Unit 3: Entrepreneurship development programs in India
Entrepreneurship Development notes · PTU syllabus (BCOMGE 401-18)
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Unit summary
India has a wide support system to develop entrepreneurs. This unit covers the phases of entrepreneurship development programmes (EDPs), government policies and the administrative framework, policy instruments, statutory boards, industrial estates and clusters, incentives and subsidies, promotional agencies, and business incubators and start-ups.
After this unit you can
- Explain the phases of an EDP
- Describe the government's administrative framework for entrepreneurship
- Explain industrial estates, clusters, incentives and subsidies
- Describe promotional agencies, incubators and start-up support
PTU syllabus topics
- Phases of entrepreneurial programs
- government policies and administrative framework
- policy instruments
- statutory boards
- industrial estates and clusters
- incentives and subsidies
- promotional agencies
- business incubators and start-ups
- SIDBI
- Finance and support for MSMEs
- NSIC
- Marketing and credit support for small industries
- DIC
- District-level industrial support
- Startup India
- Recognition, tax benefits, funding support
- Incubators
- Mentoring and space for early ventures
Topic 1
Entrepreneurship development programmes (EDPs)
An EDP is a programme designed to help people strengthen their entrepreneurial motivation and acquire skills to run a business.
- 1Pre-training
Identify and select trainees, assess needs
- 2Training
Motivation, business opportunity, management skills, project preparation
- 3Post-training (follow-up)
Help with finance, registration, setting up and running the unit
Topic 2
Administrative framework and policy instruments
- Ministry of MSME at the centre, with the Development Commissioner (MSME) and MSME Development Institutes.
- District Industries Centres (DICs) — single-window support at district level.
- State Industrial Development Corporations and State Financial Corporations.
- Policy instruments: licensing relaxations, reservation and procurement preference, credit policies, tax incentives, and infrastructure support.
- Statutory boards: Khadi and Village Industries Commission (KVIC), Coir Board, Tea Board, Coffee Board, Spices Board and others promote specific sectors.
Topic 3
Industrial estates, clusters, incentives and subsidies
- Industrial estate: a planned area with developed plots or sheds, roads, power and water, offered to small units.
- Cluster: a geographical concentration of similar enterprises (Ludhiana's hosiery and bicycle clusters, Tiruppur's knitwear) that benefit from shared suppliers, skills and markets. The Cluster Development Programme supports common facilities.
- Incentives and subsidies: capital investment subsidy, interest subsidy, power and tax concessions, stamp duty exemptions and backward-area incentives.
Topic 4
Promotional agencies, incubators and start-ups
| Agency | Role |
|---|---|
| SIDBI | Main financial institution for MSMEs |
| NSIC | Raw materials, marketing support, credit facilitation |
| EDII, NIESBUD, NIMSME | Entrepreneurship training and research |
| KVIC | Village industries promotion |
| NABARD | Rural and agricultural enterprises |
A business incubator nurtures start-ups with space, mentoring, networks and services (Atal Incubation Centres, institutional incubators). Startup India (2016) offers DPIIT recognition, tax exemptions, easier compliance, the Fund of Funds and the Seed Fund Scheme.
Key terms
- EDP
- A programme to develop entrepreneurial skills and motivation
- DIC
- District Industries Centre, a district-level support agency
- Industrial cluster
- A concentration of related enterprises in one area
- Business incubator
- An organisation nurturing early-stage start-ups
- SIDBI
- Small Industries Development Bank of India
Quick revision
- EDP phases: pre-training, training, post-training.
- Framework: Ministry of MSME, DC (MSME), DICs, state corporations.
- Clusters give shared benefits; Ludhiana is a hosiery and cycle hub.
- Agencies: SIDBI, NSIC, EDII, KVIC, NABARD; Startup India.
Important exam questions
Practice questions written to the PTU exam pattern for this unit's syllabus: short answers (Section A style) and long answers (Sections B and C style).
Short-answer questions
- Q1.What is an EDP?
- Q2.What is the role of a DIC?
- Q3.Define an industrial cluster with an example.
- Q4.Name two statutory boards.
- Q5.What is a business incubator?
Long-answer questions
- Q1.Explain the phases of an entrepreneurship development programme.
- Q2.Explain the institutional and administrative framework supporting entrepreneurs in India.
- Q3.Discuss industrial estates, clusters, incentives and subsidies.
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