Chapter VII TRAINING AND ENTREPRENEURSHIP DEVELOPMENT

Annual Report 2007-2008 Chapter VII TRAINING AND ENTREPRENEURSHIP DEVELOPMENT 7.1 BACKGROUND 7.1.1 Entrepreneurship has been considered the backbone of economic development. It has been well established that the level of economic growth of a region to a large extent, depends on the level of entrepreneurial activities in the region. The myth that entrepreneurs are born, no more holds good, rather it is well recognised now that the entrepreneurs can be created and nurtured through appropriate interventions in the form of entrepreneurship development programmes. 7.1.2 In the era of liberalisation, privatisation and globalisation along with ongoing IT revolution, capable entrepreneurs are making use of the opportunities emerging from the evolving scenario. However, a large segment of the population, particularly in the industrially backward regions/rural areas generally lags behind in taking advantage of these opportunities. Therefore, there is a need to provide skill development and entrepreneurship development training to such people in order to mainstream them in the ongoing process of economic growth. 7.1.3 Entrepreneurship development and training is, thus, one of the key elements for development of micro and small enterprises (MSEs), particularly, the first generation entrepreneurs. To undertake this task on regular basis, the Ministry has set up three national-level Entrepreneurship Development Institutes (EDIs). These are, the National Institute for Micro, Small and Medium Enterprises (NI-MSME), Hyderabad; the Indian Institute of Entrepreneurship (IIE), Guwahati and the National Institute for Entrepreneurship and Small Business Development (NIESBUD), Noida. Further, the Ministry has been implementing (in addition to the schemes of MSME-DO) an important scheme, namely, Scheme for Assistance for Strengthening of Training Infrastructure of Existing and New Entrepreneurship Development Institutes (EDIs). The main objectives of the scheme are (i) promoting entrepreneurship for creating self-employment through enterprise creation; (ii) facilitating creation of training infrastructure; and (iii) supporting research on entrepreneurship related issues. 7.1.4 Further, in order to improve the success rate of the EDP trainees in the establishment of new enterprises, the Ministry has recently launched a new scheme, namely, Rajiv Gandhi Udyami Mitra Yojana (A Scheme for Promotion and Handholding of Micro 89

MSME and Small Enterprises ). The main objective of this scheme is to provide handholding support to first generation entrepreneurs, through designated lead agencies i.e. Udyami Mitras. Under this scheme, the Udyami Mitras would provide guidance and assistance to the potential entrepreneurs registered with them, in preparation of project report, arranging finance, selection of technology, marketing tie-ups with buyers, installation of plant and machinery as well as obtaining various approvals, clearances and NOCs etc. For providing this handholding assistance to the new entrepreneurs, the Udyami Mitras shall be paid handholding charges under the scheme. 7.2 SCHEME FOR ASSISTANCE FOR STRENGTHENING OF TRAINING INFRASTRUCTURE OF EXISTING AND NEW ENTREPRENEURSHIP DEVELOPMENT INSTITUTES (EDIs) 7.2.1 The scheme envisages providing financial assistance to State-level existing/ proposed institutions meant for supporting entrepreneurship development and selfemployment activities. Under this scheme, grant is given for setting up of new entrepreneurship development institutions (EDIs) and also for up-gradation and modernisation of existing EDIs in the country. Under the scheme, a matching grant of 50 per cent, subject to a ceiling of Rs.100 lakh, is provided for building, equipment, training aids etc., the balance being contributed by the State/Union Territory Governments and other agencies. The financial assistance provided under this scheme is only catalytic and supportive to the contribution and efforts of State/Union Territory Governments and other agencies. Under no circumstances grant funds provided under the scheme can be used to meet the recurring expenditure of the institute. 7.2.2 The institutions/organisations seeking assistance under this scheme should be registered as not-for-profit organisation with entrepreneurship development as its main objective, should possess a clear title of the land required for setting up of the proposed/ existing institution, have a separate bank account in a scheduled bank in which all receipts/funds received by the institute should be credited and payments made on the basis of authorisation by the Governing Council of the institute. 7.2.3 All the proposals under this scheme are required to be recommended by and routed through the concerned State/UT Government. 7.3 NATIONAL INSTITUTE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (NI-MSME), HYDERABAD 7.3.1 NI-MSME, formerly known as National Institute of Small Industry Extension Training (NISIET), was set up in 1960 at New Delhi as a Department of Central Government under the Ministry of Commerce and Industry and was initially known as Central Industrial Extension Training Institute (CIETI). Subsequently, in 1962, it was shifted to Hyderabad and converted into an autonomous society. In 1984, the Institute was renamed as National Institute of Small Industry Extension Training (NISIET). After enactment of the MSMED Act, 2006, the Institute has been renamed as National Institute for Micro, Small and Medium Enterprises (NI-MSME), w.e.f. 11th April 2007. The Institute has 90

