1. INTRODUCTION 1
Advantages of Self-Employment
Am I Built to Become an Entrepreneur?
Entrepreneurial Opportunities
Types of Enterprises
Manufacturing Industries
What is Industry?
Size of Industry
Definitions of SSI
(I) Modern Small Scale Industrial Undertaking
(II) Ancillary Industrial Undertaking 
(III) Tiny Industrial Units
(IV) Village or Rural Industrial Unit
(V) Artisan Industrial Unit
(VI) Cottage or Household Industry
(VII) Small Scale Service Establishment
Items of Plant & Machinery
2. SMALL SECTOR IN INDIA : STATUS, 
GROWTH AND DE-RESERVATION 15
Introduction
Data and Methodology
Impact of De-Reservation
India's Exports to World Pre and Post De-Reservation
SSI's in India
Strengthening De-reserved Units
Marketing and Market Information
How do Laws, Rules, Regulations Affect doing Business for SSIs
Setting up a Unit
Conclusion
3. STEPS IN SETTING UP AN SSI 26
Step 1 : Know Yourself
Step 2 : Training
Step 3 : Project Identification Selection
Step 4 : Location of the Enterprise
Premises Owned Vs Hired
Typical Question
Step 5 : Preparation of a Project Report
Typical Questions
Step 6 : Arranging Technical Know How
Step 7 : Constitution of the Firm
Step 8 : Registration
Step 9 : Arranging Finance
Other Sources
Need for Planning
Margin Money
I Needn't Be Rich
Step 10 : Statutory Licences/Approvals/Clearances
Stpe 11 : Arranging Land & Building
Step 12 : Procuring Plant & Machinery
Step 13 : Utilites : Power Connection/Water Supply
Step 14 : Recruitment of Personnel
Step 15 : Procurement of Raw Materials
Step 16 : Registration with Excise/Sales Tax Authorities
Step 17 : Trial Production
Step 18 : Commercial Production
Step 19 : Marketing
Step 20 : Accounts and Record-Keeping
Step : 21 Market Research
Step 22 : Quality Control
Step 23 : Updating Yourself
Step 24 : Growth
Step 25 : Avoiding Typical Pitfalls
4. REGISTRATION/LICENCES FOR SSI 77
Special Approvals
Pollution Control Board
5. RESOURCING 87
Banks
Composition and Current Scenario
Non-Banking Financial Companies (NBFCs)
Financial Institutions
National Level Institutions
State Level Institutions
Government Funding and Schemes
Capital Market
Regulatory Framework
Policy Measures and Initiatives
Venture Capital
6. STEPS IN STARTING & MANAGING YOUR BUSINESS 121
Managing a Business
Client Relationship Management
Sourcing Process, Raw Materials, Machineries and Equipments
Process Selection
Raw Materials
Machinery and Equipments
Setting up Infrastructure
Naming and Registering a Business
Pricing your Product
Setting the Pricing Objective of the Firm
Determining the Demand for the Product
Estimating the Costs and Profits
Determining the Competition for the Product
Distribution
Considering the Governmental Regulations
Selecting a Suitable Pricing Method/Policy
Financing a Start up Business
Hiring Human Resource
Choosing the Location of the Industry
Creating a Business Plan
The Benefits of Business Planning
Choosing a Form of Business Organization
Taxes
Promotion
Regulatory Requirements
Managing your Intellectual Proficiency
Marketing and Sales
Managing your Finance
Insurance
7. TECHNICAL KNOW-HOW FOREIGN COLLABORATIONS 154
8. MARKETING 157
Size of Market
Competition
Market Segmentation
Products Differentiation
Distribution Channels
Costing & Pricing
Sales Strategy
Advertising/Publicity
After Sales Service
Government Purchases
9. LESSONS FROM EXPERIENCE 162
