Organisations Facilitating Business
Business Facilitation in India
After going through this chapter, you shall be able to understand the following concepts.
- Reserve Bank of India (RBI)
- Securities & Exchange Board of India (SEBI)
- Competition Commission of India (CCI)
- Insurance Regulatory and Development Authority of India (IRDAI)
The business facilitators is a system which arranges the activities of business and supports in the smooth functioning of an economy. In simple words, the business facilitators are those helpers who simplify the work and make it comfortable for the people running a business.
Now here, one may argue that aids to trade such as banking, insurance, logistics, warehousing etc. also ease in running a business and so they should also be referred to as business facilitators. Well, yes! they indeed are. In fact, they are an important layer of business facilitators and one simply cannot run a business without their regular support. And so we can say that if there are many layers of business facilitation, then we may place these auxiliaries to trade in the intermediate layer. Now, this being in the middle, we can also place the policy making and executive agencies such as RBI, SEBI, etc. and other such regulatory agencies like IRDA in the outermost layer. And lastly, in the inner most layer, we place what we call the Point of Contact Business Facilitators. Together, these layers form what is regarded as the Business Facilitation System.
There are several ways in which Point of Contact (POC) business facilitators help in growth of the business.
Freight Forwarder: a person or a company which helps in supplying goods to the final point of distribution for example to the customer or to the market. They work in collaboration with the shipping companies, airlines, railways and roadways and warehouses to perform their duties.
Business Incubator: the one who helps in growing the new businesses by providing them with all essential finance, technical, etc. related support. They mainly help in quickly launching a product and put it on a way to commercial success.
Financial Consultant: someone whose main job is to advise the business on various sources of finance and investment opportunities. These matters are often related to international markets and vary between short-term and long-term finance. Financial Consultants are not financial institutions; they help in arranging finance from institutions.
Merchandiser: a supplier for a business, like; a fashion house has tie-ups with various suppliers for its supply of cloth and other accessories.
Now having understood the basic concept of business facilitation, let us understand various institutions which facilitate the conduct of business in India.
Government as a Business Facilitator
The Government of a nation deeply affects the business activities and is a powerful determinant of the scope of any business in that country. The government policies check the functionalities of business and provide it guidelines within which a business is bound to function.
The government of India has over the years introduced many policies for the business facilitation in India. For example, the Union Government came up with the Industrial Policy in 1948 quite soon after India achieved its independence from the British rule. In 1951, the Union Government also enacted the Industries Development & Regulation Act as industrialisation was viewed as the key to faster economic growth during those times of urgent development. The Industrial Policy Resolution of 1956 renewed the roles assigned to the public sector, large scale industries and small scale industries for as long as three decades. It was because of these policies that the public sector was entrust…
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