• It has strived to spread the message of entrepreneurship among science and
technology personnel by organizing EDP’s.
6) Small Industries Development Organization (SIDO)- New Delhi:
• Small Industries Development Organization (SIDO) is a subordinate office of the
Department of SSI & ARI, Government of India, New Delhi.
• It has got 27 offices, 31 small industries service institutes and 37 extension
centers.
• It is an apex body and nodal agency for formulating, coordinating and monitoring
the policies and programmes for promotion and development of small-scale
industries.
• Development Commissioner is the head of the SIDO. He is assisted by various
directors and advisers in evolving and implementing various programmes of
training and management consultancy, industrial investigation, possibilities for
development of different types of Small scale industries, development of
industrial estates, etc.
• The main functions of SIDO are classified into
(i) Co-ordination,
(ii) Industrial development and
(iii) Extension.
• These functions are performed through a national network of institutions and
associated agencies. All small-scale industries except those falling within the
specialized boards and agencies like KVIC, Coir Boards, Central Silk Board, etc.
fall under the purview of the SIDO.
• Following are the main tasks performed by the SIDO in each of its three
categories of functions:
i. Functions Relating to Co-ordination
 To evolve a national policy for the development of small scale industries,
 To co-ordinate the policies and programmes of various State Governments,
 To maintain a proper liaison with the related Central Ministries, Planning
 commission, State Governments, Financial Institutions, etc., and
 To co-ordinate the programmes for the development of industrial estates.
ii. Functions Relating to Industrial Development
 To reserve items for production by small-scale industries,
 To collect data on consumer items imported and then, encourage the setting of
industrial units to produce these items by giving coordinated assistance,
 To render required support for the development of ancillary units, and
 To encourage small scale industries to actively participate in Government Stores
Purchase Programme by giving them necessary guidance, market advice and
assistance.
iii. Functions Relating to Extension
 To make provision of technical services for improving technical process,
production planning, selecting appropriate machinery, preparing factory layout
and design.
 To provide consultancy and training services to strengthen the competitive ability
of small-scale industries.
 To render marketing assistance to small-scale industries to effectively sell their
products, and

To provide assistance in economic investigation and information to small scale
industries.
7) District Industries Centers (DICs):
• The District Industries Centres (DICs) were established in May 1978 with a view to provide
integrated administrative framework at the district level forpromotion of small-scale
industries in rural areas.
• The DICs are envisaged as a single window interacting agency with the entrepreneur at the
district level.
• Services and support to small entrepreneurs are provided under a single roof through the DICs.
• They are the implementing arm, of the Central and State Governments for various schemes
and programmes.
• Registration of small industries is done at the district industries centres.
• The organisational structure of DICs consists of General Manager, four Functional Managers and
three Project Managers to provide technical service in the area relevant to the needs of
district concerned.
• Management of the DIC’s is done by the State Governments.
• The scheme has now been transferred to the states and from the year 1993-94, funds will not
be provided by the Central Government to the States for running the DICs.
Functions : The DICs role is mainly promotional and developmental. To attain
this, they have to perform the following main functions :
 To conduct industrial potential surveys keeping in view the availability of resources
in terms of material and human skill, infrastructure, demand for product, etc.
 To prepare techno-economic surveys and identify product lines and then to provide
investment advice to entrepreneurs.
 To prepare an action plan to effectively implement the schemes identified.
 To guide entrepreneurs in matters relating to selecting the most appropriate
machinery and equipment, sources of its supply and procedure for procuring
imported machinery, if needed, assessing requirements for raw materials etc.
 To appraise the worthiness of the various proposals received from entrepreneurs.
 To undertake product development work appropriate to small industries.
 To conduct artisan training programmes.
8) National Small Industries Corporation Ltd. (NSIC)- New Delhi:
 The National Small Industries Corporation Ltd. (NSIC), an enterprise under the Union
Ministry of Industries, was set up in 1955 to promote, and foster the growth of small
scale industries in the country. NSIC provides a wide range of services, predominantly
promotional in character to small scale industries.
Its main functions are:
 To provide machinery on hire-purchase scheme to small scale industries.
 To provide equipment leasing facility.
 To help in export marketing of the products of small scale industries.
 To distribute basic raw material among small scale industries through raw material
depots.
 To help in the development and up gradation of technology and implementation of
modernization programmes of small scale industries.
 To impart training in various industrial trades.
 To undertake the construction of industrial estates.
9) State Small Scale Industries Development Corporations (SSIDCs):
• Most of the state governments have set up small scale industries
corporation in order to undertake a variety of commercial and
industrial activities.
The main functions are:
• To undertake the distribution of scarce raw materials.
• To assist the entrepreneurs in supply of machinery.
• To provide assistance for marketing of products of SSEs.
• To undertake construction of sheds/ industrial estates.
• To provide allied infrastructure facilities and their maintenance.
• To provide management assistance to production units.
10)Small Scale Industries Board (SSIB):
 The Government of India constituted a Board, namely, Small Scale Industries Board
(SSIB) in 1954 to advise on the development of small scale industries in the country.
 The SSIB is also known as Central Small Industries Board. The range of
developmental work in small scale industries involves several
departments/ministries and several organs of the Central/State Governments.
 Hence, to facilitate co-ordination and inter-institutional linkages, the Small Scale
Industries Board has been constituted.
 It is an apex advisory body constituted to render advice to the Government on all
issues pertaining to the development of small-scale industries.
 The Industries Minister of the Government of India is the Chairman of the SSIB.
 The SSIB comprises of 50 members including State Industry Minister, some Members
of Parliament, Secretaries of various Departments of Government of India, financial
institutions, public sector undertakings, industry associations and eminent experts
in the field.
11) India Investment Center (IIC):
• IIC was set up a non-profit making autonomous organization funded and
supported by the government of India.
The main functions are-
• It undertakes the task of promotion mutually-rewarding joint venture projects
between Indian and foreign entrepreneurs.
• It acts as a nodal point of providing information relating to economic
conditions, laws, opportunities, procedures & formalities for investment in
India.
• It provides linkage between Indian and foreign entrepreneurs and assist them in
coming together for fruitful collaborations.
 (II) Other Specialized Support Institutions

