Different types of life insurance policies

THE LIFE INSURANCE POLICIES ARE OF MANY TYPES. THE PRINCIPAL TYPES OF POLICIES ARE DISCUSSED BELOW:

(1) Whole life Policy :

Under this policy premiums are paid throughout life and the sum insured becomes payable only at the death of the insured. The policy remains in force throughout the life of the assured and he continues to pay the premium till his death. This is the cheapest policy as the premium till his death. This is the cheapest policy as the premium charged is the lowest under this policy. This is also known as ‘ordinary life policy’. This policy is suitable to persons who want to provide for payment of estate duty, make bequeathments for charitable purposes and to provide for their families after their death.

(2) Limited payment life policy :

In the case of whole life policy there is one disadvantage in that the assured must continue to pay the premium even during his old age when he is no more employed. Under the limited payment life policy premiums are payable for a selected number of years or until death, if, earlier. The assured knows how much he will be required to payable only at the how long he lives. The sum insured becomes payable only at the how long he lives. The sum insured becomes payable only at the death of the insured. It is a suitable policy to meet the family needs.

(3) Endowment policy :

It runs only for a limited period or up to a particular age. Under this policy the sum assured becomes payable if the assured reaches a particular age or after the expiry of a fixed period called theendowment period or at the death of the assured whichever is earlier. The premium under this policy is to be paid up to the maturity of the policy, i.e., the time when the policy becomes payable. Premium is naturally a little higher in the case of this policy than the whole life policy. This is a very popular policy these days as it serves the dual purpose of family and ole age pension.

(4) Double endowment policy :

Under this policy the insurer agrees to pay to the assured double the amount of the insured sum if he lives on beyond the date of maturity of the policy. This policy is suitable for persons with physical disabilitywho are otherwise not acceptable for other classes of assurance at the normal tabular rates. Premiums are to be paid for a selected term of years or until death, if earlier.

(5) Joint Life Policy :

This policy covers the risk on two lives and is generally available to partners in business. Policies are however, issued on the lives ofhusband and wife under specified circumstances. Sum assured becomes payable at the end of the selected term or on the death of either of the two lives assured, if earlier.

(6) With or without profit policies :

Under the “with profit or participating policies,” the policy holder is allowed a share in the profits of the corporation in the form of bonus and it is added to the total sum assured and paid at the time of maturity of the policy. In the case of ‘without profit or non-participating policies, no such profit is allowed. Premium in the first case is higher and is lower in the later case.

(7) Convertible whole life policy :

This policy initially provides maximum insurance protection at minimum cost and offers a flexible contract which can be altered at the end of five years from the commencement of the policy to an endowment insurance.

(8) Convertible term assurance policy :

This policy meets the needs of those who are initially unable to pay the larger premium required for a whole life or endowment assurance policy but hope to be able to do so within a few years. It would also enable such persons to take final decision at a later date about the plan suitable for their future needs.

(9) Fixed term (marriage) Endowment policy & education annuity policy :

It is a policy suitable for making provisions for the marriage or education of children. Premiums are payable for a selected term or till prior death. The benefits are payable for selected term or till prior death. The benefits are payable only at the end of selected term. In case of the marriage endowment, the sum assured is paid in lump sum, but in case of the educational annuity, it is paid in equal half-yearly installments over a period of five years.

(10) Annuities :

It is a policy under which the insured amount is payable to the assured by monthly or annual installments after he attains a certain age. The assured may pay the premium regularly over a certain period or he may pay the premium regularly over a certain period or he may pay a lump sum of money at the outset. These policies are useful to persons who wish to provide a regular income for themselves and their dependants.

(11) Sinking fund policy :

Such a policy is taken with a view to providing for the payment of liability or replacement of an asset.

(12) Multipurpose policy :

This policy meets several insurance needs of a person – like provision for himself in old age, income for his family and provision for the education, marriage or the start in life of his children. It gives maximum protection to the beneficiaries in the event of the early death of the assured, as it provides :

i) Regular monthly income during the unexpired term;

ii) Additional monthly income for a period of two years from the date of death;

iii) Payment of a part of the sum assured on death and

iv) Payment of the balance sum assured at the end of the selected period

On maturity the assured may get the sum assured in cash, in the form of monthly pension, or an increased sum payable on death. Premiums are payable during the selected term or till death, it earlier.

