Government Initiatives to promote Entrepreneurship

Indias 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 governments 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.
The Science Parks and similar initiatives help in creating an atmosphere for innovation and entrepreneurship; for active interaction between academic institutions and industries for sharing ideas, knowledge, experience and facilities for the development of new technologies and their rapid transfer to the end user. The Science & Technology Entrepreneurs Park (STEP) programme was initiated to provide a reorientation in the approach to innovation and entrepreneurship involving education, training, research, finance, management and the government. A STEP creates the necessary climate for innovation, information exchange, sharing of experience and facilities and opening new avenues for students, teachers, researchers and industrial managers to grow in a trans-disciplinary culture, each understanding and depending on the other's inputs for starting a successful economic venture. STEPs are hardware intensive with emphasis on common facilities, services and relevant equipments.

The major objectives of STEP are to forge linkages among academic and R&D institutions on one hand and the industry on the other and also promote innovative enterprise through S&T persons. Objectives

To forge a close linkage between universities, academic and R&D institutions on one hand and industry on the other. To promote entrepreneurship among Science and Technology persons, many of whom were otherwise seeking jobs soon after their graduation. To provide R&D support to the small-scale industry mostly through interaction with research institutions. To promote innovation based enterprises.

Facilities and Services Provided by STEPs

It offers facilities such as nursery sheds, testing and calibration facilities, precision tool room/central workshop, prototype development, business facilitation, computing, data bank, library and documentation, communication , seminar hall/conference room , common facilities such as phone, telex, fax, photocopying. It offers services like testing and calibration,

consultancy. Training, technical

support

services,

business

facilitation

services,

database

and

documentation services, quality assurance services and common utility services . The department has so far catalysed 15 STEPs in different parts of the country, which have promoted nearly 788 units generating annual turnover of around Rs. 130 crores and employment for 5000 persons. More than 100 new products and technologies have been developed by the STEPs / STEP promoted entrepreneurs. In addition, over 11000 persons have been trained through various skill development programmes conducted by STEPs. STEPs are autonomous bodies registered as societies under the Societies Registration Act. Role of Host Institution In order to achieve synergetic benefits and also to harness the knowledge and expertise available in academic and R&D institutions of excellence, every STEP needs to be promoted around a host institution which could launch, sustain and help the STEP grow. Therefore, the host institution has to play an important and crucial role in promotion and growth of a STEP. The host institution should aim at optimum usage of its facility by STEP. For this purpose, a periodic assessment of the priorities must be undertaken based on which re-allocation of resources might become necessary. During the stages of planning and implementation of the STEP project, the host institution must not lose sight of its slated goals and objectives with respect to academic excellence. STEP Model Though a workable 'STEP-Model' has been evolved by an Expert Committee chaired by the late Prof. Y. Nayudamma, however, each STEP would have to carve out a niche for itself with regard to the types of products to be developed based on the availability of facilities and expertise in the host institution and also the industrial climate of the region.

Each project envisages active involvement and participation of agencies such as the host institution, ultimate user of the facilities, financial institutions, government agencies and STEP management.

IEDC Innovation and Entrepreneurship Development Cell is promoted in educational institutes to create entrepreneurial culture and encourage innovation amongst students.

The Innovation and Entrepreneurship Development Centre (IEDC) is being promoted in educational institutions to develop institutional mechanism to create entrepreneurial culture in S&T academic institutions and to foster techno-entrepreneurship for generation of wealth and employment by S&T persons. The IEDCs are established in academic institutions (science colleges, engineering colleges, universities, management institutes) having requisite expertise and infrastructure. The mission of the IEDCs is to "develop institutional mechanism to create entrepreneurial culture in academic institutions to foster growth of innovation and entrepreneurship amongst the faculty and students ". Objectives of the IEDCs:

To act as an institutional mechanism for providing various services including information on all aspects of enterprise building to budding S&T entrepreneurs. To create Entrepreneurial culture in the Parent Institution and other institutions in the region and to promote the objectives of NSTEDB, including programmes related to women and weaker sections of the society. To inculcate a culture of innovation driven entrepreneurship through student projects. To catalyse and promote development of S&T knowledge-based enterprises and promote employment opportunities in the innovative areas. To respond effectively to the emerging challenges and opportunities both at national and international level relating to SMEs and micro enterprises.

