Institutional Support, Entrepreneurship Development II Notes

Entrepreneurship Development II

Unit – II: Institutional Support

Micro, Small and Medium Enterprises Development Organisation (MSME DO)

This is the apex body for promotion and development of micro, small and medium enterprises in India. On enactment of the MSME Act 2006, MSME – DO come into being after revocation of the Small Industries Development Organisation (SIDO). The MSME – DO is headed by the Additional Secretary and Development commissioner under the Ministry of Micro, Small and Medium Enterprises.

Functions: The major functions of the organisation are:

  1. To advice the Government of India in formulation of national policy for promotion and development of Micro, Small and Medium Enterprises.
  2. To provide techno-economic and managerial consultancy, common facilities and extension services to the MSME sector.
  3. Extending facilities for technology upgradation, modernization, quality improvement and meeting infrastructural needs of the MSME sector.
  4. Making available the economic information services needed for the MSME sector.
  5. Developing human resources through training and skill upgradation.

To meet the challenges put forth by globalization of economy, the MSMEDO has since been taken series measures for promotion and development of MSME of country and currently focusing providing support in the fields of credit, marketing, technology and infrastructure to MSMEs.

Micro, Small and Medium Enterprises Development Institution (MSMEDI)

This is the subsidiary of the Micro, Small and Medium Enterprises Development Organization (MSME-DO). To extend the services throughout the country, a network of 30 MSME Development Institutes (MSME-DIs) and 28 Branch MSME-Dis has been setup in state capitals and other industrial cities all over the country. The institute performs the following crucial functions towards promotion and development of the MSME Sector at the state level.

  1. Organising Industrial Motivation Campaign to identify and motivate traditional/non-traditional entrepreneurs having potential for setting up Micro and Small Enterprises (MSES) to lead them towards self-employment.
  2. Conducts Entrepreneurship Development Programmes (EDPs) as a regular training activity to cultivate the latent qualities of youths by enlightening them on various aspects those are necessary in setting up MSES.
  3. Conducts Entrepreneurship Skill Development Programmes to upgrade the existing skills and to create new skills among entrepreneurs, workers and technicians of MSMEs.
  4. Organises Management Development Training Programmes to improve decision making capabilities of the existing and potential entrepreneurs.
  5. Extending Assistance / Consultancy services to the prospective and existing entrepreneurs.
  6. Preparation of State and District Industrial Profile.
  7. Preparation of Project Profiles of products/ industries feasible in the MSME Sector.
  8. Works towards Energy Conservation, Pollution Control, Quality Control and Technological upgradation needed for the MSME Sector.


The District Industries and Commerce Centre (DI&CC) operate from the District headquarters of Assam. The centres work in close association with the Commissioner of Industries and Commerce, Guwahati. All the preliminary works relating to availing of the Govt. policy supports by the entrepreneurs in the form of schemes and incentives are done at the DI&CC level.

Functions of DI&CC: The DI&CC words at the grass-root for promotion and development of indigenous entrepreneurship in the state through policy supports initiated by the central and the state Governments. The major functions include the following:

  1. To facilitate the voluntary filling of Memorandum by the Micro and Small Enterprises (MSEs) as per the Government of India’s MSME Development Act 2006.
  2. To facilitate the compulsory filling of Memorandum by the Manufacturing Sector Medium Enterprises as per the Govt. of India’s MSME Development Act 2006.
  3. To facilitate pre-registration of the enterprises to avail benefits under the different schemes of assistance and supports under the central and the state Governments.
  4. To guide the prospective entrepreneurs through appropriate counseling and suggestions in staring their new enterprises.
  5. To guide the entrepreneurs through documentation and counseling in availing the Govt. incentive and support facilities.
  6. To facilitate organization of Entrepreneurship Development Programmes (EDPs) by the NGOs through liaison.
  7. To organize screening committee (Task Force) meeting for selection of beneficiaries for grant of Govt. incentives and supports.
  8. To forward and recommend the entrepreneurs’ applications for availing of Govt. incentive and supports to the Commissioner of Industries and Commerce, Guwahati for onward recommendations.