Annual Report 2007-2008 benefited not only the Indian micro, small and medium enterprises (MSMEs) but also those in other developing countries through a plethora of activities and thus helped in promoting self-employment and enterprise development. The Institute is constantly evolving in accordance with the changing times, modifying its focus with the emerging needs of MSMEs and providing solutions in the form of consultancy, training, research, and education. NI-MSME s programmes are designed to have universal relevance for successfully training the entrepreneurs to face challenges and emerging competition in the era of globalisation. 7.3.2 The academic activities of the Institute are organized through centres of excellence focusing on specific needs of the MSMEs. The Academic Council of the Institute is the central coordinating body for benchmarking, formulation and evaluation of academic activities and programmes. 7.3.3 The performance of the Institute for 2006-07 (actual) and for the period of April December 2007 (actual) and the projection for the remaining three months of 2007-08 is presented are given in Table 7.1 TABLE - 7.1: Performance of NI-MSME at a Glance 2006-07 2007-08 From 1.4.2007 to 31.12.2007 (actuals) From 1.1.2008 to 31.3.2008 (Projections) Entrepreneurship Development : Counselling, Re-training and Re-deployment of rationalized employees of CPSUs Total 75 3296 14 813 30 1200 44 2013 EDP for ST Youth 16 606 -- -- 10 500 10 500 Other EDPs 5 205 -- -- 10 500 10 500 Other : National: Announced 18 180 14 143 10 150 24 293 Sponsored 54 1364 17 335 10 250 27 585 International: Announced 18 246 10 110 4 90 14 200 Sponsored 2 30 5 68 4 105 9 173 Educational: PG Diploma 7 77 2 23 -- -- 2 23 IT 4 131 4 74 3 60 7 134 IGNOU 10 175 5 180 3 180 8 360 Seminars and 25 925 15 681 8 400 23 1081 Workshops Consultancy & 21 -- 23 -- 5 -- 28 -- Research Total 255 7235 109 2427 97 3435 206 5862 91

MSME 7.3.4 Over the years, the Institute has gained immense experience and expertise in the areas of entrepreneurship development, technology, management and information services. NI-MSME s inherent capacity to innovate, together with its modern infrastructure, has enabled the Institute to excel in its endeavour of MSME promotion. 7.3.5 NI-MSME has always been conceiving specialised need-based programmes, workshops and seminars in tune with the changing policy and economic scenario. The primary aim of these activities has been to enable the enterprises and the supporting systems to deal effectively with aspects that directly or indirectly affect the success of enterprises. 7.3.6 NI-MSME has developed profitable interface with several international agencies like CFTC (Commonwealth Fund for Technical Co-operation), UNESCO (United Nations Educational, Scientific and Cultural Organisation), UNDP (United Nations Development Programme), Ford Foundation, GTZ of Germany, USAID (United States Agency for International Development), and ILO (International Labour Organisation), to name a few. 7.3.7 During the period from April 2007 to December 2007, the Institute has conducted 71 training programmes, which were attended by 1746 persons. Besides, 15 Seminars and Workshops were conducted during the same period with 681 delegates. 7.3.8 Twenty-three research and consultancy projects have been taken up during the period from April December 2007. The major ones of them are indicated are given in Table 7.2 7.4 INDIAN INSTITUTE OF ENTRE- PRENEURSHIP (IIE), GUWA- HATI 7.4.1 The Indian Institute of Entrepreneurship (IIE) was set up at Guwahati in 1993. It took over NI-MSME s NER Centre w.e.f. 1st April, 1994. The Institute is completing 14th year of its operation on 31st March 2008. During this period, the Institute has expanded its activities to a great extent covering all facets of MSME activities. Since its establishment and up to March 2007, the Institute has organized 1167 training programmes / workshops / seminars / meets with a cumulative participation of 38524 persons. The Institute has obtained ISO-9001-2000 certification from the Bureau of Indian Standards. The Institute has expanded its canvas of activities not only in terms of geographical coverage but also in terms of diversification into various related areas of the activities pertaining to socio-economic development. The Institute regularly organises training programmes and undertakes research and consultancy services in the field of promotion of MSMEs and entrepreneurship. 7.4.2 The kind and number of training programmes organised and number of participants trained during 2006-07 and 2007-08 (up to December, 2007) along with projections for the last quarter of the current financial year, are given in Table 7.3 92