Entrepreneurship Development Programme

What are the objectives of Entrepreneurship Development Programme?

The basic objectives of EDP are to:

1. Develop and strengthen entrepreneurial quality, i.e., motivation or need for achievement.
2. To analyze environmental set up relating to small industry and promoting it.
3. Removing unemployment
4. enhancing industrial development
5. Developing industrially backward region.
6. Select project/product.
7. Formulate the project.
8. Understand the process and procedure involved in setting up small units.
9. Know the sources of help and support available for starting a small-scale industry.
10. Acquire necessary managerial skill required to run the industrial unit.
11. Know the pros and cons of being an entrepreneur.
12. Helping the person to understand environmental changes and opportunities.
13. Acquaint and appreciate the needed social responsibility/ entrepreneurial discipline.

Role and Relevance of Entrepreneurial Development Programme in India

EDP is essential for first generation entrepreneurs because they may not become successful unless a proper training is received.

It is a continuous process of motivating the entrepreneur. The potential entrepreneurs can solve many of their problems provided proper training is given to them.
On the basis of above discussion, it can be concluded that EDP is becoming increasing popular and it can help the country in the following ways:

1. Eliminates poverty and unemployment:

The basis problems of most of the developing countries like India are poverty and unemployment. Entrepreneurship development programmes can help the unemployed people to opt for self-employment and entrepreneurial as a career.
Several programmes like National Rural Employment Programme (NREP), Integrated Rural Development Programme (IRDP) etc. are in operation in India to help the potential entrepreneurs. All these special schemes intend to eliminate the poverty and solve the problem of unemployment.

2. Balanced regional development:

Successful Entrepreneurial development programmes help in foster the industrialization and reduces the concentration of economic power. It is because the small-scale entrepreneurs can set-up their units in remote areas with little financial resources which can help in achieving balanced regional development.
The medium and large enterprises do not help in reducing the disparities in income and wealth of the people. Thus, Entrepreneurial development programmes help in balanced regional development by spreading industrial units in each, and every part of the country.
3. Prevents industrial slums:

The urban cities are highly congested and leading to industrial slums. Decentralization of industries is very much required by relocating the industries.

Entrepreneurial development programmes help in removal of industrial slums as the entrepreneurs are provided with various schemes, incentives, subsidies and infrastructural facilities to set up their own enterprises in all the non-industrialized areas.
This will control the industrial slums and also reduce the pollution, traffic congestion, overcrowding in cities etc.

4. Harnessing locally available resources:

Since abundant resources are available locally, proper use of these resources will help to carve out a health base for sound economic and rapid industrialization.
The entrepreneurial development programmes can help in harnessing these resources by training and educating the entrepreneurs.

5. Defuses social tension:

Every young person feels frustrated if he does not get employment after completing his education. The talent of the youth must be diverted to self-employment careers to help the country in defusing social tension and unrest among youth which is possible by entrepreneurial development programmes.

6. Capital formation:

The various development banks like ICICI, IDBI, IFCI, SFC, SIDC and SIDBI take initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing financial help to ne entrepreneurs. It is impossible to start a new enterprise without sufficient funds.
Entrepreneurs are the organizers of factors of production who employ their own and borrowered money for setting up of new ventures. This all results in the process of capital formation.

7. Economic independence:

Entrepreneurs develop and produce substituted products of imported goods and prevent the over-dependence on other countries.
They also enable the country to produce different variety of better quality goods and services at competitive prices of imported goods which help in promoting the economic independence of the country.

8. Improvement in per capita income:

Entrepreneurs always explore and exploit the new opportunities which lead to productive use of factors of production for more output, employment and generation of wealth.
The overall increase in productivity and income help in improvement in per capita income. EDPs play a significant role in setting up of more industrial units to generate more employment opportunity and to secure improved per capital income.

9. Facilitating overall development:

Entrepreneurs act as agents of proper use of various limited resources such as men, money, material, machines etc. which leads to overall development of an area, an industry.
The successful entrepreneurs set a motivating example for others to adopt entrepreneurship as a career. Thus entrepreneurs create a motivating environment for economic development of a country.

