Guidelines for National Entrepreneurship Development Board (NEDB)

Scheme

Objectives :

The main objective of the National Entrepreneurship Development Board (NEDB) Scheme is
promotion of entrepreneurship for encouraging self-employment in small scale industries and
small business.

Salient Features :

The scheme covers the following activities :-

(i) To identify and remove entry barriers for potential entrepreneurs (first generation and
new entrepreneurs) including study on entrepreneurship development.

(ii) To focus on existing entrepreneurs in micro, tiny and small sector and identify and
remove constraints to survivals, growth and continuously improve performance.

(iii) To facilitate the consolidation, growth and diversification of existing entrepreneurial

venture in all possible ways.

(iv) To support skill upgradation and renewal of learning processes among practising
entrepreneurs and managers of micro, tiny, small and medium enterprises.

(v) To sensitise to support agencies in the area of entrepreneurship about the current
requirement of growth.

(vi) To act as catalyst to institutionalise entrepreneurship development by supporting and

strengthening state level institutions for entrepreneurship development as most
entrepreneurship related activities take place at the grass root level and removing various
constraints to their effective functioning.

(vii) Setting up of incubators by entrepreneurship development institutions and other

organisations devoted to the promotion of entrepreneurship development.

Eligibility :

Any institution seeking the financial assistance for the activities mentioned above relating to
entrepreneurship development under the NEDB Scheme may send their application giving
details including objective, activities proposed to be covered, cost break-up, funding
arrangements, details of the organization including audited accounts of last 3 years, etc. to Joint
Secretary, Ministry of Small Scale Industries, Room No. 122-B, Udyog Bhavan, New Delhi.

Entrepreneurship and Business Development Centres (EBDCs)

In addition to the above activities, a new component of Entrepreneurship and Business
Development Centres (EBDCs) to be established in selected Colleges/Universities/
Organisations has been included in the NEDB Scheme to motivate students to take up
entrepreneurship as a career option with the objective to promote self-employment through
creation of small, micro and tiny enterprises in the country which would not only provide self-
employment opportunities but are also expected to create additional job opportunities in these
enterprises.

The Scheme will be implemented through selected Universities/Colleges, Regional Engineering

Colleges and other Institutions/Organisations. The Host Institution could be a university / a
premier college (preferably autonomous) / organisation of repute; offering courses in
management, liberal arts, social sciences, commerce, science or agriculture, engineering and
technology etc., or associated with the industrial sector and should:

(i) Be in existence for at least five (5) years.

(ii) Have qualified and experienced faculty in the various related disciplines.
(iii) Be in a position to spare or provide adequate space for establishing the Centre (at least
two rooms) with lecture theatres/ class-rooms equipped with modern teaching aids (like
over-head projector, VCR/Video, etc.), adequate computer facilities and other
infrastructure and willing to commit for the use of the EBDC as and when required.
(iv) Have good library facilities.
(v) Preferably, have some experience in entrepreneurship development.
(vi) Ideally, have access to industries near by and preferably should have good networking
with local industries.

During Tenth Plan a minimum of 5 EBDCs, one each in East, West, South, North and North-
Eastern region of the country are to be set up under the Scheme

The financial assistance / grant will be provided to the EBDCs under the Scheme initially for a
period of two years and extendable by another two years depending on the performance
(Annexure-II). After four years it would be responsibility of the Host Institution to continue the
EBDCs and arrange funds for the same. The EBDCs are expected to organize fee based training
programme and EDP courses.

Each EBDC will be provided a one time capital grant of Rs. 5 lakh for setting up of the Centre,
(for procurement of office equipments, furniture, computers, etc). A block grant / recurring grant
of Rs. 10 lakh (@ Rs. 5 lakh per annum over a period of 2 years will be provided for expenditure
including special incentive, books, stationaries, grant for conducting entrepreneurship/thematic
programmes, travel, contingencies, trainers’ training, etc. (Annexure-I).

The EBDCs will maintain a separate bank account in a scheduled public sector bank, which will
be jointly operated by the Head / Director of the EBDC and Head of the Host Institution. All
financial receipts/funds received by the Centre will be credited to this account. Efforts should
be made to make the EBDC financially viable at the earliest. All payments by the EBDC should
be authorised jointly by the Head of the Host Institution and Head/Director of the EBDC. The
accounts should be audited as per existing rules applicable. The EBDCs should also maintain a
separate stock register for the assets created in the name of the Centre.

