Institutional Support for Entrepreneurship in India
Key Central Government Institutions Supporting Entrepreneurship
To promote entrepreneurship and the growth of Micro, Small, and Medium Enterprises (MSMEs), the Central Government of India has established a comprehensive institutional support system.
These institutions provide finance, training, technical assistance, marketing support, and policy guidance to entrepreneurs.
National Small Industries Corporation (NSIC)
A Government of India enterprise under the Ministry of MSME.
Services Offered:
- Raw material assistance
- Credit facilitation through banks
- Marketing support through exhibitions, consortia, and e-markets
- Technology incubation centers
Small Industries Development Bank of India (SIDBI)
Apex financial institution for the MSME sector.
Provides:
- Direct and indirect finance for small enterprises
- Assistance for technology upgradation
- Refinance facility to commercial banks
- Implements schemes like SMILE and MSE Credit
Khadi and Village Industries Commission (KVIC)
Promotes rural entrepreneurship through khadi, coir, and village industries.
Implements:
- Prime Minister’s Employment Generation Programme (PMEGP)
Offers:
- Training, raw materials, and financial support for rural startups
District Industries Centres (DICs)
Operate at district level to provide a single-window clearance system.
Assistance Areas:
- Entrepreneur guidance
- Project preparation
- Loan facilitation
- MSME registration and support schemes
National Bank for Agriculture and Rural Development (NABARD)
Focuses on rural entrepreneurship and agriculture-based businesses.
Offers:
- Refinance to banks
- Promotion of Self-Help Groups (SHGs)
- Capacity building programs
- Rural infrastructure funding
State Government Institutions
State Financial Corporations (SFCs)
Established under the State Financial Corporations Act, 1951.
Provide medium and long-term finance to entrepreneurs within the state.
Key Functions:
- Provide loans for land, building, and machinery.
- Encourage self-employment and women entrepreneurs.
- Offer seed capital assistance.
Example: Kerala Financial Corporation (KFC)
State Small Industries Development Corporations (SSIDC)
Registered under the Companies Act, 1956.
Support small, tiny, and village industries.
Key Functions:
- Procurement and distribution of raw materials.
- Supply of machinery on hire-purchase basis.
- Development of industrial estates.
- Marketing support for small-scale products.
Example: Kerala SIDCO, functioning as SSIDC in Kerala.
Technical Consultancy Organizations (TCOs)
Set up in states to offer professional consultancy to entrepreneurs.
Sponsored by financial institutions like IDBI, IFCI, and ICICI.
Key Services:
- Preparation of project profiles and market surveys.
- Conducting Entrepreneurship Development Program (EDP) training, and providing technical and managerial support.
- Assistance in project supervision, modernization, and revival of sick units.
Example: KITCO Ltd. (Kerala Industrial and Technical Consultancy Organization)
Key Non-Government Institutions and Their Functions
Confederation of Indian Industry (CII)
A leading industry association promoting industrial growth and entrepreneurship.
Functions:
- Organizes entrepreneurship and innovation summits
- Provides a platform for policy dialogue and business networking
- Offers capacity building programs for MSMEs
- Supports startups and women entrepreneurs
Federation of Indian Chambers of Commerce and Industry (FICCI)
One of the oldest non-governmental trade associations in India.
Functions:
- Organizes conferences, exhibitions, and policy advocacy forums
- Supports startups through mentorship and incubation
- Promotes export readiness and innovation
- Conducts research and policy studies to support entrepreneurship
World Association for Small and Medium Enterprises (WASME)
A global NGO supporting MSMEs and entrepreneurship.
Functions:
- Promotes international cooperation for SME growth
- Provides training, certification, and consultancy
- Organizes the World SME Conference
- Advocates SME-friendly policies at national and international levels
Self Employed Women’s Association (SEWA)
A national trade union of poor, self-employed women workers.
Functions:
- Organizes women into cooperatives and SHGs
- Provides microcredit, insurance, and training
- Offers vocational skill development and entrepreneurship training
- Promotes economic and social empowerment of women entrepreneurs
Importance of Non-Government Institutions
- Bridge the gap between entrepreneurs and policymakers
- Provide flexible and customized support services
- Foster an environment of collaboration, mentorship, and innovation
- Empower marginalized groups like women, youth, and rural entrepreneurs
Benefits of Entrepreneurial Networks
Access to Knowledge and Information
Networks offer up-to-date market trends, legal advice, industry best practices, etc.
Helps entrepreneurs make informed business decisions.
Mentorship and Guidance
Experienced mentors provide support on business planning, risk management, and growth strategies.
Helps avoid common pitfalls faced by startups.
Access to Funding Opportunities
Networks connect entrepreneurs with investors, venture capitalists, and banks.
Improve chances of securing financial support for scaling up.
Market Linkages and Customer Access
Helps entrepreneurs enter new markets or expand their reach.
Facilitates B2B connections and trade partnerships.
Collaborations and Strategic Alliances
Entrepreneurs can form joint ventures, technology-sharing arrangements, and co-develop products.
Encourages innovation and cost sharing.
Reputation and Credibility Building
Association with reputed networks enhances the entrepreneur’s credibility and trust.
Builds a strong brand image.
Skill Development and Capacity Building
Offers training programs, workshops, and webinars on various business skills.
Enhances leadership, communication, and digital competencies.