Annual Report 2007-2008 TABLE - 7.2: Research and Consultancy Projects (ni-msme) Research and Consultancy Project Sponsored by Progress 1. Study of Sick Industries in Goa Government of Goa 2. Status of Women Entrepreneurship in Andhra Pradesh 3. Development of Handloom Cluster at Mubarakpur, U.P. 4. Development of Handloom Cluster at Barabanki, U.P. 5. Handholding services to six Khadi Clusters (SFURTI) 6. Handholding services to six Village Industries Clusters (SFURTI) 7. Feasibility Study for setting up Working Women Hostels in Andhra Pradesh 8. Survey of EDPs conducted by SISIs (now MSME Development Institutes) 9. Evaluation of 10% Rebate Scheme of Handloom Sector 10. Study of Leather Footwear and other articles manufacturing in Agra 11. Technical Services to 12 Coir Clusters (SFURTI) 12. Assistance through Financial Services to Readymade Garment MSMEs in Hyderabad, A.P. 13. Assistance through Business Development Services to Readymade Garment MSMEs in Hyderabad, A.P. 14. Conduct of Test for recruitment for the posts of Maintenance Assistant (Trainee) for NMDC at Hailadilla Department of Science and Technology, Govt. of India Development Commissioner (Handlooms), Govt. of India Development Commissioner (Handlooms), Govt. of India Khadi & Village Industries Commission, Govt. of India Khadi & Village Industries Commission, Govt. of India Andhra Pradesh Women s Cooperative Finance Corporation Ltd., A.P. MSME-DO, Govt. of India Development Commissioner (Handlooms), Govt. of India MSME-DO, Govt. of India Coir Board, Cochin GTZ, New Delhi GTZ, New Delhi National Mineral Development Corporation, Govt. of India Completed Completed Completed 15. Rehabilitation of Tsunami affected Families International Labour Organisation, New Delhi 93

MSME TABLE - 7.3: Performance of IIE at a Glance Type of 2006-07 2007-08 From April 2007 to December 2007 (actuals) From January 2008 to March 2008 (Projections) Total 1. Promotion of New 61 3102 29 838 44 1100 73 1938 Entrepreneurs (PNE) 2. Growth of Existing 103 3756 56 2136 16 400 72 2536 Entrepreneurs (GEE) 3. Creation of 17 407 23 1016 8 200 31 1216 Environment for Entrepreneurship (CEE) 4. Entrepreneurship 32 1324 13 556 2 50 15 606 Education (EE) 5. Information 03 66 2 44 - - 2 44 Technology (IT) 6. Seminar/ Workshop 09 456 17 713 12 300 29 1013 (S/W) Total 225 9111 140 5303 82 2050 222 7353 7.4.3 The promotion of new entrepreneurs has been the major focus of training activities organised by the Institute. In order to promote new entrepreneurs, the Institute organizes rural, general and women EDPs and sector specific EDPs. The Institute has organised 29 such programmes covering 838 participants during the first 3 quarters of the current year. Besides, while continuing with its Rural Industries Programme (RIP) in Meghalaya, Manipur and Assam, the Institute also started its RIP at Nongpoh in Meghalaya with the help of SIDBI. Till December 2007, Nongpoh RIP trained 160 entrepreneurs and grounded 43 units. Another 24 units are in the pipeline. The Institute also organized two programmes on handloom sector under SFURTI, where 32 participants were benefitted. 7.4.4 The Institute under the sponsorship of the Ministry of MSME, Government of India has initiated a unique programme of Comprehensive Entrepreneurship Development (CEDP) on gemstones processing and hosiery & woolen garment manufacturing. Under CEDP, the Institute conducted one entrepreneurship development programme of three months duration for hosiery and woolen garment manufacturing at Itanagar in Arunachal Pradesh, which was attended by 8 entrepreneurs. 7.4.5 The Institute has set up two training centres, one at its premises in Guwahati and the other at Aizawl, in collaboration with Directorate of Industries, Government of Mizoram, for gemstone processing. For hosiery & woolen garment manufacturing, 94

