A PROJECT REPORT ON

“A Study On Financing Of Small Scale Industries In India”

SUBMITTED BY
Ms. Amisha Jitendra Chotaliya
BAF Semester VI
Project Submitted To “University Of Mumbai”
In Partial Fulfilment for the
Award of Graduation Degree in B.Com (Accounting & Finance)

UNDER THE GUIDANCE OF

DR. Mamta Rane

GURUKUL COLLEGE OF COMMERCE

AFFILIATED TO UNIVERSITY OF MUMBAI
ISO Certified: 21001/14001/50001
GHATKOPAR (E), MUMBAI- 400077
2022-23
 DECLARATION
I, Ms. Amisha Jitendra Chotaliya student of B.Com (Accounting &
Finance) /Semester VI (April 2023) of GURUKUL COLLEGE OF
COMMERCE, MUMBAI-400077 to hereby declare that I have
completed the project work titled “ A study on financing of small scale
industries in India” as a part of academic fulfilment.

THE INFORMATION CONTENT IN THIS PROJECT WORK IS TRUE AND

ORIGINAL TO THE BEST OF MY KNOWLEDGE AND BELIEF.

SIGNATURE OF
Ms.
 ACKNOWLEGEMENT
Firstly, I wish to express my sincere and heartfelt thanks to my Project Guide Dr
Mamta Rane , for her distinctive guidance and encouragement throughout the project
work.

I also take this opportunity to express my deep sense of gratitude to our Principal, DR.
NANDITA ROY, B.Com (Accounting & Finance) Co-ordinator Dr. Kripa Thakkar
and our college Librarian for their continuous support to complete this project.

Lastly, I wish to express my heartfelt gratitude to my beloved parents And to all my

friends for their encouragement and support in Completing this project work. Above all
I thank Lord Almighty for abundant mercies and infinite Grace which showed upon me
to complete the project work.

SIGNATURE OF
Ms. AMISHA CHOTALIYA
 CERTIFICATE
This is to certify that Ms. Amisha Jitendra Chotaliya the student
of GURUKUL COLLEGE OF COMMERCE Studying in
B.Com (Accounting & Finance) Semester VI, ROLL NO. 06 has
successfully completed the project entitled “A Study on Financing
Of Small Scale Industries In India” as a part of assignment under
my supervision during the academic year 20222023

PRINCIPAL EXTERNAL GUIDE

DR. NANDITA ROY

COORDINATOR INTERNAL GUIDE

DR. KRIPA THAKKAR DR MAMTA RANE
 ABSTRACT
Every enterprise big or small requires finance to run. The small scale sector is an important
segment of our economy and these enterprises also require less finance in comparison to large
enterprises. But even this small amount also cannot be ignored, as the owner may not have
adequate funds at the time of initial setup of the enterprise or during the life span of the
enterprise. The different financial institutions are playing a very important role in the upcoming
of these enterprises and there are various government schemes also especially for the small scale
enterprises. The paper is empirical in nature and the researcher has highlighted the financing
pattern of small scale enterprises by the financial institutions. The objective of the study is to
evaluate the financing of small scale enterprises by the financial institutions and to evaluate the
financial assistance requirements of the small scale enterprises. The data is collected from both
primary and secondary sources. The methodology adopted is convenient sampling and the
owners of the enterprises are interviewed using interview schedule. The study is expected to get
an answer to various questions regarding financing of small scale enterprises and inspire the
entrepreneurs for the establishment of new small scale business units and also enable the
expansion of old businesses thus leading to increased productivity, growth and development of
the economy.
 CHAPTER 1:- INTRODUCTION
FINANCING OF SMALL SCALE INDUSTRIES IN INDIA.

Introduction :

There is no uniformity in meaning of small scale industries. It is differ from country wise.
Some of definitions or meaning on different countries like China, Indonesia, German, Sweden,
Norway, Denmark, Iran, Japan, Italy, Korea, Sudan, Taiwan, turkey, uk, Vietnam and USA are
highlighted by Desai (2000)13, are presented here.in China small scale industry means to
mobilize local raw materials, local skills, local finance and local market; whereas as per u.n.
report it is related to all manufacturing establishments employing less than 10 persons. On the
other hand, hybrid of the traditional and modern industries is treated small scale industries in
Indonesia. Units employing up to 300 workers are considered to be small in German, Sweden,
Norway and Denmark. As against this, in Iran , small industries are define as those with Io
percent Iranian ownership and management whose assets do not exceed 5 million rials and
whose products are not artistic in nature. It has been further provided that investment in land
and buildings must not exceeds 25 percentage of the total capital. The small scale enterprises
includes retails shops, shopping district beauty salons, hairdressing establishment and laundry
shops in Japan. Having a capital investment of not more than 1500 million lire and employing
not more than 500 workers are considered to be small industries in Italy. Employing 10 to 100
workers is the small-scale industries in Netherlands. Those industries which employs less than
30 full time workers is treated as small industries in sudan.in Taiwan, employing less than 100
persons or worth assets dollar 5 million, is called a small industry for the manufacturing and
procession industry. Employing less than 10 workers and having a connected load of less than
10 hp are the small industry in turkey. Units employing less than 500 workers are generally
referred to as small-units in u.k. employing less than 300 persons and having not more than 200
million pilasters in capital investment is considered small industry in vietnam.in this context,
the definition of small scale industry in India at present is related Toan investment ceiling on
the original value of the installed plant and machinery. A small scale industry is defined as

One having original investment in plant and machinery whether held on ownership terms or on
lease/hire purchase basis, not exceeding rs 50 million (planning commission 2005-06).
Investment ceiling for small industry has been changed from time to time. The definition of
small scale industries in India has undergone changes over the years (1955-2015) in terms of
investment limits to boost up the development of this sector.