Functions of IEDCs:

To organise Entrepreneurship Awareness Camps, Entrepreneurship Development Programmes, Faculty Development Programmes and Skill college/institution for the benefit of S&T persons. Development Programmes in the

To initiate five innovative student projects each year for new innovative product development. To organize Business Plan Competitions every year. To guide and assist prospective entrepreneurs on various aspects such as preparing project reports, obtaining project approvals, loans and facilities from agencies of support system, information on technologies, etc. To arrange interaction with entrepreneurs and create a mentorship scheme for student entrepreneurs. To facilitate creation of entrepreneur's club in each college to foster culture of

entrepreneurship amongst students To act as a Regional Information Centre on business opportunities, processes, technologies, market, etc. by creating and maintaining relevant data bases. IEDCs would also sensitise the management of the institutions regarding the importance of entrepreneurship and integrate their activities with the Host Institutions.

Criteria for Selection of an Institution to Set up an IEDC The sponsoring/parent institution should fulfill the following criteria:

The institution should be a University/deemed to be University or a premier Institute/College offering Engineering, Technology, Science & Management courses at degree level or above for at least 5 years. In case of a college/institute, it should be duly recognised and affiliated and while in case of the private institutions, it should be promoted by a Trust or a Society

registered under relevant Acts besides being recognized/affiliated to AICTE/Universities. Qualified and dedicated faculty in various disciplines with a good Research & Development base and background in industry related activities. Adequate space for locating the Cell including the modifications proposed to be carried out in the building, availability of utilities like electricity, water, telephone installation and internet connectivity.

Availability of workshops, laboratories and computational facilities. Library with a good collection of books and journals. Experience in Entrepreneurship Development and Promotion and Industry related activities such as Consultancy, Product Development, Testing, Calibration, etc.

EDP Entrepreneurship Development Program, a training program of 6-8 weeks duration aims to train students in various aspects of starting an enterprise.

An Entrepreneurship Development Programme (EDP), of 6-8 weeks duration, aims at training the S&T graduates and the diploma holders in the essentials of conceiving, planning, initiating and launching an economic activity or an enterprise successfully. The programme content includes class room training on essentials of entrepreneurship survey of the prevalent socio - economic scenario, identification of business opportunities, role and function as well as schemes of assistance offered by various constituents of the support system, preparation of a technically feasible and economically viable project report, Achievement Motivation Training and also the nuances of management of an enterprise. Sessions on technology and finance are also arranged, depending upon the nature of project selected. Special EDPs are being conducted with more emphasis on linkages with R&D institutions to take up projects based on indigenous technologies and services, in the area of high technology, such as leather, plastics, bio-medical equipment, high speed data communication and other emerging areas of technology. For example, a programme has been undertaken in collaboration with the Institute of Plasma Research, Ahmedabad, for setting up plasma technology-based enterprises. The Programme and training in technology-related aspects The project proposals for special EDPs can be submitted by an R&D institution or specialised training institution in entrepreneurship development. In either case the involvement of the other group is mandatory. All EDPs are conducted by specialised institutions.

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.

With a view to expose students as well as faculty of academic institutions, offering degree/diploma courses in S&T, to entrepreneurship as an alternative career, Entrepreneurship Awareness Camps (EACs) are conducted by nodal agencies in each State/Union Territory of the country. The implementing agency is usually either an educational institution or a professional body specialising in entrepreneurship development. Each Camp, of 3 days duration, is conducted in the premises of an academic institution and aims at creating awareness among students about various facets of entrepreneurship while highlighting the merits of pursuing such a career option. In each EAC, about 75 students are exposed to different aspects of entrepreneurship, including opportunity guidance, services offered by agencies of support system etc. A visit to the industries located in the region is also arranged to bring the students in direct touch with practicing entrepreneurs. Guidelines for Conducting Entrepreneurship Awareness Camps (EACs) in Educational Institutions Programme Objective To create awareness among faculty and students of Engineering and Science courses about various facets of entrepreneurship as an alternative career option as also to highlight the merits of pursuing such an option. Target Group Science and Technology graduates/diploma holders or those who are doing their final year diploma/degree in engineering/technology/science. Venue Within the premises of an academic institution. Duration Three days. Faculty Experts are mostly drawn from local or nearby institutions including practicing entrepreneurs with educational background in Science and Technology.

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.

