The contribution of small scale industries are remarkable.
Thus, government has provided the following institutional support to solve the problem of finance and marketing in the small scale sector
(i) National Bank for Agriculture and Rural Development (NABARD) It was set up in 1982, to promote integrated rural development. Apart from agriculture, it supports small industries, cottage and village industries and rural artisans. It provides credit and offers counselling and consultancy services and organises training and development programmes for rural entrepreneurs.
(ii) The Rural Small Business Development Centre (RSBDC) It was set up by the world association for small and medium enterprises and is sponsored by NABARD. It works for the benefit of socially and economically disadvantaged individuals and groups. It aims at providing management and technical support to current and prospective micro and small entrepreneurs in rural areas.
(iii) National Small Industries Corporation (NSIC) It was set up in 1955 with a view to promote, aid and foster the growth of small business units in the Country.
Functions of NSIC include
(a) Supply of machines on easy hire-purchase terms.
(b) Procure, supply and distribute raw materials.
(c) Export the products of small business units and develop export-worthiness.
(d) Mentoring and advisory services.
(e) Serve as technology business incubators.
(f) Creating awareness on technological upgradation.
(g) Developing software technology parks arid technology transfer centres.
Scheme of‘performance and credit rating’ of small businesses is implemented through NSIC to ensure that they score higher rating for their credit requirements as and when they approach the financial institutions for their working capital and investment requirements.
(iv) Small Industries Development Bank of India (SIDBI) It was set up as an apex bank to
provide direct/indirect financial assistance under different schemes, to meet credit needs of
small business organisations and to coordinate the functions of other institutions in similar activities.
(v) The National Commission for Enterprises in, the Unorganised Sector (NCEUS) It was constituted in September, 2004, with the objectives of recommending measures considered necessary for improving the productivity of small enterprises in the informal sector and to enhance the competitiveness of the sector in the emerging global environment by developing linkages of the sector with other institutions in the areas of credit, raw materials, infrastructure, technology upgradation, marketing, etc.
(vi) Rural and Women Entrepreneurship Development (RWED) This programme aims at promoting a conducive business environment and at building institutional and human capacities that will encourage and support the entrepreneurial initiatives of rural people and women by providing training and advisory services.
(vii) Scheme of Fund for Regeneration of Traditional Industries (SFURTI) The Central Government set up this fund to make the traditional industries more productive and competitive and to facilitate their sustainable development.
The main objectives of SFURTI are to develop clusters of traditional industries in various parts of the country; build innovative and traditional skills, improve technologies and encourage public private partnerships, develop market intelligence, etc.
(viii) The District Industries Centres (DICs) District Industries Centre is the institution at the district level which provides all the services and support facilities to the entrepreneurs for setting up small and village industries including identification of suitable schemes, preparation of feasibility reports, arranging for credit, machinery and equipment, provision of raw materials and other extension services. This was launched on 1st May, 1978.