Industrialization does not necessarily imply the existence of huge factories spread over hundreds
of acres, churning out power and using lots of fuel. This specifically points to large-scale
industries.

Industrialization also has to do with factories and industries and organizations that operate on a
much smaller scale, but generate profits all the same.in india, particularly, there has always been
a push for small-scale industrialization, since the disparities in income and resources will not
make it possible for all sections of the population to be engaged tn large-scale industrial work.
Moreover, india is home to a large number of artisanal crafts, and these cannot prosper under
the principles of large-scale work. Even before independence, there was a push for cottage
industries to develop and become self-sufficient.

The term industry refers to a group of companies that are related to each other, based on the
primary business activities they undertake .small scale industries, thus , refer to those
partnerships, corporations, or sole proprietorships that function on a lower scale , employing a
smaller workforce and generating less revenue than that by normal-sized industries or
businesses. Small scale enterprises can also refer to those business that apply for government
support or avail preferential tax policies, depending on their area of operation. Small scale
industries and are referred to as those industries in which the process of manufacturing,
production servicing are done on a small scale.

To define a small-scale industry effectively, it is imperative to first learn about the meaning of
industry. The term industry refers to a group of companies that are related to each other, based
on the primary business activities they undertake. Small scale industries, thus, refer to those
partnerships, corporations, or sole proprietorships that function on a lower scale, employing a
smaller workforce and generating less revenue than that by normal-sized industries or
businesses.
The small scale industrial (ssi) sector is one of the most vital sectors of the Indian economy m
terms of employment generation, the strong entrepreneurial base it helps to create and its share
in production.
Effective policy formulation and implementation pertaining to the promotion and development
of this sector, requires a sound database. The office of the development commissioner (small
scale industries) conducted two censuses of registered ssi units prior to the third census. The
first census was conducted in 1973-74 in respect of 2.58 lakh ssi units registered up to 30-11-
1973. The reference year for this census was calendar year 1972 in respect of units not
maintaining accounts and the actual accounting year closing between 1-41972 and 31-3-1973
for those units maintaining accounts. Some information was also collected.

The second census was conducted during 1990-912 in respect of 9.87 lakh ssi units registered
up to 31-3-1988. The reference year for this census was financial year 1987-88 in respect of
units not maintaining accounts and the actual accounting year closing between 1-4-1987 and
31-3-1988 for those units maintaining accounts. During this census, only 5.82 lakh units were
found working. The data generated by the census with the passage of time had lost its relevance
and required immediate updation to achieve its purpose. Accordingly, the third allindia census
was conducted during 2002-03 for the possible proximate reference year, i.e., 2001-02.for 1970
and 1971. During this census, only 1.4 lakh units were found working.

Small scale industries are labour intensive yet require little capital. Small scale industries can
be either manufacturing industries or service providers. Small scale industries comprise of small
enterprises that manufacture goods or provide services with the help of small machines and a
few workers and employees. The enterprise must fall under the guideline es set by the
government of India. Small scale industries in India are the lifeline of the Indian economy, and
they offer several job opportunities for skilled labours .after all small scale industries are
essential for the economy from a financial and social point of view.

The investment on such industries is one time and these investments are mostly done on plant
and machinery, the total investment on such industries do not exceed 1.crore.small scale
industries or ssis are known as the lifeline of an economy, which is very important for a country
like India. Being a labor intensive industry, it is very helpful in creating employment
opportunities for the population of the country. They are also a crucial part of an economy from
a financial standpoint, as they help in stabilizing the per capita income of the country.

In developing countries like India, these small scale industries are the lifeline of the economy.
These are generally labor-intensive industries, so they create much employment. They also help
with per capita income and resource utilization in the economy. They are a very Important sector
of the economy from a financial and social point of view.in Indian economy small-scale and
cottage industries occupy an important place, because of their employment potential and their
contribution to total industrial output and exports. These refer to undertakings having fixed
investment in plant and machinery not exceeding rs. 23 lakhs.

To start with, here are some mind-boggling numbers. As per cii (confederation of Indian
industries), small scale industries contribute over 30% of the gdp. Small scale industries make
up around 33.4% of India’s manufacturing output. Figuratively speaking, there is certainly
nothing small about this. Now, if you are willing to consider the micro-scale industry along
with the small scale, the scales tip a bit further. As per the latest survey, 55% of these units are
located in rural India.

Cottage or small-scale industries like carpet-weaving, candle-making and handicrafts can be

established in houses and women can be gainfully employed. These industries increases the
active labour force, also meet the local demands for industrial goods, and save foreign exchange
spent in imports. For example, these are the ideas of small scale industries: napkins, tissues,
chocolates, toothpick, water bottles, small toys, papers, pens.

Prior to the new classification guidelines released in july 2020, the government of India used to
classify small scale industries in manufacturing and small scale industries involved in services
separately. This has changed after an official notification by the government in july 2020.as per
the new notification, small scale industries involved in either manufacturing or services will be
classified as small scale industries, if the capital investment in manufacturing plants or
machinery does not exceed 10 crores and annual revenue does not exceed 50 crores.

Small-scale industry, since 1947 India’s real gross domestic product (gdp, in 1993-1994 prices)
increased from 1,405 billion rupees in 1950-1951 to 1 1,939 billion rupees in 20002001, by 8.5
times. The share of manufacturing in gdp, was 9 percent in 1950-1951, rose to 18
percent in 2000-2001. Manufacturing is divided into two sectors: registered (factories that use
power and employ 10 or more workers, or that do not use power for manufacturing and that
employ 20 or more workers) and unregistered (smaller units). In 1950-1951 the two sectors had
roughly an equal share; in 2000-2001 the registered sector's share increased to two-thirds and
the unregistered sector's share declined to one-third.

