Professional Documents
Culture Documents
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Understanding Ownership Structure: Definition of
small scale, medium scale and large scale enterprises, role
of small enterprises in economic development, policies
governing SMEs, Steps in setting up a small unit, Sources
of finance for SME’s,
Setting up of a small Business Enterprise-; Rationale
for Small & medium enterprise; Objective; Scope; Role of
SME in Economic Development of India, Identifying
business opportunity in various sectors, SME Registration;
NOC from Pollution Board; machinery and equipment
selection; project report preparation; project planning and
scheduling using networking techniques of PERT / CPM;
Methods of Project Appraisal.
SSI’s
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8) They Innovate & Introduce New Products
particularly to cater to Local Needs.
9) They influence & improve Standard of Living of
Local People.
10) They provide equitable dispersal of enterprises
throughout Rural & Backward Areas.
11) They earn Vital Foreign Exchange for the Country
through their Exports of Goods / Services.
12) They Increase Revenue to Central & State Govts by
way of Taxes Paid by them.
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Role of Small enterprises in Indian
economy
Problems of SSI
Setting up an SSI
Stages for setting up SSI
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Project Identification
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Format of a Project Report:
• 1. Cover Sheet
• 2. TABLE OF CONTENTS
• 3. EXECUTIVE SUMMARY
• 4. THE BUSINESS
• 5. Funding Requirement
• 6. The Product or Services
Format of a Project Report:
• 7. The Plan
a. Marketing Plan
b. Operational Plan
c. Organization Plan
d. Financial Plan
• 8. Critical Risks
• 9. Exit Strategy
• 10. Appendix
EXECUTIVE SUMMARY
• Form of ownership
Legal Forms of Business
Three basic legal forms of business:
• Budget
Operational Plan
• Budget
Organization Plan
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Objectives
Various measures taken by the Central & State Govts for the
development of Micro & Small Enterprises have included Product
Reservations, subsidies on fixed capital investment, Sales Tax &
Income Tax Concessions, Preferential allocation of credit &
interest subsidy, extension of business & Govt purchases,
Marketing Assistance including Export Promotion by institutions
such as National Small Industries Corporation, Small Industries
Development Organization & several other agencies.
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For the purpose of administration of India’s Micro &
Small Enterprises have been divided into Seven Groups as
under into Traditional Sector & Modern Sector.
Traditional Sector :
1) Handicrafts.
2) Handlooms.
3) Khadi, Village & Cottage Industries.
4) Coir.
5) Sericulture.
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Modern Sector :
6) Power Looms.
7) Residual Micro & Small Enterprises.
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Governmental Support to Small
Scale Enterprises :
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Impact of Liberalization,
Privatization & Globalization of
Small Enterprises :
The process of Liberalization & Economic Reforms , since 1991,
have thrown up new challenges to the small enterprises sector ,
simultaneously creating tremendous opportunities for the growth of
this sector.
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Internal
• Retained Profits
• Controlling Working Capital
• Sale of Assets
• Owner Personal Saving
• Reducing Stocks
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External
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Short Term
• Indigenous/Commercial bankers
• Installment Credits
• Advances
• Accrued Expense and Deferred Incomes
• Account Payable
• Trade Credit
• Bill Discounting
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• Factoring
Medium Term
• Equity Shares
• Preference Shares
• Debenture
• Retained Earning
• Venture Capital
• Commercial banks
• Institutional Financing
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