Of the 6,400 clusters, manufacturing sector alone consists of 4,600, accounting for 75 lakhs of employment. Their manufacturing exports claim 60% of the total MSE exports. Under the micro and small enterprise cluster development programme, (MSECDP), 24 schemes are in progress. Already, three ministries are involved with the implementation of MSECDP, and three more ministries are keen to adopt the approach. The Union and the state governments, the nodal agencies, implementing agencies, technical agencies, BDS providers, national R&D institutions, industry associations, professional institutions and international organisations are involved in the implementation of cluster development approach. Resources worth Rs. 4,500 crore will be invested in cluster development in the country during the Eleventh Five-Year Plan.

The Government of India has adopted the cluster development approach for MSME promotion in the country a decade before. However, the approach got into real swing only since 2003. Gradually, more and more ministries of the Union are inclining towards this approach.

Also in 2003, ni-msme, with the fund support of DC (MSME), constituted a new centre, NRCD, to exclusively for cluster development activities. The centre right away nose-dived into activities and completed for the DC (MSME) hand-holding of 20 clusters and seeing them through to self-reliance. Meanwhile, other EDIs entered the field, and cluster development approach galvanised into energetic mode.

After about five years of active implementation of cluster development approach in the country, it was felt that the situation called for a review. Organising an experience sharing platform was the natural solution for it. All the field functionaries, nodal agencies, implementing agencies, technical agencies, BDS providers, and all other stake-holders would narrate their experiences and voice their ideas at this platform. They would enumerate the snags and impediments they had come upon in the course of implementation, and deliberate on the quality of results achieved.

It was also felt necessary that such an event be organised in the national capital New Delhi, for obvious reasons. The challenging responsibility fell to ni-msme. And the efforts culminated in the 2-day national level workshop conducted in New Delhi during 28-29 January 2008.

The event – it can easily be called a mega event in cluster development – was a huge success. The senior secretaries of the Union ministries concerned, other senior executives of central and state governments, executives of international organisations concerned with cluster development promotion and other stalwart experts had participated in the sessions, chaired the sessions, made theme presentations, gave expert comments, and breathed life and energy into the workshop. The recommendations will be circulated among all stake-holders.

All in all, our efforts have paid off very well, and the event has certainly made everyone concerned realise the significance of cluster development to the country's economy.

One good result has been that the workshop has kindled the enthusiasm at various levels – at the policy level, at the scheme level, at the implementation level. Besides, the workshop has been successful in highlighting the global challenges facing the MSMEs in the prevailing climate.

Well thought out implementation of cluster development will give a big boost to MSME exports, enhance their productivity, and integrate their products into the global value chains.

My personal hope is that the recommendations of the workshop would motivate the GoI to give a big berth to the development of induced clusters, that the GoI would make sizeable budget allocations for this purpose. Such a move would have the advantage of focusing the people of under-privileged segments – for instance, the SC/ST, women, physically disadvantaged, etc. This would, in turn, have the impact of speeding up the economic growth in the current scenario.

ni-msme also plans to take the success of this workshop to the friendly neighbouring countries for MSME development through effective promotion of cluster development approach, so that the economic growth of their countries also catches pace.

Through this column, I wish to express heartfelt thanks to the ministries for their full support and cooperation. I also sincerely thank all the chair-persons, experts, and speakers for their valuable contribution and the enriching recommendations. To my colleagues of the NRCD team, go my unreserved compliments for their uncompromising diligence and tireless hard work, which made the event such a success.

      Small enterprises are mostly believed to be owner-manager styled, wielding a 'one-man' show. This is also seen to be at the root of their problems. A well thought-out management structure, however small in size, will free the owner to concentrate on business promotion aspects of the enterprise.

      A structured management, as is well known, has a rather small top layer concerned with laying down the policies, and a relatively huge bottom line that acts on or implements the policy directives. The former segment is the power centre, while the latter is the strength of the enterprise. Between the two, there is another obscure line or layer – the middle level management.

      The middle manager, until recently, has been a much neglected and a badly ignored functionary. His/her position is more or less like a ball in the playcourt which gets volleyed from both sides. Yet, the responsibility of this functionary is onerous. On the one hand, they have to ensure that the directives emanating from above are implemented satisfactorily. On the other, they have to keep the lower lines in order and peace, and make sure that they convert the directives into action. Also, they apprise the upper team of the situation in the lower ranks, and orient the ranks to accepting the directives and following them, with minimum cost. In other words, the middle manager is the link that connects the two ranks. Therefore, the middle managers have to have an understanding of both the upper ranks and the lower ranks. Their competency has to span across both levels, plus more.