The earliest the earliest definition of small-scale industries in 1950 had a limit of 0.5 million
rupees in fixed investment, with fewer than 50 workers in units using power or fewer than 100
workers in units not using power for manufacturing. The definition has changed several times
since then. In 2004 the definition had a limit of 10 million rupees for investment in plant and
machinery (original value), without any additional conditions. With this amount one can now
buy only an obsolete, low-grade, or second-hand plant and machinery. This limit seems to have
more adversely affected the capital-intensive industries like metals and electricals. The ssi
censuses show a sharp decline in the shares of this group in number of units, employment, fixed
assets, and production between 1972 and 1987-1988. Also, the percentage of closed units to
working units in this group was 59,against 52 for all units in 1987-1988.there is clearly a need
for raising the limit. Following the recommendation of the expert committee on small
enterprises, the limit was raised to 30 million rupees in 1997, but in 1999 it was brought down
to 10 million rupees. Considering inflation and the availability of better technologies since then,
the limit needs to be increased substantially, perhaps to 45 million rupees.

Production, employment, and exports of ssi increased by 10.0, 5.9, and 12.7 percent per annum
from 1973-1974 to 2000-2001. The subperiods 1973-1974, 19801981, 1990-1991, and 2000-
2001 witnessed deceleration of growth on all the three measures.in 1972 ssis producing metals
and electrical equipment had the largest share in the number of units, employment, and fixed
assets and production, 43-49 percent. Other manufacturing, food, textiles, and services
followed, in that order. In 1987-1988, other manufacturing was first in each of the above
categories, with a share of 35-42 percent, followed in each category by metals and electricals,
food, textiles, and services. The share of food and textiles increased and that of metals and
electricals declined, both substantially.

Ssis enjoy some advantages, but they also suffer from handicaps relative to large-scale industries
in the marketplace. On balance, they are in a weak position. However, they have an appeal in
terms of socioeconomic objectives and have, therefore, a strong case for state support. In India,
capital is scarce and labour abundant. Ssi are thought to have lower capital output and capital-
labour ratios than large-scale industries, and to therefore better serve growth and employment
objectives. Additionally, entrepreneurship has been restricted in India to certain castes,
communities, and language groups, and has been male-dominated. It is the policy of the Indian
government to widen this base by promoting entrepreneurs from other groups.

Small-scale industries (ssi) are divided into modern and traditional industries. Traditional
industries are home-based, use simple tools and equipment, depend on family labour, and are
completely manual. Modern ssis may have a separate workplace, employ outside labour, and
use machines and power. Nearly all of the traditional industries and a very large number of
modern ssis fall into the unregistered category, so the gdp of these industries will be roughly
equal to the gdp of the unregistered sector. The share of modern ssis has improved greatly both
in production and employment between 1973-1974 and 2002-2003: in production from 68 to
94 percent and in employment from 28 to 43 percent. Over the same period, the share of
traditional industries declined: in production from 16 to 6 percent and in employment from 58
to 55 percent.

An ssi is currently defined as an enterprise with investment in plant and machinery up to 10

million rupees (original value). This sector also includes ancillary, export-oriented, and
women's enterprises, with an investment limit m each of 10 million rupees and with a special
condition for each, and business and service enterprises in specified lines with investment limits
of 2.5 million rupees and 0.5 million rupees, respectively, without any condition.
Ssis enjoy some advantages, but they also suffer from handicaps relative to large-scale industries
in the marketplace. On balance, they are in a weak position. However, they have an appeal in
terms of socioeconomic objectives and have, therefore, a strong case for state support. In India,
capital is scarce and labour abundant. Ssis are thought to have lower capital-output and capital-
labour ratios than large-scale industries, and to therefore better serve growth and employment
objectives. Additionally, entrepreneurship has been restricted in India to certain castes,
communities, and language groups, and has been male-dominated. It is the policy of the bidi an
government to widen this base by promoting entrepreneurs from other groups.

It is on these considerations that various assistance programs and incentives have been devised
for ssi development. Since independence in 1947, especially since the late 1950s. Development'
has been wide-ranging, both in terms of programs and regions. The programs include
information and technology services, entrepreneurship development and training,
modernization and technology support. Industrial facilities, assistance in procurement of raw
materials price preferences, finance, and nursing of "sick" industrial units. To operate these
programs and to monitor their progress, new agencies and institutions have been set up, and the
existing ones strengthened at the national, regional, state, and lower levels. There is also a
special bank

For ssis. The ssis have their own associations, and are also represented in the national- and state-
level associations of large-scale industries.an attempt was made to estimate the value of
incentives on ssi production. The study examined nine programs or incentive schemes for six
industries in seven states. It was estimated that the value varied from 70 percent in cosmetics
and toiletries to 33 percent in gases.

An attempt was made to estimate the value of incentives on ssi production. The study examined
nine programs or incentive schemes for six industries in seven states. It was estimated that the
value varied from 70 percent in cosmetics and toiletries to 33 percent in gases.it is therefore not
surprising that a substantial number of ssis close their doors within a short span of operations.
The 1987-1988 census reported that of some 300,000 units that closed, one-half were closed
within 5 years of the start of operations: 14 percent within 1-2 years and 36 percent within 3-5
years. Evidently, there is a case for a more focused and selective approach to assistance.

A presumption of the ssi policy is that ssis have low capital-output and low capital-labour ratios
relative to large-scale industries. Thus, they are in tune with factor proportions, and thus, they
serve growth and employment objectives better. Considerable evidence casts doubt on that
presumption, and some studies have pointed to capital-output and capital labour ratios being
higher in ssis than in large-scale industries.