Annual Report 2007-2008 two centres were set up in Sikkim and Arunachal Pradesh, in collaboration with the Khadi and Village Industries Boards of respective State Governments. The project, which is the first of its kind in North East, imparts skill development training to prospective entrepreneurs and artisans along with incubation facilities and technical support/ guidance for market linkages. 7.4.6 Keeping in tune with the market demands and the available infrastructure, IIE with its professional expertise, has launched the Post Graduate Diploma Course in Management and Entrepreneurship (PGDME), which is the first of its kind in the entire Eastern and North Eastern Region. The second batch of the course started in July 2007. The course aims at providing comprehensive inputs on entrepreneurial as well as managerial aspects of running a business. 7.4.7 Considering the importance of creating environment for entrepreneurship development, the Institute has been organising programmes for unemployed youth and orientation of the support officials. During the year, the Institute organised 23 such programmes, which were attended by 1016 participants. 7.4.8 The Institute organised a series of programmes for growth and development of existing entrepreneurs. The Institute organised 51 for KVIC beneficiaries, wherein 2043 beneficiaries were trained. 7.4.9 At the instance of the Development Commissioner (Handicrafts), the Institute organised two programmes on export procedures and one programme on quality testing in which 56 entrepreneurs participated. 7.4.10 Creating awareness amongst college and university teachers and students about entrepreneurship has been one of the focus areas of the Institute. The Institute organised one faculty development programme in entrepreneurship for school, college and university teachers in which 18 teachers participated. During the year, the Institute organised 10 awareness camps for the students of colleges and 2 such programmes for polytechnic students. The Institute has also been instrumental in setting up Information & Career Guidance Cell (ICGC) in a number of colleges through its Teachers Training. Till date, 80 colleges have opened such ICGCs in different parts of the Region. 7.4.11 During the year, the Institute organised 2 training programmes on IT sector. The Institute also organised a six months Teachers Training Programme on Computer Applications, which was attended by 19 teachers. 7.4.12 The Institute has been organising seminars, workshops, meets and conferences for providing an enabling platform for interaction and exchange of views by various agencies and entrepreneurs. During the year, the Institute organised 11 such workshops/ seminars/meets. The Institute also, interalia, organised two Regional Meets for promotional functionaries. Altogether 713 participants attended these Workshops/ Seminars/Meets. 7.4.13 The Cane & Bamboo Cluster at Dimapur in Nagaland and Handloom Cluster 95

