New Delhi, May 5 (KNN) Considering that industry associations or business membership organisations (BMOs) play a key role in promotion and development of micro, small and medium enterprises, they need to have an accreditation system which while encouraging transparency also ensures standards of quality and performance.
“Accreditation of industry will be a public announcement from the side of Quality Council of India that the BMO is found to be of superior quality adhering to standards of quality, process and performance. This will lead to increased confidence amongst the stakeholders (government, donors, community) about the functioning and effectiveness of the association,” National Accreditation Board for Education and Training (NABET) said.
With the objective of introducing a BMO accreditation system in India, NABET, Quality Council of India (QCI) with support from the MSME umbrella programme (jointly implemented by the office of DC MSME, Ministry of MSME, SIDBI and GIZ) has developed accreditation criteria for BMOs in India aligned to international best practices.
Criteria of accreditation for BMOs are now available for public review and consultation at http://nabet.qci.org.in/bmo.
Business Membership Organizations (BMO) which are industry associations and chambers serve as a critical link between entrepreneurs, government and other stakeholders and service providers. They also have the potential to play a key role in aggregating the need and demand of micro and small units and help their members in overcoming several challenges faced by MSMEs whether in accessing factors of production (finance, material, human resources or technology etc) or in accessing markets and public or private support services.
Although, the universe of BMOs in India is huge, they vary a lot in terms of their competency and outreach. Studies have highlighted that a majority of MSME BMOs find themselves incapable of fulfilling their functions due to lack of capacity, resources, competent staff and robust linkages with government departments. Further, there is very little public information about their membership, governance, financial status, and services.
To bring greater transparency in the functioning of BMOs the introduction of a voluntary accreditation system has been suggested to ensure minimum standards of governance, quality and performance amongst the BMOs and at the same time a transparent mechanism to partner with them and carry out targeted capacity development.
The objective of accreditation is to establish a standard of organizational competency amongst the BMOs. The Accreditation will help the BMOs to assess its objectives, resources, program of work, processes and procedures, achievements and impacts; and plan for more effective and sustainable initiatives.
As far as benefits are concerned, Accreditation will help BMOs to Access Government Schemes and Grants; leveraging funds from other national and international agencies; derive professional benefits – as the accreditation standard will act as a tool for BMO leadership for management control and self-discipline; provide opportunities for strategic linkages; provide access to new market for BMO services; draw interest from Corporate, financial agencies and other institutions to act as an intermediary for reaching out to MSMES on various issues.