The policy of reservation of items for exclusive production in the ssi sector was first introduced
in 1967 with 47 items. The number since then has been increasing, reaching a peak of 873 in
1984. Since then, the number is being reduced. As of October 2004, the number of reserved
items was 605.since then, 108 items have been identified for dereservation, which will bring the
number to 497. Under this policy, the production of items in this list by large-scale industries is
frozen to their existing capacities, giving protection to small-scale industries in those categories.
As a consequence, the ssi sector, especially the reserved part, is expected to improve its
efficiency and grow faster.

This policy has been criticized on various grounds such as it has been ad hoc, obstruction of
technology and scale up-gradation. Moreover, such evidence as is available on efficiency,
profitability, and growth shows that in general the performance of ssi in the reserved items does
not outshine that of other ssi, oms it poorer. It would thus seem that the government's policy of
gradual de-reservation is moving in the right direction.
Small-scale industries have been playing a momentous role in overall economic development
of a country like India where millions of people are unemployed or underemployed. Poverty
and unemployment are two of the burning problems of the country today. This sector solves
these two problems through providing immediate large-scale employment, with lower
investments. According to dr. Manmohan Singh, "the key to our success in employment lies in
the success of manufacturing in the small scale sector." the economic development of any
country primarily depends upon the establishment of industries, which require sufficient amount
of capital. In a country like India, where capital is scarce and unemployment is wide spread,
growth of small-scale industries is vital in order to achieve balanced economic growth. The
strength of small-scale enterprises lies in their wide spread dispersal in rural, semi-urban and
urban areas, fostering entrepreneurial base, shorter gestation period, and equitable distribution
of income and wealth.

Having recognized the significance of ssi sector, the govt. Of India has set up various agencies
and institutions at different levels-central, state and local, have been pursuing the policy of
protection and promotion of this sector since independence and also offered several incentives
and concessions for their promotion and development.

Since the launching of five-year plans in country the ssi sector has grown at a phenomenal rate.
This sector comprises 95 per cent of the total industrial units in the country, accounting for 40
per cent of the total industrial production, 34 percent of the national exports, and 250 lakh
persons of industrial employment. So, this sector emerged as a bosom and dynamic part of the
Indian economy. In fact, it is one side of the coin another side there is another story that tells us
the declining position of the small-scale industries in India. Due to the liberalization,
privatization and globalization (lpg), the importance of the government is shifted from labour
intensive industries to capital intensive industries.it leads to decline of small-scale industrials
gradually during post lpg period. In this paper an earnest attempt is made to analyse the
condition of ssis, challenges and future opportunities in India.
The five year planning for the economy started from 1951 onwards and subsequently the
industrial policy was followed by government of India, and the government earmarked a special
role for small-scale industries and medium scale industries in the Indian economy. Due
protection was accorded to both sectors, and particularly for small scale industries from 1951
to 1991, till the nation adopted a policy of liberalization and globalization. However, since 1991
small scale industries in India found Themselves in a strongly competitive atmosphere due to
globalisation, domestic economic liberalization, and dilution of sector specific protective
procedures.

Small scale industries play a focal role in the economic and social development of India in the
post-independence era. Small scale industries constitute the backbone of a developing economy
with its effective, efficient, flexible and innovative entrepreneurial spirit. Round the world ssi
units have been accepted originator of economic growth and for promoting equitable
development. The contribution of to the Indian economy in terms of employment generation,
reducing regional imbalances, promoting inter-sectorial linkages, magnifying exports and
fostering equitable economic growth potential has been quite marvellous. This sector through
more than 6000 products ranging from traditional to high-tech, consisting over 36 million units
widely dispersed across the country provides employment to over 80 million persons,
contributes about 8% to country's gdp beside accounting for 45% of manufactured output and
40% to the export from the country. [l] the ssi sector has the prospective to spread industrial
growth round the country and can be a considerable associate in the progress of comprehensive
growth. The target of proposed national manufacturing policy of enhancing the share of
manufacturing sector in gdp to 25% and to create 100 million jobs by end of 2022, as well as to
take india from its present 2 trillion dollar economy to 20 trillion dollar economy can be
achieved with the help of ssi units. The paper attempts to discuss the role of small scale
industries in developing the economy and explore the various problems faced by it.

Small scale industries in india and abroad exhibited considerable robustness and pliability in
maintaining an unswerving rate of growth and employment generation during the global
recession and economic slowdown. The indian economy during the current fiscal years has
shown considerable growth performance by contributing to create livelihood opportunities to
millions of people, in magnifying the export potential and in increasing the overall economic
growth of the country. As a catalyst to the socio-economic transformation of the country, the
ssi sector distinctly crucial in addressing the national objective of bridging the rural-urban
divide, mitigate poverty and generating employment for the admirable community of the
country. ssi sector comprises almost about 80% of the total industrial units in the country. In
india occupy 36 million units, contribute to 45% of industrial production, to the export sector
through more than 6000 products ranging from traditional to high-tech and provides
employment to about 80 million persons. Therefore the small scale industries (ssi) in a
developing country like india occupy a special place the industrial structure.

Government has given this sector an important place in the framework of indian economic
planning for economical as well as ideological reasons.
One can own or invest in small scale industries with minimal documentation and little
investment. Small scale industry registration is hassle free, and the government also support
with finance for you to invest in small scale industries. Under the Udyog Aadhar scheme, you
can even fill the online registration form to get the registry done. Ssi registration is free of cost,
and you do not have to pay for processing. You will get the certificate on your registered email
id after the document verification and the processing by the executives. Contact details,
bank/account details, additional details of the business, employees and investment are the
mandatory part to fill the registration form. You may also have to submit the scanned copy of
the documents in which Aadhar card is compulsory. Micro and small scale industries
registration have been made so easy under several schemes provided by the government of
India.