The EBDCs shall be a part and parcel of the Host Institution for all administrative purposes. The
EBDC will function under the guidance and control of the Head of the Host Institution, who will
also be the Chairman of the Advisory Committee. An Advisory Committee will advise the
Centre on its activities, education, curriculum, etc (Annexure-III). The Advisory Committee
will meet as and when required, but with a minimum of twice a year.

For smooth functioning of the Centre and to meet its objectives effectively, it is essential that it
must have adequate manpower. EBDC, thus, must have some Core Staff. The EBDC will be
headed by a Professor/a Senior Associate Professor (Reader), who will be supported by a
lecturer level Project Associate and an administrative assistant-cum-secretary. The Host
Institution will identify suitable persons for running the EBDC. The faculty /staff for the EBDCs
will be provided by the Host Institution from among the existing staff and no fresh recruitment
temporary or permanent will be made. The staff deployed for the EBDCs will receive special
incentive under the Scheme as given in Annexure-I. After completion of the project i.e. after 2
years all the recurring expenditure including incentives etc. are to be borne by the Host
Institution.

All the faculty members of the EBDCs will undergo mandatory training in one of the
Entrepreneurship Development Institutes, namely, National Institute for Entrepreneurship and
Small Business Development (NIESBUD), Noida, National Institute of Small Industry Extension
Training (NISIET), Hyderabad, Indian Institute of Entrepreneurship (IIE), Guwahati and
Entrepreneurship Development Institute (EDI), Ahmedabad. These Institutes will provide
trainers’ training to the faculty members of the EBDCs, and in addition they will also help the
EBDCs in formulation of training programme, course material, etc.

The utilization certificate for implementation of the scheme will be submitted to the Ministry by
the Host Institution (Annexure-IV). The performance for continuation of the scheme beyond
two years will be reviewed after completion of the second year. The performance criteria is
indicated in Annexure- II. The EBDC/ Host Institution will submit 6 monthly Performance
Report in the prescribed format (Annexure-VIII) to Ministry of Small Scale Industries (SSI).

The Institutions which fulfil the criteria, may submit the proposal to the Ministry of SSI in the
prescribed format (Annexure-V to VII). The proposal received will be screened by the Ministry
to ensure the fulfilment of the prescribed criteria, and an MOU will be signed by the Head of the
Host Institution with Ministry of SSI.

Institutions/ Organizations seeking the financial assistance for setting up of EBDCs under the
NEDB Scheme may send their application to Joint Secretary, Ministry of Small Scale Industries,
Room No. 122-B, Udyog Bhavan, New Delhi.
 Annexure-I

Fund Requirement for each EBDC

Salaries 1st Year 2nd Year

Director @ Rs. 3,000 per month (Special Incentive) Rs. 36,000 Rs. 36,000

Project Associate @ Rs. 2,000 per month (Special Rs. 24,000 Rs. 24,000
Incentive)

Administrative Assistant @ Rs. 1,000 per month Rs. 12,000 Rs. 12,000
(Special Incentive)

One time Capital Grant Rs. 5,00,000 -

Block Grants Rs. 4,28,000 Rs. 4,28,000

TOTAL Rs. 10,00,000 Rs. 5,00,000

Note : Block Grants include grant for books, periodicals, training material, operational
expenses, conducting entrepreneurship / thematic programmes, trainers’ training,
etc.
 Annexure - II
Performance Criteria

The following will be the Performance Criteria which each EBDC has to mandatorily
perform/confirm :

i. The EBDC will organise a minimum of 10 Entrepreneurship Awareness/Orientation

Programme / Thematic Programme in each financial / academic year of 2 weeks
duration covering at least 30 participants in each Awareness/Orientation Programme.

ii. At least 2 Entrepreneurship Development Programmes (EDPs) each year of at least

240 hours covering minimum 25 participants in each of the EDP.

iii. The EBDC will establish a network /link with different agencies of the Government
of India, State Governments and other agencies which are involved in promotion and
development of small industries in the region.

iv. EBDC will prepare an Action Plan for each financial year and fix physical and
financial targets to be achieved during the year. These plans and targets should be
duly approved by the Advisory Committee of the Centre. The Action Plan and
targets should be finalised by 30th April of each financial year.

v. The Advisory Committee of the EBDC will meet at least twice a year to give
necessary guidance etc.

vi. Each EBDC will maintain a separate bank account in a scheduled Public Sector Bank
to be jointly operated by the Head of the EBDC and Head of the Host Institution. All
financial receipts/funds received by the Centre will be credited to this account. The
accounts of the EBDC will be audited annually by a Chartered Accountant or in case
of Government Institutions as per rules.

vii. All the appointments will be made strictly as per the guidelines issued by the
Government of India from time to time.

viii. Utilisation certificate for the funds released by the Ministry of SSI will be sent to
Ministry of SSI in the prescribed format.

ix. EBDC will maintain a separate stock register for the assets created in the name of the
Centre.
 Annexure - III

Composition of the Advisory Committee

1. Head of the Host Institution Chairman

2. A Representative of Ministry of SSI, GOI Member

(not below rank of Deputy Secretary)

3. A Representative from Entrepreneurship Member

Development Institution
(in consultation with Ministry of SSI)

4. Secretary, Department of Industries of the Member

concerned State.