Science & Technology Entrepreneurship Development Scheme (STEDS) was launched in 1985 when NSTEDB prepared a scheme to map the available material resources in industrially backward regions and prepare a basket of technically feasible and economically viable project profiles of enterprises that could be promoted by local S & T entrepreneurs and thus tapping hitherto un-utilised / under-utilised resources. Later the scheme was re-christened as "Science & Technology Entrepreneurship Development Scheme (STEDS)". Initially the scheme was launched in 13 districts in consultation with the Planning Commission. A National Advisory Committee was formed to prepare the guidelines and oversee the implementation of the scheme. Accordingly, Task Forces having members from concerned state govt. agencies, banks, etc. were constituted under the Chairmanship of the District Collector to guide the officials manning the scheme. The scheme took off quite well in most of the locations and project profiles for utilisation of available resources were prepared. In 1996-97, STEDS programme was reformulated. The National Advisory Committee was reconstituted and eminent scientists, technologists, economists and social activists were invited as its members. The STED Project In the project mode, the STED project aims to bring about a socio-economic development of an area through the intervention of Science & Technology. The project envisages matching of the material and the human resources of the district to create new enterprises and employment by usage of Science & Technology processes. It involves identification of opportunities through a detailed scientific survey and exploitation of the opportunities thus identified by the entrepreneurs. The total project life is four years. Currently the STED project is being implemented in 43 districts of the country. Objectives The broad objectives of the project are:-

To identify possible resource based projects in the region covering both rural and urban areas. To identify S&T intervention (like technology selection, modification, alteration and dissemination) for exploiting the opportunities by prospective entrepreneurs. To improve working of existing enterprises through S&T intervention to upgrade the technology and modernisation of units. To organise regular enterprise awareness programmes and skill development programmes for creating suitable entrepreneurial environment in the district. To launch at least 200 micro-enterprises in the district during the four years of duration in which at least 50 technology-driven micro-enterprises are to be in technology specific areas as identified by the implementing agency earlier.

Implementation Methodology Implementation Mechanism The Host Institution (HI) or Implementing Agency (IA) identifies amongst other 3-4 specific technology areas, which are specific to the location of STED project implementation. Based on this

identification, the HI / IA prepares the opportunities available in these technology areas indicating the source of technology and likely collaboration with the technology provider. The HI / IA should also mention his expertise in the selected technologies, if any. The broad mechanism to be adopted for implementation are:-

Market survey for identification of resources of the region which include Man

Material Market Methods (Science) Mechanics & Mechanism (Technology)

Preparation of opportunities profile. Identification & counseling of potential entrepreneurs. Training of entrepreneurs. Providing escort services to the potential entrepreneurs Counseling the existing enterprise for technology upgradation and modernisation.

Target Group The target group would be essentially unemployed youth who may or may not possess necessary skill to launch a micro-unit but have the necessary desire and aptitude for such venture. Others including ex-army men, would also be covered under the project. Agency The project is awarded to a reputed Technical Consultancy Organisation (TCO), Non-Government Organisation (NGO) or any organisation having a proven track record in the field of entrepreneurship development. The agency is selected based on their past Performance in the area, credibility and staff availability. Linkages For successful and effective implementation, linkages would be established with reputed and national level R&D institutions for sourcing technologies and upgradation of existing technologies. Institution like SIDBI, NABARD and the Lead banks would be involved right from the training stages for better acceptability of the project proposal amongst the financial institutions at the time of sanctioning and disbursing the loan. The STED project would function closely with the district administration without whose involvement and intervention it may not produce desired results. Linkages with other schemes and programmes of the Central and State Government would be established for availing benefits of various Government schemes. Evaluation and Monitoring The STED Project is a four-year project with the financial support for four years. However, the continuation of project and annual funding is entirely Performance oriented. The Performance is monitored both in quantitative and qualitative aspect. The Expert Advisory Committee on STED project evaluates the Performance and monitors the progress of the project. For this purpose, the Advisory Committee meets two to three times in a year at the project site. Regular site visits by a team consisting of one committee member and one officer from NSTEDB secretariat ensures a timely monitoring of the project. In such case where shortfall in achievement of target is noticed monitoring

