Measure support institutions, such as Small Industries Development Bank of India (SIDBI), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), State Small Industries Development Corporations (SSIDCs), and Small Industries Service Institutes (SISIs), play crucial roles in fostering the growth and development of small and medium-sized enterprises (SMEs) in India. Here are their roles and functions:
- Small Industries Development Bank of India (SIDBI):
- Role: SIDBI is the principal financial institution for the promotion, financing, and development of SMEs in India.
- Functions:
- Provides direct and indirect financial assistance to SMEs through various credit schemes and loan products.
- Acts as a refinancing agency for banks and financial institutions to enhance credit flow to SMEs.
- Supports entrepreneurship development programs, capacity building initiatives, and skill development training for SMEs.
- Facilitates technology upgradation, modernization, and adoption of best practices among SMEs through advisory services and technical assistance.
- Promotes innovation and technology-led entrepreneurship by funding research and development projects and incubating startups.
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):
- Role: CGTMSE provides credit guarantees to banks and financial institutions to encourage lending to micro and small enterprises (MSEs) without collateral or third-party guarantees.
- Functions:
- Provides credit guarantees covering up to 85% of the loan amount for MSEs seeking collateral-free credit facilities.
- Mitigates credit risk for lenders, thereby enabling them to extend loans to MSEs with limited assets or credit history.
- Facilitates access to finance for MSEs, including first-generation entrepreneurs, women-owned businesses, and units in the informal sector.
- Supports inclusive growth and financial inclusion by promoting access to formal credit for underserved segments of the MSE sector.
- State Small Industries Development Corporations (SSIDCs):
- Role: SSIDCs are state-level agencies responsible for promoting and supporting the development of SMEs within their respective states or union territories.
- Functions:
- Provides financial assistance, including term loans, working capital finance, and equity participation, to SMEs for setting up new ventures or expanding existing businesses.
- Facilitates land acquisition, infrastructure development, and industrial estate planning to create conducive environments for SMEs to operate.
- Offers advisory services, business counseling, and entrepreneurial training programs to SMEs to enhance their managerial and technical capabilities.
- Implements government schemes and incentives aimed at promoting SMEs, such as subsidies, tax incentives, and special credit facilities.
- Small Industries Service Institutes (SISIs):
- Role: SISIs are technical support institutions under the Ministry of Micro, Small and Medium Enterprises (MSME) that provide a range of services to SMEs.
- Functions:
- Offers consultancy services, technical guidance, and quality improvement assistance to SMEs for enhancing productivity, product quality, and competitiveness.
- Conducts skill development programs, entrepreneurship development courses, and technology training workshops to upgrade the skills of SME entrepreneurs and workers.
- Provides testing and certification services for products, raw materials, and components manufactured by SMEs to meet quality standards and regulatory requirements.
- Facilitates market research, export promotion, and technology transfer initiatives to help SMEs access new markets, expand their customer base, and adopt advanced technologies.
Overall, measure support institutions play critical roles in providing financial, technical, and advisory support to SMEs, thereby fostering entrepreneurship, promoting inclusive growth, and contributing to the overall economic development of India.