Profit Generation
Repayment of Loans
Financial Planning
Legal Violations
Copy Cats
Insurance
Ancillarisation
Women
Industrial Sickness
Avoiding Sickness
Incentive and Subsidies
10. POLICIES AND PROGRAMMES FOR RURAL DEVELOPMENT 169
Concept of Rural Development
Goals of Rural Development
Rural Development Schemes
Rural Development Policy
Development and Incidence of Poverty
Evaluation
Need for Human Resources Strategy
11. PRIME MINISTER'S ROZGAR YOJANA (PMRY) 
AND SCHEME OF FUND FOR REGENERATION 
OF TRADITIONAL INDUSTRIES (SFURTI) 180
Introduction
Prime Minister's Rozgar Yojana (PMRY)
Contingency Funds for Scheme Administration
Project Profiles
Assistance from States/UTs
Monitoring & Guidance for PMRY
Monitoring and Guidance at District Level
Monitoring and Guidance at State/UT Level
Monitoring and Guidance at Government of India Level
Cumulative Status of Progress Under PMRY during X Plan and 2007-08
Budgetary Assistance
Evaluation Studies of PMRY
Initiatives Taken For Strengthening PMRY
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Prime Minister's Employment Generation Programme
12. WOMEN ENTREPRENEURSHIP IN INDIA 193
Introduction
Categories of Women Entrepreneurs
Categories of Women Entrepreneurs in Practice in India
Supportive Measures for Women's Economic Activities and Entrepreneurship
Direct & Indirect Financial Support
Yojna Schemes and Programme
Technological Training and Awards
Federations and Associations
Women Entrepreneurship in India
Women Work Participation
Rural & Agricultural Economic Development for Women
Growing Role of Women Entrepreneur in India
Problems of Women Entrepreneurs in India
13. KHADI AND VILLAGE INDUSTRIES 
COMMISSION (KVIC) 210
Introduction
Objectives
Functions
Procedure for Implementing R&D Projects in (KVIC)
High Power Committee Recommendations
Who can undertake R&D Projects?
How Proposals are to be Made
Procedure
Implementing Agencies
Mahatma Gandhi Institute for Rural Industrialization (MGIRI)
14. INDUSTRIAL INNOVATIONS BY SMALL AND MEDIUM SIZED ENTERPRISES 226
Introduction
Industrial Innovations
Technological Competence
Competence for Development of the Firm
Systematic Learning
Innovations in Small and Medium Sized Firms
Role of Innovative Small and Medium Sized Firms
15. MICRO, SMALL & MEDIUM ENTERPRISES 238
Micro Finance Programme
Government Policies and Support Measures: Brief History
Present Policy Framework and Focus Areas
Indian MSMES: Areas of Cooperation
Mechanism for Operating the Scheme
Subsidy Scheme for Technology Up Gradation
Quality Up gradation/Environment Management for Small Scale Sector
Features of the Scheme
Cluster Development Programme (MSE-CDP)
Objectives
National Award Scheme in MSME
National Manufacturing Competitiveness Programme (NMCP)
Scheme of Micro Finance Programme
Features of Micro- Finance Programme
Mini Tool Room & Training Centre Scheme
Existing Tool Room & Trainnig Centres
16. POLLUTION CONTROL BOARD (PCB) 263
Introduction
Functions
Functions of the Central Board at the National Level
Functions of the Central Board as State Boards for the Union Territories
Environmental Laboratories with Valid Recognition
17. MICRO SMALL MEDIUM ENTERPRISES (MSME) BRANCH OFFICE & DEVELOPMENT INSTITUTE 
IN INDIA 275
Development Institutes
Testing Stations
MSME Technology Development Centres
Testing Centres
Central Tool Room and Tranning Centres