Importance of entrepreneurship development programme (EDP)

Importance of entrepreneurship development programme (EDP):

Entrepreneurship plays a very important role in the economic development. Entrepreneurs act as catalytic agents in the process of industrialization and economic growth. Joseph Schumpeter states that the rate of economic progress of a nation depends upon its rate of innovation which in turn depends upon the distribution of entrepreneurial talent in the population. Technological progress alone cannot lead to economic development unless technological breakthroughs are put to economic use by entrepreneurs. It is the entrepreneur who organizes and puts to use capital, labour and technology in the best possible manner for the setting up of his enterprise.

Importance of entrepreneurship development programme (EDP) is to enable entrepreneurs initiating and sustaining the process of economic development in the following ways-

1. Creation of Employment Opportunities : Unemployment is one of the most important problems confronting developing and underdevelopment countries, EDP's enable prospective entrepreneurs in the setting up of their own units, thus enabling them to get self employment. With the setting up of more and more units by entrepreneurs, both on small and large scale, numerous job opportunities are created for the others.

Entrepreneur in this way get an opportunity to lead an independent and honorable life and at the same time they enable others in getting gainful employment. Several schemes like Nehru Rozgar Yojna, National Rural Employment Programme (NREP), Integrated Rural Development Programme (IRDP) etc. have been initiated by the government, of India in this direction. The thrust of all these schemes is to eliminate poverty and generate gainful employment opportunities for the unemployed. Thus entrepreneur can play an effective role in reducing the problem of unemployment.

2. Capital Formation : It is not possible to set up an enterprise without adequate funds. Entrepreneur as an organizer of factors of production employs his own as well as borrowed resources for the setting up of his enterprise. Entrepreneur mobilizes idle savings of the public and put them to productive use. In this way he helps in capital formation which is so essential for the industrial and economic development of a country. Various development banks like ICICI, IFCI, IDBI; SFCs, SIDCs take initiative in promoting entrepreneurship through assistance to various agencies involved in EDP and by providing financial assistance to new entrepreneurs.

3. Balanced Regional Development : Small scale units can be set up in industrially backward and remote areas with limited financial resources. Successful EDP's assist in accelerating the pace of industrialization in the backward areas and reduce the concentration of economic power in the hands of a few, Entrepreneurs feel like taking advantage of the various concessions and subsidies offered by the state and central government. Success story of entrepreneurs set right example for others to follow and this accelerates the pace of industrialization in the backward areas. Setting up of more units leads to more development of backward areas and balanced regional development.

4. Use of Local Resources : In the absence of any initiative local resources are likely to remain unutilized. Proper use of these resources can result in the progress or development of the area and that too at lower cost. Alert entrepreneurs seize the opportunity and exploit it in the best interests of the area and industry. Effective EDPs can help in the proper use of local resources by providing guidance, assistance, education and training to the prospective entrepreneurs.

5. Improvement in per Capital Income : Entrepreneurs are always on the look out for opportunities. They explore and exploit the opportunities. Entrepreneurs take lead in organising various factors of production by putting them into productive use through the setting up of enterprises. More enterprises will lead to more production, employment and generation of wealth in the form of goods and services. It will result in the increase in the overall productivity and per capita income in the country. EDPs play a positive role in the setting of more units and thus help in generation of more employment and income.

6. Improvement in the Standard of Living : Entrepreneurs by adopting latest innovations help in the production of wide variety of goods & services. By making efficient use of the resources, they start producing more of better quality and that too at lower costs. This enable them to ensure easy availability of better quality products at lower prices to the consumers which result in the improvement in the standard of living of the people. EDPs provide the necessary support to entrepreneurs by educating them about the latest innovations and market trends.

7. Economic Independence : Entrepreneurs enable a country to produce wide variety of better quality goods & services and that too at competitive prices. They develop substitutes of the goods being imported and thus prevent over-dependence on foreign countries and at the same time help in the saving of precious foreign exchange. Through sale of their surplus products in foreign market entrepreneurs enable a country to earn foreign exchange, which is so essential for meeting developmental needs of the economy. Export promotion and import substitution thus help in promoting economic independence of the economy.

