Unit 2 SSI (Continuation)

Differences between Small scale Industry and Large-scale Industry

Differences between Small Scale
industries and Large-Scale Industries
SMALL INDUSTRIES
1.These industries employ a smaller
number of persons and capital.
2.The production is small and so the
usage of raw materials is also less.
3.The work is done manually and by
using small machines and tools.
LARGE SCALE INDUSTRIES
These industries employ a large number
of persons and capital.
There is large scale production and the
consumption of raw materials is also
more.
The work is performed only by using
larger machines and laborers.

4.These industries are located in rural and They are located in urban centre and are
urban areas and are in the private sector. in public sector run by big industrialists.
Example: Radio, Cycle and T.V. Example: Jute and Cotton textiles.

5.These are the industries that has capital These are the industries that have the
less than 1 crore. capital more than 1 crore.

6.Small enterprises are required to be The large-scale industries are subject to

registered as SSI units with directorate of
industries.
7.Government interference is less.
8.Ownership of small-scale industries are
sole proprietary or partnership.
licensing and registration with
government within a prescribed time
limit.
Government interference is more
Large scale industries are generally found
in company forms.

9.SSI are less capital intensive and more They have higher input of technology and
labour intensive. capital.

10.They use age old techniques and They have greater exposure to
equipment’s there is no scope of professional management.
professionalization.

11.They cater the needs of the local They are market-oriented and produce
people. goods for the masses.

12.The gestation period of a SSI is very There is comparatively a long gestation

short. period in large scale industries.

13.There is frequent turnover of Due to the better working conditions and

employees as morale is very low. high morale employee turnover is very
less.
14.The educational level of employees is There is no limit for educational level and
 Unit 2 SSI (Continuation)
Differences between Small scale Industry and Large-scale Industry
low or moderate. best talents can be hired.

15.It is very difficult to convince and It is easy to convince and procure loans
procure loans from banks and other from institutions for various activities.
financial institutions.

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