Entrepreneurship Development Institute of India  :: Women Entrepreneurship & Gender Studies ::

Department of Business Development Services & National Outreach


The Indian MSME sector is dynamic in terms of its potential for growth and expansion. If nurtured with technical know-how, innovation and creativity, this sector can overcome the challenges facing it and emerge as a much stronger element in a developing economy, thus leading to a balanced socio-economic growth.

The MSME sector is the cornerstone of the Indian economy. The sector's contribution to the economy of the country in terms of employment generation is commendable. However, despite its winning attributes, the MSME sector faces challenges like lack of adequate credit, limited access to financial services, limited technical capability and so on. While the Government's initiatives are focussed on assigning a prominent place to the sector, EDII is playing an important role in boosting the MSME sector through the Department of Business Development Services and National Outreach. The Business Development Services (BDS) help MSMEs meet non-financial needs and handhold MSMEs through the phases of incorporation, operation and expansion. EDII has pioneered the Cluster Development Model which involves tailor-made revivification strategy for various artisanal and industrial clusters. Till now, over 200 artisanal and industrial clusters have been addressed.

EDII seeks to reach out through BDS to industrial clusters across India so that it can share its resource pool of experience and expertise in MSME development. In addition to playing a strategic role in asset-creation of entrepreneurial ventures, BDS is also transactional in nature dealing with accounting, statutory compliances, technical troubleshooting / improvement, pollution-abatement, strategic production, financial dealings, market, systems and procedures, etc. Given its expertise and experience in these areas, EDII nurtures the BDS market from a nascent stage to a burgeoning one.

Major Highlights:

  • Implementation, Monitoring and Technical Support extended to more than 200 industrial and artisanal clusters, across the country.
  • Instituting cadres of Cluster Development Executives and Business Development Service Providers to help sustain the efforts.
  • Setting up Institutes/Centres for Entrepreneurship Development (IEDs/CEDs) across states.
  • Undertaking capacity building of existing IEDs/CEDs and the onus of developing resource persons for them through specially designed programmes.
  • Influencing all state governments to set up IEDs/CEDs under a concept-to-completion approach.
  • Sensitizing the state, regional and local governments on the significance of promoting entrepreneurship and adding pace to the start up trend.

The Year 2020 -21:

  • Provide solutions essential for MSMEs to learn and acquire new operations, marketing, management, resourcing, technology & innovation and digital skills.
  • Short-term training programmes and management development programmes for entrepreneurs and managers to equip them with skills to offer productivity and quality improvement solutions across the value chain.
  • Forge strategic alliances and continue to initiate a wide range of knowledge dissemination activities through capacity building, training and education.
  • Holistic development of clusters across the country.
  • Developmental and training activities for existing/potential entrepreneurs, officials of support system, and professionals/resource persons to strengthen development support available to SMEs nationally.


The following Strategies will be adopted by the Centre;

  • The Centre will continue working on the issues of collective efficiency and improved competitiveness;
  • Set benchmarks and replicate ‘best practices’;
  • Focus on policy advocacy in the capacity of PMC;
  • Pay attention to training & capacity building of organisations and individuals;
  • Identify new areas of intervention depending on the changing business environment and need of the MSME clusters;
  • Promote R&D, innovation, technology up-gradation and patents;
  • Promote inclusive development approach and socially responsible clusters;
  • Pay special attention to research and documentation

Core Activities

Project Management Consultant

In the Capacity of PMC the Institute is working as a Think Tank in couple of states in the country. The Institute is engaged in developing strategy for developing MSME clusters, preparing roadmap for cluster development. In the process it is spearheading cluster development initiatives in couple of states in the country.

National Resource Agency

In the capacity of National Resource Agency, the Institute has worked with the Ministry of MSME, Ministry of Textile, Government of India and contributed in developing MSME cluster development schemes of the Ministry. The Institute is also engaged in providing technical, monitoring and evaluation (M&E) support to other cluster development organisations.

CDP Implementation

EDII is also actively engaged in implementing Cluster Development Programme in more than 20 states in the country. Some of the clusters which were targeted for CDP implementation are engineering,  auto components, leather, dyes and chemical, bearing, readymade garments, food processing, jewelry, handicrafts, handloom, coir etc.

Training and Capacity Building

The Institute is engaged in conducting cluster development executive (CDE) programme for the last 15 years. More than 700 people have been trained under the CDE programme. Since last 5 years, the Institute started offering CDE programme for overseas participants and till now 150 persons from 70 countries were trained at EDII.

