Project Report on

BUSINESS DEVELOPMENT SERVICES FOR SMALL

SCALE ENTERPRISES IN NORTH KARNATAKA

Introduction to the project

We visited around 35 service providing institutions to SSI’s. From the

visited around 25 service providers responded well. We also talked to individuals
who have been providing services to the SSE in certain niche areas like advice on
ISO certification, Central Excise and a Chartered Accountant.

We got tremendous experience from the project. There are number of

opportunities available to upcoming entrepreneurs provided by the government &
some private institutions through various service providers like DIC, KSFC,
KASSIA, Chamber of Commerce & Industries, Management consultants,
KSSIDC, CEDOK, TCO’s, SISI’s etc. But at the same time some of them refused
to give required information just because they were busy in election & other
duties.

These service providers are like must for starting business or enterprises.
Because many of the small scale enterprises find it difficult to have required all
resources from own. Among all finance is most important. For providing financial
assistance there are institutions like KSFC, Commercial Banks etc.

Our group was assigned to visit Belgaum, Hubli, Dharwad, Haveri &
Gadag districts. Our targeted respondents were all above mentioned service
providers. Some of the respondent respondents gave good response & they have
given us with required inputs to carry out our project successfully.
Objective of the project

The objective of our project was to know - what are the Business
Development services available for small scale enterprises in North Karnataka &
as an entrepreneur be well aware of such available services & schemes & benefits
offered by various service providers.

First we should know what is meant by Business Development Services

(BDS). Form the project we got the meaning of BDS as Business Development
Services (BDS) comprise a wide range of non-financial services provided by
private suppliers or service providers (BDS providers) to entrepreneurs who use
them to efficiently operate and make their businesses grow.

Overview of functions & services by some of the service providers

DIC (District Industries Centre)

The DIC’s are situated in all districts to provide integrated administrative

framework at the district level for promotion of small scale industries in rural
areas. During our project we found that all DIC’s are not providing single window
system but they are providing all the services under single roof. DIC’s take care of
industrial registrations, but they are failing to make aware the entrepreneurs & to
tell them the benefits of registration.

Following are the services provided by DIC’s to SSI’s

• They conduct surveys to know the problems & needs of SSI’s like
raw material, human skills, infrastructure etc.

• They prepare & provide action plans to SSI’s

• They guide entrepreneurs on purchasing machineries & equipments,.

• They assist entrepreneurs in marketing their product.

• They undertake product development work appropriate for small

scale industries.
 • They conduct some training programmes.

KSSIDC (Karnataka State Small Industries development organization

KSSIDC also playing an important role by helping the small enterprises by

providing services like-

• Supplying machinery on hire purchase bases.

• Developing lands for construction.

• Provide marketing assistance to for marketing their products.

• Provides required infrastructural facilities.

• Constructs new industrial estates/sheds.

• Provides sheds capital assistance on behalf of Karnataka State Govt.

CEDOK (Centre for Entrepreneurship Development of Karnataka)

CEDOK Dharwad is the main office of CEDOK’s located in other three

districts. “Mr. M. S. Madhu gave his opinion about CEDOK & SSI’s as our society
needs packages of services, through professionals to train them & protect their life.
Also he said that it is not that poor people need some specialized services, but the
rich people, some institutions, businessman etc., need professionals support from
socially enterprising organizations to achieve their committed goals. Keeping
these in view, CEDOK undertake the programmes like social entrepreneurship
project opportunities.”

It provides services to SSI’s like

 • Undertakes entrepreneurship development programmes (EDP’s).

• Provide marketing linkages to the entrepreneurs.

• It helps them in skill development.

• It provides technological assistance,

• Helps in getting ISO certification.

• It provides training to entrepreneurs.

KSFC (Karnataka State Financial Corporation)

KSFC is the state level financial institution established by the state

government. KSFC is a financial super market which offers all kinds of financial
assistance in the form of long term loan, corporate loans, and corporate loans to
meet the short term working capital needs, hire purchase finance, opening of
letters of credit to import capital goods etc., KSFC’s assistance covers almost all
types of industrial & service sectors.

