Entrepreneurship Development Programmes

Entrepreneurship can be developed by training. Towards this end and also to make the Entrepreneurship Development Programmes (EDPs) result-oriented, SIDBI has been supporting suitable agencies to train and guide potential entrepreneurs to set up enterprises.

OBJECTIVE

EDPs aim at training various target groups in entrepreneurial traits so that they obtain adequate information, motivation and guidance in setting up their own enterprises. In order to maintain a homogeneous nature of participating groups, EDPs focus on rural entrepreneurs, women and SC/ST etc.

PROGRAMME PARTICULARS

The EDPs are normally of 4 - 6 weeks duration coupled with proper practical training inputs. Training Agencies specialising in conducting EDPs, Non-Governmental Organisations (NGOs) and specialised technical institutes are extended assistance for conduct of product specific EDPs.

In an effort to attract more professional and result oriented institutions into the EDP fold, the Bank has made the scheme more performance oriented by extending reasonable support towards training cost and encouraging the institutions to earn performance fee by grounding units.

PROGRESS

Upto March 2001, the Bank has supported a total of 1317 EDPs comprising 654 Rural EDPs, 285 Women's EDP and 378 programmes for other target groups benefiting approximately 27,500 persons.

Management Development Programmes

Management Development in SSIs has been identified as a crucial area of intervention for the viability, competitiveness and profitability of SSI units especially in the context of present economic transition when the market barriers are gradually being removed. SIDBI took initiative to remedy the short-coming of HRD in SSI sector by launching two programmes namely Small Industries Management Programme (SIMAP) targeted at qualified unemployed as well as industry sponsored candidates to provide low cost and competent managers to SSI units and Skill-cum-Technology Upgradation Programme(STUP) for owners/managers of SSIs.

OBJECTIVE

The objective of SIMAP is to develop a cadre of industrial managers specifically trained to assist the SSI entrepreneurs in their multiple responsibilities. It also seeks to open up new avenues of productive employment for young graduates who are otherwise not professionally qualified.

PARTICIPANTS

This programme is targeted at unemployed non-technical graduates, diploma holders and industry sponsored participants for management strengthening.

DURATION & CONTENTS

The programme is conducted in three phases, normally over a period of 14-18 weeks. The first phase consists of classroom sessions for about 5-8 weeks. Inputs essentially cover information, knowledge and skills pertaining to management of the SSI units. This is followed by the second phase of 8 weeks wherein on-the-job practical training is provided in the SSI units. The final phase of 1-2 weeks is basically a refresher / debriefing course before the candidates are awarded their course certificates.

PARTICIPANTS CONTRIBUTION

To ensure involvement of the participants and to obviate drop out at later stages, the participants are required to pay some fee for the course.

OBJECTIVE

The programme is structured to improve the performance of existing SSI units by developing/ strengthening managerial skills and technical competence of the entrepreneurs and senior executives of the small enterprises. It also aims to create awareness amongst the SSI units on process improvements, technological developments etc. and to induce the units to upgrade their technological level.

PARTICIPANTS

The programme is designed for homogeneous groups of entrepreneur/ senior executive in terms of the size of the units, owner profile, nature of industry and present financial/working status.

DURATION & CONTENTS

The duration of the programme is for a period of 2-6 days on full time basis or 4-12 days on part-time basis. The programme content is tailored depending upon the participants and/or the industry group represented by them. Due to the technical nature of the programme, the focus is more on specific aspects or on specialised fields rather than on general management topics.

PARTICIPANTS CONTRIBUTION

The participants are required to pay about one-third of the fee for the course to ensure their involvement.

CORPUS SUPPORT

Institutionalisation of these management development programmes has become the major thrust of the Bank which is expected to provide inputs on a continuous and organised basis in areas considered to be crucial for tapping full potentialities of the SSI sector. The Bank has started extending corpus support to regionally dispersed reputed institutes, which conduct programmes regularly out of the interest income charging reasonable participant fee.

PROGRESS

The Bank has, upto March 1999, supported a total of 148 SIMAPs and 529 STUPs. So far 14 institutions have been provided with the Corpus Support.

Those interseted in joining these programmes may please get in touch with institutes listed here

Women Entrepreneur Programmes

A trained and skilled woman can earn her livelihood and effectively contribute to the national income. SIDBI operationalises this concept under its Mahila Vikas Nidhi (MVN) programme by assisting accredited NGOs to create training and marketing infrastructure.

OBJECTIVE

Mahila Vikas Nidhi (MVN) is SIDBI’s specially designed Fund for economic development of women, especially the rural poor, by providing them avenues for training and employment opportunities.

APPROACH

A judicious mix of loan and grant is extended to accredited NGOs for creation of training and other infrastructural facilities. The basic activity involves setting up of Training-cum-Production Centres (TPCs) by the assisted NGOs to ensure that women are provided with training and employment opportunities.

