Hello, Small and Medium-sized Enterprises (SMEs) in market economies are the engine of economic development. Owing to their private ownership, entrepreneurial spirit, their flexibility, and adaptability as well as their potential to react to challenges and changing environments, SMEs contribute to sustainable growth and employment generation in a significant manner.
What is the role of government in supporting entrepreneurship?
There is no simpler way to create a new job situation than to encourage and support entrepreneurship and those who dare to start their own business, an increase in GDP, and a rising standard of the population. Every living and successful business means new jobs and GDP growth.
Therefore, it is an absolute priority to design a comprehensive, coherent, and consistent approach of the Council of Ministers and Entity Governments for Entrepreneurship and SMEs as a government support strategy for entrepreneurship and SMEs. – Support Systems for Small Entrepreneurs
A comprehensive governmental approach to entrepreneurship and SMEs will provide for the complete coordination of the activities of many. Government institutions (chambers of commerce, employment bureaus, etc.) and NGOs working with entrepreneurship and SMEs. With no pretense of defining the role of government in supporting entrepreneurship and SMEs,
we believe that in addition to designing comprehensive entrepreneurship and SME strategy, the development of national SME support institutions and networks is important. Conditions for success. There is no doubt that governments should create various Four types of aid institutions.
- To provide information on regulations, standards, taxation, customs duties, marketing issues.
- To advise on business planning, marketing, and accountancy, quality control, and assurance;
- To create incubator units providing the space and infrastructure for business beginners and innovative companies, and helping them to solve technological problems, and to search for know-how and promote innovation.
- To help in looking for partners. In order to stimulate entrepreneurship and improve the business environment for small enterprises.
- There are policies and schemes for the promotion of MSME implemented by the state governments. Let us throw some light on this.
All state governments in India provide technical and other support services to small units through their Directorate of Industries and District Industries Centers. Although the details of the scheme vary from state to state, the following are common areas of support.
- Development and management of industrial estates
- Suspension/deferment of Sales Tax
- Power subsidies
- Capital investment subsidies for new units set up in a particular district
- Seed Capital/Margin Money Assistance Scheme
- Priority in allotment of power connection, water connection.
- Consultancy and technical support
Government of India runs a scheme for giving National Awards to micro, small and medium scale entrepreneurs providing quality products in 11 selected industry groups of consumer interest. The winners are given a trophy, certificate, and some cash price of Rs. 25000/- each.
The government accords the highest preference to the development of MSME by framing and implementing suitable policies and promotional schemes like policies and promotional schemes, providing incentives for quality up-gradation, concession on excise duty, and provides technical support services. Thus the Government plays a supportive role in developing entrepreneurs.
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