Whom To Approach For What

Whom To Approach For What

Whom To Approach For What

Whom To Approach For What

Whom To Approach For What

Whom To Approach For What

Whom To Approach For What

Whom To Approach For What

Whom To Approach For What

Whom To Approach For What

Incentives
y Incentives means encouraging productivity, and acts as

a motivational force to take a right decision and act upon it.

Concessions

Incentives

Subsidies Bounties

Incentives
y Subsidy denotes a single lumpsum which is given

by a Government to an entrepreneur to cover the cost. y Bounty denotes a bonus or a financial aid given to an industry to help it to compete with other units in country or in a foreign-market.

Need for Incentives

Entrepreneurship Development Regional Development

Incentives

Motivate people for New Ventures

Provide Competitive Strength

Give Stimulus to Industry and Business

Incentives for SSIs

INCENTIVES FOR MICRO SMALL ENTERPRISES

y National Awards for Quality Products in MSEs Sector y Objective: y These awards are given away to MSE entrepreneurs for encouraging and motivating them to set up small scale units to and to recognize their efforts to modernize their industries with a view to upgrading the quality of their produce, enhancing the productivity, increasing their share both in the domestic/ export markets, innovating new technology/design and bringing in technological improvements. y Year of launching: 1983

INCENTIVES FOR MICRO SMALL ENTERPRISES

y National Awards for Outstanding MSE Entrepreneurs y Objective: The objectives of the Scheme are as follows:y To encourage small-scale industries to produce quality products conforming to national and international standards y To propagate a culture of quality consciousness amongst a vast section of small scale manufacturing units and y To instil a sense of confidence in small industry products with the domestic consumers and to enhance the image of Indian Products in export markets. y Year of launching: 1986.

INCENTIVES FOR MICRO SMALL ENTERPRISES

y National Award for Research and Development

Effort in MSE Sector y Objective: The award is to be given to promote the concept of in house research and development efforts for strengthening technical soundness and promoting the spirit of innovation exhibited by the unit. y Year of Launching: 2001 for the Award year 1999.

Legal Framework for Small Business

y Government controls or regulations assume several

forms:
y Formal and Informal y Direct and Indirect y Promotional and Regulatory y Inducive and Coercive Controls

Legal Framework for Small Business

y Formal Controls are usually those emanating
from legislation, e.g., the Industries (Development and Regulation) Act, 1951, the Companies Act, etc y Formal controls are very powerful..

y Informal controls refer to the controls which

various groups impose on themselves out of need and custom. E.g., few conventions, informal agreements, and accepted ways of doing things that otherwise have important regulative implications.

Legal Framework for Small Business

y When government fixes prices of certain products or

services, it is an example of Direct Control.. E.g., administered price policy of the Government of India is a direct control measure. y The variation of corporate Income Tax to influence economic activity is an Indirect Control measure.

Legal Framework for Small Business

y Promotional Measures are of a positive nature,
and include such activities as expansion of public sector establishments and operation of development banks, revival of sick units, encouragement to SSU, removal of regional imbalances, provision of incentives and subsidies and export promotion.

y Regulatory Measure ensure orderly

development of industries with the least wastages of resources. It includes direct controls, like IDRA, FERA, price and distribution controls, labor laws, and indirect controls like monetary policy and fiscal policy.

y The SSI are being regulated and governed by the following

Acts:
a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) r) s)

State Industries Act The Factories Act (1948) Shops and Establishment Act, 1948 Indian Boiler Act (if applicble) The Payment of Wages Act (1936) The Minimum Wages Act Workmen s Compensation Act Employees PF Act Employees State Insurance Act Income Tax Act Central Sales Tax Act and State Sales Tax Act Drugs Control Act The Payment of Bonus Act The Maternity Benefit Act The Payment of Gratuity Act The Payment of Bonus Act The Industrial Employment Act Industrial Disputes Act The Indian Companies Act

Regulations

y In addition, SSE should always seek assistance from

the following professionals:

a) b) c) d) e) f) g)

Inspecting Staff of Government Labor Consultants Financial Consultants Legal Consultants Income Tax Consultants Excise and Customs Consultants Export and Import Consultants