In addition, activities like vocational training, strengthening of marketing set up for the products of the beneficiary group, arrangements for supply of improved inputs, production and technology improvement are also covered under the MVN scheme. Assistance is given mainly towards capital expenditure and support of a recurring nature is discouraged.

ELIGIBILITY

NGOs that:

• have been in existence for at least 5 years, should be registered with properly constituted bye-laws, memorandum and articles of association, governing body, broad-based management and properly maintained accounts.
• have good track records.

TERMS

Assistance by way of concessional loan and grant is provided. Grant support is mainly towards strengthening the managerial capability of NGOs. Loan is extended on following terms:

• NGOs to pay a concessional rate of interest.
• Repayment period is normally up to 5 years and is fixed on case to case basis. Initial moratorium of one/one and half years is considered.
• Security - Normally secured by way of mortgage/hypothecation of assets created out of loan assistance.

PROGRESS

Upto March 2001, SIDBI has extended assistance of Rs. 804 lakh to 155 NGOs benefiting about 21, 350 women.

Quality Management & Environment Management Programmes

SIDBI is creating awareness in the SSI sector regarding the need for quality and environment management.

OBJECTIVE

These participative workshops are organised all over the country to sensitise the SSI units about 'Total Quality Management' and 'ISO 9000' as also to assist the SSI units in acquiring ISO-9000 certification by making available to them all the major inputs which are required viz. expert guidance, escort services and finance.

APPROACH

These programmes are organised through FICCI, ASSOCHAM, CII and specialist agencies like TQM International (P) Ltd. and ABC Cunsultants (P) Ltd. They employ qualified and experienced lead assessors and auditors to conduct 2-day workshops all over the country with the ultimate objective of identifying units, which could be motivated, persuaded and assisted to achieve ISO-9000 certification. These units are then provided with necessary financial assistance for acquiring ISO-9000 certification.

FEES

The SSI units pay a token amount as participation fee. For providing escort services to SSI units operating in clusters for achieving certification, the Bank subsidises to a reasonable extent the professional charges of consultants. Besides this, the cluster approach to ISO-9000 certification also reduces the overall expenses of the certification exercise and makes the whole programme very affordable for the SSI units.
In addition, the Bank also positions consultancy organisations to provide escort services to SSI units to enable them to acquire ISO-9000 certification.

PROGRESS

Over 200 awareness programmes have so far been supported. Besides supporting the SSI units by contributing to the escort service charges, the Bank also makes available finance to SSI units at a prime rate under a special direct assistance scheme for acquiring the certification.

The programme for escort services has enabled 35 units to acquire ISO-9000 certification while another 45 units are undergoing the exercise.

OBJECTIVE

The environment management initiative of the Bank has been launched with the objective to make the SSI units aware of environmental issues and to assist them to acquire a green image by finding solutions to their pollution problems.

APPROACH

The two pronged approach aims at increasing awareness on the important issues of environment management and supporting the setting up of demonstration projects in homogeneous cluster of SSI units.

The conduct of awareness programmes is entrusted to professional agencies. These agencies conduct interactive and focused programmes, which endeavour to provide solutions to the multifarious problems afflicting SSI units. The objective of this exercise was to educate the SSI units about the environmental regulations, which need to be adhered to, and the steps, which need to be adopted to operate within prescribed norms.

Demonstration projects are implemented by professional agencies by providing select units in homogenous clusters with escort services. The agency helps in setting up projects which not only reduce pollution levels but also bring-in benefits like improved quality, reduced processing time and material conservation

FUNDING

The funding for the awareness programmes is provided by the Bank with the SSI units paying a token amount as participation fee. For demonstration projects, the Bank subsidises to some extent, the professional charges of the consultants and also provides the beneficiary units with financial assistance to partially meet the cost of equipment.

PROGRESS

Support for awareness programmes is an on-going exercise and the Bank engages institutions like the National Environment Engineering Research Institute (NEERI), Environmental Protection Training and Research Institute, Centre for Environmental education etc. for conducting these programmes. A satellite interactive network programme was also conducted for spreading the message of "Green Profits" for the SSI units, wherein experts in the field were stationed at New Delhi and interacted with over 200 partcipants from SSI units in 13 cities all over the country.

Demonstration projects have been supported by the Bank in thge Sub-sectors of cupola based foundries, induction furnaces, rice shellers, brick kilns, hot-mix plants, heat treatment units, electroplating units, saila (rice) plants, dyeing units etc.

The demonstration projects have been widely replicated especially those targeted at rice-shellers, foundries and brick kilns. The technology is cost effective and the payback period is less than one month. Currently, the programme is being up-scaled to include more industry sub-sectors and cover a greater geographic spread.