team visits the project to suggest mid-term corrective action. In extreme cases, the project may also be terminated mid-term if revival is found to be unfeasible or impossible. Expected Outcome Each STED Project is expected to generate at least 200 model micro-enterprises over the project duration of four years. It is also expected that at least 50 micro-enterprises will be launched in the specific technology areas (identified earlier by HI/IA through survey). Achievements at Select Locations In Karaikudi The STED project in Karaikudi is being implemented by Central Electrochemical Research Institute (CECRI), a national level R&D laboratory of repute under CSIR umbrella, it implementing the STED project in Karaikudi. The STED project immediately after the launch, was able to spread its wings in nearby rural areas. Some of the units promoted by the STED Project include superfine chemicals which are being exported to Germany, manufacture of TV sets in the rural areas and various other units in the service sector in electronics (both consumer and industrial) , computer and associated fields. The STED project has been providing its support to other STED projects in its area of specialization viz. repairing of lead acid batteries. The project has supported more than 1500 micro enterprises. In Kozhikode Kerala has a large population of Non Resident Indians (mostly in Gulf) who wish to invest in India and on their return take the entrepreneurial route for settling down in the state. An association of NRIs called "Pravasi Sangam" was sensitised and through regular interaction and training programmes a number of enterprises have been launched. The STED Project through its close association with the State Government has taken on the job of servicing and maintenance of all the electrical energy meters in the state. For this a workforce of 500 women were trained and are now self-employed through a cooperative promoted by the STED project. A number of such activities have been taken up by the STED project. In Agartala Agaratala the capital of Tripura is a difficult area in North-east where the entrepreneurship culture was totally missing. The activities of the STED project has catalysed the establishment of 60 microenterprises in areas like fruit and food processing, Internet and related business, DTP, and lost cost construction. Experts from the industry, R&D Institution were invited for technology demonstration. The project has achieved its target of micro enterprise establishment.

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.

A Faculty Development Programme (FDP) is designed to train and develop professionals in entrepreneurship development so that they can act as resource persons in guiding and motivating young S&T persons to take up entrepreneurship as a career. Through each FDP, 15-20 faculty members of Science and Engineering colleges, Polytechnics and Entrepreneurship Development Organisations are trained for a duration of 2-3 weeks. The FDPs provide inputs on process and practice of entrepreneurship development, communication and inter-personal skills, creativity, problem solving, achievement motivation training, inputs on resource and knowledge industries. The training methodology includes case studies, group discussion, games and simulation exercise, field visits and classroom lectures.

Guidelines for Conducting Faculty Development Programme (FDP) Programme Objective Faculty Development Programme (FDP) aims at equipping teachers with skills and knowledge that are essential for inculcating entrepreneurial values in students and guiding and monitoring their progress towards entrepreneurial career. Who can conduct? Institutes / organisation engaged in entrepreneurship training having vast experience in the field of entrepreneurship development. The organisation should have in-house training experts for conducting FDPs. Target Group Teachers of Science & Technology Colleges/Institutions, persons from the organisation engaged in entrepreneurship development. Duration 2 weeks (preferably residential programme).

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.

A Technology Based EDP primarily focuses on training and development need of S&T entrepreneurs in a specific technology area (for example, Leather, Plastic, Electronics & Communication, Fragrance & Flavour, Instrumentation, Sports Goods, Bio-technology, IT Computer Hardware, Food Processing, Bio-medical Equipment, Glass & Ceramics, Jute Products, Sustainable Building Materials, Herbs & Medical Plants Processing, etc.). The participants are provided with hands-on training in indigenous technologies developed by R&D institutions that are available for commercial exploitation. In each TEDP, 20-25 persons, having a degree/diploma in S&T are trained through a structured training programme of about 6 weeks duration. The TEDP provides class room training on motivational management areas besides actual hands-on training in the specific technology areas by technology providers. Programme Objective TEDP is a structured training programme of 6-weeks duration designed to motivate and develop entrepreneurs in specific products/technologies/processes developed by CSIR labs, R&D institutions, universities etc. In a TEDP :1. The entrepreneurs are exposed to technical knowledge about the products and technologies and are enabled to develop their skills at the lab of the technology provider. 2. The R&D lab having commercially viable technologies, get potential entrepreneurs as its "takers"; and 3. The entrepreneurship-training institute can put concerted efforts in a specific discipline of producttechnology and thus can have better control over the course of the programme and its success. The participants are selected through various tests and personal interviews to assess their potential of becoming a successful entrepreneur. During the training period, the participants also get to know the

intricacies of how to start and manage an enterprise. At the end they are assisted in preparing a bankable project report.