8. Preventing Industrial Slums : Industrially developed areas are faced with problem of industrial slums, which result in over burdening of civic amenities and adverse impact on the health of people. Dispersal of industries can help in the overcoming of this grave problem. EDPs can help in preventing spread of industrial slums by providing various incentives, subsidies and infrastructural support to entrepreneurs for setting up their enterprises in industrially backward areas. This will also help in reducing pollution and overtaxing of civic amenities.

9. Reducing Social Tension : Unemployment amongst the young and educated people is emerging as the major cause of social unrest. People are bound to feel frustrated if they fail to get gainful employment after completion of their education. EDPs can help in channelizing the talent of this section of society in the right direction by providing proper guidance, training and assistance for setting up their enterprises. This results in generation of self employment and prevention of social tension, unrest etc.

10. Facilitating Overall Development : An entrepreneur acts as a catalytic agent for change which results in chain reaction. With the setting up of an enterprise the process of industrialization is set in motion. This unit will generate demand for various types of inputs required by it and there will be so many other units which will require the output of this unit. This leads to overall development of an area due to increase in demand and setting up of more and more units there. Moreover success of one entrepreneur sets the right type of example for others to follow. Entrepreneurs, thus, create an environment of enthusiasm and convey a sense of purpose. This gives future impetus to the overall development of that area.

Micro, Small & Medium Enterprises

Micro, Small & Medium Enterprises
Government of India under the Ministry of Micro, Small and Medium Enterprises have in October 2006 enacted Micro, Small and Medium Enterprises Development Act 2006. Under the Act, Micro, Small and Medium Enterprises are classified as under:
Enterprises Investment in Plant & Machinery (Manufacturing) Investment in Equipment (service)
Micro Up to Rs. 25 lakhs Up to Rs. 10 lakhs
Small Above Rs. 25 lakhs up to Rs. 5 crore Above Rs. 10 lakhs up to Rs. 2 crore
Medium Above Rs. 5 crore up to Rs. 10 crore Above Rs. 2 crore up to Rs. 5 crore

The small and medium enterprises as classified above, are required to file Entrepreneurs Memorandum (EM) Part-I to District Industries Centre for starting an industrial project. On completion of the project, the entrepreneur concerned is required to file Entrepreneurs Memorandum (EM) Part-II.
Earlier there was a system of granting registration to small scale industrial units by the District Industries Centre. These units are now required to file EM Part-II as Micro, Small or Medium Enterprises as classified above. On line submission & Processing of EM-I & EM-II has been made available in website w.e.f. 01/01/2013.
Over a period of time, Gujarat has registered a sizeable growth of SME sector. There were only 2169 small industries in 1961 at the time formation of the state. The number of SSIs increased continuously and has reached to over to 3,12,000 by September 2006. This may be observed from the following table:
Year No. of SSI Units
1960 2,169
1970 15,849
1980 43,742
1990 1,15,384
2000 2,51,088
2005 3,06,646
2006
(up to September) 3,12,782

District Industries Centres in all the districts of the state and the institutions such as Gujarat Industrial Development Corporation (GIDC) and Gujarat State Financial Corporation (GSFC) have been instrumental in accelerating the pace of development of SSIs.On the other hand, Small scale industries have also played an important role in dispersal of industries. Ahmedabad district leads the state with the highest number of SSI units followed by Surat, Rajkot and other districts. Following table presents the percentage share of number of SSI units in major districts.
Report As On 31-03-2013

Districts No. of SSI Units (% Share)
Ahmedabad 26.58
Surat 42.74
Rajkot 7.80
Vadodara 4.76
Valsad 1.94
Mehsana 0.89
Bharuch 2.13
Kheda 0.45
Jamnagar 1.98
Bhavnagar 1.77
Other Districts 8.97
Gujarat 100.00

