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Government Initiatives to promote Entrepreneurship

India’s tryst with entrepreneurship is an emerging phenomenon when compared to its 65 years of existence as an independent nation. While socialist policies were at the helm of deciding the policy framework in the early years, the last 3 decades have brought about changes in the government’s thinking leaning towards a market oriented economy. Various support mechanisms have been designed by the government to nurture the entrepreneurial mindset, some of which are highlighted below:

SIDBI was established in April 1990 under an Act of Parliament as a wholly-owned subsidiary of Industrial Development Bank of India (IDBI) is the principal financial institution for the following three-fold activities:

  1. Financing the small scale sector by providing indirect assistance to primary lending institutions (PLIs) and direct assistance to small scale units.  
  2. Development and support services for promoting small industries.
  3. Liaisoning with other institutions engaged in similar activities.

The government of India has adopted some global support mechanisms which have been customised as per local requirements. To focus on certain industries, the foundation was laid by establishing institutes under the umbrage of government departments.                                                                                                         
National Science and Technology Entrepreneurship Board promotes entrepreneurship development through Science & Technology. This program has encouraged researchers and academicians in the field of Science & Technology to take interest in socially relevant entrepreneurial roles. Under the flagship of NSTEB, various institutes and training programmes have been formulated such as:
  • Technological Business Incubators have been established to ensure that technology and knowledge driven enterprises are established and research outputs are utilised in a commercial manner for benefit of all stakeholders.                   
  • STEP – Science and Technology Entrepreneurs Park aims to provide link between universities, academic and R&D institutions, provide R&D support to the small-scale industry and promotes innovation based enterprises                  
  • IEDC – Innovation and Entrepreneurship Development Cell  is promoted in educational institutes to create entrepreneurial culture and encourage innovation amongst students              
  • EDP – Entrepreneurship Development Program, a training program of 6-8 weeks duration aims to train students in various aspects of starting an enterprise 
  • OLPE – Open Learning Program in Entrepreneurship is a distance learning programme that helps potential entrepreneurs through study materials and contact programmes which impart knowledge on end-to-end processes involved in running an entrepreneurship          
  • EAC – Entrepreneurship Awareness Camp is a 3 days duration training that exposes students to entrepreneurship as a career option
  • STEDS – Science and Technology Entrepreneurship Development Scheme aims at socio-economic development of an area by optimising the usage of natural & human resources of an area. 
  • FDP – Faculty Development Program is aimed at training faculty members of S&T institutions so that they in turn can inspire students to take up entrepreneurial career options
  • TEDP – Technology-based Entrepreneurship Development Program is 6-weeks duration training developed jointly in association with R&D institutions, CSIR labs etc. This training focuses on specific products and technologies.

To boost the services and manufacturing sectors, the Govt. of India chalked out a separate SMSE department so that these industries could receive sufficient attention and support. The MSMED Act was passed in 2006 which aims at:

  • Providing guidelines for skill development of employees, management and entrepreneurs 
  • Issue guidelines from time-to-time for ease of credit to MSMEs
  • Work on minimisation of sick units and enhance their competitiveness through various support mechanisms
  • Preference policy for procurement of goods or services by Central Govt. produced or provided by MSMEs.
  • Resolution of delayed payment related issues                                                                    

    For dissemination of information, the Business Portal of India has been developed under the National e-Governance Plan of the govt. in association with FICCI. The portal provides various modules and sub-modules with respect to starting & running business in India. It also provides guidance on the paperwork required, taxation related information, trade related policies etc.                                                    Entrepreneurship is also promoted at the state government level through various schemes and subsidies varying from one state to another, the common mechanisms are:
  • Infrastructural: development and management of industrial estates, priority in allotment of power/water connection, power subsidies
  • Financial : Capital investment subsidies for new units set up in a particular district, seed capital /Margin Money Assistance Scheme
  • Guidance: Consultancy and technical support

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