The banks and financial institution provides loan for the business after ssi registration, and it
becomes hassle-free. Once the booking is made, taxes rebate and can be availed. To participate
in the government tenders, it becomes mandatory to have the registration done beforehand. As
a lot of concessions and discounts are available, it becomes smooth, and the cost of setting up
the industry reduces.
In small scale industries, manufacturing industries grow very fast due to the natural supply of
raw materials and huge demand in public. In south India, the summit held where ssi
(Karnataka small scale industries association) was also present in January 2019, had a motive
to discuss the key issues and find a solution to them at the same time provide the right
environment for the growth and development. The major small scale industries in tamilnadu
and small scale industries in Kerala are spinning and weaving, coconut oil making, cashew nut
processing, clay products etc. Small scale ancillary industries in Hyderabad have a vast number
of employment due to various multinational companies. Foreign investment is as essential as it
creates a huge no. Of ancillary small scale industries and thereby creating work.

Examples of small scale industries are: agarbatti making, chalk making, biodiesel production,
sugar candy manufacturing, wood making, rice mill, potato chips making, toys making,
microbrewery, liquid soap making, honey processing, slippers making, detergent powder
making, fruit juice production plant, spices making, and chocolate making.

There are government bodies set up for the welfare of the member of small scale industries.
Ministry of small scale industries designs policies, schemes and program to promote the small
scale industries. Ministry of agro and rural industries coordinate and help in the development
of villages and khadi industries, micro and tiny industries in rural and urban areas.

In Indian economy small-scale and cottage industries occupy an important place, because of
their employment potential and their contribution to total industrial output and exports.
Government of India has taken a number of steps to promote them. However, with the recent
measures, small-scale and cottage industries facing both internal competition as well as external
competition. There is no clear distinction between small-scale and cottage industries. However
it is generally believed that cottage industry is one which is carried on wholly or primarily with
the help of the members of the family. As against this, small-scale industry employs hired
labour. Moreover industries are generally associated with agriculture and provide subsidiary
employment in rural areas. As against this, small scale units are mainly located in urban areas
as separate establishments.

The official definitions of a small scale unit are as follows:

Small scale industries is an investment in plants and machinery not exceeding rs.35 lakhs.
Ancillary industries are with investment in plants and machinery exceeding rs.45 lakhs, with
this as the upper limit, the village and small scale industries sector consist broadly of (i)
traditional industries (ii) modern small scale industries including tiny units and power looms.

(1) Small-scale industries:

These are the industrial undertakings having fixed investment in plant and machinery, whether
held on ownership basis or lease basis or hire purchase basis not exceeding rs. 1 crore.

(ii) ancillary industries:

These are industrial undertakings having fixed investment in plant and machinery not exceeding
rs. 1 crore engaged in or proposed to engage in, (a) the manufacture of parts, components, sub-
assemblies, tooling or intermediaries, or(b) the rendering of services supplying 30 percent of
their production or services as the case may be, to other units for production of other articles.

(iii) tiny units:

These refer to undertakings having fixed investment in plant and machinery not exceeding rs.
23 lakhs. These also include undertakings providing services such as laundry, xeroxing, repairs
and maintenance of customer equipment and machinery, hatching and poultry etc. Located m
towns with population less than 50,000.

(iv) small-scale service establishments:

These mean enterprises engaged in personal or household services in rural areas and town with
population not exceeding 50000 and having fixed investment in plant and machinery not
exceeding rs. 25 lakhs.

(v) household industries:

These cover artisans skilled craftsman and technicians who can work in their own houses if their
work requires less than 300 square feet space, less than 1 kw power, less than 5 workers and no
pollution is caused. Handicrafts, toys, dolls, small plastic and paper products electronic and
electrical gadgets are some examples of these industries.

It may be stated that final small business includes individuals and firms a business enterprise
established mainly, for the purpose of providing any service, other than professional services
whose original cost price of the equipment used for the purpose of business does not exceed rs.
2 lakh s with working capital limits of rs.1 lakh or less and who are eligible for dicgc cover. Not
undertakings will be consider ed as a small scale industry unit if it is a subsidiary or is owned
or controlled by any other undertakings definition of small scale and cottage industries may be
based upon the following considerations(i) by location i. E. In term of the working place, the
homes district from a separate workshop or. In a much wider sense of small industry located in
rural districts as contrasted with industry in urban areas; (ii) by the number of persons employed
in a given manufacturing unit and some times in terms of a comp liquated relationship involving
the use of power driven machinery; (iii) by the volume of capital invested in the industry; (iv)
by the economic structure. In terms of an artisan working on his own account or in term of an
employer worker relationship; (v)by technique in terms of manual skills and/or the use of
machinery, land.(vi) by other considerations such as the extent of market, the nature of the
finished products, the working time spent on the industry etc.

The small scale sector has been assigned an important role in the industrial economy of the
country on account of some of its inherent advantages like low capital intensity and high
employment generation potential. Besides, the sector promotes decentralization of industrial
activity and help in winding of the entrepreneurial base. Special emphasis has been laid on the
up gradation of technology and locernisntion of the small scale sector during the seventh fifth
year plan.in order to promote a quick and smooth development of all scale industries, an
institutional framework has been created along with an attractive package of incentives and
concessions which have been evolved to motivate Anda new generation of entrepreneurs.
Maiorconponents of the package include concessional finance, concessions in central excise
duty, marketing support through reservation of a large number of products for exclusive
manufacture in the small scale sector and for exclusive partial. Purchase from small scale units
government purchase departments facility for and public sector undertaking, hire machinery,
technical consultancy services, common facility services, testing facilities, industrial
accommodation supply of a critical raw materializing. Provisions of other infrastructural
facilities.

Characteristics of small scale industries:

1 .Ownership: such units are generally under single ownership. So it is a sole proprietorship
or sometimes a partnership.