SIDBI (Small Industries Development Bank of India)

Services provided b y SIDBI

• Term loans.

• It takes initial steps for technological up-gradation & modernization

of existing units.

• Fixed deposit schemes.

• It helps to expand the marketing channels for promoting the SSI

sector’s products in domestic as well in international market.

• Micro finance.
Karnataka Chamber of Commerce & Industry

Services offered SSI Sector-

• Marketing assistance to SSI.

• Conducts Trade shows.

• Conduct Trade & marketing exhibitions.

• Arranging useful meetings, seminars, interactions and discussions

with Foreign Ambassadors, Consular Representatives and Business
Missions from abroad.

• Issue of Certificate of Origin.

Apart from the above service providers we met NGO’s, Management

consultants, MSME (Micro, Small & Medium Enterprises) Development Institute,
KSSIDC, Commercial Banks, KASSIA (Karnataka Small Scale Industries
Association) etc.

ANALYSES & EVALUATION

There are number of service providers working to offer different solutions
to different problems of entrepreneurs. The entrepreneurs face number of problems
like-

Financial problem (The first problem an entrepreneur face while starting

his business), what type of finance to use (loans- short term long term, from where
etc.), how to get registered 7 get benefits like subsidies, what technology to be
used, How to market my product, how to increase productivity & decrease the
cost, how to get ISO & other quality certification etc.

To solve these kinds of problems the Central Govt. of India, Karnataka

State Govt., Some NGO’s & some Pvt. Institutions have come forward. They
provide different Business development services with some charges & few
services free of cost.

Almost all service providers provide various services with few similarities
like most of them conduct EDP’s, providing market information etc.

The various Business Development Services provided by all these together

to SSI sectors are analyzed according to the needs of an entrepreneurs.

Access to finance:
BDS providers do not provide direct financial support, but link businesses
to banks and micro-finance institutions; provide information on credit schemes
and conditions; encourage savings; assistance in business planning for loan
applications.

Market access services:

Market information; market linkages; trade fairs and product exhibitions;
Development of samples for buyers; subcontracting and outsourcing; market
research; market space development; packaging; advertising.

Input supply services:

Linking entrepreneurs to input suppliers; improving suppliers capacity to
provide a regular supply of quality inputs; facilitating the establishment of bulk
buying groups; information on input supply sources.

Technology and product development services:

 Technology transfer/commercialization; linking entrepreneurs with
technology suppliers; facilitating technology procurement; quality assurance
programmes; equipment leasing and rental; design services.

Training and technical assistance:

Mentoring; feasibility studies and business plans; exchange visits and
business tours; franchising; management training; technical training;
counseling/advisory services; legal services; financial and taxation advice;
accountancy and bookkeeping.

Infrastructure-related and information services:

Storage and warehousing; transport and delivery; telecommunications;
money transfer; information via print, radio, TV; internet access; computer
services; secretarial services.

Conclusion:
After knowing & analyzing the service providers & available services to the
entrepreneurs we come to the following conclusion.

In our visited districts there are number of service providers are there, both
Govt. & Pvt. and individual consultants. But most of the entrepreneurs are
unaware of these service providers.

The number to unawareness to the different BDS & BDS provider is higher
in Haveri & Gadag districts (this information we collected from entrepreneurs
while doing GFM project). Also the service providers are also not well aware of
their objectives & they are failing to make the entrepreneurs to take benefits of
various services available for them. This is because the service providers institutes
are located far away from industrial estates.

As compare to Gadag & Haveri: Dharwad has got well service providers,
but in this district also many of the entrepreneurs are facing infrastructure facilities
like water. & compare to these three Hubli & Belgaum has got well structured
service providers & also many of the entrepreneurs are aware of various servicers
available for them. But here also the level can be improved by conducting some
more programmes.

So our overall conclusion is there are number of service providers are there
with different services & on the other side there are number are problems faced by
the entrepreneurs. So to make the balance in between these two there is still need
to undertake various awareness programmes.