Be your own boss" is the message that the National Small Industries Corporation (NSIC) wants to convey to first-generation entrepreneurs. And it is slowly seeping through, claims chairman-cum-managing director M Ahmad. The success rate of entrepreneurial development programmes in generating first-generation entrepreneurs, however, hovers at 20 per cent.

"Experience shows that obstacles to expanding the entrepreneurial base are more psychological than institutional", explains Ahmad.

For instance, it has been observed that entrepreneurial development programmes organised by NSIC evoke better response from those with a non-technical background than from those with technical knowledge; the latter probably feel safer in the cocoon of their jobs. These programmes just don't enthuse those coming from business families.

The primary reason for such a pathetic state of affairs, feels Ahmad, is that the educational system is not geared to groom entrepreneurs. With higher education institutions such as the IITs and Jamia Milia Islamia incorporating entrepreneurial development in their curriculum, this lacunae is gradually being taken care of. But a lot more needs to be done.

The process of nurturing entrepreneurship is a long drawn out one, says Ahmad. Instead of simply offering equipment for hire-purchase or plant and equipment on lease-basis to first-generation entrepreneurs, NSIC has adopted a more holistic approach. Going region-wise, the Corporation is selecting specific areas, organising surveys to ascertain the raw material availability and local market potential, and probe the type of industry that can be set up.

"Our effort is to help build institutions to supplement the industrial set-up", says Ahmad. To start with entrepreneurial development programmes, varying from three to six weeks, initiate an aspirant into all the procedural, legal and financial requirements to kick-start a business. Further, to give them a hands-on feeling of working on their own, the candidates work on some machine or operation of their choice. Depending on the response, NSIC then facilitates the first-time entrepreneurs into starting on their own with easy finance, machinery and raw material support.

"But our role does not end there. At times, we make a consortia of such entrepreneurs in an area which helps them to get finance easily and market their products better", says Ahmad. He feels that for the small-scale sector, liberalisation is both a threat and a challenge. "Threat, if they sit pretty and do nothing; a challenge, if they modernise"

Liberalisation opens the door to the lucrative global market. On the other hand, most MNCs setting up shop in India need to sub-contract or outsource from locals. If SSIs organise themselves well, they can become their outsource partners. And NSIC is all for helping those who wish to upgrade and take up the challenge, says Ahmad.

In this respect, the Corporation's Technology Transfer Centre has become a big hit with many small entrepreneurs, with membership expected to cross the 2,000 mark by the year-end. The Centre has two web sites which helps to post technology requirements of small businesses to various international technology suppliers.

As part of pepping up its marketing set-up, NSIC is trying to make its exhibitions and trade show more region-specific. "Last year, we had an exhibition at Rajkot. This year, we want to move to Chandigarh and Pune". NSIC's Software Technology Park in Delhi, which houses 14 companies, is set to expand facilities to meet the burgeoning demand for more space. Buoyed by the response, the Corporation is planning to open a second such park at Chennai shortly.

An obstacle to the Corporation's pro-active efforts in supporting small- scale industries has been that industry associations have not come forward to take responsibility for their members who default on loan obligations.

One way to meet the financial needs of various small entrepreneurs at the local level, feels Ahmad, is for the industry associations to set up their own banks. To back its proposal, NSIC is open to equity participation arrangements in such institutions, ranging between 20-27per cent .

Over the last few years, the Corporation has shed excess flab, both in terms of manpower and red tape. "We were overcrowded due to our file work", admits Ahmad. Accordingly, the Corporation has brought down its staff strength from 2,000, three years ago, to 1,600 today. Ahmad, however, feels that they will be able to work more effectively at a staff strength of 1,200. "The file now travels to just three levels, instead of seven earlier", says Ahmad excitedly.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.