      Obviously, smooth relations between the top and the bottom echelons have much to thank the middle managers for, as also the smooth functioning of the organisation and realisation of targets. They are the people behind productivity improvement and operational effectiveness. Middle managers are the intrapreneurswho put the organisation on a dynamic track. And at present, with information technology explosion, middle line is emerging as a strategic force to reckon with in spite of organisations boasting of 'flat' structures, and is poised for re-defining its role as well as image. This they can accomplish only by adopting an innovative approach to executing their functions. Now is the time for them to prove their mettle and make their presence felt.

       The trend of enthusiasm towards SME promotion among the developing countries spotlights the need for enhancing management skills in general, and focusing the middle managers' skill pool in particular. Anticipating the situation and recognising the importance of middle management function, the ComSec (Commonwealth Secretariat) partnering with Aureos Capital Ltd., and ITEC of our MEA chalked out a series of interventions for the middle managers of Asia and South Africa, headed by a programme for senior managers. 

      ni-msme has been assigned the task of conducting part of the interventions. This month, the third programme of the series was completed; the fourth is scheduled for the next month.

      The ComSec idea has been prompted by the rationale that the SMEs should come out of their groove and galvanise into action. SMEs should no longer function in a nondescript haphazard manner. They must adopt the corporate model, which would help them attract fund flow as well as spread out their domain. This will also entail lowered fund cost on the one side for the promoters, and ease the exit of the investor on the other. In view of SMEs taking the driver's seat in the process of their country's economic growth, donning the corporate vest assumes even greater significance for them.

      Using the Com Sec initiative as strategic support, the SMEs are expected to become robust, literally in every sense of the term. To this end, honing the management capabilities at every level to a fine finish is an absolute need.

      The plan brings good auguries on its wind. SMEs have been around for so long that it is now time that they took action to erase the hangdog image that prevails in the popular mind. It is time that they had smarted up their profile with a good touch of professional polish and self-assurance. Fortifying the management line is the right way of doing it. 

The Prime Minister has announced, as part of the basket to the African countries, that the number of fellowships will be doubled for the African students to pursue long term education programmes at various Indian universities, as also a 50 per cent increase in the technical assistance training slots. This is where ni-msme comes into the picture. 

Besides, the Prime Minister also proposes launching an India-Africa Volunteer Corps to take up development works in informal education, public health and women empowerment. Women empowerment also falls in the ambit of ni-msme's expertise.

The rationale of India extending a hand of warm friendship is that the African people and some of the Indian ethnic groups – of the far south and of the Andaman and Nicobar islands, and some of the tribal segments of Andhra Pradesh – are believed to have the same origins, and share many common features. The Government of India is operating schemes for these indigenous groups also. Now the GoI is stretching the hand a bit farther across the borders to our ethnic cousins.

As an apex Institute, ni-msme assumes the responsibility of expediting the GoI's commitments. For over four decades, ni-msme has been designing and conducting training programmes, consultancy initiatives and research projects for African countries. In recent years, we have been executing customised interventions for several African governments. Only a few weeks back this month, five special executive development programmes exclusively for African groups had commenced. And, on the 31March 08, as a prelude to the forthcoming India-Africa Forum Summit, a group of 33 women delegates representing 23 African countries had arrived at the campus for a two-day exposure-cum-interaction programme. Sponsored by the MEA, this was part of Indian experience sharing vis-à-vis the MSMEs, to organise which ni-msme took the initiative.

Visits were facilitated to NGOs, SHGs and enterprises, and interactions were arranged with different levels of executives and entrepreneurs to facilitate an in-depth understanding of the operational aspects as well as the underpinnings of projects and programmes.

The five exclusive programmes for African groups mentioned earlier include: 1) Training Methods and Skills for Managers (TMSM); 2) SME Financing – Approaches and Strategies (SMEFA&S); 3) Enterprise Development through Micro Finance (EDMF); 4) Total Quality Management / ISO & Six Sigma (TQM); 5) SMEs Promotion through Cluster Approach (SMEPCA).