RESOURCING

For successful establishment and running of a business enterprise, particularly a manufacturing concern,a lot many factors have to be considered and inputs resourced. Fortunately, the Government has built up a wide and comprehensive network of institutions at Central. State and district level throughout the country. For practically every step that you have to take for establishing your enterprise, there is a support agency available. Details of such institutions are briefly described under two categories :

1. Non-Financial
2. Financial

(A) NON-FINANCIAL

1. NATIONAL LEVEL

1. Small Industries Development Orgaisation (SIDO):
   • Policy formulating, coordinating and monitoring agency
   • Maintaing close liaison with the Central ministries, Planning Commission. State Governments and other Organisations concerned with Small Industry Development and serves as the secretariat for the All-India Small Scale Industries Board.
   • Provides a comprehensive range of industrial extension services including technical, managerial, economic and marketing assistance through its network of 26 small industries service institutes, 32 branches of SISIs, 41 extension centres, four regional testing centers, one product and process development centre, two footwear training centres and four production centers. In addition, 20 field testing stations are being established in areas of cencentration of specific industries for providing testing facilities to small industries.
2. National Small Industries Corporation (NSIC) with four regional Offices) :
   • Supply of machinery on hire purchase basis
   • Registration of units for participation in the purchase programmes of the Central and State Governments and other central institutions
   • Marketingf assistance- internal and export
   • Development of prototype of machinery and equipment, and other facilities.
   • Basic and advanced training in selected trades and technologies through its four prototype development and tarining centres.
3. Commissioner for Industrial Cooperatives Coordination of Policies for Industrial Cooperatives.
4. Specialised Institutions :
   1. National Institute of Small Industry Extension Training (NISIET), Hyderabad Interdisciplinary approach in the areas of taining, research and consultancy relating to development and management of small and village industries (earlier known as Small Industry Extension Training Institute - SIET)
   2. National Institute for Entrepreneurship and Small Business Development (NIESBUD), New Delhi
      • Coordinates research and training in entrepreneurship development and devises specific training programmes suited to various categories of entrepreneurs/trainers/promoters.
   3. Entrepreneurship Development Institute of India (EDII), Ahmedabad-promoted by IDBI, IFCI, ICICI and SBI Industries requiring air pollution control should obtain consent of the SPCB before commencing production.Typically the following indusrties would require such consent (the list is indicative not exhautive):
      1. Asbestos
      2. Cement
      3. Ceramic
      4. Chemical
      5. Coal/Lignite
      6. Engineering
      7. Ferros/metallurgical
      8. Fertiliser
      9. Foundries
      10. Food & Agricultural Products
      11. Mining
      12. Non-ferrous metallurgical
      13. Ores/mineral (Benefication, pelletisation etc.)
      14. Power, generating/boiling plants
      15. Paper and Pulp
      16. Textile
      17. Petroleum refinery
      18. Petro-chemical
      19. Plant for recovery from and disposal of wastes
      20. Incinerators
   4. Central Institute of Tool Design (CITD), Hyderabad-
      • Training inthe design and manufacture of tools, jigs, fixtures, dies and moulds
      • Advisory and consultancy services including assistance in the design and development of tools
      • Recommend measures to standardise tools, tooling elements components etc.
   5. Central Tool Room and Training Centres (at Ludhians, Delhi Calucutta and Bangalore)
      • Provision of tool room services and facilities in designs, manufacture and taining, Tool rooms at Delhi and Bangalore and owned by the respective State Government
   6. Central Institute of Hand Tools (CIHT), Jalandhar
      • Provision of imporved technology, raw materials, designs and testing for hand tools industry
   7. Institute for Design of Electrical Measuring Instruments (IDEMI), Bombay
      • Provision of technical consultancy in the design and development of electrical and electronic instruments, calibration and testing, tool design, tool fabrication, prototype fabrication and training.
   8. Central Machine Tool Institute Bangalore
   9. Central Institute for Plastics Engineering and Tools, Madras (Ministry of Petroleum and Chemicals)
   10. National Institute of Foundry and Forge Technology Ranchi.

II. STATE LEVEL

1. (a) Directorate of Industries With a network of District Industries Centres at the district level, industries officers at the sub-divison level and extension officers at the block level :
   • regsitration of small scale units and recommending cases of large/medium industries to appropriate authorities.
   • raw material quota
   • import quota
   • financial assistance under the State Aid to Industries Act
   • industrial estates
   • technical consultancy
   • training of entrepreneurs
   • industrial cooperatives
   • compilation of statistics
   • overall administration of the village and small industry sector and maintaining close liaison with the central and state level organisations concerned with industrial development
2. Small Industry Development Corporation
   • supply of scarce raw materials through raw material depot
   • machinery on hire purchase
   • marketing assistance
   • joint ventures in the small scale sector
   • entrepreneurship development
   • trade centres
   • industrial estates
3. Industrail Infrastructure Corporation; Industrial Area Development Board/Authority:
   • plans and develops industrial estates and industrial areas
4. Industrial Development Corporation :
   • Promotion of industrial units in the medium and large scale sector including joint and public sector ventures
   • Planning and development of industrial estates and industrial areas (in some states)
5. Industrial Investment Corporation :
   • finances medium and large units up to a certain investment ceiling with direct participation in share capital and underwrites new issues
6. Agro Industries Corporation :
   • supply of agricultural machinery/equipment on hire
   • development of agro-based industries
   • sale of agro-inputs like fetilisers and pesticides
7. Electronics Development Corporation :
   • Promotion of industries in the field of electronics including joint sector and public sector projects
   • Leather Industry Development Corporation and other similar commodity corporations :
   • development of specific types of village and tiny sector units relating to a particular trade
8. Rural Industries Marketing Corporation :
   • marketing of village industry products and provision of a variety of services needed by village and tiny units (Gujarat state has set up this corporation)
9. Industrial and Technical Consultancy Organisation (sponsored by IDBI/IFCI/CICI):
   • technical consultancy services to small and medium scale projects

(B) FINANCIAL

(A) RESERVE BANK OF INDIA (RBI)

The country's central bank, responsible for currency and monetary regulation and other central banking functions besides being banker to the government. Also responsible for supervision of all banking institution provision of rural credit and exchange central.

Entrustd with the administration of the Credit Guarantee Scheme, under which government guarantee is provided for advances granted by banks and other credit in situations to small industrial units.

