Module-5
1.MSMED Act, 2006
The Micro, Small and Medium Enterprises (MSME) are classified in two Classes:
(a) Manufacturing Enterprises- The enterprises engaged in the manufacture or production of
goods pertaining to any industry specified in the first schedule to the industries. (Development and
regulation) Act, 1951). The Manufacturing Enterprises are defined in terms of investment in Plant and
Machinery.
Manufacturing Sector
Enterprises Investment in plant and machinery
Micro Enterprises Does not exceed twenty-five lakh rupees
Small Enterprises More than twenty-five lakh rupees but does not
exceed five crore rupees.
Medium Enterprises More than five crore rupees but does not exceed
ten crore rupees
(b) Service Enterprises: The enterprises engaged in providing or rendering services and are defined in
terms of investment in equipment.
Enterprises Investment in equipments
Micro Enterprises Does not exceed ten lakh rupees
Small Enterprises More than ten lakh rupees, but does not exceed
two crore rupees
Medium Enterprises More than two crore rupees, but does not exceed
five core rupees
2.Role of government & its nodal agencies in entrepreneurship development
Government plays a very important role in developing entrepreneurship. Government develop.
Industries in rural and backward areas by giving various facilities with the objective of balances.
regional development. The government set programs to help entrepreneurs in the field of
technique, finance, market and entrepreneurial development so that they help to accelerate and
adopt the changes in industrial development. Various institutions were set up by the central and
state
governments in order to fulfil this objective.
A. Institutions set up by Central Government
1. Small industries development organization (SIDO)
SIDO was established in October 1973 now under Ministry of Trade, Industry and Marketing.
SIDO is an apex body at Central level for formulating policy for the development of Small Scale
Industries in the country,headed by the Additional Secretary & Development Commissioner(Small
Scale Industries)under Ministry of Small Scale Industries Govt. of India.
2. Management development Institute(MDI)
MDI is located at Gurgaon(Haryana).It was established in 1973 and is sponsored by Industrial
Finance Corporation Of India, with objectives of improving managerial effectiveness in the
industry. It conducts management development programs in various fields. In also includes the
programmes for the officers of IAS,IES,BHEL,ONGC and many other leading PSU’s.
3. Entrepreneurship development institute of India (EDI)
Entrepreneurship Development Institute of India (EDI), an autonomous and not-for-profit institute,
set up in 1983, is sponsored by apex financial institutions – the IDBI Bank Ltd., IFCI Ltd., ICICI
Bank Ltd. and the State Bank of India (SBI). EDI has helped set up twelve state-level exclusive
entrepreneurship development centres and institutes.
4. National Institution of Entrepreneurship and Small Business
Development(NIESBUD),New Delhi
It was established in 1983 by the Government of India. It is an apex body to supervise the activities
of various agencies in entrepreneurial development programmes. It is a society under Government
of India Society Act of 1860.The major activities of institute are:
i) To make effective strategies and methods
ii) To standardize model syllabus for training
iii) To develop training aids, tools, and manuals
iv) To conduct workshops, seminars and conferences.
v) To evaluate the benefits of EDPs and promote the process of Entrepreneurial Development.
5. National 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.
6. DIC (District Industries Centre)
District Industries Centre (DIC) is a central sector scheme with the objective of promoting small
village and cottage industries in a particular area. The DICs have been established in various
districts of India at varying times since 1978 when it was launched. Being established at the district
level, the District Industries Centres provide all the necessary services and support to facilitate
entrepreneurs in setting up MSMEs (Micro, Small and Medium enterprises).
7. NSTEBD
The National Science & Technology Entrepreneurship Development Board (NSTEDB),
established in 1982 by the Government of India under the aegis of Department of Science &
Technology supports various programs on Science, technology and innovation based
entrepreneurship, and enables promotion of knowledge driven and technology intensive ventures
/ startups. Since the thrust on startup programs through the national iniatives of Start-Up India and
Stand-Up India, a new program NIDHI (National Initiative for Developing and Harnessing
Innovations) has been launched in 2016 which enables innovators and startups to translate their
ideas into successful startups. DST nurtures and empowers innovators and startups since their
initial phase of startup journey.
