Small Business Test - 28

Cottage Industries are organized by individuals, with their private resources and normally use family labour and locally available talent.

Export Oriented units (EOUs)- The small scale industry can enjoy the status of an export oriented unit if it exports more than 50 per cent of its production. It can avail the incentives like export subsidies and other concessions offered by the government for exporting units.

Small industries contribute almost 40 per cent of the gross industrial value added and 45 per cent of the total exports (direct and indirect exports) from India.

The DIC was established on May 1, 1978, to provide assistance to small scale industries at the district level. These centers provide promotional assistance to entrepreneurs such as identification of suitable schemes, preparation of feasibility reports, arranging for credit, etc.

Integrated Rural Development Programme known as IRDP is described officially as a major mechanism for the alleviation of rural poverty.

• Trysem was launched in 1979 as a separate national scheme for training rural youth for self employment.
• Prime Minister's Rozgar Yojana (PMRY) is designed to create self-employment opportunities that are sustainable to 1 million unemployed youth who are educated.
• These all schemes helps to promote the non-farming sectors of the country and they are initiated by the government of India.

RSBDC stand for Rural Small Business Development Centre.

A Rural Small Business Development Centre (RSBDC) is a government centre sponsored by NABARD for micro, small and medium businesses which is set up by world organization. The primary purpose of RSBDC is to work for socially and financially disadvantaged people and groups.

All of the above are the areas where small businesses feel threatened with the onslaught of global competition brought in by the LPG policy i.e.

1. Competition is not only from medium and large industries, but also from multinational companies which are giants in terms of their size and business volumes
2. It is difficult to withstand the quality standards, technological skills, financial creditworthiness, managerial and marketing capabilities of the large industries
3. There is limited access to markets of developed countries due to the stringent requirements of quality certification like ISO 9000.

Small Scale Industry is the industrial undertakings having fixed investment in plant and machinery, whether held on ownership basis or lease basis or hire purchase basis not exceeding Rs. 1crore.

The Start up India scheme facilitates bank loans between 10 lakh and 1 crore to at least one schedule caste or schedule tribe borrower and at least one woman borrower per bank branch for setting up a green field enterprise. This enterprise may be manufacturing, trading or service.

NABARD was setup in 1982 to promote integrated rural development. Since then, it has been adopting a multi-pronged, multi-purpose strategy for the promotion of rural business enterprises in the country. Apart from agriculture, it supports small industries, cottage and village industries, and rural artisans using credit and non-credit approaches. It offers counselling and consultancy services and organises training and development programmes for rural entrepreneurs.