PROPOSAL-ENTREPRENEUR NURTURING CENTRE (ENC)

Introduction:
The Micro, Small and Medium Enterprises (MSME) sector is estimated to account for 45% of the
manufacturing output and 40% of total exports of the country, in terms of value. It is well known
that MSME sector provides maximum opportunities for both self-employment and jobs, outside
agriculture sector. With the slowdown in economic progress in India, more such MSMEs are
needed to keep the economy moving and provide an income base to the burgeoning population
of India. In this regard, the two main tools that will be needed by the entrepreneurs who are
willing to establish their own businesses are skills and business acumen. Although the Ministry
of MSME (M/o MSME) has taken a lot of policy initiatives in the recent years to make the sector
a significant player in the global marketplace, growth in this sector have been slow. Observing
this, Webcon Consulting (India) Ltd. (Webcon) had approached the ministry to initiate a pilot
project called Entrepreneur Nurturing Centre (ENC) which will be a unique tool to help set up
such MSME businesses. This note has been prepared to present the vision and approach of ENC.
Policy Initiatives by M/o MSME:
Skill and Entrepreneurship Development (SDP and EDP) Training: M/o MSME has set up three
National level Entrepreneurship Development Institutes namely, The National Institute for
Entrepreneurship and Small Business Development (NIESBUD), Noida, National Institute for
Micro, Small and Medium Enterprises (NI-MSME), Hyderabad, and Indian Institute of
Entrepreneurship (IIE), Guwahati, to undertake the task of EDP and SDP on a regular basis. In
addition to this, existing 18 Tool Rooms and Technology Development Centres (TDCs) also
impart high tech training in conventional manufacturing, CAD/CAM, tool design, CNC,
mechatronic, etc.
Business Creation: The Ministry has been running a scheme called Prime Ministers Employment
Generation Program (PMEGP) since 2008-09 which supports viable projects in the micro sector
by providing margin money to entrepreneurs in rural and urban areas. Further, the Ministry has
launched a scheme called Rajiv Gandhi Udyami Mitra Yojana (RGUMY)- a scheme for
promotion and handholding of micro and small enterprises. An Udyami Helpline (a Call Centre
for MSMEs) with a toll free No. 1800-180-6763 has been functioning, set up under the Scheme,
to provide information, support, guidance and assistance to first generation entrepreneurs as
well as other existing entrepreneurs.
National Small Industries Corporation Ltd. (NSIC): This is another endeavor of the M/o MSME, a
government enterprise working to fulfill its mission of promoting, aiding and fostering the
growth of small industries and industry related micro, small and medium enterprises in the
country. NSIC operates through countrywide network of offices and Technical Centres in the
country and 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

Webcon Consulting (India) Ltd.

comprise of facilitating marketing support, credit support, technology support and other
support services.
District Industries Centre (DIC) and MSME Development Institute (MSME-DI): The DICs under
State Governments and MSME-DIs of M/o MSME are the two primary agencies which provide
facilitation to the new and existing entrepreneurs in developing their enterprises.
M/o MSME envision a vibrant MSME sector by promoting growth and development of the
MSME Sector, including Khadi, Village and Coir Industries , in cooperation with concerned
Ministries/Departments, State Governments and other Stakeholders, through providing support
to existing enterprises and encouraging creation of new enterprises. However, the sector is
suffering from quite a few impediments, which need to be addressed immediately. Resurgence
is needed for the various initiatives undertaken by the ministry to spearhead a meteoric growth
in MSME enterprises.
Skilling Plus Plus:
Entrepreneurship has been considered as the backbone of economic development. The myth
that entrepreneurs are born, no more holds good, rather it is well recognized now that the
entrepreneurs can be created and nurtured through appropriate interventions in the form of
entrepreneurship development training.
By 2050, India will have one of worlds largest young population along with 25% of worlds
graduate students. India potentially could be the single largest producer of highly qualified
engineers and an awesome possessor of the largest young workforce with the highest level of
knowledge skills in the world.
The vision is to orient this trained workforce in the direction of entrepreneurship so that they
contribute to the economy and reduce the burden of unemployment on the state. That is where
the concept of Skilling Plus Plus comes to the picture. This will involve imparting
entrepreneurial skills to all levels of the workforce, besides the existing skill education received
by them at a specialized place to encourage them to open their own business.
Entrepreneurship Nurturing Centre (ENC):
The ENC is a full-fledged one-stop, single-window facility which provides information, procedural
assistance and guidance to individuals and offer hand-holding assistance to realize their
dreams of becoming an entrepreneur and creating a business of their own. The novelty of this
idea lies in the fact that anybody and everybody would be able to access the services of this
facility, be they be new or existing entrepreneurs.
Anyone who utilises the services of this initiative gets the privilege of:
DELIVERY AREA
ENCs CONTRIBUTION
Requisite training &
knowledge up-gradation
Ready-made
profiles

Through specialized & localized training program, suited to the

needs of present entrepreneurs & would be entrepreneurs.

project Detailed & project specific project profiles will be made available to
the entrepreneurs , in order to upgrade their embedded

Webcon Consulting (India) Ltd.

understanding of project as well as project implementation facets

along the stated Central and state guidelines.
Entrepreneur
Information Database

Lack of correct & adequate data base for the entrepreneurs is one
of the prime stumbling block, causing tremendous value loss from
both input cost as well as output value wise. Availability of relevant
& correct information system and ENCs involvement to teach the
entrepreneurs at extract value from the available information pool
will act as fillip to the entrepreneurs.