2. Management: both the management and the control generally is with the owner/owners.
So the owner is actively involved with the daily running of the business.

3. Limited reach: small scale industries have a restricted area of operations. So they meet
local and regional demand.

4. Labor intensive: these small scale industries tend to use labour and manpower for their
production activities. So their dependence on technology is pretty limited.

5. Flexibility: these units are more adaptable to their changing business environment. So in
case of sudden changes or unexpected developments, they are flexible enough to adapt and keep
carrying on. Large industries do not have this advantage.

6 .Resources: they use local and readily available resources. This also helps the economy
with better utilization of natural resources and less wastage.

Small and large-scale enterprises are the two pillars of the industrialization process of a country.
Therefore, wherever thrust is given for industrialization, the existence of small-scale units could
be seen. The small industries are widely dispersed in various cities, towns and villages. This
issue to the immense potential that these units have, in meeting the needs of the local
surrounding markets centers and also due to the availability of local resources, such as raw
materials, manpower and entrepreneurship, besides, the capital required for their investment on
these are very little. Thus, in the context of scarce capital in developing countries like India,
small units economies the use of scarce capital and provide gainful employment. The whole
position occupied by the small units in the industrial structure of various advanced countries is
worth noting, "small business in the use has employed about 40 per cent of the nation's labour
force and accounted for roughly one third of the gross national product, about 31.2percent of
the business in the use had an initial capital investment of us$ 5000 or more". "in Japan 99.4
percent of all manufacturing units are in the small sector which account for 90 per cent of the
industrial employment,50 per cent of the industrial output and 40 percent of the export value of
industrial productsa2. In Germany 21 per cent of all the employees engaged in manufacturing
industries belonged.to the small sector, similarly, 26 percent of all manufacturing employees
belonged to the small sector in the united kingdom.
In india, the earlier development planning keeping its stress on the development of large scale
industry failed to solve the problems like balanced regional development, gainful employment
to millions of unemployed and equitable distribution of benefits industrialization. With
industrial development mostly confined to a few metropolitan cities and big towns, the benefits
of industrialization have hardly percolated. Thus, it has been realized later that the pattern of
industrialization could not be the same as the pattern of industrialization in western countries
due to the fact that India isa over populated country with wide regional imbalances and scarcity
of capital. Moreover, the welfare objectives ensured in the constitution imply that in the process
of development, the common man's welfare is to be given top priority. The guiding principle of
the socialistic pattern of society also dictates that the small scale should be recognised as the
means to achieve equitable growth. Therefore, increasing attention has been given to the
development of small scale units since the beginning of the second five year plan period. This
becomes evident in larger plan allocations to the small scale units and in wide ranging incentives
and 'support programmers. Under the various industrial policy resolutions, the main role
assigned to these small industries envisages, the following

1 Creation of employment opportunities on a massive scale with relatively small capital

investment.
2 Meeting a substantial part of the increased demand for consumer goods and simple producer
goods.
3 Facilitating the mobilization of local resources which would the rwisere main unutilized in
the rural areas.
4 Removal of regional imbalances through a deliberate policy over encouraging growth in
villages and small towns.
 CHAPTER 2:- LITERATURE REVIEW

Srinivasan K T, (2013) has studied the performance of micro, small and medium enterprises
and their contribution in India’s economic growth and concluded that MSMEs play a vital role
in the inclusive growth of Indian economy. Sumanjeet Singh and Minakshi Paliwal (2017)
in “unleashing the growth potential of Indian MSME sector” had concluded that undoubtedly
the MSME sector has huge potential for generating innovative entrepreneurship and massive
employment but some problems confronting MSMEs are Lack of access to finance Lack of
access to penetrate foreign market Lack of skilled manpower Lack of reliable and stable
infrastructure Ineffective marketing network.

Dr. Reetu Sharma (2012) in “problems and prospects of small scale industrial units (a case
study of exporting and non-exporting units in Haryana) had concluded that SSI units are at a
developing stage and more expansion is required but some problems need to be solved
Underutilization of installed capacity The marketing activities to be strong for selling SSI
manufactured products Dr. Jignesh H. Gadesha Adhypak Sahayak (2012) in “Importance of
Large Scale and Small Scale Industries in India” had expressed that cordial relationship between
employer and employees reduce the possibilities of industrial disputes and increase the
efficiency of employees. In small scale industries there is no strike or lockout due to the amiable
relationship between employer and employees, which leads to nil loss of production and man-
days.

Dr. Prakash M Tayde (2016) in “Contribution of financial institution in economic

development through small scale industry” had concluded that performance of small scale
industries is financed by the commercial bank and other financial institutions for their survival
and growth. Capital as a key component of any business, these financial institution helps to
bridge the gap between the rural alliances with the global world in setting up business through
various financial schemes and packages.

Savalia, (2006) , in his study on “Role of Small Industries Development Bank in India (SIDBI)
in industrial development in Gujarat state (with special reference to small scale industries)”
made an attempt to study the role of SIDBI in the development of SSI and examine the position
of SSI in Gujarat. The study found that SIDBI has sanctioned the maximum amounts to the
service industry and followed by infrastructure industry during the study period of 1999-2000
to 2003- 04 and the states receiving maximum amounts are Maharashtra followed by Tamil
Naidu and Gujarat, it also found that SIDBI has sanctioned and disburse the maximum
assistance to the private sector followed by public sector and trust and the maximum amount
was towards the establishment of new projects followed by modernization of the existing
projects. Vora, (2008)3 did a study on “Impact of selected banking system on small scale
industries with special reference to Gujarat” selecting only those banks that satisfy the criteria
of nationalized banks, to find the impact or finances of selected banking system on small scale
industries and found that the bank credit target and the bank credit achievement in Gujarat for
a period of five years (2002 to 2007) are highly positive related.
Babajide, (2011)4 did a study on „effects of micro financing on Micro and Small Enterprises
(MSEs) in Southwest Nigeria, to assess the contributions of micro financing of the survival of
MSEs in Nigeria, analyses the effects of micro financing an MSE growth and expansion
capacity and on the productivity of MSEs operators in Nigeria and examine the effects of non-
financial services of microfinance institutions on MSEs business performance in Nigeria. The
study found that the survival of micro and small enterprises (MSEs) depend largely on whether
the enterprises are able to generate profit from the use of micro funds and easy access to micro
credit. It also depends on regular participation of entrepreneurs in microfinance programmers
and whether entrepreneurs are able to convert the profits made in a particular year to further
investments.