MSME in Manipur are IIE s maiden ventures into the cluster initiative in North East. Considering the availability of local resources and craftsmanship, IIE has initiated the process of development of clusters of traditional and rural artisans in these sectors. 7.4.14 The Government of India has launched Scheme of Fund for Regeneration of Traditional Industries (SFURTI), a mega project with industrial cluster development approach. This project aims to adopt 10 clusters in North East Region under traditional industry sector and showcase them as the success stories. IIE has been identified as the Technical Agency under this scheme for Eastern India. 7.4.15 The Institute has undertaken a Study on Industries based on Ancillary and Support Services of Large and Medium Industries of North East India. The work under the study is in progress. 7.4.16 The Institute signed a Memorandum of Understanding (MoU) to develop entrepreneurship in Oman. The agreement will provide for the development of an institutional framework to promote entrepreneurship in Oman. The Institute would also advise on identification of training needs and assist in designing programmes to develop functionaries. 7.5 NATIONAL INSTITUTE FOR EN- TREPRENEURSHIP AND SMALL BUSINESS D E V E L O P M E N T (NIESBUD), NOIDA 7.5.1 The National Institute for Entrepreneurship & Small Business Development (NIESBUD), NOIDA was set up in 1983 as an apex institution in the field of entrepreneurship development to promote, support and sustain entrepreneurship and small business through training, education, research and consultancy services. 7.5.2 The major activities of the Institute include evolving model syllabi for training various target groups; providing effective training strategies, methodology, manuals and tools; facilitating and supporting Central/State Governments and other agencies in executing programs of entrepreneurship and small business development; maximizing benefits and accelerating the process of entrepreneurship development; and conducting programs for motivators, trainers and entrepreneurs. The Institute helps other Entrepreneurship Development Institutions in various ways, such as developing syllabi in entrepreneurship for different target groups, training of faculty, developing training aids etc. 7.5.3 The performance of the Institute during 2006-07 (actual) and actual performance for the first three quarters of 2007-08 along with projections for the last quarter are given in Table 7.5. 7.5.4 In order to strengthen efforts for realising the cherished goal of inclusive growth with focus on bottom of pyramid, the Institute has made an attempt to organise exclusive training programmes for the officials engaged in implementation of the policies for tribal, backward classes and other down-trodden sections of the society. These programmes included - training programmes on Project Management for Small Business Enterprises in Tribal 96

Annual Report 2007-2008 TABLE - 7.5: Performance of NIESBUD at a Glance Type of Programme 2006-07 2007-08 1. Trainers / Promoters 2 Small Business Opportunities & Development for Women/Weaker Sections 3 Entrepreneurship Continuing Education Programme 4. Seminars, Workshops & Conferences Progra mmes Partici pants From April 2007 to December 2007 (actuals) From January 2008 to March 2008 (Projections) Total 30 504 25 478 07 105 32 583 12 392 03 139 05 75 08 214 03 37 06 66 02 30 08 96 06 190 06 247 05 125 11 372 5. E.D.Ps 33 968 42 3528 20 400 62 3928 6. International Training 06 83 05 62 02 44 07 106 Total 90 2174 87 4520 41 779 128 5299 Areas for officials of Department of Tribal Development, Govt. of Madhya Pradesh; programme on Performance Motivation for the officers of the Department of Sericulture; Government of Madhya Pradesh and Management Development Programmme (MDP) for the officials of West Bengal Backward Classes Development & Finance Corporation (WBCDFC). 7.5.5 In view of the crucial role expected to be played by the newly enacted Micro, Small & Medium Enterprises Development Act, 2006 in providing sustenance to these sectors, the Institute has taken initiative in providing orientation to officers of different State Governments in implementation of different provisions of the Act, including the changed role of DICs officials, after enactment of the Act. Two such programmes: one each for the officials of the Directorate of Industries, Government of Uttarakhand and West Bengal have been organised with the funds provided by the respective State Governments. Similar programmes are also being planned for the officials of several other States/UTs. 97