BMO Capacity Building

The Institute has started conducting BMO Capacity Building programme with the objective of improving their functional and management efficiency. Alike their counterpart in the West, majority of BMOs operating in developing countries lack management and functional efficiency. Their activity portfolio is limited and members do not perceive great benefits by virtue of their BMO membership. Thus EDII got engaged in conducting training and capacity building programme, followed by handholding support to the BMOs representing MSME sector.  

BDS Project

Lack of availability, accessibility, quality of Business Development Services (BDS) is constraining growth of MSME clusters. Many existing problems of the MSMEs are not getting solved due to non-availability of ‘quality’ BDS. Thus the Institute took up BDS Market Development Project in four select MSME clusters in three States. The basic objectives of this project was do develop the BDS market through demand and supply side intervention so that MSMEs can obtain quality services from private and public service providers. Utilisation of BDS not only solved existing problems of the MSMEs but also enabled them to take their businesses to the growth trajectory.  

Lean Manufacturing

Lean manufacturing has the potential to contribute significantly in improving productivity of enterprises. Improved material handling system, work flow management, productivity improvement etc, can yield dividend in the short, medium and long run. Keeping this in mind, Institute started taking up Lean Manufacturing projects in selected MSME clusters in the country.

Promoting Energy Efficiency & OHS Measures

Energy efficiency is a new dimension in the domain of cluster development activities. Energy efficiency measures are taken up in MSME clusters in 5 States. Commencing with energy audit it delves on training of workers, supervisors and managers on reducing energy consumption, implementation of energy saving practices, changing design of furnace, controlling air flow etc. and subsequent documentation. As a result of these interventions, significant progress has been made in MSME clusters in terms of saving energy and reducing carbon emission.


Common Facility Centre has remained center stage of cluster development activities. Considering the fact that affordability to procure costly machines at times impede prospect of technology upgradation of MSMEs operating in clusters, common facility centres (CFC) are established in selected clusters. This enabled the cluster enterprises in accessing right technology/machinery/ dye house which in turn improved productivity of the MSMEs.

Mega Project

The Institute took up Mega Cluster development projects wherein an integrated approach has been adopted to address soft and hard intervention issues. A comprehensive cluster development plan is prepared and implemented for addressing all the pressure points of the cluster and necessary CFC is established so as to address critical infrastructure bottlenecks.