It is a statutory body created by an Act of Parliament in 1956 and became operative from April 1957 by taking over the work of the erstwhile “All India Khadi and Village Industries Board” set up in 1950. The Commission is engaged in the task of promoting and developing Khadi and Village Industries (KVI) with a view to creating employment avenues in the rural areas thereby strengthening the rural economy of India. It functions under the administrative control of the Ministry of Micro Small and Medium Enterprises, Govt. of India.

KVIC has its central office at Mumbai. It has 36 State and Divisional offices, 6 Zonal offices, 15 Departmental and 23 Non-Departmental Training Centers and a number of accreted Training Centers in addition to 13 Departmental Sales Outlets. The KVIC operates through 33 Boards spread over in different states and union territories of the country, in addition to thousands of institutions and co-operatives including DIC/DICCs.

Objectives: The broad objectives of the KVIC are of three-fold as under:

  • The social objective of providing employment;
  • The economic objective of producing saleable articles, and
  • The wider objective of creating self-reliance amongst the people and building up a strong rural community spirit.

Functions: The crucial functions which the KVIC performs towards attainment of its avowed objectives are as follows:

  1. Works towards planning, promotion, organization and implementation of programmes for the development of Khadi and other village industries in the rural areas of the country in coordination with the other agencies engaged in rural development.
  2. Works towards building up of a reserve of raw materials and implements for supply to producers, creation of common service facilities for processing of raw materials as semi-finished goods and provision of facilities for marketing of KVI products.
  3. Organizes training of artisans engaged in Khadi and Village Industries.
  4. Encourages and promotes research in the production techniques and equipments employed in the KVI sector and provides facilities for study of the problems relating to the same.
  5. It also encourages the use of non-conventional energy, bio-fertilizer and other organic products.
  6. Provides financial assistance to institutions and persons who are engaged in the development and operation of Khadi and Village Industries and guides them through the supply of designs, prototypes and other technical information.

Entrepreneurship Development II Chapterwise Notes

  1. Promotional Agencies
  2. Institutional Supports for Entrepreneurs
  3. Role of Other Supporting Institutions in NE Region
  4. Entrepreneurship Development Programmes in India


It is a state level statutory body formed by an Act of the concerned state legislature. In India, at present there are 33 KVIBs in different States and Union Territories. The Assam Khadi and Village Industries Board Act were passed in the year 1955. The basic objective of the Board is to work towards organizing, developing and regulating the village industries in the state.

Functions: As a statutory Body of the Govt. of Assam the KVIB is required to perform numerous functions for promotion and development of Khadi and Village Industries in the State. The most important functions of the Board as enumerated in the Assam Khadi and Village Act, 1955 are listed below:

  1. To start, encourage, assist and carry on Khadi and Village Industries and to carry on trade and business on such industries and to deal with matters incidental to such trade or business.
  2. To help the people providing them with work in their homes and to give those monetary help.
  3. To encourage establishment of Co-operative Societies for Khadi and Village Industries.
  4. To conduct Training Centres and to train people with a view to equipping them with the necessary knowledge for starting for carrying on KVIs.
  5. To manufacture tools and equipments required for carrying on KVIs.
  6. To arrange for supply of raw materials and tools & equipments for KVIs.
  7. To sell and arrange to sell the products of the KVIs.
  8. To arrange for publicity and popularizing of finished products of KVIs by opening stores, shops, emporiums, organizing exhibitions or adopting other similar measures.
  9. To undertake and encourage research work in connection with KVIs and to carry on such activities as per needs and circumstance.
  10. To sanction loans to individuals and institutions as per the limit set for the purpose from time-to-time.

On the basis of the above board outline of functions as assigned to the Board and stipulated in the Act, the KVIB of Assam undertakes the following activities.

  1. It works as implementing agency of various Govt. schemes, including the Central Government’s PMEGP scheme for the rural applicants.
  2. It organizes State and District level exhibitions on Khadi and Village Industries Products.
  3. It organizes training of the artisans at the State and district levels.
  4. Establishes Emporiums for marketing of Khadi and Village Industries Products at different places.
  5. All units assisted by the Board under different schemes are provided technical supports as and when needed.
  6. It helps entrepreneurs in preparing their Project Reports.
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