Support for Entrepreneurial and Managerial Development of SMEs: Through Incubators

Organisation

National Manufacturing Competitiveness Programme (NMCP)

Objective

The main objective of the scheme is to promote emerging technological and knowledge-based innovative ventures that seek the nurturing of ideas from professionals beyond the traditional activities of Micro, Small & Medium Enterprises (MSMEs). Such entrepreneurial ideas have to be fostered and developed in a supportive environment before they become attractive for venture capital. Hence the need arises for incubation centres: to promote and support untapped creativity of individual innovators and to assist them to become technology based entrepreneurs. It also seeks to promote networking and forging of linkages with other constituents of the innovation chain for commercialization of their developments. This initiative is now being taken up by the Ministry of MSME – the nodal Ministry for the development of entrepreneurship and creation of self-employment and more employment avenues.

Eligibility

Micro and Small Enterprises. The indicative areas of operation for innovative projects could be in the following fields: Hi-tech Activities like i) Bio-technology ii) Pharmaceuticals iii) Information Technology iv) Nano-technology v) Polymer Products. Other Possible Areas-1 vi) like Fruit Processing vii) Ceramics Industry viii) Glass Industry ix) Herbal Medicines x) General Stores xi) Auto Components xii) Electrical appliances. Other Possible Areas-2 like xiii) Ready-made Garments xiv) Sports Goods xv) Wet Grinders xvi) Metal Utensils xvii) Surgical Instruments xviii) Agriculture Implements xix) Cane and Bamboo Products xx) Leather Goods xxi) Engineering Industries.

Brief

A total of 100 Business Incubators (BIs) are expected to be set up between 2008-09 to 2011-12 with 25 BIs being made operational in selected technical institutions every year over the entire duration of the four years. Each BI is expected to help incubation of 10 new ideas or units and is to be given financial assistance between Rs. 4 lakh to Rs. 8 lakh per idea/unit matured subject to an overall ceiling of Rs. 62.5 lakh per incubator, which works out to be Rs. 6.25 lakh per idea/unit on an average. The technical managerial (Host) institute is expected to make available necessary laboratory/workshop facilities and other required to the young innovators/entrepreneurs. Each BI will make efforts to maintain a ratio of 4:1 between the incubated units catering to micro enterprises and small enterprises respectively. However, flexibility on this account would be permissible with the approval of Technical Approval Committee. Flexibility is also envisaged in having more than one BI in the same host institute and where required/justified, less than 10 or more than 10 hosted units in each BI.