Development of small scale sector is spread across different industrial sectors. However, the trend when compared with large industries presents a different picture. Textile including hosiery and garments accounts for the largest number of SSI units, followed by other sectors. This can be observed from the following table.SSI Registrations in Gujarat – Group-wise [As on 30/9/06]
S.No. Industry Group No. of SSI Units % Share
1 Textiles 66914 21.39
2 Machinery and parts except electrical 23792 7.61
3 Metal products 23421 7.49
4 Food Products 16467 5.26
5 Chemical & chemical products 15553 4.97
6 Wood products 13498 4.32
7 Rubber & plastic products 11780 3.77
8 Non-metallic mineral products 11345 3.63
9 Basic metal industries 8795 2.81
10 Paper products & printing 8244 2.64
11 Electrical machinery and apparatus 6451 2.06
12 Transport equipments and parts 2944 0.94
13 Leather products 2476 0.79
14 Beverages, tobacco & tobacco products 1455 0.47
15 Others 99647 31.86
Total 312782 100.00
Following the enactment of the MSME Development Act from 2nd October, 2006, registrations of all the MSMEs came within the purview of the Industries Commissionerate. Following table presents the details of the group-wise registrations of MSMEs in Gujarat from 2-10-2006 to 31-3-2013.
MSME Registrations in Gujarat
Sr. No. Group Registrations
from 2-10-2006 to 31-3-2013
Micro Small Medium Total
1. Textiles 49071 5388 184 54643
2. Macninery and parts except electrical 10673 895 14 11582
3. Mining and Quarrying 1250 332 10 1592
4. Food Products 2483 719 37 3239
5. Chemical & chemical Products 3302 782 46 4130
6. Wood Products 1458 141 9 1608
7. Rubber & Plastic Products 2952 685 32 3669
8. Non-metallic mineral Products 2309 700 98 3107
9. Basic Metal Industries 8906 1097 50 10053
10 Paper Product & Printing 2332 395 32 2759
11 Electrical Machinery and Apparatus 2538 267 11 2816
12 Transpoprt equipment and parts 1052 232 2 1286
13 Leather Products 2796 614 14 3424
14 Beverages, Tobacco & Tobacco Products 692 101 1 794
15 Service Activities 14483 548 32 15063
16 Trading Activities 32323 164 2 32489
17 Other 5701 758 73 6532
Total 144321 13818 647 158786

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The Purpose of Project Management and Setting Objective

The Purpose of Project Management and Setting Objective

Product management is the process of managing your products throughout their life cycle. Product managers have to meet a number of general objectives, including developing a product plan in line with your corporate strategy, maximizing revenue, profit and customer satisfaction, delivering new products on time and on budget, and achieving product quality levels.

Project Management has developed in order to plan, co-ordinate and control the complex and diverse activities of modern industrial and commercial projects. All projects share one common characteristic - the projection of ideas and activities into new endeavours.

The purpose of project management is to foresee or predict as many dangers and problems as possible; and to plan, organise and control activities so that the project is completed as successfully as possible in spite of all the risks. The ever-present element of risk and uncertainty means that events and tasks leading to completion can never be foretold with absolute accuracy. For some complex or advanced projects, even the possibility of successful completion might be of serious doubt.

Project management can involve the following activities: planning - deciding what is to be done; organising - making arrangements; staffing - selecting the right people for the job; directing - giving instructions; monitoring - checking on progress; controlling - taking action to remedy hold ups; innovation - coming up with new solutions; representing - liaising with users.

Setting Objectives

Effective objectives in project management are specific. A specific objective increases the chances of leading to a specific outcome. Therefore objectives shouldn't be vague, such as "to improve customer relations," because they are not measurable. Objectives should show how successful a project has been, for example "to reduce customer complaints by 50%" would be a good objective. The measure can be, in some cases, a simple yes or no answer, for example, "did we reduce the number of customer complaints by 50%?"

While there may be one major project objective, in pursuing it there may be interim project objectives. In lots of instances, project teams are tasked with achieving a series of objectives in pursuit of the final objective. In many cases, teams can only proceed in a stair step fashion to achieve the desired outcome. If they were to proceed in any other manner, they may not be able to develop the skills or insights along the way that will enable them to progress in a productive manner.

Objectives can often be set under three headings:

Plan

A key objective for product management is planning and developing the specifications for a range of products or a product portfolio that meets your long-term strategic plan. The strategic plan may require development of new products to meet the needs of new market sectors or improvements and extensions to the current product range to increase share in your existing sectors.

Customers

Product managers must ensure that products meet or exceed customer needs. According to Pragmatic Marketing, enhancing user experience is an important objective for product management. That means working with your customers and utilizing their feedback to ensure that your products are easy to use, simple to maintain and capable of delivering value to your customers. Enhancing the user experience helps product managers to meet the important objective of maximizing customer satisfaction.

