When i was young, my father was an owner of rugs & mats store. One day, I was asked in school to write a stanza about ‘What does your father do?’ Also found his work hard to describe, I put this question in front of my father.He said, “’I'm an entrepreneur who takes risk with money to earn money.”
Since then I learned that businessmen actually like to take calculated and small risks. Thus, if any government wishes to boost small business, it needs to advance its policies which help in reducing the risk inbuilt in entrepreneurship. By doing this, a large no. of people will be willing to start their new businesses.
The small and medium enterprises feature enough capacity to create a sound middle class, encourage the social stability and generation of a secure tax base in a world of too much need and hunger. As small scale businesses are the major contributor to the economy, it makes a good sense for government to ensure emboldening the environment for small scale businesses.
Considering this perspective, Indian government offers various opportunities through its bodies, ministries and programmes. Few of these are listed below:
Micro, Small and Medium Enterprises Development Organisation (MSME-DO)
- It is the apex body to assist the Government in formulation, coordination,implementation and monitorization of policies and programmes for SMEs in the country.
- It provides a complete range of facilities, technology support services, entrepreneurial development support, marketing assistance etc.
National Bank for Agriculture and Rural Development (NABARD):
- NABARD helps promoting rural businesses and small industries, agriculture and cottage industries and works towards integrated rural development.
- It provides various training and development and consultancy services as well as credit facilities to support these businesses.
National Small Industries Corporation Limited (NSIC):
- With an objective to grow small scale industries in India, NSIC was established to promote,aid and increase the growth of MSMEs in the country.
- National Small Industries Corporation Limited implemented few schemes to help the small biz in the areas of product marketing, raw material procurement, credit rating, adoption of improved management practices, acquisition of technologies etc.
Small Industries Development Bank of India (SIDBI):
- Small Industries Development Bank of India was set up to provide financial help to small scale industries in India. It’s one of the leading government bodies that provide various financial schemes across a range of industries and services.
- Some of the schemes are National Equity Fund Scheme, Direct Assistance Scheme, Indirect Assistance Scheme, Promotional and Development Activities, Single Window Scheme, Technology Development and Modernization Fund Scheme, Mahila Udyam Nidhi (MUN) Scheme and Equipment Finance Scheme.
National Commission for Enterprises in the Unorganized Sector (NCEUS):
- NCEUS was constituted to generate employment and business opportunities in the unorganized sector.
- One of its provisions include providing access to micro-credit to the unorganized entrepreneurs.
Not only these, but the Government has taken measures e.g. Rural and Women Entrepreneurship Development, Public Sector Banks and more to develop SME Sector.
P.S: If you were given 15 minutes with a leader of government, what measures would you suggest to encourage SMEs ?