MSME 7.5.6 In order to enhance the operational efficiency of high-level officials of the different state organs for effecting improvements in services delivery mechanism, the Institute continued with its efforts for organising orientation programmes for such officials. One such programme was organised during the period, for Labour Commissioners of different states of the country. Two more such programmes are also planned during the remaining part of the current year. 7.5.7 Continuing with its efforts of orienting different target groups about the implications of the Intellectual Property Rights (IPRs) for the units in various sectors, the Institute organized a Workshop on Application of the IPRs in the field of Agricultural Research. 7.5.8 In consonance with the efforts of the Government for increasing the supply of skilled manpower for meeting the growing demand in different sectors, the Institute conducted a total of 14 Skills Development for 330 participants, which represented women, SCs/STs/OBCs and other weaker sections of the society. 7.5.9 The two EDPs on Food Processing have been conducted at the request of the Haryana State Backward Classes and Socially Weaker Sections Vikas Nigam, at Faridabad, for the benefits of SCs and OBC women participants. 7.5.10 Two training programmes for sewing machine operators were organised for 50 participants representing women, SC/STs and other weaker sections of the society at the Institute s Training-cum-Incubation Centre for Garment Manufacturing. 7.5.11 The Institute conducted three training programmes on Project Identification & Selection; Business Development Service Providers and Micro-finance & Management with 73 participants as sponsored by the Ministry of Development of North Eastern Region; Government of India. Besides, the Institute continued its efforts of encouraging participants from the North Eastern Region of the country, to its different activities/ programmes. 7.5.12 In consonance with its efforts of developing entrepreneurship among women, the Institute conducted seven training programmes exclusively for 227 women participants. These, inter-alia, included two programmes on Gender Equity Through Enterprise Development at Haridwar and Banasthali; two EDPs on Food Processing largely for OBC women and two EDPs on Sewing Machine Operations. 7.5.13 The Institute has been identified as a Technical Agency under SFURTI with Industrial Cluster Development approach. 11 clusters have been allotted to the Institute under this Scheme. 7.5.14 The Institute conducted diagnostic study for three industrial clusters viz; (i). scissors cluster (Meerut); (ii) packaging material cluster (Ghaziabad) and (iii) auto parts cluster (Gurgaon), under SICDP scheme of MSME-DO. 7.5.15 In order to enlarge outreach of its training programmes, the Institute has launched a new scheme of setting up of Entrepreneurship Development Centres (EDCs) through Partner Institutions (PIs), in a PPP mode, on October 16, 2007. 98

Annual Report 2007-2008 7.5.16 Besides, the Institute has entered into collaborative arrangements with regional entities, through the mechanism of MoUs, for conduct of different activities in their respective regions. Such organisations, inter-alia, include Himachal Industrial Consultancy Organization (HIMCON); Madhya Pradesh Consultants Ltd. (MPCON); Andhra Pradesh Industrial & Technical Consultancy Organization (APITCO) and Electronics Service and Training Centre (ESTC), Ramnagar. 7.5.17 With a view to reinforce the supply of trained manpower to meet ever growing demand of skilled personnel in garment manufacturing sector and to assist / nurture the first generation entrepreneurs in this sector, the Institute with the assistance of the Ministry of MSME, has started a Training-cum-Incubation Centre for Garment Manufacturing, at its premises. 7.5.18 The Institute conducted a Small Enterprise Establishment Programme (SEEP) sponsored by NSIC at Haldwani (Uttarakhand). 30 participants were provided training in entrepreneurship, project report preparation and setting up of enterprises. 7.5.19 An entrepreneurship awareness camp-cum-counseling session was also organised at Haldwani, which was attended by 54 potential entrepreneurs. 7.5.20 During the year, the Institute has carried out the following research / evaluation studies:- (i) The Report on An Evaluation Study of Schemes of National Safai Karamcharis (ii) Finance and Development Corporation (NSKFDC) in the state of Andhra Pradesh, was submitted. The Report on Impact Study of ISO 9000 System Application in SSI Sector MSME-DO, was also submitted, during the period. 7.6 SCHEME OF PARTNER INSTITUTIONS 7.6.1 In spite of the best efforts of existing national and state level entrepreneurship development institutions (EDIs), it is felt that there is a need to fill the gap in providing entrepreneurship training in the selected backward/rural areas and also organising entrepreneurship development programmes (EDPs) for persons belonging to Scheduled Caste / Scheduled Tribe / Minority / Women categories, which might have been left out of the network of existing training institutions. In order to bridge this gap, the three nationallevel Entrepreneurship Development Institutions have recently come out with a scheme of setting up of Entrepreneurship Development Centres (EDCs) through Partner Institutions (PIs). 7.6.2 Through this scheme, these institutions would be collaborating with Partner Institutions for organising training programmes and for implementing other income generating schemes/programmes, especially in the remote and backward areas. This scheme will enhance the outreach of these institutions and at the same time, the Partner Institutions will also be benefited in terms of capacity building of their faculty, access to the infrastructure and resources of national-level institutions through 99

MSME e-classes etc. Through this approach, these institutions would be able to spread the entrepreneurship movement throughout the length and breadth of the country. Launching of Entrepreneurship Development Centre Scheme of NIESBUD 100