Success

The ultimate measure of product management is commercial success, according to Innovation Process Management. Although product managers may not have specific profit and loss responsibility, they must recognize the importance of financial results. To achieve commercial success, they need to coordinate the activities of other specialists in your company who contribute to the product's performance in the marketplace, including product development teams, marketing executives, quality managers and sales representatives.

Delivery

Product managers have to meet time and budget objectives. To meet the demands of the market and counter competitive pressures, they must be able to conclude product development programs on time and on budget. That enables your company to reduce the time to bring new or improved products to market and stay ahead of your competitors.

Marketing

Product management and marketing management share similar objectives, which are to maximize revenue and profit by meeting customer needs. Some companies combine the role of product manager and marketing manager. In others, product managers work closely with marketing managers, using research from the marketplace to plan and prioritize product development programs, and briefing marketing teams on the benefits of new products so that they can develop effective customer communications.

Performance and Quality

The end result of a project must fit the purpose for which it was intended. At one time, quality was seen as the responsibility of the quality control department. In more recent years the concept of total quality management has come to the fore, with the responsibility for quality shared by all staff from top management downwards.

Budget

The project must be completed without exceeding the authorised expenditure. Financial sources are not always inexhaustible and a project might be abandoned altogether if funds run out before completion. If that was to happen, the money and effort invested in the project would be forfeited and written off. In extreme cases the project contractor could face ruin. There are many projects where there is no direct profit motive, however it is still important to pay proper attention to the cost budgets, and financial management remains essential.

Time to Completion

Actual progress has to match or beat planned progress. All significant stages of the project must take place no later than their specified dates, to result in total completion on or before the planned finish date. The timescale objective is extremely important because late completion of a project is not very likely to please the project purchaser or the sponsor.

Conclusion

Project management has developed over the years, and involves various activities before a project is completed. Objectives should be specific so they are measurable, and although there may be one major project objective, there may be minor objectives throughout the project.

PLC can be applied to:

• product category (Watch)
• product style (Digital)
• a product item/brand (Timex)

Four Stages to the Product Life Cycle:

1. Introduction
2. Growth
3. Maturity
4. Decline

The following material refers to the PLC as far as the product category is concerned unless otherwise stated.

Introduction

Failure rate for new products can range from 60%-90%, depending on the industry. A product does not have to be an entirely new product, can be a new model (car).

Growth

Need to encourage strong brand loyalty, competitors are entering the market place. Profits begin to decline late in the growth stage.
May need to pursue further segmentation.

Maturity

Sales curve peaks-severe competition, consumers are now experienced specialists.

Decline

Sales fall off rapidly. Can be caused by new technology or a social trend.
Can justify continuing with the product as long as it contributes to profits or enhances the effectiveness of the product mix.
Need to decide to eliminate or reposition to extend its life.

The role and relevance of entrepreneurial development programme in India

The role and relevance of entrepreneurial development programme in India

Role and relevance of Entrepreneurial Development Programme (EDP) in the process of economic development and growth of a nation is immense. Various EDPs are designed to develop and improve entrepreneurial skills and behavioural adjustment needed to go through the stresses of initial stages. Different programmes are designed for different trades, industries and big projects.

Basically the EDPs are meant to train and develop new entrepreneurs who act as catalytic agents in the process of industrialization and economic growth. It is the entrepreneur who organises and puts to use capital, labour and technology in the best possible manner for the setting up of his enterprise. The entrepreneur with his vision and ability to bear risk can transform the economic scene of the country. They play a vital role in initiating and sustaining the process of economic development of a nation. It is the EDP through which the entrepreneurs learn the required knowledge and skill for running the enterprise successfully which ultimately contribute towards economic progress in the following ways:

i. Creates employment opportunities:

Acute unemployment has been a chronic problem of most of the underdeveloped an developing nations of the world. EDPs help solving the problem of unemployment by creating adequate employment opportunities in setting up of their own small and big industrial unit where the unemployed are absorbed.