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 minimization 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

NMCP Schemes to Enhance Competitiveness of SMEs

Feb 2011

The Small and Medium Industries form the backbone of manufacturing sector not only in this country but even in the developed countries. The small scale sector contributes to 40% of manufacturing. The small industries sector also contributes substantially to the exports. In the past, the small scale sector existed in a relatively sheltered environment. The levels of protection were high, several goods were reserved for production in the small scale sector, special fiscal incentives were extended to the units in the sector and a number of support programmes were also drawn up to ensure the Small Industries survived.

In the post-reform era, starting from 1991, the situation for the Manufacturing Sector as a whole as well as for the Small Industries has undergone a dramatic change. The tariffs on imports have been reduced very substantially. India is gradually integrating with the world economy; new trade blocs are forming and many countries, including India, are entering into Preferential Trade Agreements, Free Trade Agreements or Comprehensive Economic Agreements to improve trade in areas of their comparative advantage. In this process the Indian economy is becoming more open and there is an urgent need for the industry to adjust to the new situation. The Indian industry need to become competitive by cutting down overall costs to that extent to survive and grow. The situation confronting the Small Industries in particular provides both opportunities as well as challenges. An opportunity to grow in a global market place is available to access entry into the global value chain by virtue of their being internationally competitive. The others would need to reposition themselves and become competitive to meet the challenges if they have to survive.
Manufacturing Drives Growth

Worldwide, it is manufacturing that has driven growth. In order to revive the manufacturing sector, particularly small and medium enterprises, and to enable them to adjust to the competitive pressures caused by liberalization and moderation of tariff rates, the government has launched many schemes under the National Competitiveness Programme to strengthen the SMEs in their operations and sharpen their competitiveness. National Competitiveness Programme was formulated in 2005 with an objective to support the Small and Medium Enterprises (SMEs) in their endeavor to become competitive and adjust the competitive pressure caused by liberalization and moderation of tariff rates. The schemes are called as 'Manufacturing Competitiveness Programme'. The design of the scheme is being worked out by the National Manufacturing Competitiveness Council (NMCC) in consultation with the industry. The National Manufacturing Competitiveness Council (NMCC) has finalized a five-year National Manufacturing Programme. Ten schemes have been drawn up including schemes for promotion of ICT, mini tool room, design clinics and marketing support for SMEs. Implementation of these schemes is to be carried out in the PPP model.

Schemes under the National Manufacturing Competitiveness Programme (NMCP) Marketing Support/Assistance to MSMEs (Bar Code) Support for Entrepreneurial and Managerial Development of SMEs through Incubators Enabling Manufacturing Sector to be competitive through Quality Management Standard & Quality Tech. Tools (QMS/QTT) Building Awareness on Intellectual Property Rights (IPR) for MSME Lean Manufacturing Competitiveness Scheme for MSMEs Mini Tool Rooms proposed to be set up by Ministry of MSME (MTR) Design Clinic Scheme for design expertise to MSMEs Manufacturing sector (DESIGN) Marketing Assistance & Technology Up-gradation Scheme in MSMEs. Technology and Quality Upgradation Support to MSMEs Promotion of ICT in Indian Manufacturing Sector (ICT)

Wings of desire
The year 2000 saw a young mechanical engineer leave his cushy corporate job in pursuit of his passion for travel and launch Wings Travelsa name that has become a cornerstone for car rental service providers operating in India and catering services to national and international clients. Riding on the India's BPO revolution, Arun Kharat decided to start his own travel agencyWings Travelsthat elevated his precedence to all new heights. At the dawn of the millennium, Kharat delved upon the idea of providing transportation solutions to call centres for their employees. What started with humble resources and one cab is today one of Pune's largest cab vendors with BPOs across Maharashtra.

The idea behind the foundation of Wings Travels was basically love and passion for travel. The idea was conceived when I was working with multinationals. At that time we thought that the travel market was unstructured, small and offered huge potential. In the year 2000 in Mumbai, when BPOs started mushrooming in Mindspace, Malad, we started with just one car and we worked in Mumbai for 3-4 years and moved to Pune in 2003, says Kharat. Today, Wings Travels has come long way with presence all across Maharashtra serving various multinationals. Unfazed by recession, the company has registered a huge growth and is poised to scale greater heights in the near future. Past two years have been very good for us. In fact, we have been doubling our turnover with each passing year, Kharat mentions. Today, the company boasts of more than 400 workers who work relentlessly to provide a unique and satisfactory customer experience. The company offers a wide range of travel services and has become a one stop shop for all travel needs.
Bouquet of Services

