SMALL SCALE AND COTTAGE INDUSTRIES

Meaning

A small scale industries are located in urban centers and produce goods with partially or wholly mechanized equipment employing outside labour, small in size, having little capital resources and a small labour force. Cottage Industries are mainly rural in character and are generally associated with agriculture involving operations mostly by hands and are carried on in the home either as a whole time or as a part time occupation, primarily with the help of members of the family.

The Small scale Industries Board define the SSI A Unit employing less then 50 persons, with a capital investment not more than 1 crore . A business firm which is having an investment not more than 15 lakhs is known as cottage firm.

Importance of Small-Scale Industry

Employment Generation Use of Local Raw Material Balanced Regional Development Decentralization of Industries Mobilization of Capital Developing Entrepreneurship Equitable Distribution of Wealth Training Ground for Local Entrepreneur Efficient Use of Productive Factors Promotion of Exports.

Problems of Small Scale Industries

Finance Raw Material Marketing Technology Underutilization of Capacity Other Problems.