Accreditation of Industry Associations (BMOs)
Office of Development Commissioner MSME, Ministry of Micro Small and Medium, Government of India and Deutsche GesellschaftfürInternationaleZusammenarbeit (GIZ) GmbH are implementing the “MSME Policies and Programmes” component of the “Umbrella Programme for MSME Promotion”. The project aims at improving the effectiveness and efficiency of MSME’s to make them more competitive locally and globally.
One of the key interventions under the umbrella programme is capacity building of Industry Associations or Business Membership Organizations (BMOs). It is now accepted that Associations have an important role in MSME development,as they act as quality service providers to MSME, and can also play a significant role in implementing public support programmes, as envisaged by the government. This component of the MSME development programme is geared towards developing a system along with appropriate tools and mechanism for assessing the capability of associations.
Industry Association or Business Membership Organizations (BMOs) serve as a critical link between entrepreneurs, government and other stakeholders and service provider in an economic environment. They play a key role in addressing the impediments faced by MSMEs whether in accessing factors of production (finance, material, human resources or technology etc) or in accessing markets or public or private support services. Further, because they have better access among MSMEs, they have greater trust and more granular understanding of the problems and needs of the MSMEs.
The universe of BMOs in India is huge. However, the BMOs vary a lot in terms of their competency and outreach. Post economic reforms, BMOs having predominantly membership from large enterprises have grown in India but the growth story is not the same for BMOs serving the MSMEs. Various studies have demonstrated that majority of MSME BMOs suffer from a vicious cycle of ‘low membership- low resources- weak secretariat- fewer activities-poor services. Despite the intent, a majority of BMOs find themselves incapable of fulfilling their core functions due to lack of capacity, resources, competent staff and robust linkages with government departments.
Quality Council of India (QCI), is operating a national scheme for accreditation of Industry Associations/ Business Membership Organisations. The objective of accreditation is a ‘Hallmark for Quality’ to establish a standard of organizational competency amongst the BMOs and serve as a reflection of credibility, capability, accountability, transparency and ensuring minimum standards in Quality and performance of the BMOs. The following ministries (as listed below) have promoted the National accreditation scheme .
- Ministry of Labour & Employment
- Ministry of Finance
- Ministry of Chemicals & Fertilizers
- Ministry of Mines
- Ministry of Science & Technology
- Ministry of Tourism
- Ministry of Shipping
- Ministry of External Affairs
- Ministry of Textiles
- Ministry of Housing & Urban Poverty Alleviation
- Ministry of AYUSH
- Department of Mining & Geology, Ministry of Mines
- DIPP, Ministry of Commerce and Industries
- Ministry of Electronics & IT (MEITY)
- Department of Telecommunications ; Ministry of Communications
BMOs are graded as Silver, Gold , Diamond or Platinum based upon four parameters i.e. Governance, Services, Operations & Performance Measurement & Review. Adoption of the BMO accreditation mechanism by all stakeholders is becoming a game changer towards nation building , in MSME promotion and development strategy to help various Government schemes including ‘Make in India” , “Zero Defect Zero Effect’ (ZED) & ‘Stand Up India’. Banks such as IDBI and SIDBI also has extended lucrative privileges to accredited BMOs.
Currently, SIDBI has offered 50% fee reimbursement on accreditation fee for limited time frame . IDBI has offered loans at competitive rates.
Status of Scheme
|No of submitted Applications||Accredited till 22nd June 2017 = 38 Nos.|
Accreditation Process Flow
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