We offer a bouquet of services wherein once a customer comes to our office we ensure that all services are made available to him, Kharat says. The company offers passport services, railway ticketing facilities including the Tatkal reservation. The company has operations in Hyderabad and plans to go pan India in future. What sets the company apart is its focus on being a good corporate citizen by using eco friendly fuels in all its cars. Also, the company organises training camps and promotes better driving skills across the country. We do joint activities with the police and RTO. We also conduct road safety programmes, road safety weeks and seminars. A dedicated team of professional trainers impart training in defensive driving, soft skills and controlling road rage and this is open for all, informs Kharat. The company with its growing stature and revenue decided to look into other travel related avenues and has carved a niche in hospitality industry and medical tourism. Their Wings Wellness ision caters to high end travellers and their spas offer a gamut of services like massages, facials and hydrotherapy. Medical tourism in India has huge potential and we are committed to provide five star treatments to foreign nationals at a cheaper cost, says Kharat. What also worked wonders for Wings Travels has been its alignment with IndiaMART.com. We have benefited immensely from IndiaMART.com that has helped us in garnering more customers and increasing our reach, mentions Kharat. In a short span, Wings Travels has come a long way and has become a giant in the travel industry and

commands respect from its competitors and customers. With a resolute determination to provide world class travel services, Kharat's modest dream has turned into a success story.

Financial Assistance For Use of Bar-Code

Bar Coding can have a significant impact on the success of any enterprise/ company and organisation. Timely and accurate capture of product information and its communication electronically across the Supply Chain ahead of physical product flow is critical to lowering inventory costs, in accurate sales forecasting & dynamic production scheduling and in product track and trace. Bar Coding not only facilitates the exchange of information between buyers and sellers, but also provides the potential for better visibility and sharing of information across an entire Supply Chain.

Market Development Assistance Scheme for MSMEs

Participation by manufacturing Small & Micro Enterprises in International Trade Fairs/ Exhibitions under MSME India stall. Sector specific market studies by Industry Associations/ Export Promotion Councils/ Federation of Indian Export Organisation. Initiating/ contesting anti-dumping cases by MSME Associations and Reimbursement of 75% of one time registration fee (w.e.f. Ist January 2002) and 75% of annual fees (recurring) (w.e.f. Ist June 2007) paid to GSI (Formerly EAN India) by Small & Micro units for the first three years for bar code.

Government Schemes for SMEs

There are various schemes run by the Indian Government to boost the SME's in the country to help them become more innovative, efficient and competitive. The enactment of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 was a landmark initiative taken by the Government of India to enable the SMEs' competitive strength, address the issues and challenges and reap the benefits of the global market. SME policy initiatives at the national and state level are aimed at strengthening the role of SMEs at the base as well as at the higher level. The Tamil Nadu Government formulating an exclusive policy for micro, small and medium enterprises sector to encourage agro-based industries is a recent example of the changes taking place at the ground level. Some of the salient features of this policy include formation of multi-storied and flatted industrial estates for micro industries, liberal floor space index in plotted development of 1.5 to 1.75 for industrial sheds and 2.5 for multi-storied industrial units, 50% rebate on stamp duty and registration charges for micro and small enterprises in industrial estates and industrially backward areas. The Ministry of Micro, Small and Medium Enterprises (MSME) is implementing the promotional schemes for the development of micro, small and medium enterprises. The schemes and programmes generally focus on capacity building in states and regions, nevertheless, there are a few schemes and programmes, which are inidual beneficiaryoriented. Some of the schemes are by The Ministry of Micro, Small and Medium Enterprises (MSME) are as below. Scheme of Surveys, Studies and Policy Research Entrepreneurship Development Institution Scheme Scheme of Fund for Regeneration of Traditional Industries (SFURTI) Rajiv Gandhi Udyami Mitra Yojana (RGUMY) Marketing Assistance Scheme (Implemented through NSIC) Performance and Credit Rating Scheme (Implemented through NSIC) Prime Minister's Employment Generation Programme (PMEGP) (Implemented through KVIC) Product Development, Design Intervention and Packaging (PRODIP) (Implemented through KVIC) Khadi Karigar Janashree Bima Yojana for Khadi Artisans (Implemented through KVIC) Interest Subsidy Eligibility Certification (ISEC).

