SMALL SCALE

INDUSTRIES
DEFINITION OF SMALL SCALE
INDUSTRY
Defining small-scale industry is a difficult task
because the definition of small-scale industry varies
from country to country and from one time to the
another in the same country and by industry.
Small businesses are normally privately owned
corporations , partnerships, or sole proprietorships ,
which constitutes small in terms of government
support and tax policy varies depending on the
country and industry.
Definition of Small Scale Industries in
India-
An industrial undertaking in which the investment in
fixed assets in plant and machinery whether held on
ownership terms on lease or on hire purchase does not
exceed Rs.10 million.

ACCORDING TO SSI BOARD- “A unit employing

less than 50 persons if power and
laess than 100 persons without
the use of power and with a
capital investment rupees 5 lakh”
ADVANTAGES OF SMALL SCALE
INDUSTRIES
The following are the merits of small scale
industries-
1.Close Supervision
2.Nature of Demand
3.More Employment
4.Need of Small Capital
5.Direct Relation between the workers and the
employers
ADVANTAGES OF SMALL SCALE
INDUSTRIES
6.Direct Relation between the customers and the
producers
7.Easy Management
8. Freedom of Work
9.External Economies
10. Less possibilities of strike and lockouts
DISADVANTAGES OF SMALL SCALE
INDUSTRIES
The following are the demerits of small scale
industries-
1.High cost of production
2.Wastage of by-products
3.Less use of Machines
4.Lack of Division of Labour
5.Difficulty in getting Loans
DISADVANTAGES OF SMALL SCALE
INDUSTRIES
6.Difficult to face Economic Crisis
7.Costly Raw Materials
8.Lack of Standardised Goods
9.Old Techniques
10.Lack of Research
CHARACTERISTICS OF SMALL
SCALE INDUSTRIES
1.Labour Intensive
2.Flexibility
3.One-man Show
4.Use of indegenous raw materials
5.Localised Operation
6.Lesser gestation period
7.Education level
8.Profit Motive
 Manufacturing

Small scale
industries

Industries
Types of
Ancilliary Industries

Service
Industries
Feeder
Industries
ROLE OF SMALL SCALE INDUSTRIES
 Dynamic and vibrant sector of the economy .
 Prominent role in socio-economic transformation
of the country.
 Accounts for 35 percent of employment SSI sector
has, over past six prominent place in the socio-
economic development in the country.
 Small Scale Industries as a Seedbed for larger
business
Seedbed refers to the preparing of soil for the sowing
of seeds so that we may have good crop.Small
business is regarded as a seedbed for
entrepreneurship as it provides conducive conditions
for the emergence and growth of enterpreneurs.
SSI’s are called seedbed of enterpreneurship due to
the following reasons.
o Small Scale enterprises can be started with lesser
investment
o Small scale unit carry on business on a small scale and
as such the element of risk too is less.
o Small Scale units are generally based on local
resources and as such there is no problem regarding
their availability.
o Small scale unit can be located
anywhere and thus help in the
development of backward
areas of the country.
o Small scale units help in building
achievement motivation amongst
entrepreneurs
THANK
YOU