Each of the five programmes has been carefully selected for its relevance to the African context. The TMSM is relevant to the capacity building of the trainers so that they will be able to develop human resource suited to development of entrepreneurship, organisational excellence, and SME promotion. The SMEFA&S aims at strengthening the bankers so that they may effectively participate in SME development through various schemes operating in their countries, enter into fruitful tie-up with international financial institutions such as the World Bank, KFW, DFID, GTZ, as also our SIDBI.

The self-help group (SHG) concept has proved to be a harmonious and strategic solution for poverty alleviation and bridging the rural-urban gap. Micro finance is at the heart of the SHG approach. Therefore EDMF is very relevant especially to countries like Zambia, Kenya and Ghana. I may mention here that we have already been conducting a series of programmes custom-designed for the Apex Bank of Ghana since 2005. EDMF will be useful to the executives of the central banks of the African countries in promoting micro enterprises for poverty alleviation.

In the race of product competition in global markets, product quality is where the axe falls on the developing countries' products. While the skill that goes into product making is quite good, lack of awareness of certain finer points which give the edge of advantage in market competition makes the products of developing countries unacceptable to the choosy buyer. TQM gives insights into the integrated quality approach and, hence, is very useful to entrepreneurs as well as development executives and promotion agents.

Cluster development approach is blazing hot trails nowadays. ni-msme has accumulated wide ranging experience in this area in the last four years, having associated with over fifty clusters across the country. Cluster development is eminently suitable to achieving economic progress through MSME promotion. In this context SMEPCA is highly relevant to African executives.

ni-msme has also been very dynamic in the areas of women empowerment and environmental awareness during the last decade. Hence, we will be contributing our share to India and Africa jointly combating the climatic disbalance through specially designed programmes.

Our international calendar for the current year has already taken into account these aspects and has been designed to focus India's emerging African relationship.

Yet, micro enterprise based on individual skill is the most amenable avenue for channelling the energy and vitality of the huge mass of unemployed populace, especially among the less educated, the victims of natural disasters and other unfortunate circumstances, the under-privileged, the BPL, and the destitute.

The well-known international organisation ILO concerns itself with the rehabilitation of such segments in the developing countries. Thus ILO and ni-msme share a common objective a small part of their ways. This has led the two organisations to be partners in the pursuit of their common goal, and the partnership has been continuing for over a decade now.

The latest project that ni-msme had partnered with the ILO is connected with the rehabilitation of the terrible 2004 tsunami victims in the two southernmost states of the country – Tamil Nadu and Kerala.

Named the Alternative Livelihood Project (ALP): An Impact Making Process to Rebuild the Life, the project was implemented with the support of FAO (Food and Agriculture Organisation), UNDP (United Nations Development Programme), and UNTRS (United Nations Team for Recovery Support). The ILO was the technical lead agency for implementing the ALP, while the UNDP was the administering agency. Our Institute, ni-msme, was the trainer partner.

The main aim of the ALP is to address the need of the tsunami affected communities for sustainable livelihood, specifically in two southern districts – Kanyakumari in Tamil Nadu and Kollam in Kerala.

The rationale of the project was to extend a helping hand to the tsunami-ravaged by building their capacity through skills and competency development, so that on completion of training the trainee would be competent to earn a livelihood either through wage- or self-employment by engaging in non-farm activities. In the ILO nomenclature, this is termed SIYB or Start and Improve Your Business. The strategy was to develop/ promote entrepreneurship among the target groups and ensure that income is generated through available skill-set, at the same time enabling them to refine their skills, guiding them, hand-holding them, and giving them information necessary for starting up their own business.

The SIYB has several sub-parts: SYB (Start Your Business) for the newly initiated; IYB (Improve Your Business) for the operating entrepreneur; GYB (Generate Your Business Idea) for the new enthusiasts; and EYB (Expand Your Business) for the practising entrepreneur.

I am immensely pleased that ni-msme has been associated with this project by way of training the faculty from Tamil Nadu and Kerala (training of trainers), and has implemented the project effectively and successfully as per the guidelines given by the ILO. By the time this issue is in print, the project would have concluded (tat is, in Dc. 08)

The pattern of the result was interesting. We could achieve over 50% success, helping the tsunami-hit families to generate income and sustain themselves through entrepreneurial activities, through the ILO ALP methodology.