Baby and Vasanthagopal, (2011)5 in their study on “Impact of Bank Credit on Agriculturists
and MSMEs: An empirical study with reference to Kerala”, tried to asses the impact of credit
on the employment , income and asset of the borrowers in the public and private sector banks
in Kerala, considering the perception of the borrowers and officials. The study found that there
is no significant change in the employment generation, income generation and asset generation
of agricultural and MSME borrowers in the post-loan period when compared to the pre-loan
period.
 CHAPTER 3 :- RESEARCH METHODOLOGY

The descriptive methodology has been used to collect the data, the data collected mostly from
secondary sources from various journals, books, articles, government published annuals reports,
website of different government agencies.

The small scale enterprises require finance at the time of initial setup of the enterprise and during
the life span of the enterprises too. There are different financial institutions that are playing a
very important role in the upcoming of these enterprises and there are various government
schemes also especially for the small sector. But there is a question that whether the financial
institutions are fulfilling the financial requirements of these enterprises adequately as and when
required and also whether these enterprises repay the credit provided to them in time. So, the
present study is conducted to get an answer to all these questions as small sector is an important
segment of our economy and unemployment problem can be eradicated only with the
development of more and more enterprises.
OBJECTIVE OF THE STUDY :-

1. To identify the role and contribution of small scale industry in GDP.

2. To identify the Performance of SSI / MSME Units, Employment, Investments and
Gross output.
3. To Study the Contribution of Financial Funding agencies in Small Scale Industry/
MSME through several Schemes/ Packages and Products.
4. To evaluate the financing of small enterprises by financial institutions.
5. To evaluate financial assistance requirements of small enterprises.

LIMITATIONS OF THE STUDY:-

Every research project has flaws and limitations. The following limits and limitations apply to
the current study.
1 The conclusion are based on respondents view and opinion which are subject
to human bias.
2 The analysis and ultimate findings would be dependent on my target audience,
whom I would survey via a survey form.
3 Insufficient database for small-scale industry is one of the major limitation of
the study.

DATA COLLECTION METHOD:-

To fulfill the objectives of my study, I have taken into consideration viz secondary data.

PRIMARY DATA:-

 Primary data : Survey

 Tools : Questionnaire
 Total responses: 62 Responses

SECONDARY DATA:-

 Secondary data : Articles And Website

CHAPTER 4:- DATA ANALYSIS AND INTERPRETATION

A small scale industry is an industrial undertaking in which the investment under fixed assets
in plant and machinery or equipment, whether held on ownership term or on lease or hire
purchase, does not exceed ₹ 10 crore for manufacturing enterprise and ₹ 5 crore for service
enterprise. However, the investment limit changes overtime as prescribed by the government.
In accordance with the provision of Micro, Small & Medium Enterprises Development
(MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two
classes:

1. Manufacturing Enterprises: The enterprises engaged in the manufacturing or production

of goods pertaining to any industry specified in the first schedule to the industries (Development
and regulation) Act 1951 or employing plant and machinery in the process of value addition to
the final product having a distinct name or character or use. The Manufacturing Enterprise are
defined in terms of investment in Plant and Machinery.

2. Service Enterprises: The enterprises engaged in providing or rendering of services and

are defined in terms of investment in equipment. [2] Industrial units are generally classified as
small, medium and large scale units considering their size, capital invested and the number of
human resource employed. The concept of small business has been defined by different
countries in different ways; however the definition changes over time. The limit for investment
in plant and machinery / equipment for manufacturing / service enterprises is shown in Table I.
 Table I- Limit for investment in plant and machinery / equipment

Enterprises Investment in plant and machinery /

equipment

Manufacturing Service Sector

Sector

Micro < ₹ 25 lakh < ₹ 10 lakh

Small > ₹ 25 lakh but < ₹ > ₹ 10 lakh but < ₹

5 crore 2 crore

Medium > ₹ 5 crore but < ₹ > ₹ 2 crore but < ₹

10 crore 5 crore

The small scale industries in India whether in manufacturing sector or service

sector are split up into five parts:

1. Manufacturing industries: These units are producing merchantable articles for

direct consumption and also for processing industries, example: khadi industries,
food processing industries, power looms, etc.
2. Ancillary industries: The ancillary industries produce parts and components for
large industries.
3. Service industries: Service industries are known for covering all light repairs shop
that is essential to maintain mechanical equipment. These industries completely
depend on machinery.
4. Feeder industries: These industries produce certain specialized products like
electroplating, casting, welding, etc.
5. Feeder industries: These industries produce certain specialized products like
electroplating, casting, welding, etc.
Small scale industries are the second largest employer of human resource after the agricultural
sector and produce a wide variety of products ranging from traditional to high-tech. SSI plays a
pivotal role in the Indian economy as of being labor-intensive, helps to generate employment in
rural as well as in urban areas. The SSIs had also played a cardinal role in the growth operation
of Indian economy since independence despite of drastic competition from the big industrial
houses and not immensely enriching support from the government.

