The term institutional support refers to the part of economic environment of industry and business. It consisting of authorities and institutions whose decisions and active support in form of laws, regulation, financial and non-financial help brings a lot of changes in the functioning of any business.
The institutions could be government owned, statutory, semi autonomous or autonomous. It is the government or government supported institutions authorized to take up certain activities – financing, marketing, project preparation, training the to promote industrial activities in the state.
There are three stages of promotion – inception stage, operational stage and expansion or diversification stage. The Government through its plans and policies assisted the business houses in facilitating in the above stages through various specialised institutions set up as per the law. An entrepreneur who needs to set up a business unit of his own or with his friends and relatives is supposed to know the various institutions or organizations working as per the law for the purpose. Dissemination of information in this regard can only help them in achieving the very dream of becoming a successful entrepreneur.