msme proposal ver 1

8/10/2019 MSME Proposal Ver 1

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Webcon Consulting (India) Ltd. 1

PROPOSAL-ENTREPRENEUR NURTURING CENTRE (ENC)

Introduction:

The Micro, Small and Medium Enterprises (MSME) sector is estimated to account for45% of the manufacturing output and 40% of total exports of the country, in terms of

value. It is well known that MSME sector provides maximum opportunities for both self-

employment and jobs, outside agriculture sector. With the slowdown in economic

progress in India, more such MSMEs are needed to keep the economy moving and

provide an income base to the burgeoning population of India. In this regard, the two

main tools that will be needed by the entrepreneurs who are willing to establish their own

businesses are skills and business acumen. Although the Ministry of MSME (M/o

MSME) has taken a lot of policy initiatives in the recent years to make the sector asignificant player in the global marketplace, growth in this sector have been slow.

Observing this, Webcon Consulting (India) Ltd. (Webcon) had approached the ministry

to initiate a pilot project called Entrepreneur Nurturing Centre (ENC) which will be a

unique tool to help set up such MSME businesses. This note has been prepared to

present the vision and approach of ENC.

Policy Initiatives by M/o MSME:

Skill and Entrepreneurship Development (SDP and EDP) Training:M/o MSME has

set up three National level Entrepreneurship Development Institutes namely, TheNational Institute for Entrepreneurship and Small Business Development (NIESBUD),

Noida, National Institute for Micro, Small and Medium Enterprises (NI-MSME),

Hyderabad, and Indian Institute of Entrepreneurship (IIE), Guwahati, to undertake the

task of EDP and SDP on a regular basis. In addition to this, existing 18 Tool Rooms and

Technology Development Centres (TDCs) also impart high tech training in conventional

manufacturing, CAD/CAM, tool design, CNC, mechatronic, etc.

Business Creation: The Ministry has been running a scheme calledPrime Ministers

Employment Generation Programme (PMEGP) since 2008-09 which supports viableprojects in the micro sector by providing margin money to entrepreneurs in rural and

urban areas. Further, the Ministry has launched a scheme called Rajiv Gandhi Udyami


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Mitra Yojana (RGUMY)- a scheme for promotion and handholding of micro and small

enterprises. An Udyami Helpline (a Call Centre for MSMEs) with a toll free No. 1800 -

180-6763 has been functioning, set up under the Scheme, to provide information,

support, guidance and assistance to first generation entrepreneurs as well as other

existing entrepreneurs.

National Small Industries Corporation Ltd. (NSIC): This is another endeavor of the

M/o MSME, a government enterprise working to fulfill its mission of promoting, aiding

and fostering the growth of small industries and industry related micro, small and

medium enterprises in the country. NSIC operates through countrywide network of

offices and Technical Centres in the country and carries forward its mission to assist

small enterprises with a set of specially tailored schemes designed to put them in a

competitive and advantageous position. The schemes comprise of facilitating marketing

support, credit support, technology support and other support services.

District Industries Centre (DIC) and MSME Development Institute (MSME-DI): The

DICs under State Governments and MSME-DIs of M/o MSME are the two primary

agencies which provide facilitation to the new and existing entrepreneurs in developing

their enterprises.

M/o MSME envision a vibrant MSME sector by promoting growth and development of

the MSME Sector, including Khadi, Village and Coir Industries , in cooperation with

concerned Ministries/Departments, State Governments and other Stakeholders, through

providing support to existing enterprises and encouraging creation of new enterprises.

However, the sector is suffering from quite a few impediments, which need to be

addressed immediately. Resurgence is needed for the various initiatives undertaken by

the ministry to spearhead a meteoric growth in MSME enterprises.

Skilling Plus Plus:

Entrepreneurship has been considered as the backbone of economic development. 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 training.


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Post-startup operational consulting assistance

The ENC will consist of agents who will personally guide the entrepreneur through the

steps of forming an enterprise with the support of an expert group constituting legal,

taxation, technology, marketing and human resource professionals. Additionally, the

ENC will be drawing up a pool of experts from diverse areas whose knowledge can be

drawn upon in cases of specialized ventures.

