Economic development is invariably accompanied by industrialization. Economic development leads to increase in national and per capita income, change in the demand and output pattern of industrial goods and increases employment opportunities. If a nation wants to develop rural area, it is possible only through making employment opportunities to the people who are living in rural area. Industrialization is another method of making such kind of people as income earners.
Developing countries like India have to concentrate more on creating new entrepreneurs. In India, after attaining political freedom industrialization occupies a vital role in economic development. By giving assistance for new entrepreneurs, the Government can make opportunity to rural labour, artisans, marginal farmers and women, thereby improving the position of wage earners. The Government can give another choice for earning other than agriculture.
Our Government contributes more to entrepreneurial development through District Industries Centre (DIC). The District Industries Centre makes the development of small-scale industries because small-scale industries centre facilitate the effective mobilisation of resources of capital and skill, which might otherwise remain unutilised. Unlike the large-scale industries the establishment of small-scale industries involves a relatively shorter gestation period and less dependence on improved equipment and raw material. The purpose is accomplished by the District Industries Centre through initiating steps for the establishment of new industries.
Statement of the Problem
In a developing nation like India, where population was high and incomes were low, it is absolutely necessary to develop the small industries to overcome the problems of unemployment, poverty and to remove the regional disparities or imbalances.
Government is very keen on the promotion and development of small scale units based on capital sparing and labour intensive. Government is helping small scale industrial in formulating policy for better performance. Yet, this sector is not performing up to the expectations of many as it has been suffering from several problems.Small scale industries in our country have suffered from the lack of entrepreneurial ability to develop initiative and undertake risks in the unexplored industrial fields.
To promote entrepreneurial activities among the people Entrepreneurship Development Programmes should be conducted regularly by the Government through various agencies among them DIC play a vital role. The shortage of finance affects the ability of the small units severely. Every kind of problem, whether of raw material, power, transport or marketing faced by an entrepreneur in its ultimate analysis turns out to be a problem of finance.
The small industry gets elbowed out by the large and medium scale industries in the procurement of bank finance and institutional credit. The DICs constitutes an institutional device to place the industrial infrastructure at the door-step of the entrepreneurs and to tackle the problems of the small-scale sector through an integrated approach. The DIC has been entrusted with the responsibility of planning for the balanced development of small-scale industrial units in urban, semi urban and rural areas.
DIC programmers are also making available various pre-investment and post-investment assistances and incentives under a single roof. DIC also acting as a nodal agency for providing support services to small scales industries. From the observation of data it seems that the pace of the development of industries is rather unsatisfactory hence, the performance of DICs in the district have not served the objectives mentioned above to the extent expected from them. Hence it needs to make an attempt to investigate and assess whether the DICs have been effective in their functioning to the extent to which they were expected of. Hence the present study was made.
Objective of the Study:
- To evaluate the measures taken by DIC for entrepreneurial development in Thanjavur District/.
- To study the impact of DIC’s assistance on the small- scale industries performance.
- To offer suggestions for improving the performance of DIC, Thanjavur District
“There is no significant association between category of units, type, size, locations , Place, type of ownerships, age of the units and impact of DIC assistance on entrepreneurs’ developments.”
- Scope for the Study
This study attempt has been made to analyze the role of DIC in promotion of SME in India and a single agency could meet all the requirements of SSIs under one roof. The results and discussion made in the current study will prove useful to the various stakeholders of SMEs in India: SME entrepreneurs, manufacturing, firms, government, support services financial institutions and academicians in understanding the entrepreneurs’ perception towards the performance of DICs and their business growth after joining DIC.
This study is an experimental study based on the data collected from SME industries situated in Thanjavur District.
- Sampling Technique
As per the records at the DIC, Thanjavur District, the total number of SME units is 4,629 and out of which 10 per cent 463 units selected at random and due to some incomplete data it is finally rounded up in to 450 units. Hence, the purposive random sampling method has been adopted for the present study. The sample includes tiny and small scale type of units except ancillary enterprises situated both at the rural and urban areas. The sample encompasses the units coming under the purview of agriculture, chemical, steel & engineering, mineral and readymade garments.
- Sources of Data
Keeping in view the versatile objectives of the study, the data collected from both the primary and secondary sources. The primary data has been collected by administering an interview schedule to all the entrepreneurs under the study group. The relevant information has also been selected from journals, magazines, thesis, dissertations, published and unpublished reports, online, etc.
- Period of study
The study covers a period of ten years from 2014-15 to 2017-18 for secondary data. The investigation is conducted during the period from July 2017 to March 2018.
- Statistical Tools Used
The ultimate object of the study is to assess the impact of DIC assistances on the SMEentrepreneurs’ performance and problems faced by them. In order to study the impact and perception, simple percentage, chi-square test, ANOVA, ranking techniques, t test and Co llinearity Statistics have been employed in the study.
