Entrepreneurship Development

PRESENTED BY: VINEET VERMA SANDEEP SINGH

Definition of Small scale Industry

The small-scale industries sector plays a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy. It has been estimated that a million Rs. of investment in fixed assets in the small scale sector produces 4.62 million worth of goods or services with an approximate value addition of ten percentage points.

Introduction Of Financial Institutions

The economic development of any country depends on the extent to which its financial system efficiently and effectively mobilizes and allocates resources. There are a number o banks and financial institution that perform this function.

All India Financial Institutions

o Industrial Development Bank of India (IDBI) o Industrial Finance Corporation of India (IFCI) o Export - Import Bank of India (Exim Bank) o Industrial Reconstruction Bank of India (IRBI) now (Industrial Investment Bank of India) o National Bank for Agriculture and Rural Development (NABARD) o Small Industries Development Bank of India (SIDBI) o National Housing Bank (NHB) o Unit Trust of India (UTI) o Life Insurance Corporation of India (LIC) o General Insurance Corporation of India (GIC) o Risk Capital and Technology Finance Corporation Ltd. (RCTC) o Technology Development and Information Company of India Ltd.(TDICI) o Tourism Finance Corporation of India Ltd. (TFCI) o Shipping Credit and Investment Company of India Ltd. (SCICI) o Discount and Finance House of India Ltd. (DFHI) o Industrial Development Bank of India(IDBI)

OTHER AGENCIES
National Bank for Agriculture and Rural Development (NABARD) Housing and Urban Development Corporation Ltd. (HUDCO) Set up in 1982, provide refinance assistance to State Cooperative Banks, Regional Rural Banks, and other approved institutions for all kinds of production and investment credit to SSIs, artisans, cottage and village industries, handicrafts and other allied activities. Helps SSI entrepreneurs to get loan for setting up SSIs in any part of the country Wholly owned company of GOI, incorporated Apr.1970, as a Pvt. Ltd. Co. and subsequently, converted into a Public Ltd. Co. in 1986. Primary objective is to provide assistance for urban, social sector infrastructure, and the creation of housing facility, of late, to create SSI infrastructure. Also extends assistance for the promotion of building material industries, besides imparting consultancy, training and technical in related matters. Set up by all-India financial institutions during 70s and 80s to cater to consultancy needs of SMEs and new entrepreneurs. Services include preparing project profiles and feasibility studies, undertaking industrial potential surveys, identifying potential entrepreneurs and provision of technical and management assistance to them, undertake market research and surveys for specific products, carrying out energy audit and energy conservatism assignment, project supervision, taking up assignments on a turnkey basis, undertaking export consultancy for EOU

Technical Consultancy Organizations (TCOs)

Industrial Credit and Investment Corporation of India (ICICI

Was established in 1955 as a public limited company in the private sector. ICICI set up the ICICI Bank in 2002. The ICICI Ltd was later merged with its subsidiary the ICICI Bank ltd. ICICI Bank is now the second largest commercial bank in India and the largest bank in the private sector. It has assumed the role of a universal bank. Objectives: Main aim was to promote industrial development in the private sector by providing financial, technical, administrative and other services To assist in the promotion, expansion and modernization of industrial enterprises in the private sector To encourage and promote the participation of private capital, both Indian and foreign To stimulate the growth of private ownership of industrial investments and expansion of investment markets.

Industrial Development Bank of India

It started operations in 1964. IDBI represents an attempt to combine in a single institution the requirements of an expanding economy and need for a coordinated approach to industrial financing. In 1994 the Bank was permitted to issue equity shares in the capital market. Majority of its shares are still owned by the Government. Objectives: To co-ordinate, regulate and supervise the activities of all financial institutions providing long term finance to industry. To enlarge the usefulness of these institutions by supplementing their resources and by widening the scope of their assistance Provide direct finance to industry to bridge the gap between demand and supply of long term and medium term finance to industrial concerns in both the public and private sectors Locate and fill up gaps in the industrial structure of the country Adopt and enforce a system of priorities so as to diversify and speed up the process of industrial growth

Small Industries Development Bank of India (SIDBI)

Set up in 1990as a wholly owned subsidiary of IDBI. SIDBI took over the outstanding portfolio of IDBI related to the small scale sector worth Rs. 4000 crores. Objective: It was envisaged as the principal financial institution for the promotion, financing and development of the industry in the small scale sector and to coordinate the functions of other institutions engaged in similar activities. Functions: Refinancing loans and advances extended by primary lending institutions to small scale industrial units Discounting and rediscounting bills in the small scale sector Extending need capital /soft loan assistance under the National Equity Fund, Mahila Vikas Nidhi etc. Granting direct assistance and refinance for financing exports of products manufactured in the small scale sector Providing financial support to NSIC (National Small Industries Corporation) for providing leasing, and marketing support Providing services like leasing, factoring to industrial concerns in the small scale sector.

How can Helps the economy of the Country ?

 Employment  Export  Increasing Export Potential for Indian products  Growth in demand in the domestic market size due to overall economic growth  Technical & Managerial skills  Manpower Training  Raw Material Procurement

THANKS