Another objective of ENC will be to conduct periodic EDPs for prospective entrepreneurs

and also at colleges, management institutes and ITIs to attract and motivate

entrepreneurs to avail the services of ENC and set up new establishments. This will be

part of the Skilling Plus Plus program mentioned before. Efforts will be made to identify

and nurture entrepreneurs from these interactions and hand-hold them until successful

creation of enterprises by such entrepreneurs.

ENC also will make provisions to offer table/desk space with internet facilities to

interested entrepreneurs, as a part of its incubation effort, to kick-start their

entrepreneurial ambition.

Another major objective of ENC will be to assist similarly skilled entrepreneurs to form

clusters and bring the cluster under the scheme of MSE-CDP by M/o MSME.

Webcon proposes to start ENC as a pilot project in Kolkata, West Bengal, where

Webcon is located. In this stage, the ENC will be approaching colleges (degree and

engineering) as well as entertaining walk-ins to hand hold them to their own enterprises.

Based on the demands and general market perspective, ENC has selected and already

prepared the following project profiles to focus enterprise building during the pilot stage:

1. Jute diversified products

2. Handicrafts

3. Poultry

4. Tailoring


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5. Beautician

6. Massage parlour

7. Handicrafts

8. Embroidery work

9. Plumbing

10. Mobile Repairing

The Ministry has already got its flagship scheme, PMEGP, for subsidizing bank credit to

new entrepreneurs and RGUMY, set up for handholding of new entrepreneurs for setting

up the enterprise, operations and marketing. The ENC will be the destined support

package that may be developed to supplement these schemes. The approach of ENC

will be two pronged- to enhance the skill of the entrepreneur and imparting managerial

and business skills. Besides, the entrepreneurs will be exposed to innovative ideas and

also asked to share their own so that new avenues are discovered in various fields. The

target of ENC will be to make at least 1,000 entrepreneurs in the pilot stage.

Funding

The main obstacle faced in making ENC successful is getting sufficient number of

entrepreneurs. Although there may be potential entrepreneurs ready to venture out ontheir own, the lack of knowledge and the awareness that there are facilities available like

ENC to help them remain as an impediment. Therefore WEBCON proposes to make

ENC familiar amongst the urban and rural population by opening first one ENC in the

state of West Bengal, which will be run on a pilot basis. If the model proves to be

successful, similar centres will be opened in other states. Simultaneously, popularity

campaigns through different mechanisms like advertisements, events, seminars etc. Will

be run to make people aware of ENC. Bearing the cost factor in mind and how both

WEBCON and M/o MSME will benefit from these steps, WEBCON would request M/o

MSME to be a partner in these activities (operational and promotional), by bearing the

cost of at least 30% of the one-time and operational cost estimated to operate ENC. An


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indicative expense detail for carrying out both operational and promotional activities of

ENC in the state of West Bengal is given below. Besides, Webcon requests for a

letter/certificate of endorsement from the M/o MSME that Webcon Consulting (India)

Ltd. is empanelled/appointed as one of the bodies to actively nurture and promote

entrepreneurship in the MSME sectors; to propagate/promote its various schemes such

as IDLS, IIUS, etc; and to create awareness of entrepreneurship and creation of

enterprises among students of higher educational institutions and general public. Such

an endorsement from the M/o MSME will provide us with more authentic credential in

our campaign to nurture and create entrepreneurs. The tentative expense details for

operating ENC for a year are as below:

Sl.

No.

Description of expense Amount (Rs.) Remarks

1 Onetime 2,50,000 Lumpsum

2 Operational 102,80,000 Yearly expense

3 Marketing 3,90,000 Yearly expense

4 EDP 60,00,000 Yearly expense

Webcon proposes to approach other ministries like Ministry of Textile, Ministry of

Science & Technology, etc. for similar funding. In this context, it hopes that the

endorsement of the M/o MSME would be a great boost to chances of getting

supplementary funds from other ministries involved in similar schemes.

Future Plans

All the above out-of-the-box concepts will make ENC a unique body and the success of

this may easily be replicated in other states to promote entrepreneurs and various

government schemes to ultimately develop wealth and create jobs. The ultimate goal of

Webcon is to convert ENC into an Excellence Centre, which can be modeled all over

India.

msme proposal ver 1

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