Entrepreneur Role: for Balanced regional development
Role of entrepreneur for Balanced regional development of industries
Industrial development has a tendency to concentrate in metropolitan cities and big towns. This leads to unbalanced development of industries. Industrialisation brings along with its number of advantages such as development of infrastructure i.e. roads, transport, power, water, communication facilities, generation of employment opportunities and easy and cheap availability of goods and services produced by the industrial and business establishments located in that area. Unbalanced industrial development will deprive the people of the other areas of these benefits where there are no industrial or business activities.
The Government while planning entrepreneurial development programs, keeps the fact in mind. There should not be any undue concentration of industries in any particular area. There is a proverb, “one should not put all his eggs in the basket”, rest all the eggs get destroyed in case there is an accident Similarly, a nation also should not allow concentration of industries in any particular area.
Concentration of industries is also not safe from strategic point of view. In case there is a war, the enemy may destroy the entire set-up of industries in a single attempt.
Small business entrepreneurs can play an important role in bringing about balanced regional development of industries. Small business enterprises are scattered all over the country. They like to establish their industrial and business units near their home towns. Hence, small entrepreneurs will set up their units in different parts of the country and thus help in bringing about balanced development of industries in the country.
Moreover, Government is encouraging entrepreneurs to set up their units in backward areas giving them various incentives and facilities.
The Government is also trying to disperse the industries by developing industrial estates and creating infrastructural facilities in backward areas.
Role of Entrepreneur in Export promotion
Entrepreneurs also play an important role in export promotion Increasing number of entrepreneurs are taking benefit of incentives and facilities offered by the Government. Government offers a number of incentives and facilities to 100% Export Oriented Units (E.O.U.) or units set up in Export Processing Zones (EPZ) or Free Trade Zones (FTZ). Such units may be engaged in manufacture software development, horticulture, agriculture aquaculture, animal husbandry etc.
A FTZ or EPZ is an industrial estate where export oriented units are given various facilities such as tax exemption, duly draw bank, no import duties no quantitative restrictions.
Important facilities provided to units in FTZ or EPZ are:
- Suitably Developed plots/ready buildings.
- Single point clearance of new projects within 45 to 60 days.
- Automatic approval to proposals by the Development Commissioner.
- No license needed for import of capital goods, raw materials consumables, spares, etc.
- Duty free import of capital goods and equipment.
- Complete exemption from income tax.
- Assured power supply.
- Export finance.
- Telephone, Telex, cement, steel, etc., on priority basis.
A network of Export Development Centers has been established through the Small Industries Development Organization (SIDO) to boost promotion of export by small scale business entrepreneurs. A number of Export Promotion Councils have been set up to render advice on various aspects of export promotion such as price, quality, packaging, marketing, transport, etc. It provides the following types of assistance:
- Conducting market surveys.
- Helping in establishing trade contacts.
- Settlement of trade disputes
- Arranging trade fares and exhibitions in foreign countries.
- Publication of information, reports and directory of exporters.
- Administration of special export promotion schemes.
National Small Industries Corporation Ltd. (NSIC) has been established as an Export House. It has adopted a ‘single window’ service approach. NSIC renders the following services to the entrepreneurs :
- Assisting in obtaining enquiries, specifications and samples:
- Assisting in development of product samples and sending there for approval of the importers abroad.
- Negotiating with foreign buyers. Handling documentation work. Rendering financial assistance.
- Arranging import of goods wherever necessary.
- Advance payment upto 90% of export incentives allowance.
- Monitoring production and quality control. Arranging export.
- Arranging deferred payment facility from EXIM Bank.
Important links
- Entrepreneurship- Meaning, Definition, Functions & Characteristics
- Role of an Entrepreneur in Economic Development
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