EDPs also help the unemployed to opt for se employment by choosing entrepreneurship as a career. In this way EDPs help the entrepreneur to get an opportunity to lead on independent and respectable life in the society and at the same time enable others to get gainful employment. Various programmes, schemes like Prim Minister's Rozgar Yojana, NREP (National Rural Employment Programme) and IR (Integrated Rural Development Programme) etc. have been initiated by Government of In to eliminate poverty and solve the problem of unemployment.

ii. Helps in achieving Balanced Regional Development:

Successful EDPs assist in accelerating the pace of industrialisation in the backward areas and helps in reducing the concentration of economic power in the hands of a individual. Government encourages to set up industries in the backward areas to remove wide gap of income and wealth between the rich and poor. The various concessions subsidies offered by the State and Central Governments prompted the entrepreneurs to up their own small and medium industrial units in the rural and backward areas. EDPs in setting up more and more industrial units in the backward areas lead to the develop of rural sector which helps in achieving balanced regional development.

iii. Prevents Industrial Slums:

The towns and cities are highly congested and overcrowding due to the growth of industrial slums which results in overburdening of civic amenities and a lot of problems including adverse impact on the health of the people. EDPs help in solving the above problems by preventing the growth of industrial slums through dispersal of industrial units in different parts of the country including backward and rural areas. EDPs help entrepreneurs to know about the various schemes, incentives, subsides and infrastructural requirements for setting  their enterprises, particularly in backward and rural areas. This checks migration of rural people to urban sector and thus controls the growth of industrial slums.

iv.Use of Local Resources:

Plenty of locally available resources remain unutilized due to absence of initiative and lack of adequate knowledge by the entrepreneurs. Proper use of these resources will help to starve out a healthy base for rapid industrialisation and sound economic growth. EDPs can help in the proper use of locally available resources by providing proper training, guidance and education to the potential entrepreneurs.

v. Easing social tension:

EDPs help in channelizing on right lines the talent and energies of unemployed youth »1io feel frustrated after completing their education without a job or source of livelihood. Unemployment and frustration amongst the young and educated people lead to social unrest Lid tension. EDPs help in diverting the talent of the youth towards self-employment careers by establishing their own enterprises and thus creating employment opportunities for the unemployed. In this way EDPs are able to defuse the social tension and unrest among the youth.

vi. Economic Independence:

The entrepreneurs through EDPs are able to achieve economic independence of a country by producing a wide variety of better quality goods and services at competitive prices. They also through export promotion and import substitution able to earn and save urge amount of foreign exchange which is essential for the growth and development of any economy.

vii. Improves the standard of living and per-capita income:

EDPs provide the necessary support to entrepreneurs by educating them about the test innovation and techniques of production to produce a large variety of quality goods id services at competitive prices. EDPs also help in establishing more enterprises which ad to provide more employment opportunities and help in increasing the earning of the people. It will result in increase in per-capita income and thus helps in the improvement of standard of living of the people.

viii. Helps in the overall development of the nation:

Entrepreneur acts as a catalyst which helps in enhancing the various activities involved a business enterprise. In recent years EDP package, have become a vital strategy for harnessing the vast untapped human skills, and put them into industrial development. It results in the emergence of entrepreneurial opportunities in various fields which leads to all-around development in a country

