MSME Proposal Ver 2

8/10/2019 MSME Proposal Ver 2

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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 for 45% 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

a significant 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, The National 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 EmploymentGeneration Program (PMEGP) since 2008-09 which supports viable projects 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 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


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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 recognized now that the

entrepreneurs can be created and nurtured through appropriate interventions in the form ofentrepreneurship development training.

By 2050, India will have one of worlds largest young population along with 25% of worlds

graduate students. India potentially could be the single largest producer of highly qualified

engineers and an awesome possessor of the largest young workforce with the highest level of

knowledge skills in the world.

The vision is to orient this trained workforce in the direction of entrepreneurship so that they

contribute to the economy and reduce the burden of unemployment on the state. That is where

the concept of Skilling Plus Plus comes to the picture. This will involve imparting

entrepreneurial skills to all levels of the workforce, besides the existing skill education received

by them at a specialized place to encourage them to open their own business.

Entrepreneurship Nurturing Centre (ENC):

The ENC is a full-fledged one-stop, single-window facility which provides information, procedural

assistance and guidance to individuals and offer hand-holding assistance to realize their

dreams of becoming an entrepreneur and creating a business of their own. The novelty of this

idea lies in the fact that anybody and everybody would be able to access the services of this

facility, be they be new or existing entrepreneurs.

Anyone who utilises the services of this initiative gets the privilege of:

DELIVERY AREA ENCs CONTRIBUTION

Requisite training &

knowledge up-gradation

Through specialized & localized training program, suited to the

needs of present entrepreneurs & would be entrepreneurs.

Ready-made project

profiles

Detailed & project specific project profiles will be made available to

the entrepreneurs , in order to upgrade their embedded


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understanding of project as well as project implementation facets

along the stated Central and state guidelines.

Entrepreneur

Information Database

Lack of correct & adequate data base for the entrepreneurs is one

of the prime stumbling block, causing tremendous value loss from

both input cost as well as output value wise. Availability of relevant& correct information system and ENCs involvement to teach the

entrepreneurs at extract value from the available information pool

will act as fillip to the entrepreneurs.

Information on Central &

State incentives /

schemes & linking

projects & entrepreneurs

with appropriate

schemes

The vast pool of industry incentives are not always readily available

to the entrepreneurs, especially to the first generation

entrepreneurs in the hinterland. Whereas appropriate utilisation of

such schemes & incentives can certainly do wonders to the

entrepreneurs. ENC will play a linking role in enhancing the

knowledge area.

Guidance to avail off

credit facilities

Availability of capital, that too at right financial cost, is one of the

key factors, that plays a pivotal role in turning the venture

economically viableENC will impart qualified input to the

entrepreneurs in this regard.

Market information Correct market information, both in terms of inputs as well as the

produce, covering local, inter state as well as foreign market can be

very useful & the economically exploitable. ENC will handhold

entrepreneurs, specific to the industry to have access to correct

market information.

Over all Consulting

assistancepre to post

start up to the

stabilization stage

ENC will suitably educate and handhold the entrepreneurs during all

these 3 phases of their business, encompassing statutory,

compliance related , financial & other economic parameters issues.

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 ofspecialized ventures.


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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:

Jute diversified products

Handicrafts

Poultry

Tailoring

Beautician

Massage parlour

Handicrafts

Embroidery work

Plumbing

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 on their own, the lack of

knowledge and the awareness that there are facilities available like ENC to help them remain as

an impediment.


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PILOT PROJECT & CAMPAINING :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.

COST STRUCTURE & SHARING : 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 50% of the one-

time and operational cost estimated to operate ENC.

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

in the state of West Bengal is given below.)

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

AUTHORIZATION : 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.

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 ministriesinvolved 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.

Documents

MSME Proposal Ver 2