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India became independent on August 15, 1947. At that moment, industrialisation process was completely out of the track here. Its citizens had enthusiasm that the scope of work in a free,

Written by

MOHAMMAD MUMSHAD

Published on

June 21, 2022
India became independent on August 15, 1947. At that moment, industrialisation process was completely out of the track here. Its citizens had enthusiasm that the scope of work in a free, open and independent environment would owe to their own under the self rule. They had the complete right and authority to express their views and opinions in order to excel the country economically – and as such new government under the leadership of Pt. Jawaharlal Nehru passed an Act in 1951, popularly known as Industries (Development and Regulation) Act 1951, which helped the country in taking many initiatives to enrich it through the industrialisation process.
After the establishment of quality educational institutions such as IIMs, IITs, IISc and MDI and so on during 1970s, the younger generations of the country were more enthused. They were, though, motivated to bring the industrial sector on the growth track that could work as a turning point for the industrial revolution in India. These days, India’s position in terms of education, economy and quality products owing to the industrial growth is known throughout the globe. People are moving particularly from South East Asian countries towards India not only for the purpose of tourism but also for health care, quality education and to accelerate themselves in the fields of newer technologies.
EFFECT OF GLOBALISATION
During 1990s, globalisation and privatisation process opened doors for the foreign entrepreneurs so that they could establish their ventures in India and the Indian entrepreneurs could establish their ventures in the foreign lands in quid pro quo. This has also opened the door for mergers and acquisition processes that many companies are using to enhance their brand value in the global perspective.
Globalisation has also increased the parameters of competitiveness particularly among the entrepreneurs and in this competitive environment the companies which are having skilled workforce and sufficient manpower produce quality products at low cost. They are the change masters and sustain in the market. Most of such Indian companies are counted in this category owing to their excellence and productivity.
MINISTRY OF MSME
In order to accelerate industrial revolution, the Government of India has played the role of a ‘catalyst’ through the Ministry of SSI (Small Scale Industries). Its name has been changed from Ministry of SSI to Ministry of MSME (Micro, Small and Medium Enterprises) by an Act of the Parliament enacted in October 2006. It is popularly known as MSMED Act 2006. The primary role of the Ministry of MSME is to create employment opportunities throughout the country so that younger generations could find various means of income generation and can survive happily. At present, the Micro and Small Enterprises in India provides employment for nearly 3.09 crore masses that account for nearly 39% of India’s manufacturing output. The export contribution of these sectors is over 33% of the total exports and the rest 67% contribution in exports are of large sectors.
The Government of India, through Ministry of MSME, has also been implementing the Prime Minister’s Rozgar Yojana since 1993 with the objective of meeting available institutional finance to educated unemployed youths for setting up self-employment ventures for all economically viable activities meant to create new job opportunities. There are many new schemes which have been initiated under the Ministry of MSME, some of them are as under:
Micro Finance Programme
Performance and Credit Rating Scheme
Energy Conservation Programme
Entrepreneurship Development Programme
Management Development Programme.
Skill Development Programme
Rural Employment Generation Programme
Khadi Karigar Janashree Bima Yojana
Interest Subsidy Eligibility Certificate Scheme
Domestic Market Promotion Scheme
Development of Production Infrastructure Scheme
Mahila Coir Yojana
MICRO FINANCE PROGRAMME 
The main objective of this scheme is to provide credit at the door step for the poor and the low income category masses (educated unemployed youths) in the country to enable them to carry on business or manufacturing activities. This scheme is operated through MFI/NGO that monitors the projects on regular basis. Salient features of this scheme are as follows:
The scheme is implemented by office of DC(MSME), Udyog Bhawan, Maulana Azad Road, New Delhi-110011.
The scheme has been tied up with the existing programme of SIDBI, which has been under operation for long. ‘Portfolio Risk Fund’ is provided by the Government of India to SIDBI to be used for security deposit requirement of the loan amount from MFI/NGO.