5. A Representative of Lead Bank Member

6. Two (2) Successful Entrepreneurs Member

(To be nominated by major Industry Associations
in the region)

7. The Director of the Centre Convenor/Member Secretary

 Annexure-IV

Utilisation Certificate
For the Financial Year (ending 31st March)

1. Title of the Project/Scheme: Entrepreneurship and Business Development Centre

2. Name of the Organisation

3. Director of the Centre:

4. Sanction letter number and date of

sanctioning the Centre

5. Amount brought forward from the previous

financial year quoting Ministry of SSI letter number
and date in which the authority to carry
forward the said Amount was given:

6. Amount received from Ministry Number & date of Sanction Amount

of SSI during the financial year:

7. Total amount that was available for

expenditure (excluding commitments)
incurred during the financial year:

8. Actual expenditure (excluding

commitments) incurred during the
financial year:

9. Unspent balance refunded, if any

(Please give details of Cheque/DD No. etc.):

10. Balance amount available at the end of the financial year

11. Amount allowed to be carried forward

to the next financial year vide letter No.

Certified that the expenditure of Rs._________ (Rupees___________________) mentioned

against Col.8 was actually incurred under the Scheme for the purpose for which it was
sanctioned.

Date:

Signatures of Signatures of Signatures of

EBDC Director Registrar/ Head of the
Accounts Officer/ Organisation finance Officer
 ACCEPTED AND COUTERSIGNED
(Annexure -IV continued....)

Government of India
Ministry of Small Scale Industries

[Proforma for Statement of Audited Expenditure]

NAME Of THE GRANTEE INSTITUTION

ADDRESS

DST SANCTION LETTERS NO. AMOUNT

DATE OF ISSUE:

PURPOSE OF GRANT:
Sr. No Items of expenditure (in Reasons /
Sanctione Actual Variation (ex
same order as given in th Justification fo
Expenditu Expenditu Shortfall)
sanction) variations
1
Recurring Expenses
Manpower
Travel
Contingencies
Administrative Expense
2 Non Recurring Expenses

Total

(Rupees ___________________________ only.

Signatures (with rubber stamp) of

Head of Institution EBDC Director Registrar/
Officer
Finance
OR

CHARTERED ACCOUNTANT/AUDITOR
 Annexure-V

Format for submission of Proposal for Establishment of Entrepreneurship and Business

Development Centre in Universities/Colleges/ Institutions and organisations under the
NEDB Scheme, Government of India, Ministry of SSI
PART A

1. Name of the Institution

2. Name of the Head of the Institution

3. Postal address giving contact telephone no., fax, e-mail, etc.

4. Brief note on background of the Institution (please enclose Annual Report of the preceding
year)

5. Brief note on Objectives/Activities of Institution

6. Affiliation and recognition details

Name of the Course Affiliating/Recognising Authority Year

University/ AICTE/Others

7. Strengths of the Institution to take up the activity

PART B

8. Brief of important Departments

Name of Professor Reader Research Lecturer Technical supp
Department

9. Significant achievements of faculty in the form of Research, Product Development, etc.

10. Infrastructure/facilities available (laboratory, workshop, library, etc)

PART C
Activities related to Entrepreneurship

11. Past performances

12. Activities

13. Facilities

14. Funding
15. Faculty resources

16. A brief on networking with academic institutions in the surrounding, where the institute
could probably undertake to promote its activities.
Present proposal

17. Proposed Plan for 2 years (please attach physical targets for each year)

18. Estimated cost for 2 years

Recurring expenditure (on annual basis)

a. Manpower Cost (for Core Staff and faculty/

supporting staff of Institute, details to be
enclosed in a separate sheet)
b. Overheads (Stationery, Printing, Honoraria
to outside faculty, Publicity, Telephone,
Fax, Meetings, Study Tour, etc.)
c. Travel
d. Miscellaneous & Contingencies
e. Books, periodicals, journals, etc.