The entire framework was truly fascinating. I was myself in Trivandrum, giving direction to the workshop on livelihood generation, in the third week of this month. Our Institute’s role was well emphasised there. As is well-known, ni-msme is always in the front ranks, ready and willing to serve the unfortunate groups, rendered vulnerable by natural calamities.

Though we consider it a privilege for the Institute to participate in any project organised by the UN system, ni-msme with its primary mandate of entrepreneurship development and enterprise promotion, with its accumulated experience in EDPs and SDPs, and its time-tested expertise, is always thinking in the direction of promoting self-employment activities. The Institute is likely to introduce this strategy in a number of states in the near future, under the RGUMY (Rajiv Gandhi Udyami Mitra) scheme, as an Udyami Mitra, a friend of the entrepreneur.

For us at ni-msme, 2008 has been an eventful year. What delights me more is that the events had spread out in many directions. The year opened for us with a ‘big bang’ in the form of the two-day National Workshop on Cluster Development, which our Institute had organised in New Delhi. First such exercise in taking stock of cluster development activities being implemented in the country, the workshop has attracted high commendation and appreciation.

February followed with special international programmes, while towards the end of March we had the Outreach Programme that was an outrider to the India-Africa Forum Summit, for 33 woman delegates of different professions, from 23 African countries.

Through April, our NRCD had undertaken on war footing the project of conducting diagnostic studies for over 20 clusters in Uttar Pradesh, to be completed in three months. On its heels came the Workshop on Developing Induced Clusters, in June, which doubly underscored the importance of cluster development strategy. Secretary to Govt. of India Mr. Dinesh Rai graced the campus in July to inaugurate a range of multimedia programmes such as 2D and 3D animation, video editing, web designing, flash advance scripting and graphics. These are the very nerve centre of the skill set today. This was a joint effort of the Institute in PPP mode. April had also seen the highly successful seminar on Logistics and Supply Chain Management as e-Business for Rural Enterprise Products. This is a new concept, fast catching up, and opens up a vast range of enterprise possibilities.

Service sector, as is well-known, is the hot topic of the current times. Our Institute had organised a 2-day seminar on Service Enterprises, in August. The event was attended by eminent personages of private and corporate service providing agencies. The recommendations have been forwarded to the Ministry of MSME as well as other concerned ministries.

In September, another luminary, the honourable Union Minister for Urban Development Mr. S. Jaipal Reddy had visited the Institute to inaugurate the Institute’s phase-I international training programmes.

Proving that we do not move in the narrow groove of professional area alone, in October we had celebrated the UN Day, with songs and dances and culture fun, apart from the usual talks and speeches. The Secretary General and the hon. Secretary General of Andhra Pradesh United Nations Association (APUNA) had also attended the celebration, among the others.

Imbibing the spirit of the policy climate, in November we had organised training for the udyami mitras of Rajiv Gandhi Udyami Mitra Yojana (RGUMY). In 2008, ni-msme has also collaborated with the Institute of Electronic Governance in organising suitable training. We had completed projects for the International Labour Organisation.

Apart from the afore-mentioned programmes of special importance, we had our usual research projects, education programmes, information and publication activities, and our regular training schedules. Our Employee Assistance Cell had conducted several batches of Counselling, Re-training and Rehabilitation programmes for the rationalised employees, in Karnataka and Andhra Pradesh states.

There have been other prestigious programmes such as the series of training programmes organised for the Department of North-Eastern Region (DoNER), the programme on MSME Promotion for in-service IES officers, and the executive development programmes for NMDC officers. The capacity building training for artisans, SHG leaders and NGOs; trainers training for RUDA officials; middle management development programmes for SMEs of Africa and South Asia are a small instance of the variety and range of the Institute’s continuously expanding activities horizon.

The Institute had implemented the Sixth CPC for its regular employees and paid the arrears also. Incidentally, ni-msme has been the first organisation to do so under the Ministry of MSME.

Especially in the areas of current high relevance the Institute has been speeding ahead, taking new initiatives and expanding the portfolios. For example, the programmes in IPR awareness vis-à-vis MSMEs, on micro credit and micro finance, cluster strategy and methodology, poverty alleviation and income generation, self-help groups, IT enabled enterprise skills and education have been receiving strong focus.

We endeavour to continue the trend of reaching out and expanding our services through our programmes and projects to a wider range of clientele, with the full-fledged cooperation of all our stakeholders.