This scheme is operated through SIDBI.
SIDBI (Small Industries Development Bank of India)
SIDBI is the apex financial institution for the micro-level industry in the country. Facilities offered by SIDBI are as under:
Presence in all States and major or commercial centres. In NCR, SIDBI has branch offices at Gurgaon, Faridabad, and Okhla Industrial Area, etc.
High technology platform for the efficient services to customers.
Focused assistance to the identified clusters.
Nodal agency for several Government of India schemes for benefit of micro-level industry.
Loans are provided by SIDBI for the following activities:
Setting up of a new project / industry.
Technology up-gradation, diversification, expansion, etc. of existing micro-level industry.
Assistance to service sector entities like hotels, tourism related activities, entertainment, logistic support services, IT & IT enabled services, etc.
ROLE OF MFI/NGO
Any new MFI/NGO (Micro Finance Institution / Non-Government Organisation) desirous of initiating a micro-credit programme, may be considered for assistance, if they adhere the following criteria:
MFI/NGO has promoted and managed by experienced micro-financed professionals with an experience of at least three years in micro credit.
MFI/NGO has achieved minimum outreach of 3,000 poor members (through individual lending/SHG/partner MFI/NGO) or demonstrates the capability to reach this scale within a period of next 12 months or so.
MFI/NGO maintains a satisfactory and transparent accounting, Management Information System and Internal Audit System or is willing to adopt such practice with SIDBI’s assistance.
MFI/NGO may approach DC(MSME), Udyog Bhawan, Maulana Azad Road, New Delhi-110011 to get the certification for this assignment.
THE BENEFICIARIES
India is still on the threshold of progress and it is hoped that India will achieve its objective to be a “developed country” by 2020. And it is being estimated that India will be the richest country on the globe by 2050. This will be possible only if all educated Indian youths could be provided employment.
Keeping in view achieving the goal of a developed country as well as the richest country by 2050, the Ministry of MSME, Government of India is emphasising to implement effective schemes so that employment to the educated youths could be provided on a larger scale.
Since 2000s is the era of globalisation and to compete in the market most of the public sectors have been privatised. Very rare people / youths are being provided government jobs these days owing to privatisation. In this scenario, Ministry of MSME, Government of India is highlighting to provide financial assistance for the youths so that they could establish their own establishment to fulfil their need.
The following format suggests how a person / beneficiary can be able to set up an establishment / “small scale industry” with the help of Ministry of MSME:
S.No.
Particulars
Assigned work
1.
Scheme
Micro Finance Programme
2.
Product
Establishment / Small Scale Industry
3.
Ministry of MSME, Govt. of India, Udyog Bhawan, Maulana Azad Road, New Delhi-110011
Provides ‘Portfolio Risk Fund; to SIDBI to be used for security deposit requirement of the loan amount through MFI/NGO.
4.
SIDBI situated at Gurgaon, Noida, Faridabad, Okhla Industrial Area and all States
Grants loan to the poor unemployed youth through MFI/NGO
5.
MFI/NGO (Micro Finance Institution / Non-Government Organization)
Monitors the functioning of micro-level industry on regular basis.
6.
The Beneficiaries (Educated unemployed youth)
Gets the loan and guidance from SIDBI through MFI/NGO
7.
Result
Development of Gurgaon, Noida, Faridabad, Okhla Industrial Area and so on.
Take the example of one scheme “Micro Finance Programme”. Ministry of MSME through this “Micro Finance Programme” provides financial assistance for the educated youths to set up a unit / establishment / small scale industry.
Basically Ministry of MSME provides “Portfolio Risk Fund” to the Bank “SIDBI” which is used by “SIDBI” for security deposit requirement of the loan amount. SIDBI offers loan to MFI/NGO. MFI/NGO takes the loan as well as full responsibility to monitor the functioning of the unit established by a beneficiary.
RESULT
The cluster development of industrial growth in Gurgaon, Noida, Greater Noida, Faridabad, Okhla Industrial Area are the result of consistent efforts and financial assistance by Ministry of MSME, Government of India. This initiative was taken long back and a person, who started a small scale industry 10 years back, is the employer of more than 100 employees.

Today itself is the best day to introspect and evaluate the status, which have been achieved at individual as well as collective level within 60 years of independent India in order to analyse the economic strength.