Non-recurring expenditure

Office equipment like PC with Internet, fax/modem, audio-visual aids, back- up, etc. (please give
details)

The following information must be taken into account while planning to set up the EBDC:

• It will be advisable that the Host Institution will identify and draw from existing faculty for
sustaining the Centre once recurring support from NEDB is withdrawn.
• The faculty should have been trained in Entrepreneurship Development by institutions like
EDI, Ahmedabad; NIESBUD, NOIDA; NISIET, Hyderabad and IIE, Guwahati.

The proposal must be accompanied by a document ensuring commitment of the institution for
long-term involvement in the form of the following

1. Managing committee resolution and/or

2. Syndicate resolution approving the proposal
3. Certificate duly signed by the head of the institution
4. Details of Project Staff required including the stipulated qualifications, work experience,
emoluments, etc.
5. Details of plan for the merger of the Project Staff with the Host Institute after 3 years of
successful operation of the EBDC.
 Annexure-VI

Certificate to be enclosed with the proposal on establishment of Centre for

Entrepreneurship and Small Business Development

This is to certify that

1. The grants-in aid as may be available from the Scheme ‘National Entrepreneurship
Development Board (NEDB)’, under the Ministry of Small Scale Industries (SSI),
Government of India, will be used to meet the expenditure against establishment of an
Entrepreneurship and Business Development Centre for entrepreneurship and small business
development in this College/University/Institute for the period of one year. The renewal of
sanction of recurring grant for subsequent years will be at the discretion of the Ministry of
SSI for which fresh proposal will be submitted to Ministry of SSI .
2. The proposed EBDC to be established in this College/University/Institute will be under the
administrative control of the undersigned.
3. No administrative or other liability will be attached to Ministry of SSI after expiry of the
period for which the grant will be sanctioned.
4. It will be the responsibility of the College/University/Institute to absorb the EBDC
established in the usual academic stream of the college/university/institute, after expiry of
the period of assistance from Ministry of SSI (the period of grant will be at the sole
discretion of Ministry of SSI).
5. The College/University/Institute will provide office space, classrooms, furniture, secretarial
assistance etc. and other administrative facilities for smooth operation of the EBDC.
6. The College/University/Institute will take into its books all equipment and assets purchased
under the sanction given by Ministry of SSI for which a separate asset register shall be
maintained
7. All recruitment will be made for EBDC on the basis of the guidelines supplied by Ministry
of SSI and as per usual procedure followed in the College/University/institute.
8. An advisory Committee on EBDC will be constituted immediately after receipt of approval
of Ministry of SSI on the proposal. A representative of Ministry of SSI will be included in
the Committee.
9. Six monthly reports on the performance of the EBDC will be submitted to Ministry of SSI
regularly.

Date:………. Signatures of Head of the Institution

Place……….. Seal
 Annexure VII

Performa to be submitted by the Institutions willing to set up Entrepreneurship and

Business Development Centre (EBDC)

1. Name of the Col1ege/Institution/University

2. Name of the Head of the Institution

3. Complete contact address

4. Year of Establishment

5. Status
Whether Government/Private/Aided/Self financing\Deemed University

6. Programmes run (UG/PG) -please indicate

7. Has it been accredited, if so, indicate the rating

8. Infrastructure available -give details

(i) Space
(ii) Faculty strength
(iii) Labs
(iv) Library
(v) Basic office facilities

9. Placement record in %age -details or last 2 years

10. Are the management programmes being contacted, if so, give details

11. Indicate your research strengths

12. Achievements in terms pf research projects completed:

Title of the Sponsor Budget Duration Date of

Project Completion

13. Indicate the annual budget of the institution

14. Record of alumni as first generation entrepreneurs

15. Experience in conducting entrepreneurship related programmes

16. Give plan of EBDC activities for three years

17. Has any area earmarked for setting up of EBDC, if so, give details, area etc.

18. Give year wise projected budget of EBDC activities (3-5 YRS)

19. Give estimate of revenue generation of EBDC activities (3-5 YRS)

20. Indicate institution's willingness to merge EBDC after the Department stops
funding.

21. Indicate time frame to attain self-sufficiency

22. Linkages with other institutions of the region as well as the industries.

23. Any other strength

 Annexure-VIII

Reporting Format to be submitted 6 monthly in April & October

1. Name of the EBDC

2. Name and address of the College/University/Institute
3. Name and address of the Director of EBDC
4. Details of manpower

Sr. Post Designatio Emolumen Date of Joinin

5. Brief note on Programmes conducted during the period ______to________

Sr. Programme Duration No. of Particip Remarks

6. Details on the Programmes planned during the following period

7. Any other activities