Role of Government in promoting Entrepreneurship

8. Risk Capital and Technology Finance Corporation Ltd.(RCTFC)

RCTFC was established in 1988 with an authorized capital of 15 crores rupees.The main objectives of RCTFC are provision of risk capital for the extension and expansion of entrepreneurial development and venture capital for the projects with high techniques for technology development and transfer.

9. Natioanl Research and development corporation (NRDC)

NRDC was established in 1953 under Department of Science and Industrial Research under Government of India.Its main objectives are:

i) Providing assistance in technology transfer

ii) Transfer of technology

iii) Establishing relations with various technology institutions and collecting various indigenous techniques developed by them.

10. Indian Investment Centre

This is an autonomous organization established by Central Government.Its main objective is to assist in promoting foreign cooperation with Indian entrepreneurs and providing necessary information to foreign entrepreneurs.

11. Khadi and village industries Commission(KVIC)

Khadi and Village Industries Commission established by an Act of Parliament in 1956.It is a service organization engaged in promotion and development of Khadi and Village Industries in rural areas. Its main objectives are:

i) Providing employment in rural areas.

ii) Improvement of skills

iii) Rural Industrialisation

iv) Transfer of Technology

v) Building strong rural community base and self reliance among rural people.

12. Indian Institute of Entrepreneurship(IIE)

It was established by the Department of Small Scale Industries and Agro and Rural Industries in 1953.It is autonomous organization with its headquarters at Guwahati. Its main objective is to undertake research,training and consultancy activities in the field of small industry and entrepreneurship.

13. Miscellaneous Organisation

In addition to above various organizations at all India level are assisting and are engaged in entrepreneur development.These include ICICI, IFCI, SIDBI, UTI, IDBI, IIBI etc.

14. National Alliance of Young Entrepreneurs(NAYE)

It has sponsored number of entrepreneurial development acheme in collaboration with various public sector banks.The main objective of the scheme is to encourage young entrepreneurs to explore investment and self –employment opportunities .It arranges for their training and assists them in procuring necessary finance.In 1975 NAYE also set up a Women’s Wing to make women self-relaint and to raise their status.

15. Centre for Entrepreneurial Development(CED) Ahmedabad

It was sponsored by the Government of Gujrat and public financial institutions operating in the State.It conducts entrepreneurial development programmes at various centres.The important features of training programme are:

i) Training programmes were conducted after survey for opportunities was made.

ii) Appropriate linkage was established with supporting agencies supplying finance,factory sheds,raw materials, etc.

iii) Behavioural tests were conducted to select the entrepreneurs.

iv) Training programmes covered theoretical and practical aspects.

v) Full time project leader took follow up action after the training was over.

16. Institute for Entrepreneurial Development (IED)

It was set up by the IDBI in association with other financial institutions,public sector banks and the State Governments.The IEDs was set up to fulfil the entrepreneurial development needs of the industrially backward States in the country.

17. Technical Consultancy Organisation (TCOs)

A network of TCOs has been established by All India Financial Institutions and State Government throughout the country.These organizations have been set up to provide comprehensive package of services to entrepreneurs in general and to small business entrepreneurs in particular.Their main functions include the following:

i) Identifying potential industrial project.

ii) Preparing project reports,feasibility reports and pre-investment status.

iii. Identifying potential entrepreneurs.

iv. Providing technical and administrative support.

v. Conducting techno-economic studies of the projects.

vi. Conducting market research and surveys.

vi. Rendering advice to set up laboratories and design centre.

18. Public Sector Banks.

Public sector banks in association with NAYE have been conducting entrepreneurial development programmes.The main thrust of these banks has been to identify potential entrepreneurs in rural and backward areas.For example Punjab National Bank started entrepreneurial assistance programme in March 1977 in th States of West Bengal and Bihar. Similarly,Bank of India started entrepreneurial assistance programme since August 1972 in the States of Punjab, Rajasthan , Himachal Pradesh,J& k and the Union Territories of Chandigarh and Delhi.

The important Forms of entrepreneurial assistance are:

i) Identifying potential entrepreneurs

ii) Identifying viable projects.

iii) Assisting in preparation of project profiles

iv) Helping in project evaluation.

v) Arranging practical training.

vi) Financing the projects.

B) Institutions set up at State Level

There are a number of institutions establishes at state level for organizing,developing,developing,assisting and making successful entrepreneurial development programmes.Prominent among these are:

i) Small Industries Service Institute (SISI)

ii) State Financial Corporation (SFC)

iii) State Small Industries Corporation (SSIC)

iv) District Industries Centres(DIC)

v) Technical Consulting Organisation Ltd. (TCO)

vi) Industrial Directorates

vii) Commercial and Cooperative Banks

viii) State Industrial Development Corporation

ix) Industrial Estates

x) State Industries Corporation

The above mentioned State and Central level Institutions have provided a number of concessions and facilities to promote entrepreneur development in India.They have also played an important role in balanced industrial development in the country.

For more notes on Entrepreneurship Development click on the link below:

Entrepreneurship Development Notes/ Study Material


Role of Government in promoting Entrepreneurship

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