Government facilities extended to small/home businesses

by Anindya Ray on 23/10/2017
In our country, small businesses are blessed. The government encourages small entrepreneurs and realizes the difficulties faced by them. When you start a small business, you require financial support for running the business as well as diversification and technology up gradation. Recognising this, the Government of India (GoI) and the State Governments have introduced several schemes and funds to ensure the growth of small scale industries.

Collateral Free Loans:
Availing bank credit for small businesses has always been a problem because of their inability to provide collateral guarantee. Addressing this problem, the GoI has launched the Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) to make collateral-free credit available to small entrepreneurs. Now both term loans and working capital up to Rs.2 crores to small enterprises from banks and non-banking financial companies are guaranteed by the GoI. This makes it much easier to avail loans without any collateral security and third party guarantee.

Primary Funding Sources:
The public sector banks are the major source of financial assistance to the small entrepreneur. They extend credit support in the form of loans, advances, discounting bills, project financing, term loans and export finance. Advances given to small scale sector are considered as Priority Sector Advances by banks and small scale units are given priority in bank finance.

Focused Facilitators:
GoI has set up two agencies dedicated to catalyse the growth of small enterprises: Small Industries Development Organisation (SIDO) and National Small Industries Corporation Ltd (NSIC). Between them, they extend a host of facilities to small entrepreneurs like:

Marketing support schemes: Sound marketing initiatives are critical for the growth of small enterprises. NSIC acts as a facilitator to promote products of small industries and has developed a number of schemes to support small enterprises in their marketing.

Credit support schemes: For financing of equipment, procurement of raw material and financing for marketing activities such as domestic marketing, exports and bill discounting.

Technology support schemes: Various support services are offered to small units through its 'Technical Services Centres' and 'Extension Centres'. The services include advice on application of new techniques, material testing facilities, energy and environment services, classroom and practical training for skill up gradation.

Performance rating schemes: This enables small industries to ascertain the strengths and weaknesses of their existing operations and take corrective measures accordingly.

Apart from this, various State Financial Corporations (SFCs) have been set up by the respective State Governments for providing financial assistance to small entrepreneurs.

GoI and the state governments have come forward very progressively, encouraging small entrepreneurs with credit, technology and marketing support. Once you have set up your operations the next most important thing to do would be to sell your products efficiently and profitably. Amazon provides you a cost effective channel to sell your products online to a vast population. Amazon also provides all the assistance you need to start selling online. If you are interested in selling online, you can create your free account on Amazon here.

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