Skip to content

Fundamentals of Entrepreneurship · Ch 3 — Institutional Support for Entrepreneurs

National-Level Promotional and Development Institutions: SIDO, SISI and FIEO

National-Level Promotional and Development Institutions: SIDO, SISI and FIEO

Besides finance, the small sector needs policy support, technical and training help, and export guidance. Three national bodies provide this: SIDO (policy and coordination), SISI (technical and training), and FIEO (export promotion).

1. SIDO — Small Industries Development Organisation

SIDO is the apex body at the national level for formulating, coordinating, and monitoring the policies and programmes for the development of small-scale industries. It functions as the nodal agency (today it works as the Office of the Development Commissioner for MSMEs, under the Ministry of MSME). SIDO does not usually deal with an individual entrepreneur directly; instead it works behind the scenes to guide the whole small-industry support system.

Main functions of SIDO:

  1. Advising the government on policies and programmes for small industries.
  2. Coordinating the work of the various institutions and field offices that serve small industry.
  3. Providing a range of common services — technical, managerial, economic, and marketing information — through its network of field institutes.
  4. Monitoring and evaluating the development programmes meant for the small sector.

2. SISI — Small Industries Service Institute

SISIs (now generally known as MSME Development Institutes, MSME-DI) are the field-level technical and training arms that work under SIDO. There is at least one such institute in each state, and they are the institutions a small entrepreneur most often meets for technical and managerial help.

Main functions of SISI / MSME-DI:

  1. Providing technical consultancy — help in choosing the product, technology, machinery, and plant layout.
  2. Conducting Entrepreneurship Development Programmes (EDPs) and skill- and management-training courses.
  3. Preparing project profiles and feasibility studies that guide entrepreneurs on viable products.
  4. Offering common testing and workshop facilities and market information to small units.

3. FIEO — Federation of Indian Export Organisations

FIEO is the apex body of export-promotion organisations in India. It represents and assists the country's exporters — including small entrepreneurs who wish to sell in foreign markets — and acts as a link between the government's export-promotion machinery and the exporting community.

Main functions of FIEO:

  1. Providing information and guidance on export markets, procedures, and documentation.
  2. Helping exporters take part in international trade fairs, exhibitions, and buyer-seller meets abroad. …