Impact of Dic’s Assistance in Entrepreneur Development
After reforms the protection SMEenjoyed from government has been abolished and exposed MSEMs into greater market competition. To meet this heightened competition they have to improve their productivity and competitiveness through policy reforms, subsidies, institutional support and technological improvement.
Government Institute like DIC provides support / services to the State Government as well as co-ordinates various activities at the state level for promotion and development of SMEindustries. Though there are many factors responsible for growth of SME units DIC is the main and very important factor. The role of DIC in promotion of SME units is very high and its impact is very large in small scale sector’s success.
Functions of DIC’s include conducting industrial potential surveys keeping in view the availability of resources in terms of material and human skills, infrastructure, demand preparing an action plan for effective implementation of the schemes identified to guide entrepreneurs to select most appropriate machinery and equipment etc. all these functions are highly impacted on the development of small entrepreneurs. Hence, researcher made on attempt to analysis the impact of impact of DIC role and assistances on the in promotion and development of small business units, respondents were asked about the level impact and the replies received from the respondents are presented and analysed in tables here below.
The DIC Programme was launched on May 1, 1978, with a view to providing an integrated administrative framework at the district level, which would look at the problems of industrialization in the district, in a composite manner. In other words District Industries Centers 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.
DIC identification suitable schemes for SME units, preparation of feasibility reports, arranging for credit, machinery and equipment, provision of raw materials and other extension services are the main activities undertaken by these centers. Broadly DICs are trying to bring change in the attitude of the rural entrepreneurs and all other connected with economic development in the rural areas.
From the above table 1it has been inferred that the 80.67 small entrepreneurs have opined that after joining DIC they can able to obtain get more market information and it has significantly impacted in their business positively, followed by 79.4 per cent entrepreneurs have said their efficient utilisation of resources have increased after availing DIC’s assistance, 77.4 per cent of entrepreneurs expressed their opinion impact of availing DIC’s assistance have increase in the level of providing employment to others. 77.2 per cent of entrepreneurs have said that after availing DIC’s assistance the can able to get better public contact. 77.2 per cent have said that because of DIC’s assistance their turnover and production have been increased.
After availing DIC’s assistance assets increased over a period of time, able to reduction of cost and wastage, able to diversification of production, increase in number of products & orders and easy to get professional help from banks by the small entrepreneurs by 76.4%, 75.6%, 75.4%, 75.2% and 74.8% respectively. An average 3.72 sample entrepreneurs have opined that after registering their units in DIC they can gets better price for the products, followed by 3.70 and 3.69 average respondents’ have opined that they have increased independent mobility and developed effective communication skill after joining DIC.
Due to DIC assistances on an average of 73.6 and 73.4 per cent of sample entrepreneurs’ have stated that they have developed for planning and executing skill and Developed listening capacity respectively. Because DIC assistances 73.2 per cent of sample entrepreneurs able to establish more branches, 73 per cent of sample entrepreneurs can increase in exports over a period of time, 72.8 per cent able to increased accounts maintenance skill, 71 per cent able to creating job opportunity for others. It is interesting to found that more than 70 per cent of entrepreneurs able to developed in all the above mentioned aspects because of DIC assistances.
Association between Category of Units and Impact of DIC Assistance
In order to analyse the association between category of units and impact of DIC assistance onentrepreneurs’ developments the following hypotheses have been tested.
Ho: “There is no significant association between category of units and impact of DIC assistance onentrepreneurs’ developments.”
The Chi-square test has been administered to find out the association between category of units and impact of DIC assistance. The result is presented the following Table 2.
The above Table 2 depicts the significant association between the category of units and impact of DIC assistance on entrepreneurs’ developments. The calculated Chi-square value is 11.449 and ‘p’ value is 0.022 which is significant at 5 % level of significant. Hence, the null hypothesis is rejected. It is concluded that there is significant association between the category of units and impact of DIC assistance for entrepreneurs’ developments.
The DIC should impart training not only to the prospective entrepreneurs but also to the existing entrepreneurs on the latest technology.DICs should be given more powers for providing tangible services such as arranging term, loans, working capital and various other inputs including.DIC should provide all the required assistance to enable the existing small-scale industries to attain maximum capacity utilization.
The study reveals that the DIC, Thanjavur District, have played a vital role in developing the SMEindustrial units located in this District. The SMEs are assuming greater importance every day. A successful entrepreneur not only creates employment for himself but for hundreds.
The SMEIndustry sector has emerged as a dynamic and vibrant sector of the Indian economy in recent years, displaying phenomenal growth in the field of production, employment and dispersed development in general and exports in particular. It operates through a network of District Industries Centres (DICs) implements a variety of programmes to provide financial assistance, technical support and guidance service to the existing as well as new industries.
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