(B) ALL-INDIA TERM LENDING INSTITUTIONS

1. Industrial Development Bank of India (IDBI) coordinates in conformity with national priorities the activities of institution engaged in financing, promoting, developing industry operates with schemes such as:
   • direct assistance
   • soft loan scheme
   • technical development fund
   • refinance of industrial loans
   • automatic refinance
   • special refinancing facility
   • reduscounting of bills
   • seed capital assitance
   • subscriptions to shares and bonds of financial institutions
   • development assistance fund
2. Industrial Finance Corporation of India (IFCI)
   • long term loans of new industrial units as also for expansion, diversification, renovation or modernisation of existing units both in rupees and foreign currencies, underwriting of equity, preference and debentures issues, subscribing to equity, preference and debenture capital
   • risk capital foundation provides soft loan as part of equity capital to new entrepreneurs, particularly technologists and professionals
   • benevolent reserve fund provides assistance for developmental purposes.
3. Industrial Credit and Investment Corporation of India (ICICI):
   • currency loans to small enterprises under its Rupees assistance programme and foreign currency loan.
4. Industrial Reconstruction Bank of India (IRBI) :
   • provides financial and other types of assistance to sick or closed industrial concerns, and operates, in the case of small units, through state level agencies by way of sanctioning "Line of Credit".
   • provide managerial assistance
   • guidance for renovation and modernisation
5. Export Import Bank of India (EXIM Bank):
   • finances, facilitates and promotes foreign trade of India
   • coordinates the working of institutions engaged in financing export and import
   • finances export of consultancy and related services, assists Indian Joint ventures in the third countries, conducts export market studies, finances export oriented industries and provides international merchant banking services
6. National Bank for Agriculture and Rural Development (NABARD) :
   • refinancing the farm and non-farm operations in rural are as inthe non-farm sector, village and tiny sector industries located in rural areas are supported through refinancing
7. National Cooperative Development Corporation (NCDC) :
   • promotes and finances cooperative enterprises in proccessing marketing storage and export relating to agro based industries
   • agro-service centres
   • promotion of uints for formulation of fertilisers, pesticdes and insecticides
   • workshop for fabrication of agricultural machinery/implements
   • margin money processing units
   • technical training

(C) OTHER FINANCIAL INSTITUTIONS

(i) Export Credit Guarantee Corporation (ECGC)

* supports and strengthens export promotion drive (a) by providing a range of risk insurance covers to exporters against loss in export of goods and services, (b) by offering guarantee to banks and financial institutions to enable exporters to obtain better facilities from them, (c) to give customer satisfying service at low cost and with high efficiency.

(ii) Deposit Insurance and Credit Guarantee Corporation (DICGC) :

* operates four guarantee schemes : (a) small loans gurantee scheme, (b) small loans (small scale industries) gurantee scheme, (c) small loans (financial corporations guarantee scheme, and (d) service cooperative society guarantee scheme

(iii) State Financial Corporation (SFC) :

• provides long and medium term loans for acquisition of fixed assets of small and medium industries
• guarantees payment for purchase of machinery of suppliers within India
• guarantees loans raised by industries from commercial banks, cooperative banks etc.
• foreign exhange loans under World Bank line of credit
• special capital assistance upto Rs. 200,000

(iv) Commercial Banks :

* provide term finance and working capital advances classified under cash credit, overdrafts, demand loans, purchased/discounted/advanced against inland bills, purchased/discounted/advanced against import bills and clean advance

(v) Regional Rural Banks (RRBs)

* provide banking facilities in remote and unbanked areas among other places of the selected districts and provide credit to agriculturists, artisans and other self employed persons belonging to weaker sections. The loans are given in kind.

(vi) Cooperative Bank :

* provide credit to farm and non-farm cooperative societies.

For specific details, care and precautions refer Chapter II. For example, for land acquisition aspects like residential, industrial, non-conforming, Lal Dora land open and covered area provision for expansion, etc. are discussed in Step 11 : Arranging Land & Building. It also describes care for materials required in construction, plant layout and other related factors.

For machinery Step 12 : Procuring Plant & Machinery. Details out role of NSIC/SSIDC, import procedures and other relevant factors. Significance of utilities, single/three phase power connections, transformer and wiring connections, voltage requirements are described in Step 13 : Utilities. For raw materials (import procedures, scare items, quotas, etc.) refer Step 14 : Raw Materials. While this Chapter gives you information on financial institutions and assistance offered Step 9 may be referred to for procedures on arranging finance.

WHOM TO CONTACT FOR WHAT ?

A publication like this cannot give addresses of nearest offices of all support organisations that would be helpful as that would be a directroy in itself. An illustrative list of institutions iwht addresses and their role in setting up household, cottage, tiny or small scale industry in Delhi is given in Annexure G. A similar list can be prepared for your area/State with the help of the telephone directory or by contacting the nearest DIC/SISI.