12) Technical Consultancy Organization (TCO):

• A network of Technical Consultancy Organizations (TCOs) was established by the
all India financial institutions in the seventies and the eighties in collaboration
with state level financial/development institutions and commercial banks to
cater to the consultancy needs of small industries and new entrepreneurs.
• At present, there are 17 TCOs operating in various states, some of them covering
more than one state. These 17 TCOs are:
i. Andhra Pradesh Industrial and Technical Consultancy Organisation Ltd. (APITCO).
ii. Bihar Industrial and Technical Consultancy Organisation Ltd. (BITCO).
iii. Gujarat Industrial and Technical Consultancy Organisation Ltd. (GITCO).
iv. Haryana-Delhi Industrial Consultants Ltd. (HARDICON).
v. Himachal Consultancy Organisation Ltd. (HIMCO).
vi. Industrial and Technical Consultancy Organisation of Tamil Nadu Ltd.(ITCOT).
vii. Jammu and Kashmir Industrial and Technical Consultancy Organisation Ltd. (J&KITCO).
viii. Karnataka Industrial and Technical Consultancy Organisation Ltd. (KITCO).
ix. Madhya Pradesh Consultancy Organisation Ltd. (MPCON).
x. Mahrashra Industrial and Technical Consultancy Organisation. Ltd. (MITCON).
xi. North-Eastern Industrial Consultants Ltd. (NECON).
xii. North-Eastern Industrial and Technical Consultancy Organisation Ltd. (NEITCO).
xiii. North-India Technical Consultancy Organisation Ltd. (NITCON).
xiv. Orissa Industrial and Technical Consultancy Organisation Ltd. (ORITCON).
xv. Rajasthan Consultancy Organisation Ltd. (RAJCON).
xvi. U.P. Industrial Consultants Ltd. (UPICO).
xvii. West Bengal Consultancy Organisation Ltd. (WEBCON).
Functions
Initially, TCOs’ functions were focused on pre-investment studies for small and medium scale
enterprises. Over the years, they have diversified their functions to include the following:
 To prepare project profiles and feasibility profiles.
 To undertake industrial potential surveys.
 To identify potential entrepreneurs and provide them with technical and management
assistance.
 To undertake market research and surveys for specific products.
 To supervise the project and where necessary, render technical and administrative
assistance.
 To undertake export consultancy for export-oriented projects based on modern technology.
 To conduct entrepreneurship development programmes.
 To offer merchant banking services.
 (III) Financial Support Institutions

13) Small Industrial Development Bank of India (SIDBI):

