Project Report on

STRATEGIES FOR THE GROWTH OF SMALL-SCALE

ENTERPRISE
Semester 6I
CIVIL

SUBMITTED TO

S.M.D.R. GOVERNMENT POLYTECHNIC DHULE

Under The Guidance of

Prof. Bhushan Girase

Lecturer in Civil Department

Shikshan Maharshi Dadasaheb Rawal Government Polytechnic, Dhule.

Page 1 of 11
 EVALUATION SHEET FOR MICRO PROJECT
(Academic Year: 2022-2023)

Roll No. :- 341

Seat No. :-
Subject: Entrepreneurship Development
Course :- CE-6I
Title of project : STRATEGIES FOR THE GROWTH OF SMALL-SCALE ENTERPRISE
Roll Student Name Mark out of 06 Mark out of 04 for Total out
No. for performance performance in of 10
in individual oral/presentation
activity
341 Patil Jay Sunil

Name & Sign of Faculty.

Page 2 of 11
MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
CERTIFICATE

This is to certify that Mr. Patil Jay Sunil Roll No. 341 of Sixth Semester of
Diploma in Civil Engineering of Institute. S.M.D.R. Government
Polytechnic, Dhule (Code :- 0017) has completed the Micro Project
satisfactorily in the subject Solid Waste Management for the Academic Year
2022-23 as prescribed in the curriculum.

Place :- Dhule Enrollment no. :- 2000170200

Date :- / /2022 Exam seat no. :- ………………

Subject Teacher Head of the Department Principal

Page 3 of 11
 ACKNOWLEDGE

The success and final outcome of this project required a lot of

guidance and assistance from many people and we are extremely privileged to
have got this all along the completion of our project. All that we have done is
only due to such supervision and assistance and we would not forget to thank
them.

We respect and thank Dr. Mr. R. G. Wadekar, Principal,

Government Polytechnic, Dhule for providing us an opportunity to do the
project work in the institute and giving us all support and guidance which made
us complete the project duly.

We are extremely thankful to Mr. Wadekar Sir for providing such a

nice support and guidance. We heartily thank Mr. K. R. Pawar, Head,
Department of Civil Engineering, for his guidance, suggestions and
encouragement during this project work.

We our deep gratitude to our project guide Prof. Bhushan Girase

Lecturer in Civil Department. who took keen interest on our project work and
guided us all along, till the completion of our project work by providing all the
necessary information for developing a good system. We would not forget to
remember.

Prof. Bhushan Girase in Civil Department for their encouragement

and more over for their timely support and guidance till the completion of our
project work.

We are thankful to and fortunate enough to get constant

encouragement, support and guidance from all the Teaching staffs of
Department of Civil Engineering which helped us in successfully completing
our project work.

Page 4 of 11
 INDEX

Sr. No. Topic Name Page No.

1) INTRODUCTION 6

2) STRATEGIES USED FOR THE GROWTH 7

OF SMALL-SCALE ENTERPRISE
3) TYPE OF STRATEGIES 8

4) CONCLUSION 11

5) REFERENCES 11

Page 5 of 11
 INTRODUCTION-

Small-scale enterprises (SSEs) are essential to the growth and development

of any economy. They are typically run by entrepreneurs who have limited
resources and face numerous challenges such as lack of access to finance,
inadequate infrastructure, limited market reach, and competition from larger
firms. Despite these challenges, SSEs have the potential to drive economic
growth, create employment opportunities, and contribute to poverty reduction.
However, to achieve their full potential, SSEs need to adopt effective growth
strategies that will enable them to overcome these challenges and succeed in the
marketplace.

One of the key growth strategies for SSEs is market expansion. This
involves identifying new markets for the products or services offered by the
SSE and creating a plan to enter and grow in those markets. Market expansion
can be achieved through various means, such as partnerships, franchising, e-
commerce, or internationalization. By expanding their market reach, SSEs can
increase their sales and revenue, which can lead to increased profitability and
sustainability.

Innovation is another essential growth strategy for SSEs. Innovation involves

developing new products, services, or processes that can help the SSE
differentiate itself from its competitors and meet the changing needs of its
customers. Innovation can also help SSEs reduce costs, increase efficiency, and
improve the quality of their products or services. To foster innovation, SSEs
need to invest in research and development, create a culture of innovation, and
collaborate with other businesses, academic institutions, or government
agencies.

Page 6 of 11
 Top most strategies used for the growth of small-scale
enterprise-

1) Expansion-
Expansion is one of the forms of internal growth of business. It means
enlargement or increase in the same line of activity. Expansion is a natural
growth of business enterprise taking place in course of time. In case of
expansion, the enterprise grows its own without joining hands with any other
enterprise. There are three common forms of business expansion.

1) Types of Expansion-

a) Expansion through Market Penetration-

It means the enterprise increases the sales of its existing product by
enlarging the existing market. In other words, market penetration means making
deeper in roads in the existing market. Various schemes are launched to
penetrate into an existing market. The scheme for exchanging an old scooter for
new one introduced by LML, for example, is a form of market penetration.

b) Expansion through Market Development-

It implies exploring new markets for the existing product. In order to

increase the sale of existing product, the enterprise makes searches for new
customers.

c) Expansion through Product Development and/or Modification-

It implies developing or modifying the existing product to meet the

requirements of the customers. Introduction of plastic bottles for selling refined
oil in addition to lose sales is an example of product development /modification.

