Recognizing the importance of small and medium enterprises in the growth of Indian economy in terms of their contribution to country's industrial production, exports, employment and creation of entrepreneurial base, the Central and State Governments are undertaking several policy measures and incentives as well as implementing schemes and programmes for promotion and development of these enterprises. For this, entrepreneurship development and training is one of the key steps, particularly, for the first generation entrepreneurs. Entrepreneurship Development Programmes (EDPs) of various durations are being organized on regular basis by a number of organizations, such as, National and State level Entrepreneurship Development Institutes (EDIs); Micro, Small and Medium Enterprises Development Institutes (MSMEDIs) - formerly called Small Industries Service Institutes (SISIs); National and State level Industrial Development Corporations, Banks and other training institutions/agencies in private and public sector; etc. These EDPs aims to create new entrepreneurs by cultivating their latent qualities of entrepreneurship and enlightening them on various aspects necessary for setting up micro and small enterprises. Besides, skill development programmes (SDPs) and entrepreneurship-cum-skill development programmes (ESDPs) are also being organized by various public as well as private training institutions.

However, there are still wide spread variations in the success rate, in terms of actual setting up and successful running of enterprises, by the EDP/SDP/ESDP trained entrepreneurs. Also, new entrepreneurs generally face difficulties in availing full benefits under available schemes of the Governments / financial institutions, completing and complying with various formalities and legal requirements under various laws/regulations, in selection of appropriate technology, etc. In order to bridge the gap between the aspirations of the potential entrepreneurs and the realities, there is a need to support and nurture the potential first generation entrepreneurs by giving them handholding support during the initial stages of setting up and managing their enterprises. Accordingly, the scheme called 'Rajiv Gandhi Udyami Mitra Yojana (RGUMY)' has been launched to provide handholding support and assistance to the potential first generation entrepreneurs, who have already successfully completed EDP/SDP/ESDP or vocational training from ITIs, through the selected lead agencies, like 'Udyami Mitras'. This helps such entrepreneurs in the establishment and management of the new enterprise, in dealing with various procedural and legal hurdles as well as in completion of various formalities required for setting up and running of the enterprise, etc. The work profile of Udyami Mitras include networking, coordinating and follow up with various Government departments/ agencies/ organizations and regulatory agencies for channelising the benefits available under various schemes to the first generation entrepreneurs and help them in setting up their enterprise.

Some of the other governmental measures for small and medium enterprises include:-

• The Ministry of Micro, Small and Medium Enterprises has been implementing the 'Scheme of Surveys, Studies and Policy Research' with a view to regularly/periodically collect, from primary, secondary and other sources, relevant and reliable data on various aspects and features of micro, small and medium enterprises (MSMEs) engaged in manufacturing and services (whether in the category of tiny/small scale industries, khadi, village industries or coir) as a composite group or specific segments thereof. It aims to study and analyse, on the basis of empirical data or otherwise, the constraints and challenges faced by the MSMEs as well as the opportunities available to them, in the context of liberalisation and globalisation of the economy. It further aims to use the results of these surveys and analytical studies for policy research and designing appropriate strategies and measures of intervention by the Government, by itself or in public private partnership mode, to assist and enable these enterprises in facing the challenges and availing of the opportunities with a view to enhancing their efficiency and competitiveness as well as expanding generation of sustainable employment by them.
  
  
• Micro, Small and Medium Enterprises Development Act, 2006 has been enacted to facilitate the promotion and development as well as enhance the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto. For this, it included the establishment of specific funds, notification of particular schemes/programmes, progressive credit policies and practices, preference in Government procurements to products and services of these enterprises, following more effective mechanisms for mitigating their problems, etc. It provides the first-ever legal framework for recognition of the concept of 'enterprise' which comprises both manufacturing (those engaged in the manufacture/production of goods pertaining to any industry) and service ((those engaged in providing/rendering of services) entities. Under the Act, three tiers of enterprises, namely 'micro, small, and medium' have been defined for the first time. The Act also provides statutory consultative mechanism at the national level with balanced representation of all sections of stakeholders, particularly, these enterprises, and with a wide range of advisory functions.
  
  
• The progressive de-reservation of products in the MSMEs aimed at providing opportunities for technological upgradation, promotion of exports and economies of scale, with a view to encourage modernisation and enhance competitiveness in the sector. As on 13 March 2007, 125 items were dereserved. As on 8th February, 2008, 79 items more were dereserved. At present, the total number of items reserved for exclusive manufacture in the micro and small scale sector is 35.
  
  
• The National Manufacturing Competitiveness Programme (NMCP) has been launched to provide support to the manufacturing sector, particularly small and medium enterprises sector, in their endeavour to become competitive. It consists of 10 components and programmes as the initiatives for development and promotion of MSMEs.
  
  
• Credit is one of the critical inputs for the promotion of small and medium enterprises. It is a part of the priority sector lending policy of the banks. Accordingly, several schemes and policies have been undertaken to provide adequate credit to such enterprises. One of such scheme is the Credit Linked Capital Subsidy Scheme (CLCSS) which was launched to facilitate technology upgradation by upfront capital subsidy to small, micro and medium enterprises, including tiny, khadi, village and coir industrial units, on institutional finance (credit) availed by them for modernisation of their production equipment (plant and machinery) and techniques in specified sub-sectors/ products approved under the Scheme.

Besides, the State and Union Territories (UTs) Governments are executing several promotional and developmental projects/schemes as well as providing a number of supporting incentives for development and promotion of MSME sector in their respective States/UTs. These schemes/ projects are executed through State Directorate of Industries, who have District Industries Centers (DICs) under them to implement Central/State level schemes. Around 30 MSME-DIs and 28 Branch MSME-DIs have been set up in State capitals and other industrial cities all over the country, with a view to provide assistance/consultancy to prospective entrepreneurs as well as to existing units; conduct EDPs, Management Development Programmes, Skill Development Programmes, etc. Also, the State Industrial Development and Financial Institutions and State Financial Corporations look after the needs of the MSME sector.

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