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.
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.
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.
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.
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 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.
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.