Scheme for small firms takes shape

To provide handholding assistance to first-generation entrepreneurs and micro, small and medium enterprises (MSMEs) across the country; the central government has introduced the Rajiv Gandhi Udyami Mitra Yojana. The Indian Industries Association (IIA) has been identified as the udyami mitra for the state of Uttar Pradesh. IIA is an apex body for MSMEs in the state.

Under the scheme, assistance will be provided in the establishment and management of the new enterprise, in dealing with various procedural and legal hurdles and in completion of various formalities required for setting up and running the enterprise.

“It is an attempt to save time and minimise losses to small entrepreneurs,” DS Verma, executive director, IIA told Business Standard.

Uttar Pradesh supports about 1.5 million registered and unregistered MSMEs. The sector constitutes an important segment for the Indian economy in terms of its contribution to industrial production, export and employment generation.

“The association will provide guidance to potential entrepreneurs and help in completion of various tasks and formalities necessary for the establishment of the enterprise,” he said.

It is to be taken into account that usually small and medium enterprises find it difficult to get reliable information about facts and figures related to various sectors of the industry.

Moreover they are short of specialisation and have to manage everything on their own.

“Expert management advice and assistance is a must for any sector to flourish. It becomes even more important for a small entrepreneur to have correct information about the industry as he has to manage and look after a number of departments singly-handedly,” Verma said.The potential entrepreneurs registered with the agencies will get help in preparation of project report, arranging finance, selection of technology, marketing tie-ups with buyers, installation of plant and machinery as well as obtaining various approvals, clearances and no objection certificates.