Information on Central &

State
incentives
/
schemes
&
linking
projects & entrepreneurs
with
appropriate
schemes

The vast pool of industry incentives are not always readily available
to the entrepreneurs, especially to the first generation
entrepreneurs in the hinterland. Whereas appropriate utilisation of
such schemes & incentives can certainly do wonders to the
entrepreneurs. ENC will play a linking role in enhancing the
knowledge area.

Guidance to avail off Availability of capital, that too at right financial cost, is one of the
key factors, that plays a pivotal role in turning the venture
credit facilities
economically viableENC will impart qualified input to the
entrepreneurs in this regard.
Market information

Correct market information, both in terms of inputs as well as the

produce, covering local, inter state as well as foreign market can be
very useful & the economically exploitable. ENC will handhold
entrepreneurs, specific to the industry to have access to correct
market information.

Over
all
Consulting ENC will suitably educate and handhold the entrepreneurs during all
assistancepre to post these 3 phases of their business, encompassing statutory,
start
up
to
the compliance related , financial & other economic parameters issues.
stabilization stage

The ENC will consist of agents who will personally guide the entrepreneur through the steps of
forming an enterprise with the support of an expert group constituting legal, taxation,
technology, marketing and human resource professionals. Additionally, the ENC will be drawing
up a pool of experts from diverse areas whose knowledge can be drawn upon in cases of
specialized ventures.

Webcon Consulting (India) Ltd.

Another objective of ENC will be to conduct periodic EDPs for prospective entrepreneurs and
also at colleges, management institutes and ITIs to attract and motivate entrepreneurs to avail
the services of ENC and set up new establishments. This will be part of the Skilling Plus Plus
program mentioned before. Efforts will be made to identify and nurture entrepreneurs from
these interactions and hand-hold them until successful creation of enterprises by such
entrepreneurs.
ENC also will make provisions to offer table/desk space with internet facilities to interested
entrepreneurs, as a part of its incubation effort, to kick-start their entrepreneurial ambition.
Another major objective of ENC will be to assist similarly skilled entrepreneurs to form clusters
and bring the cluster under the scheme of MSE-CDP by M/o MSME.
Webcon proposes to start ENC as a pilot project in Kolkata, West Bengal, where Webcon is
located. In this stage, the ENC will be approaching colleges (degree and engineering) as well as
entertaining walk-ins to hand hold them to their own enterprises. Based on the demands and
general market perspective, ENC has selected and already prepared the following project
profiles to focus enterprise building during the pilot stage:

Jute diversified products

Handicrafts
Poultry
Tailoring
Beautician
Massage parlour
Handicrafts
Embroidery work
Plumbing
Mobile Repairing

The Ministry has already got its flagship scheme, PMEGP, for subsidizing bank credit to new
entrepreneurs and RGUMY, set up for handholding of new entrepreneurs for setting up the
enterprise, operations and marketing. The ENC will be the destined support package that may
be developed to supplement these schemes. The approach of ENC will be two pronged- to
enhance the skill of the entrepreneur and imparting managerial and business skills. Besides, the
entrepreneurs will be exposed to innovative ideas and also asked to share their own so that new
avenues are discovered in various fields. The target of ENC will be to make at least 1,000
entrepreneurs in the pilot stage.
Funding
The main obstacle faced in making ENC successful is getting sufficient number of entrepreneurs.
Although there may be potential entrepreneurs ready to venture out on their own, the lack of
knowledge and the awareness that there are facilities available like ENC to help them remain as
an impediment.

Webcon Consulting (India) Ltd.

PILOT PROJECT & CAMPAINING : WEBCON proposes to make ENC familiar amongst the urban
and rural population by opening first one ENC in the state of West Bengal, which will be run on a
pilot basis. If the model proves to be successful, similar centres will be opened in other states.
Simultaneously, popularity campaigns through different mechanisms like advertisements,
events, seminars etc. Will be run to make people aware of ENC.
COST STRUCTURE & SHARING : Bearing the cost factor in mind and how both WEBCON and M/o
MSME will benefit from these steps, WEBCON would request M/o MSME to be a partner in
these activities (operational and promotional), by bearing the cost of at least 50% of the onetime and operational cost estimated to operate ENC.
(An indicative expense detail for carrying out both operational and promotional activities of ENC
in the state of West Bengal is given below.)
The tentative expense details for operating ENC for a year are as below:
Sl. No. Description of expense
Amount (Rs.)
Remarks
1
Onetime
2,50,000
Lumpsum
2
Operational
102,80,000
Yearly expense
3
Marketing
3,90,000
Yearly expense
4
EDP
60,00,000
Yearly expense
AUTHORIZATION : Besides, Webcon requests for a letter/certificate of endorsement from the
M/o MSME that Webcon Consulting (India) Ltd. is empanelled/appointed as one of the bodies
to actively nurture and promote entrepreneurship in the MSME sectors; to propagate/promote
its various schemes such as IDLS, IIUS, etc; and to create awareness of entrepreneurship and
creation of enterprises among students of higher educational institutions and general public.
Such an endorsement from the M/o MSME will provide us with more authentic credential in our
campaign to nurture and create entrepreneurs.
Webcon proposes to approach other ministries like Ministry of Textile, Ministry of Science &
Technology, etc. for similar funding. In this context, it hopes that the endorsement of the M/o
MSME would be a great boost to chances of getting supplementary funds from other ministries
involved in similar schemes.
Future Plans
All the above out-of-the-box concepts will make ENC a unique body and the success of this may
easily be replicated in other states to promote entrepreneurs and various government schemes
to ultimately develop wealth and create jobs. The ultimate goal of Webcon is to convert ENC
into an Excellence Centre, which can be modeled all over India.

Webcon Consulting (India) Ltd.