Programmes and Activities 2020-21

Sr. No. Activity Location Duration Target group Objectives & Outcome
Long-term Programmes/Projects
4.1 Digital MSME Pan-India  1 year MSMEs To encourage MSMEs towards Cloud Computing for ICT adoption in their business
processes and production.
4.2 Value Chain Upgradation/Cluster Development in Andaman & Nicobar Andaman & Nicobar 3 years Rural artisans Capacity Development of Artisans' Cluster and institutionalizing their Business Structure.
4.3 Capacity Building of MSMEs and Support System Officials Pan India  2 years Potential and Existing Entrepreneurs/ Support System Officials  Training programmes for MSME officials, industry associations and MSMEs, to improve their operational efficiency and managerial capabilities.
4.4 Skill Training of Artisans under Vishwakarma Shram Samman Yojana Uttar Pradesh 1 year Artisans Skill enhancement of local artisans and traditional workers through EDPs and trade specific training.
4.5 ODOP/Scoping Study Uttar Pradesh, Kerala 1 year Artisans Promoting one product in one district as per guidelines of the scheme, which focuses on encouraging indigenous and specialized products.
4.6 Cluster Development under SFURTI Pan-India  3 years Rural artisans Make traditional industries and artisans competitive by providing support for their long-term sustainability, and enhancing marketability of products.
4.7 Project Management Consultancy (PMC) Support to spearhead MSME Cluster Development West Bengal/Tripura/Odisha 1 year MSMEs, artisans in West Bengal, Tripura & Odisha Holistic development and productivity improvement of MSMEs operating in clusters in West Bengal, Tripura & Odisha.
4.8 PMC for State Government Projects Kerala 1 year MSMEs Holistic development and productivity improvement of MSMEs operating in clusters in Kerala.
4.9 Establishing Entrepreneurship Development Clubs in Local Self Governments (LSGs) Kerala 1 year Potential Entrepreneurs Support potential/existing entrepreneurs and consolidate entrepreneurial activities at the Panchayat level.
4.10 NABARD Livelihood & Enterprise Development Programme (LEDP) Kerala 2 months SHG Members To provide Skill Development training of both Agri-Farm and Non-Farm based sectors, to SHG Women. 
4.11 Programme/Workshop on IPR/Design Thinking Pan-India  3 days Potential and Existing Entrepreneurs  Promoting IPR/Design Thinking process in MSMEs.
4.12 Short-term programmes (REDP/EDP/EAC/ESDP/MDP etc.) for Rural Artisans  Pan-India  5 days Rural Artisans  Training programme for rural artisans of different clusters to enhance their skills and knowledge. 
4.13 PIP/Growth Programme Pan-India  10 days MSMEs Improving performance and facilitating growth of existing MSMEs.
4.14 Executive Development Program on Export Development & Growth Strategy Pan India 1 week Executives of PSUs Help executives to understand the technical, financial and legal issues in exports; enable them to resolve operational issues and prepare a growth plan. 
4.15 Business Membership Organization (BMO) Capacity Building Bilaspur/Bhubaneswar 7 days BMOs Improving functioning of BMOs and developing their activity portfolio.
4.16 Implementing Bamboo-based Entrepreneurship & Livelihood  Development  Programme (NMHS) Tripura 2 months Potential Entrepreneurs To enable, empower and recognize participation of backward communities in economic activities in the bamboo sector. 
4.17 Bankers Training Programme EDII Campus 7 days Managers/executives of Bank/Institutions Upgrading skills of bankers in formulating and appraising projects, with a focus on evolving risk and credit assessment. 
4.18 Promoting Rual Cluster Development under National Rural Economic Transformation Project (NRETP) West Bengal/Madhya Pradesh 3 years Women SHG members & their relatives (SHGs promoted under NRLM Program by respective SRLMs) Longitudinal interventions for promoting traditional and non traditional clusters in rural aras. 
4.19 Creation of Entrepreneurship and Public Policies for CLMV Countries, African Countries and Uzbekistan EDII Campus 1 year Governments, Policy makers, Researchers Develop policies and research reports for interested CLMV Countries, African Countries and Uzbekistan on similar lines as that of AICTE Start-up Policy, MSME Policy Recommendations etc. 

Research and Publications:

  • “Study on Market & Value Chain Mapping” in Vietnam, Cambodia, Thailand and Myanmar (2016).
  • “Innovation, Collaboration and Learning in Regional Clusters: A Study of MSMEs in India”; published in the Research Bulletin, The Institute of Cost Accountants of India, Vol 41, No. IV, Jan 2016
  • “Benchmarking Indian SMEs: A DEA Approach” Accepted for publication in International Journal of Process Management and Benchmarking-An Inerscience Publication (2015)
  • “Internationalization of Kolkata Leather Cluster: A Case Study”, chapter in the edited book of “International Conference on Transnational Entrepreneurs and International SMEs in Emerging Economies: Drivers and Strategies. Edited by Wasdani, K.P, Vijaygopal, A., and Manimala, M.J., Bonfringe Publications, Coimbatore (ISBN: 973-93-84743-81-9) (2015)
  • “Performance modelling of Indian SMEs: A DEA approach” chapter in the edited book of “Eleven Biennial Conference on Entrepreneurship” edited by Mishra, S., Awasthi, & Batthini, G., Bookswell Publisher, New Delhi (ISBN: 978-93-80574-78-3) (2015)
  • “Measuring brand equity of healthcare industry: A customer based perspective”, Proceedings of 1st International Conference on “Globalizing Brand India: Opportunities and Challenges” conducted by IIM, Kashipur (2015)
  • Article on ‘Empowering MSMEs through Cluster Development Programme’ published in The Management Accountant, May 2013 issue
  • Paper on “Open Innovation Benefiting Micro, Small & Medium Enterprises-A Case of the Leather Cluster in Kolkata”; published by Bookwell Publishers, New Delhi
  • Article on “Small Producers and Labour Conditions in Auto-parts and Component Industry in North India”; published in ‘Labour in Global Production Networks in India’; ed. by Anne Posthuma and Dev Nathan, Oxford University Press, 2010.
  • Article on “Market for Business Development Services in India: A Study of Calcutta”. The research was sponsored by DFID; published in The Journal of Entrepreneurship; July-December 2000 (Vol 11 No.2).
  • Article on 'Producers and Markets in Rural Bihar: A Case of Tribal Handicrafts'; published in The Journal of Entrepreneurship, January-June 1999 (Vol.8, No.1)
  • Article on “Stunning Turnaround in Jamnagar Brass Parts Manufacturing”; published in the magazine of the Engineering Export Promotion Council (Vol I, Issue 2, April 2008).
  • Article on “Forging growth with competitiveness”; published in the magazine of the Engineering Export Promotion Council (Vol II, Issue 1, Nov. 2007).
  • Case Study on ‘Jamnagar Brass Parts’ published in the volume titled “Working Together Works-Cluster Case Studies”; by the Foundation for MSME Clusters, New Delhi (2006); published by the Foundation for MSME Clusters, New Delhi (2006).
  • Case Study titled ‘Rajkot Engineering’ published in the volume titled “Working Together Works-Cluster Case Studies”; by Foundation for MSME Clusters, New Delhi (2006).
  • Training Manuals for the Entrepreneurs and Trainers as part of the “Enterprise Up-gradation Programme” in the Brass Metal Handicrafts Cluster at Moradabad, UP; supported by International Labour Organization (ILO). (2001)
  • Training Manual for Cluster Development Executives
  • Training Manual for ‘Capacity Building of Business Membership Organisations (BMOs)’
  • ‘Capacity Building and Training Need Assessment on SME cluster and BDS market development’
  • Published Case Study titled “Adding value to the Global BDS Network Linkages of the Kolkata Leather Cluster: A Case Study”
  • Module on Marketing Management as part of the Manual on Micro Enterprise Development for the Junior Entrepreneurs of Bahrain supported by the Ministry of Social Development, the Kingdom of Bahrain.