THE ROLE OF GOVERNMENT IN SUPPORTING ENTREPRENEURSHIP

THE ROLE OF GOVERNMENT IN SUPPORTING ENTREPRENEURSHIP
Small and Medium-sized Enterprises (SMEs) in market economies are the engine of economic development. Owing to their private ownership, entrepreneurial spirit, their flexibility and adaptability as well as their potential to react to challenges and changing environments, SMEs contribute to sustainable growth and employment generation in a significant manner.
 SMEs have strategic importance for each national economy due a wide range of reasons. Logically, the government shows such an interest in supporting entrepreneurship and SMEs. There is no simpler way to create new job positions, increasing GDP and rising standard of population than supporting entrepreneurship and encouraging and supporting people who dare to start their own business. Every surviving and successful business means new jobs and growth of GDP.
Therefore, designing a comprehensive, coherent and consistent approach of Council of Ministers and entity governments to entrepreneurship and SMEs in the form of government support strategy to entrepreneurship and SMEs is an absolute priority. A comprehensive government approach to entrepreneurship and SMEs would provide for a full coordination of activities of numerous governmental institutions (chambers of commerce, employment bureaus, etc.) and NGOs dealing with entrepreneurship and SMEs.  With no pretension of defining the role of government in supporting entrepreneurship and SMEs, we believe that apart from designing a comprehensive entrepreneurship and SMEs strategy, the development of national SME support institutions and networks is one of key condition for success. There are no doubts that governments should create different types of support institutions:
i)  To provide information on regulations, standards, taxation, customs duties, marketing issues;
ii) To advise on business planning, marketing and accountancy, quality control and assurance;
iii) To create incubator units providing the space and infrastructure for business beginners and innovative companies, and helping them to solve technological problems, and to search for know-how and promote innovation; and
iv) To help in looking for partners. In order to stimulate entrepreneurship and improve the business environment for small enterprises.
Training
Basic training differs from product to product but will necessary involve sharpening of entrepreneurial skills. Need based technical training is provided by the Govt. & State Govt. technical Institutions.
There are a number of Government organisations as well as NGOs who conduct EDPs and MDPs. These EDPs and MDPs and are conducted by MSME's, NIESBUD, NSIC, IIE, NISIET, Entrepreneurship Development Institutes and other state government developmental agencies.
Marketing Assistance
There are Governmental and non-governmental specialised agencies which provide marketing assistance. Besides promotion of MSME products through exhibitions, NSIC directly market the MSME produce in the domestic and overseas market. NSIC also manages a single point registration scheme for manufacturers for Govt. purchase. Units registered under this scheme get the benefits of free tender documents and exemption from earnest money deposit and performance guarantee.
Promotional Schemes
Government accords the highest preference to development of MSME by framing and implementing suitable policies and promotional schemes. Besides providing developed land and sheds to the entrepreneurs on actual cost basis with appropriate infrastructure, special schemes have been designed for specific purposes like quality upgradation, common facilities, entrepreneurship development and consultancy services at nominal charges.
Government of India has been executing the incentive scheme for providing reimbursement of charges for acquiring ISO 9000 certification to the extent of 75% of the cost subject to a maximum of Rs. 75,000/- in each case. ISO 9000 is a mechanism to facilitate adoption of consistent management practices and production technique as decided by the entrepreneur himself. This facilitates achievement of desired level of quality while keeping check on production process and management of the enterprise.
Concession on Excise Duty
MSME units with a turnover of Rs. 1 crore or less per year have been exempted from payment of Excise Duty. Moreover there is a general scheme of excise exemption for MSME brought out by the Ministry of Finance which covers most of the items. Under this, units having turnover of less than Rs. 3 crores are eligible for concessional rate of Excise Duty. Moreover, there is an exemption from Excise Duty for MSME units producing branded goods in rural areas
Credit Facility To MSME
Credit to micro, small and medium scale sector has been covered under priority sector lending by banks. Small Industries Development Bank of India (SIDBI) has been established as the apex institution for financing the MSME. Specific schemes have been designed for implementation through SIDBI, SFCs, Scheduled Banks, SIDCs and NSIC etc. Loans upto Rs. 5 lakhs are made available by the banks without insisting on collaterals. Further Credit Guarantee Fund for micro, small and medium enterprises has been set up to provide guarantee for loans to MSME up to Rs. 25 lakhs extended by Commercial Banks and some Regional Rural Bank.
Policies And Schemes For Promotion Of MSME Implemented By State Governments
All the State Governments provide technical and other support services to small units through their Directorates of Industries, and District Industries Centres. Although the details of the scheme vary from state to state, the following are the common areas of support.

1. Development and management of industrial estates
2. Suspension/deferment of Sales Tax
3. Power subsidies
4. Capital investment subsidies for new units set up in a particular district
5. Seed Capital/Margin Money Assistance Scheme
6. Priority in allotment of power connection, water connection.
7. Consultancy and technical support

Government of India runs a scheme for giving National Awards to micro, small and medium scale entrepreneurs providing quality products in 11 selected industry groups of consumer interest. The winners are given trophy, certificate and a cash price of Rs. 25000/- each.
CONCLUSION
Government accords the highest preference to development of MSME by framing and implementing suitable policies and promotional schemes like policies and promotional schemes, providing incentives foar quality upgradation, concession on excise duty and provides technical supportive services. Thus Government play supportive role in developing entrepreneurs.