 Small Industries Development Bank of India (SIDBI) is the apex regulatory body for overall licensing
and regulation of micro, small and medium enterprise finance companies in India.
 It is under the jurisdiction of Ministry of Finance , Government of India headquartered at Lucknow
and having its offices all over the country.
 Its purpose is to provide refinance facilities to banks and financial institutions and engage in term
lending and working capital finance to industries, and serves as the principal financial institution in
the Micro, Small and Medium Enterprises (MSME) sector.
 SIDBI also coordinates the functions of institutions engaged in similar activities.
 It was established on 2 April 1990, through an Act of Parliament. 
 SIDBI is one of the four All India Financial Institutions regulated and supervised by the Reserve Bank
of India; other three are India Exim Bank, NABARD and NHB.
 In order to increase and support money supply to the MSME sector, it operates a refinance program
known as Institutional Finance program. Under this program, SIDBI extends Term Loan assistance to
Banks, Small Finance Banks and Non-Banking Financial Companies. Besides the refinance operations,
SIDBI also lends directly to MSMEs
14) Commercial Banks:
 In recent times commercial banks have not confined themselves to mere
extension of finance to small entrepreneurs but have shown genuine concern
for their progress and development.
 They have now entered the challenging field of promoting new small scale
entrepreneurs through entrepreneurship development programmes.
 In their new role as promoters of small scale sector they have accepted yet
another challenging task.
 They are now holding EDPs in collaboration with specialized institutions such as
DIC, SISI, TCOs, etc. with a view to identifying entrepreneurs, especially in
backward areas, and training and monitoring them to start new ventures.
15) Khadi and Village Industries Commission (KVIC):
 KVIC was set up in 1953.
 The primary objective of establishing KVIC is to develop Khadi and Village industries
and improving rural employment opportunities.
 Its wide range of activities include training of artisans, extension of assistance for
procurement of raw materials, marketing of finished products and arrangement for
manufacturing and/ distribution of improved tools, equipment and machinery to
producers on concessional terms.
 KVIC provides assistance to Khadi and Village industries which are characterized by
low capital intensity and ideally suited to manufacturing utility goods by using locally
available resources.
 There are about 26 specified-village industries such as processing of cereals and
pulses, leather, cottage matches, gur and khandsari, palm gur, non-edible oils and
soaps, village pottery, carpentry, gobargas, household aluminium utensils, etc.
 Activities involving pioneering types of work, such as developing new industries in
hilly, backward and inaccessible areas are undertaken by KVIC directly.
 12. EDP’s and Role of Women Entrepreneurs

Women Entrepreneur: meaning

 Women Entrepreneurs means the women or a group of women who initiate, organize
and operate a business enterprise.
 A woman entrepreneur is therefore a confident, creative and innovative woman
desiring economic independence individually and simultaneously creating
employment opportunities for others In the advanced countries of the world, there
is a phenomenal increase in the number of self-employed women after the World
War II.
Need: They have made their mark in business for the following reasons:
 They want new challenges and opportunities for self-fulfillment.
 They want to prove their determination in innovative and competitive jobs.
 They want the change to control the balance between their family responsibilities
and their business lives.
 Definition:

 “Anenterprise owned and controlled by woman having a minimum

financial interest of 51% of the capital and giving at least 51%
employment generated to women” -By Government of India
 “Womenwho innovate initiate or adopt business actively are called
women entrepreneurs.” -J.Schumpeter
 “Women entrepreneurship is based on women participation in
equity and employment of a business enterprise.” -Ruhani J. Alice
 Features:

1. They should be educated and skillful.

2. Must have professional education to become better entrepreneur.
3. She should be capable enough to do innovations and be able to bear
risks and uncertainties.
4. Able to make utilization of various schemes, and aids given by
government.
5. She should be capable enough to face male competitors and should
possess guts to move ahead.
6. She should be capable enough to make autonomous investment.
7. She must possess some ethics and egoism and should be egotist as well.
 
 Types of Women Entrepreneur

1) Affluent entrepreneurs – These are daughters and wives of wealthy businessmen. These
women have the financial aid and the necessary resources to start a new enterprise and take
business risks.
2) Pull factors – These are educated women living in urban areas with or without work experience
who take the risk of a new enterprise with the help of financial institutions and commercial
banks. These women take up a new business as a challenge in order to be financially
independent.
3) Push factors – These women take up some business activity in order to overcome financial
difficulties. Generally widows and single women manage an existing family business or develop
a new business due to difficult family situations.
4) Rural entrepreneurs – These women belong to rural areas and choose a business suiting their
resources and knowledge. Business carried out involves low investment, minimum risk and does
not require any special skills.
5) Self-employed entrepreneurs – They are uneducated women who fall below the poverty line.
They choose tiny and small enterprise which are convenient to manage and adequate for the
sustenance of her family.
 Factors Influencing Women Entrepreneurship:

1. Family culture and traditions – Family culture and traditions influence

entrepreneurship. Women entrepreneur will remain entrepreneur if its family
tradition is so or if she belongs to a pioneer entrepreneur.
2. Geographical factors and social factors – The society the state and the area to
which she belongs also influence the entrepreneurship. If she is a Punjabi or Gujrati
belonging to their respective state, will become entrepreneurs.
3. Caste system – The caste system also influences as a women who is Sindhi may
start a business at an early stage as in their caste or communities it is a trend.
Government aids and policies – Government can never increase entrepreneurship, it
always helps an entrepreneur. A capable person only can become entrepreneur
even if she gets aids or adopts policies to start a venture.
4. Government can help poor class people with reservations. Government help can
be of significance if entrepreneur takes its help for logical conclusions. But for this,
caliber of an entrepreneur is also seen.
5. Inherent capabilities and efficiency – Capabilities to withstand the competition with males requires
guts and dare to become an entrepreneur. Females require same capabilities as that of males. They get
benefit of being females only when the service has to be rendered to women only like in hospitals etc.
Capabilities influence the entrepreneurship but efficiency is also required as if the person has capability to
become an entrepreneur but if she is not efficient to run the venture she cannot become a better
entrepreneurship.
i. Push Factors:
a. Death of bread winner
b. Permanent inadequacy in income of the family
c. Sudden fall in family income
ii. Pull Factors:
a. Need and perception of Women’s Liberation, Equity etc.
b. To gain recognition, importance and social status.
c. To get economic independence
d. To utilize their free time or education
e. Women’s desire to evaluate their talent
 The role of women entrepreneurs

 Employment Generation: It implies that women entrepreneurs not only

establish their enterprise, but provide job to others. Women
entrepreneurship is about women’s position in the society and their role as
entrepreneurs in the same society. It can be understood in two ways,
namely, at the individual level (number of self-employed) and at the firm
level (number of firms owned by women and their economic impact). In
this way, woman entrepreneurs have an important impact on the economy
in terms of their ability to create jobs for themselves as well as for others.
 Economic Development: It signifies that women entrepreneurs contribute
to the gross domestic product of the country by establishing enterprises
and producing goods and services. Due to their entrepreneurial activity,
women entrepreneurs bring dynamism in market. In this way, they also
help in increasing the national income of the country.
 Better Utilization of Resources: It implies that the involvement of women in industrial
development ensures the effective utilization of all available resources (labor, raw materials,
capital). The issue of women in the industrialization process has been emphasized only in the
last decade when the ‘Declaration of Mexico in July 1975’, the equality of womanhood and their
contribution to individual development became the center of attention.
 Improved Quality of Life: It implies that women entrepreneurs are now economically
independent and take decisions independently. They are now capable of upbringing their
children according to their wish. They are providing quality education to their children and a
better living standard to their family members. They not only improve their living standards,
but also the living standards of others by providing them the means of earning.
 Barriers in the Path of Women Entrepreneurs:

There are many barriers or constraints that restrict the expansion of women entrepreneurship. The
major barriers in the path of women entrepreneurs are as follows:
1. Financial Problem: It refers to the major problem of women entrepreneurs that arise due to the
lack of access to funds. It is really difficult for them to arrange the requisite fund as they may not
possess any tangible security and credit in the market. Generally, the family members of women
entrepreneurs do not have confidence in their capability of running the business successfully.
Women entrepreneurs even face problems in financing day-to-day operations of enterprises,
including purchasing of raw materials and paying wages to labors. The lack of access to funds
makes the condition of women entrepreneurs extremely vulnerable. The complexities and the
complications in the process of obtaining bank loans usually deter women from establishing
enterprises.
2. Production Problem: Production problem act as a main problem that discourages women to be
entrepreneurs. The data shows that the participation of women entrepreneurs in the production is
minimal due to complications involved in the production process. In a manufacturing enterprise,
production involves the coordination of a number of activities. Improper coordination and delay in
execution of any activity cause problems in production. This may become difficult for women
entrepreneurs to coordinate and control all the production activities.
 3. Marketing Problem: Marketing problem refers to the problems of women entrepreneurs in marketing
their products or services. Lack of mobility and heavy competition in the market makes the women
entrepreneurs dependent on middlemen. Middlemen take a huge amount of money to market the products.
Women entrepreneurs lack information on changing market and find it difficult to capture the market and
make their products popular.
 4. Socio-Cultural Barriers: Socio-cultural barriers refer to the constraints and barriers imposed on women
entrepreneurs by the society. In conventional countries, such as India, the major role of a woman is
acknowledged towards her family. She has to perform primarily her family duties irrespective of her career
as a working woman or an entrepreneur. A woman entrepreneur has to bear double responsibilities, she
has to manage her family as well as her business
 5. Lack of Confidence: It refers to the personal problem of women entrepreneurs. Women have been
dependent on their family members for a long time. They have been always protected and guided by the
male members of their family. Right from taking any decision to going anywhere they are accompanied by
male. This makes women feel less confident even about their own capabilities. Despite these all barriers
women entrepreneurs have proved themselves in all the walks of industrial activities. They are successfully
performing and managing their roles at work and home. They have made a great level of adjustment and
tuning between two roles of a woman. They are confident, creative, and are very much capable of running
an enterprise, regardless of all the barriers in their path.
 END
UNIT 2