Policy Advocacy and Advisory Services

  • Resource persons of the Institute was consulted by the Office of the Development Commissioner (MSME), Ministry of Micro, Small and Medium Enterprises, Government of India while developing Micro and Small Enterprises- Cluster Development Programme (MSE-CDP) scheme.
  • The Institute played an important role in developing Scheme of Fund for Regeneration of Traditional Industries (SFURTI) of KVIC & Coir Board and Integrated Handloom Development Scheme of the Ministry of Textiles, Government of India.
  • The Institute was consulted for developing Cluster Development Policy (GR) of the Government of Gujarat.
  • The Institute is working as a Project Management Consultant (PMC) and Empanelled Agency with the Directorate of Industries, Government of West Bengal and Government of Orrisa respectively. In this capacity the institute is working as a think tank and promoting MSME Cluster Development in the states.


  • Pioneered the implementation on Business Development Services (BDS) market in India, thus giving recognition to the BDS market development approach in the country.
  • Created a cadre of 799 Cluster Development Executives (CDEs) to nurture cluster initiatives.
  • Implemented, monitored and extended technical support to clusters and MSMEs across  country, thus revitalizing more than 200 industrial and artisanal clusters on the fronts of technology, markets, productivity, quality, export and value chain upgradation.
  • Worked towards improving operational and management practices of organisations in the domain of public and private sector.
  • Registered two Patents & has applied for eight more.
  • Worked as a National Resource Organisation with the Central Ministries and as Project Management Consultant with State Government to spearhead MSME cluster development in the target region/ state.
  • Functioning as Technical Agency for Khadi and Village Industries Commission [KVIC], Ministry of MSME, Government of India by providing support for developing 18 handicraft\Village industries clusters (12 clusters of Uttar Pradesh, 5  in MP and 1 in Gujarat).
  • Functioned as National Resource Agency for 20 handloom clusters across India; out of these 3 were directly implemented by EDII (Varanasi, Chanderi & Sonepur)
  • Revitalized Handloom Cluster at Sivasagar & Handicraft Cluster at Srinagar.

Future plans

  • MSME Cluster Development
  • Development of Business Development Services Market in MSME clusters
  • Capacity Building of Business Membership Organisations
  • Promoting Energy Efficiency and Occupational Health and Safety Measures in MSME Clusters
  • Export Consortia and Export Development
  • Cluster Twining
  • Lean Manufacturing
  • Tourism Cluster Development

Sanjay Pal

Area Of Apecification : Rural Marketing

Entrepreneurship Development Institute of India

(Via Ahmedabad Airport & Indira Bridge), P.O. Bhat 382 428, Dist. Gandhinagar, Gujarat, India.


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