Page 7 of 11
2) Diversification -

Diversification is the most common form of internal growth of business.

As mentioned above, expansion has its own limitations of business growth.
Diversification is evolved to overcome the limitations of business growth
through expansion. A business cannot grow beyond a certain point by
concentrating on the existing product/market only.
In other words, it is not always possible for a business to grow beyond a
certain point through market penetration. This underlines the need for the
adding the new products / markets to the existing one. Such an approach to
growth by adding new products to the existing product line is called
‘diversification’.

3) Joint venture-

Joint venture is a type of external growth strategy adopted by business firms. A

joint venture could be considered as an entity resulting from a long-term
contractual agreement between two or more parties, to undertake mutually
beneficial economic activities, exercise joint control and contribute equity and
share in the profits or losses of the company.

The Reserve Bank of India (RBI) has defined joint venture in the technical
sense as: “a foreign concern formed, registered or incorporated in accordance
with the laws and regulations of the host country in which the India party makes
a direct investment, whether such investment amounts to a majority or minority
shareholding.”

In simple terms, joint venture is a restricted or a temporary partnership between

two or more firms to undertake jointly to complete a specific venture. The
parties which enter into agreement are called co-ventures and this joint venture
agreement will come to an end on the completion of the work for which it was
formed.

Page 8 of 11
4) Mergers and Acquisitions (M&A)-
Merger and acquisition are yet other forms of external growth strategy.
Merger means a combination of two or more existing enterprises into one. For
the enterprise which acquires another, it is called ‘acquisition.’ For the
enterprise which is acquired, it is called ‘merger.’ Thus, merger and acquisition
are the two sides of the same coin.

If both organizations dissolve their identity to create a new organization, it

is called consolidation. The other terms used for M&A are absorption,
amalgamation, and integration. M&A are more popularly known as takeovers.
For more than three decades after Independence, the normal route of growth
was through licensing and setting up new projects.But the post- liberalization,
since 1991, has witnessed an increasing use of takeover strategies as the means
or rapid growth. Mahindra & Mahindra’s takeover of a German company
Schoneweiss, Tata’s takeover of Corus, and PricewaterhouseCoopers’s takeover
of Mumbai-based taxation company RSM Ambit are illustrative examples of
mergers & acquisitions.

5) Sub-Contracting-
Sub-contracting system is a mutually beneficial commercial relationship
between the two companies. This is known as Ancilliarization in India and more
generally as ‘sub-contracting.’

Sub-contracting can be defined as follows:

A sub-contracting relationship exists when a company places an order with

another company for the production of parts, components, sub-assemblies or
assemblies to be incorporated into a product sold by the contractor. Such orders
may include the processing transformation, or finishing of material or part by
the sub-contractor at the request of the contractor.

In practice, large-scale industries also not produce all goods on their own;
instead they rely on small-scale enterprises called sub-contractors for a great
deal of production. When the work assigned to small enterprises involves
manufacturing works, it is called ‘Industrial Sub-contracting.’ In the other
cases, it is known as ‘Commercial Sub-contracting.’ It is not unusual for Sub-
contractors to work for more than one contractor.

Page 9 of 11
6) Franchising-
In a sense, franchising is very much akin to branching. Franchising is a
system for selectively distributing goods or services through outlets owned by
the retailer or dealer. Basically a franchise is a patent or trademark license,
entitling the holder to market particular products or services under a brand name
or trademark according to pre-determined terms and conditions.David D. Settz
has defined franchising as a “Form of business ownership created by contract
whereby a company grants a buyer the rights to engage in selling or distributing
its products or services under a prescribed business format in exchange for
royalties or shares of profits. The buyer is called the ‘Franchisee’ the company
that sells rights to its business concept is called ‘Franchiser.’

Thus, franchising can simply be defined as a form of contractual arrangement

in which a retailer (franchisee) enters into an agreement with a producer
(franchisor) to sell the producer’s goods or services for a specified fee or
commission.

o Types of Franchising:
Franchising arrangements broadly classified into three types:

a. Product Franchising

b. Manufacturing Franchising

c. Business-Format Franchising

Page 10 of 11
 CONCLUSION-
Small-scale enterprises play a significant role in the economic development
of any country. However, for these enterprises to thrive and contribute
meaningfully to the economy, there is a need for strategic planning and
implementation of growth strategies. Business owners must be willing to take
calculated risks, explore new markets, and leverage technology to increase
productivity and efficiency. The adoption of appropriate marketing strategies,
financial management practices, and human resource development initiatives
will also go a long way in ensuring the growth and sustainability of small-scale
enterprises.
Overall, there are several growth strategies that small-scale enterprises can
adopt, including diversification, partnerships, franchising, and mergers and
acquisitions. These strategies, when implemented properly, can help small-scale
enterprises increase market share, expand their customer base, and ultimately
increase profitability. However, it is important to note that there is no one-size-
fits-all approach to small-scale enterprise growth, and each business must
identify and tailor their strategies to suit their unique needs and goals.

 REFERENCES-
i. https://www.yourarticlelibrary.com/enterprises/top-6-strategies-for-
the-growth-of-small-scale-enterprise/41199
ii. file:///C:/Users/USER/Downloads/Strategy_development1-imds.pdf

Page 11 of 11