Business Studies

Small Business

Question:

Explain the role of SIDBI in promoting small scale enterprises.

Answer:

Small Industries Development Bank of India (SIDBI). was set up on April 2, 1990 under an Act of Indian Parliament, is the principal financial institution for the promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sectors and for co-ordination of the functions of the institutions engaged in similar activities.
Financial support is provided by way of refinance to eligible Primary Lending Institutions (PLIs) such as banks, State Financial Corporations (SFCs), State Industrial Development Corporations (SIDCs), State Small Industries Development Corporations (SSIDCs) etc. for onward lending to MSMEs, financial assistance in the form of loans, grants, equity and quasi-equity to Non Government Organisations (NGOs) / Micro Finance Institutions (MFIs) for onlending to micro enterprises and economically weaker sections of society, enabling them to take up income generating activities on a sustainable basis and direct assistance to MSMEs which is channelised through the bank's network of 130 branch offices.
While finance is the basic need of the MSMEs, they also require different non-credit facilities to gain the extra mile in their endeavour to attain international competitiveness. Such requirements are equity capital, credit rating, technology transfer and upgradation, etc. SIDBI has been constantly working on building various institutional mechanisms to cater to the emerging needs of the MSME sector and has set-up various subsidiaries / associates viz.
SIDBI Venture Capital Ltd. (SVCL) is a subsidiary of SIDBI. It was set up in July,1999. It is an asset management company, presently managing two venture capital funds. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGFTMSE) in July 2000 by Government of India and SIDBI, to provide credit guarantee support to collateral free / third-party guarantee free loans extended by banks and lending institutions for micro and small enterprises (MSEs);
SME Rating Agency of India Ltd. (SMERA) was set up in September 2005, as an MSME dedicated third-party rating agency to provide comprehensive, transparent and reliable ratings and risk profiling.
India SME Technology Services Limited (ISTSL), was set up in November 2005. It provides a platform for MSMEs to tap opportunities at the global level for acquisition of modem technologies.
India SME Asset Reconstruction Company Ltd (ISARC) is the country's first MSME focused asset reconstruction company striving for speedy resolution of non-performing assets (NPA) by unlocking the idle NPAs for productive purposes which would facilitate greater and easier flow of credit from the banking sector to the MSMEs

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Small Business

Q 1.

Give full from of SIDBI .

Q 2.

What are the measures taken by the Government to solve the problem of finance in the small scale sector?

Q 3.

Name the apex bank set up to provide direct and indirect financial assistance to small scale sector.

Q 4.

What is the investment limit for SSI?

Q 5.

What are the different parameters used to measure the size of business?

Q 6.

What is the parameter used by the government to identify service enterprise?

Q 7.

What is the difference between small scale enterprise and cottage industry?

Q 8.

State the features of cottage industries.

Q 9.

What forms of support is offered to small industries by the government?

Q 10.

Explain the role of SIDBI in promoting small scale enterprises.

Q 11.

What do you mean by small business? Describe the feature of small scale enterprise.

Q 12.

Explain the areas where small businesses feel threatened from global competition.

Q 13.

Explain the meaning of small scale industry with its different categories.

Q 14.

What is the role of District Industries Centre for the growth of small business in India?

Q 15.

Name the institution which was set up in 1982 to promote integrated rural development.

Q 16.

Give one feature of Cottage Industries.

Q 17.

How much do small industries in India account for the total industrial units?

Q 18.

Write a short note on WASME.

Q 19.

What is the purpose of NABARD?

Q 20.

What is the role of National Small Industries Corporation for the growth of small business units in India?

Q 21.

How do small scale industries contribute to the socio-economic development of India?

Q 22.

Discuss the problems faced by small scale industries.

Q 23.

Discuss any two characteristics of SSI.

Q 24.

Write a short note on village and small industries sector.

Q 25.

Name any two units included in SSI category.

Q 26.

Give full from of NABARD.

Q 27.

What incentives have been taken by government to promote small scale industries?

Q 28.

Highlight the role of the small business in promoting economic growth and solving other socio-economic problems.

Q 29.

Write a short note on SIDO.

Q 30.

Name any two institutions specially set up to promote small scale enterprises.

Q 31.

Give any two problems faced by SSI.

Q 32.

What are the incentives provided by the government for industries in backward and hilly areas?

Q 33.

Describe the scope of small business in India.

Q 34.

Describe briefly the problems of small scale enterprises.

Q 35.

Give any two incentives offered by the Government to small scale industries.

Q 36.

What are the causes of sickness in small industries?

Q 37.

State the objectives of small business in rural India.

Q 38.

What measures have the Government taken to solve the problem of finance and marketing in the small scale sector?

Q 39.

Describe the role of small business in rural India?

Q 40.

List out major industry groups in the small sector in India.

Q 41.

Small business is business at small scale. Do you agree? Explain.

Q 42.

How would you differentiate between an ancillary unit and a tiny unit?

Q 43.

What is the definition used by government of India for Small Scale Industries?