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A Guide on Starting MSME in India - Part IX

Updated on May 14, 2010

Institutional Assistance to MSMEs

There are various state and centre- level institutions to offer services and give advice to the prospective entrepreneurs on planning, evaluation and execution of projects. A list of such institutions is given below:


Ø      Small Industries Development Organisation (SIDO)

 It is an apex body at Central level for formulating policy for the development of Small Scale Industries in the country, under Ministry of Small Scale Industries Govt. of India.

The acitivites of the Institute include assistance provided to start new units as well as techno-managerial cum marketing assistance, common facilities and extension services, providing facilities for technology up-gradation, modernization quality improvement & infrastructure, human resources development through training and skill up-gradation, etc. to the existing units and prospective entrepreneurs. Training programmes on various aspects of marketing like Marketing Management, Export Marketing, Export Documentation, procedures and Export Packaging are also conducted from time to time.

There are technical officers of different disciplines like Mechanical, Metallurgical, Electrical, Electronics, Chemical, Glass & Ceramics, Leather & Foot wears, posted in the Institute, who give technical advice to entrepreneurs & existing industries to improve quality & productivity.

Ø      MSME-TestingCenter (MSME-TC) (Formerly Regional Testing Centers(RTCs))

Provide Testing facilities for quality upgradation, training/constancy in testing, quality control, quality management, process quality control systems, and product specific testing facilities are provided by MSME-Testing Stations (MSME-TSs)

Ø     Autonomous Bodies

Tool Rooms/Tool Design Institutes (TRs/TDI)

Assist MSMEs in technical up gradation, provide good quality tooling by designing and producing tools, moulds, jigs & fixtures, components, etc and provide Training and consultancy for tool and die markers.

MSME-TechnologyDevelopmentCenter(MSME-TDC) (Formerly Product-cum-Process Development Centers (PPDCs))

These are product specific Centers to look into their specific problems and render technical service, develop and upgrade technologies, manpower development and training

MSME-Technology Development Center-Footwear(MSME-TDC) (Formerly Central Footwear Training Institutes (CFTIs))

Develop footwear designing to promote exports, provides training for manpower in Footwear Industry.

Ø      Training Institutes

There are three National Level Training Institutes. These are National Institute of Micro, Small and Medium Industry Extension Training (NIMSMIET), Hyderabad; National Institute for Entrepreneurship and Small Business Development (NIESBUD), New Delhi, which conducts national and international level training programmes in different fields and disciplines; Indian Institue of Entrepreneuship (IIE), Guwahati. The main objective of the institute is to act as a catalyst for entrepreneurship development with its focus on the North East.

Ø      Other Associated Agencies

National Small Industries Corporation (NSIC) for technology and marketing support

Small Industries Development Bank of India (SIDBI) an apex bank set up to provide direct/indirect financial assistance under different schemes to meet credit needs of the small-scale sector and to coordinate the functions of other institutions in similar activities.

Khadi and Village Industries Commission (KVIC) assist the development and promotion and disbursal of rural and traditional industries in rural and town areas.

Ø      State Level Institutional Support

State Government executes different promotional and developmental projects/schemes and provides a number of supporting incentives for development and promotion of MSME sector in their respective States.

These are executed through State Directorate of Industries, who has District Industries Centers (DICs) under them to implement Central/State Level schemes.

The State Industrial Development & Financial Institutions and State Financial Corporations also look after the needs of the MSME sector.

Ø      The National Institute for Entrepreneurship and small Business Development (NIESBUD).


It is an apex body for coordinating and overseeing the activities of various institutions/ agencies engaged in Entrepreneurship Development Particularly in the area of small industry and small business.


The activities of the Institute include evolving effective training strategies and methodology, formulating scientific selection procedure, developing training aids, manuals and tools, facilitating and supporting Central / State/ Other agencies in organising entrepreneurship development    programmes, conducting training programmes for promoters, trainers and entrepreneurs and undertaking research and exchange experiences globally in development and growth of    entrepreneurship. The Institute is actively involved in creating a climate conducive to    emergence of entrepreneurship.



Ø      National Science & Technology Entrepreneurship Development Board (NSTEDB).

The National Science & Technology Entrepreneurship Development Board (NSTEDB), is an institution to help promote knowledge based and technology driven enterprises. Major Objectives of NSTEDB include promoting and developing high quality entrepreneurship amongst S&T manpower and to promote self-employment by utilising S&T infrastructure, facilitating and launching various promotional services relating to development of entrepreneurship, and to network agencies of the support system, academic institutions and Research & Development (R&D) organisations to foster entrepreneurship and self-employment using S&T with special focus on backward areas as well.



Other Resources for Small Business


Many excellent websites and organizations offer help to anyone starting a business. Finding the right advice, resources and entrepreneurial communities will be vital to the success of your small business startup.


If you can afford to hire employees or can bring in partners when you first start a business, do it. Studies show that well-staffed business startups have better survival rates than solo operations. If this won't work for you, at least seek out experienced mentors. If you can, attend seminars on how to start a small business or enroll in a college-based entrepreneurship program to learn the ropes.


The Microsoft Startup Center is a nicely organized list of key tasks you need to consider in starting a business, with help, resources and information on how Microsoft products and services can help starting small business. "The Rules" tab, for example, has advice on selecting a business structure, getting licenses, understanding tax responsibilities and buying a bar code. You can download a free business plan template and free small business accounting software.


Yahoo! Small Business


Connect to an online community of like-minded startup entrepreneurs. Nothing's a better motivator than involvement with a community of other entrepreneurs who are starting a small business and sharing the ideas and information they have learnt. Startup Nation is a reliable resource for starting small business. Startup Journal, The Wall Street Journal Center for Entrepreneurs, and E-venturing, have loads of helpful articles on starting and growing a business. OnStartups is a new community offering savvy ideas and advice specifically for software entrepreneurs.


If buying a franchise is what you have in mind, go straight to the franchising experts to start a business. The International Franchise Association,, and can help you find the right franchise opportunity. 


 To tap key services online for starting a small business, The Company Corporation can help. See LogoWorks for a business logo fast at a great price. Line up your small business startup financing options at Businessfinance. 


For the latest in technology for small business startup, sign up for the free Small Business Computing newsletter on the home page. Great coverage of News and Trends, Business Software, Hardware & Equipment, Online Marketing, Buyer's Guides and Small Business Essentials.


Business owners who complete education courses on how to start a small business have a greater chance of success. All Business Schools has an online directory of college business schools. You can search the site for those offering programs on entrepreneurship and starting small business. 


The most common reasons for failure within the first few years of starting small business include competition, mismanagement, high rent and insurance costs, high debt, inability to get financing, loss of clients and difficulty with collections. If you are ready to take the risk of the risk of starting your own business, carefully study how to start a business in your chosen market before taking the plunge. Even though business failure rates are not as high as once believed, aspiring entrepreneurs still need to do their homework.


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      Apparao Yerramsetty 7 years ago

      Really very much useful for business aspirants..