
Scheme for Entrepreneurial and Managerial Development of SMEs
Micro and Small Enterprises (MSEs) are considered as important constituents of national economies, that efficiently contribute to the employment expansion and poverty reduction. The Central and State Governments have been implementing various schemes and programmes for the promotion and development of such enterprises. These measures were taken after recognising the importance of micro and small enterprises that contribute to the nation's industrial production, exports, employment and creation of entrepreneurs. Let us take a closer look at the scheme in this article.Objective
The main objective of the scheme is to promote emerging technological and knowledge-based innovative ventures that require enhancing ideas from professionals. These ideas are developed in a supportive environment before they are utilised for venture capital. It also promotes networking and forging on linkages with other constituents of the innovation chain for commercialisation of their developments. This initiative has been taken up the Ministry of MSME, the nodal Ministry for the development of entrepreneurship and creation of self-employment and employment avenues.Implementing Agencies
The incubation support is provided by Host Institutions namely- Indian Institutes of Technology (IITs)
- National Institutes of Technology (NIITs)
- Engineering colleges
- Technology Development Centres, tool rooms, etc.
- Other recognised R&D/Technical Institutes/centres, Development Institutes of DIP&P in the field of paper, rubber, machine tools etc.
Targets
In every Business Incubator, efforts will be made to attain the ratio of 4:1 between the incubated micro and small enterprises. It is also permissible to have more than one Business Incubators (BI) in the same host Institution.Financial Assistance
The authority has decided to set up 100 Business Incubators to incubate 1000 ideas, that results in establishing Small and Micro Enterprises at the cost of Rs. 62.50 crore within four years. A sum of Rs. 4 Crore is set aside for minor components, and the total cost estimated for the project is Rs. 66.5 crore. The BI maintains separate accounts of the funds that are received and the funds used for expenses of various activities. Moreover, an audited Statement of Accounts or a statement certified by the Chief Financial Officer of the Host Institution would be obtained.Implementation of the Scheme
The selection committee comprises of- Representatives from DST/DSIR
- CEO, SVCL (SIDBI Venture Capital Limited)
- CMD, NSIC
- Economic Adviser, MoMSME
- FA of MoMSME
- Representatives from DIPP
- Director of Apex Scientific/Industrial Research Institute in the concerned field or representative.
- Incubation Executive nominated by the Director, MSME-DI in the area of Incubation Center.
- A representative of Lead Bank in the area of Incubation Centre.
- A representative of Host Institute.
Mode of Financial Releases
According to the agreement between the Government, the Host Institution and the entrepreneur, the Government releases the fund to the Host Institution. At first, the Host Institution would be released 30 per cent of the expenditure that is expected to be obtained by establishing and operating incubators during the ensuing financial year. The balance is released to the Host Institution in one or more instalment when the previous amount is utilised by the Host Institution.Monitoring and Evaluation
The project is monitored and guided by the Ministry of MSME. A monitoring and advisory committee that is headed by Additional Secretary and Development Commissioner comprises of- Representatives of National Manufacturing Competitiveness Council (NMCC)
- Representatives of Technology Information Forecasting and Assessment Council (TIFAC)
- Representatives of the Lead Bank of the State where the incubator is established
- Representatives of Industries Associations represented on the Advisory Committee constituted under the MSMED Act, 2006.
Related Guides
Popular Post

Starting a small business can be a transformative venture, offering the exciting opportunity...

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Goods & Services Tax Certificate is issued to people who are registered under GST...

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

A trademark search is simply checking if another person or organization does not already own the...

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Internal audit applicability is a critical concept for companies in India, impacting various...

In the business world, two main types of companies exist: private company and public company...

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...