SIDO helps in giving technical and managerial imputs, making project reports and training entrepreneurs of small scale industries. It maintains a close contact with financial and training institutions, Government and other agencies for the promotion and development of small industrial units. It undertakes entrepreneurship development wherein the training and managerial capabilities are developed.

The small organisations cannot pay the cost of professionally qualified persons, SIDO acts as the training ground for such entrepreneurs. The training courses organised by SIDO are also meant for upgrading the skills of workers of small scale industries as well as the capabilities of their managerial personnel. It has a network of 25 Small Industries Service Institutes (SISIs), 41 extension centres, four regional testing centres and one product and process development centre.