Assignment No 8

Aim: Compile the information from the government agencies that will help you
set up your business enterprise.

1. MUDRA – Micro Units Development and Refinance Agency:

The MUDRA scheme, launched by the Government of India under the Pradhan
Mantri Mudra Yojana (PMMY), aims to empower micro and small enterprises by
providing them with easy access to finance. It focuses on promoting entrepreneurship
in manufacturing, trading, and allied agricultural services, with a special emphasis on
the unorganized sector. One of its standout features is that it requires no collateral,
ensuring inclusivity for small business owners. The scheme is divided into three
categories to cater to different stages of business growth:

 Shishu: Loan up to ₹50,000 for small startups.

 Kishor: Loan between ₹50,000 and ₹5 lakh for expanding businesses.
 Tarun: Loan above ₹5 lakh up to ₹10 lakh for established enterprises.

2. National Small Industries Corporation Limited (NSIC):

NSIC, a government enterprise under the Ministry of Micro, Small, and Medium
Enterprises (MSME), plays a crucial role in promoting the growth of small industries
across India. It offers a range of integrated support services that help businesses access
credit, raw materials, and markets. NSIC also conducts marketing programs and
exhibitions to promote small enterprises and provides technology upgradation services
to enhance productivity and competitiveness.

Key services include:

 Facilitating credit and finance through tie-ups with banks.
 Offering raw material assistance.
 Conducting marketing support programs and exhibitions.
 Providing technology upgradation services.

3. Small Industries Development Bank of India (SIDBI):

SIDBI is a development financial institution that focuses on strengthening the MSME
sector by providing financial and non-financial support. It offers direct loans at
competitive interest rates and manages credit guarantee schemes, reducing risk for
lenders and enhancing credit availability. Additionally, SIDBI supports startups
through Fund of Funds initiatives and organizes skill development and training
programs to foster entrepreneurship.

Its primary objectives include:

 Providing direct loans at competitive interest rates.
 Offering credit guarantee schemes.
 Supporting startups through Fund of Funds initiatives.
 Conducting skill development and training programs.

4. Stand Up India Scheme:

The Stand Up India Scheme was launched in 2016 to promote entrepreneurship
among women and SC/ST communities by facilitating bank loans for setting up new
businesses. It aims to bridge the financial gap faced by marginalized groups, ensuring
equal opportunities in business ventures. The scheme provides loans ranging from
₹10 lakh to ₹100 lakh, with favorable repayment terms and working capital support.

Key features include:

 Mandatory support to at least one woman entrepreneur and one SC/ST unit per bank
branch.
 Repayment period up to 7 years.
 Provision of working capital loans.

5. Atal Innovation Mission (AIM) and Atal Incubation Centres (AIC):

AIM, under NITI Aayog, serves as a platform to foster a culture of innovation and
entrepreneurship across India. It focuses on nurturing startups by providing financial
aid, infrastructure, and mentorship through Atal Incubation Centres (AICs). The
mission promotes research and development, enabling innovators to turn ideas into
viable businesses.

AICs offer:
 Financial aid up to ₹10 crore over 5 years.
 Infrastructure, prototyping, and research facilities.
 Mentorship and training workshops.

6. National Bank for Agriculture and Rural Development (NABARD):

NABARD plays a pivotal role in providing financial support for rural development,
focusing on agriculture, small industries, and rural infrastructure. The institution
offers a range of credit schemes and development initiatives aimed at enhancing
productivity and income in rural areas. Its key programs cater to farmers, rural
entrepreneurs, and small businesses,

including:
 Dairy Entrepreneurship Development Scheme.
 Food Processing Plant Assistance.
 Rural Innovation Fund.

7. District Industries Centres (DICs):

District Industries Centres (DICs) act as a crucial support system at the district level,
promoting the growth of small-scale industries and entrepreneurship. They provide
financial assistance, guidance, and access to government subsidies, helping local
businesses thrive.

Key functions include:

 Offering financial assistance.
 Providing guidance on project selection and implementation.
 Facilitating access to government subsidies and schemes.

8. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):
CGTMSE aims to boost the confidence of financial institutions in lending to MSMEs
by offering credit guarantees. This scheme facilitates collateral-free loans, making it
easier for small businesses to access funds and grow.

Key features include:

 Providing credit guarantees to financial institutions.
 Encouraging banks to lend more freely to small businesses.

9. National Institute for Entrepreneurship and Small Business Development

(NIESBUD):
NIESBUD is a premier organization under the Ministry of Skill Development and
Entrepreneurship, dedicated to promoting entrepreneurship through training,
consultancy, and research. It equips aspiring entrepreneurs with the skills and
knowledge required to build and sustain successful businesses.

Key offerings include:

 Training programs.
 Consultancy services.
 Research initiatives.
10. Startup India Initiative:
Startup India is a flagship initiative by the Government of India aimed at building a
robust startup ecosystem. It offers numerous benefits to startups, such as simplified
compliance, tax exemptions, funding support, and networking opportunities.

Key highlights include:

 Simplified compliance and self-certification.
 Tax exemptions and funding support.
 Networking opportunities through startup hubs.

11. Udyog Aadhaar:

Udyog Aadhaar is a free registration process that simplifies the procedure for MSMEs
to avail themselves of government benefits. By registering, businesses can access
financial assistance, subsidies, and other incentives.

Key advantages include:

 Access to various government schemes.
 Easier credit facilitation.
 Priority in government tenders.

12. Export Credit Guarantee Corporation of India (ECGC):

ECGC supports Indian exporters by providing credit risk insurance and related
services, protecting them from potential losses due to payment defaults. It also
facilitates access to credit by enhancing lender confidence.

Key services include:

 Credit risk insurance.
 Export finance facilitation.

13. Khadi and Village Industries Commission (KVIC):

KVIC promotes rural entrepreneurship by supporting businesses involved in khadi,
village industries, and traditional crafts. It provides financial assistance, marketing
support, and skill development programs to empower rural artisans and entrepreneurs.

Key initiatives include:

 Financial assistance.
 Marketing support.
 Training programs.
14. Technology Development Board (TDB):
TDB, under the Department of Science and Technology, provides financial assistance
to companies for the commercialization of innovative indigenous technologies. It
focuses on nurturing technological innovation by funding research and development
projects.

Key offerings include:

 Funding for technology development.
 Support for commercialization of innovations.

15. Coir Board:

The Coir Board promotes the coir industry by offering training, financial assistance,
and marketing support to entrepreneurs interested in coir-based products. It plays a
crucial role in enhancing the competitiveness of coir products in domestic and
international markets.

Key services include:

 Training programs.
 Marketing support.
 Financial assistance.

16. Prime Minister's Employment Generation Programme (PMEGP):

PMEGP is a credit-linked subsidy scheme that facilitates the creation of micro-
enterprises by providing financial assistance. It empowers unemployed youth and
traditional artisans by supporting new ventures.

Key features include:

 Subsidies on project costs.
 Support for micro-enterprises.
Conclusion:
India's diverse landscape of government agencies and schemes offers ample opportunities for
entrepreneurs to establish and grow their businesses. From collateral-free loans to incubation
and skill development programs, these initiatives are designed to create an ecosystem where
innovation and entrepreneurship can thrive. Understanding these programs enables aspiring
business owners to tap into resources that not only provide financial assistance but also offer
training, mentorship, and networking opportunities, thereby fostering a robust entrepreneurial
environment in the country.