While there are no specific reservations for women, in the latter, there are some oncessions/incentives available under these programmes for the benefit of women entrepreneurs. In respect of entrepreneurship/skill development training programmes, under the National Awards for Entrepreneurial Development (Quality Products) and Trade Related Entrepreneurship Assistance and Development (TREAD) Programme for women, the necessary guidelines have been issued and specific reservation provided for women. Similarly, under two employment generation programmes being implemented by the Ministry like Rural Employment Generation Programme (REGP) and Prime Minister's Rozgar Yojana (PMRY), some concessions have been provided for women beneficiaries. Besides, the Coir Board is implementing the Mahila Coir Yojana, which is a women oriented self-employment programme. Schemes There are certain schemes which National Small Industries Corporation carries forward to assist small enterprises with a set of specially tailored schemes designed to put them in a competitive and advantageous position. The schemes comprise of bank credit facilitation, Export credit Insurance, SME Credit Rating, Bill discounting schemes, Government stores purchase programme, infomediary services, facilitating marketing support, technology support and other support services. Besides these schemes, the Government of India also runs a International Cooperation Scheme for Technology infusion and/or upgradation of Indian MSMEs, their modernisation and promotion of their exports are the principal objectives of assistance under the International Cooperation Scheme.

Have a look at the Government Schemes for Entrepreneurs

The first month of the year is befittingly a time for retrospection. Its time to mull over the unfinished tasks and to plan further moves. A tumultuous year that it was, 2008 afforded little chance to the government to be complacent as far as the fate of the enterprises is concerned. The unprecedented developments in the economic world had the government haunted by the fear of the India story getting derailed. The economy is being intermittently fed with booster packages to keep growth intact. India couldn't have been more fortunate than to have a renowned economist in our Prime Minister in such difficult times. Though this year we will have many such columns talking about government initiatives to sustain 6% growth at least, yet we present you a quick round up of some of the major initiatives of the government over the years to sustain entrepreneurship in INDIA. To tackle the C thing No problem is more pressing for the entrepreneur than credit. To make the Credit Linked Capital Subsidy Scheme (CLCSS) more attractive, several amendments have been made with effect from 29 September 2005. The ceiling on loans has been raised from Rs.40 lakh to Rs.1 crore and the rate of subsidy has been raised from 12 per cent to 15 per cent. The admissible capital subsidy has now been based on the purchase price of plant and machinery, instead of the term loan disbursed to the beneficiary unit. Most significantly, the practice of categorisation of MSMEs in different slabs on the basis of their present investment for determining the eligible subsidy has been dispensed with. No Collateral? No Problem For entrepreneurs unable to provide collateral for obtaining loans, the Credit Guarantee Fund promises some help. The loan limit for this purpose has been increased from Rs.25 lakh to Rs.50 lakh. Added to this the one time guarantee fee has been reduced from 2.5% to 1.5%. This awareness has increased the number of loan proposals from 40 000 (for loans upto Rs.1000 crore) at the end of March 2004 to more than 1.20 lakh proposals (for loans of Rs3500 crore) at the end of October 2008. The Best of all Packages The Policy Package for Stepping up credit to SMEs was announced in 2005 for doubling the credit flow to this sector

within a period of five years. This has resulted in a significant increase in flow of credit to enterprises from Public Sector Banks, from Rs.58, 278 crore at the end of March 2004 to Rs.1, 48, 651 crore at the end of March 2008. Capacity building for SMEs and support to women entrepreneurs are the main features of this package. Administering the skill pill: The agencies under the ministry of MSME conducted programmes for skill development for nearly 1 lakh trainees during 2007-08 and the targets set for 2008-09 is 3 lakh persons. Such training programmes for skill development are also being organized for women and other weaker sections of the society free of cost. A monthly stipend of Rs.500 is provided during the training period. In order to enhance the competitiveness of SMEs, the government has launched the National Manufacturing Competitiveness Programme. The programme will enable the enterprises to Develop Quality Management Systems and Quality Technology Tools, besides providing them assistance for Marketing and entrepreneurial development. Enabling Development through Clusters As part of the MSMEs cluster development initiative, the MSME clusters can avail of benefits such as exposure to skill development, credit, marketing, technological upgradation and better designs and products. At present there are 412 clusters availing government interventions. Among these 50 clusters have been earmarked for hard interventions, 152 clusters for soft interventions and 210 clusters for diagnostic studies.