For a successful setup, maintenance and progress of any SSI units several crucial inputs are
essential for smooth functioning, the essential input, however, is the finance both for investment
in fixed assets and for working capital. It is universally accepted that there is a need for easy
access to credit, adequate and timely need based at a reasonable rate of interest. The financial
institutions in India being consistently the major source of long term funds for the industrial
sector; they provide a wide variety of financial products and services to fulfill various kinds of
commercial activity. The industrial sector being small, medium or large get financial assistance
to set-up and progress from this financial institution, even industries in backward areas being
benefited from these institutions which help to reduce regional imbalances. The financial
institutions can be classified into two parts national level and state level institutions, depending
upon the geographical coverage of their operations. At the national level, they provide long and
medium term loans at reasonable rates of interest. These financial institutions subscribe the
debenture issues of companies; take part in underwriting the public issue of shares, guarantee
loans, and deferred payments, etc. On the other hand, the State level institutions are mainly
concerned with the development of medium and small scale enterprises, but they provide the
same type of financial assistance as the national level institutions. A wide range of financial
institutions has been set up at the national level with the initiatives of the union government to
cater to the diverse financial requirements of the entrepreneurs. Following are some important
financial institution that performs a vital role in business enrichment.
Non-innovative sources of financing ssi includes sauvkar, friends and relatives, public, private,
lead, co-operative banking, other financial institutional agencies, government agencies
schemes. In other word, traditional (sauvkar, friends and relatives), modern banking network
(public, private lead and co-operative bank) and assistance under government agencies schemes,
bill of exchange, trade credit, public deposits etc. Are called non-innovative sources of financing
small scale industries. Innovative sources of financing includes assistance under innovative
initiative schemes, credit card schemes, factoring, leasing, joint venture, mutual fund, hire
purchasing, foreign direct investment etc. They may not new or innovative for medium and
large scale industries. But they are innovative because newly and they are first time may be used
by small scale enterprises/small entrepreneurs. Hence they are innovative for small scale
enterprises/small entrepreneurs. Non-innovative and innovative sources.

Schemes implemented through district industries centre (dic) as a source of financing

small scale industries:

After establishing various state level industrial support organizations, a need for district level
centres was felt necessary. In view of this dics were started in 1978 to focus on district level
and rural level promotion of small-scale industries. All the procedures and formalities for
starting small industry were provided through a single window in dics. Thus it was felt the
implementation of central and state government policies would be easier and smoother due to
dics. This is state government body and managerial level personnel are employed to carry out
the responsibilities of all thedics. Following schemes are implemented through dic:

1. Prime minister rojgar yojana :

Prime minister rozgar yojana for providing self-employment to educated unemployed youth was
announced by the prime minister on 15th august, 1993 which was formally launched on 2nd
October, 1993. Along with satisfaction of self-employment, the ssi sector has got the inherent
advantage of utilising the local resources, technologies for productive purposes and at the same
time could satisfy the needs of the local people and exploit the local market at micro level with
the help ofpmry scheme.

2. New seed money schemes :

The objective of the scheme is to encourage unemployed person to take up self employment
ventures through industry, service and business, by providing soft loans to meet part of the
margin money to avail institutional finance.

3. Margin money schemes :

The objective of the scheme is to assist deserving entrepreneurs in setting up smallscale

industrial units by way of providing soft loan to raise the required equity insistedby the financing
institutions. Margin money loan is given for both term loan andworking capital loan. It is limited
to 20% of the cost of project or of the total workingcapital requirement or 50% of the margin
stipulated by the financing institution eitherfor term loan or working capital loan, whichever is
less.
4. National equity fund scheme :

The corporation adopted the scheme w.e.f. 15.02.2002 with result that eligible projects under
the scheme upto project cost of rs. 50 lakhs can be facilitated to avail financial assistance at
lower promoters contribution and lower effective interest rates. National equity fund (nef) under
small industries development bank of india(sidbi) provides equity type assistance to ssi units,
tiny units at five per cent service charges

5. Mahila udyam nidhi :

Mun is designed to help meet gap in equity in starts up by women entrepreneurs. sidbi or small
industries development bank of India is a principal financial institute for promotion, financing,
and development of industry in small scale sector. The purpose of mun is to help women
entrepreneurs meeting equity funds requirements will setting up a new business.

6. Single window scheme :

To provide both term loan for fixed assets and for working capital through a single agency. The
total working capital requirement of such units inclusive of all fund based facilities are to be
taken into account for determining the working capital facility eligible for refinance.
Entrepreneurs setting up new projects in ssi / tiny sector, new promoters acquiring
unencumbered fixed assets of existing ssi concerns from plis, as also existing well run units
undertaking modernisation/ technology upgradation and potentially viable sick units
undertaking rehabilitation scheme.

7. Raw-material supply scheme :

Through its distribution system, the nsic has been supplementing the availability of raw material
to a large number of small industries scattered all over the country. Surplus nonferrous scraps
with the ordinance factories and depots are made available to nsic for distribution to tiny and
small units. The main objective is that the raw material should reach the genuine manufacturing
units even in the hinterland. nsic has also been importing brass scrap and zinc dross from abroad
for distribution to small scale units. Under its raw material assistance programme, nsic also
assists in the import of ogl items as per the import-export policy. Import is against specific
indents received from
Small units and is preferably on "high-seas sale" basis depending on the requirement of
individual units.

8. Schemes for ex-service man:

In self-employment, opportunity lies in manufacturing activities, small-

Scale service establishments, agriculture, cottage and village industries. Directorate general
resettlement has launched a few self-employment schemes for the resettlement of exservicemen
and widows. This scheme has been promoted with the assistance of national bank for agriculture
and rural development (nabard). It provides refinance to banks for financing for development
of agriculture and allied activities, such as minor irrigation, farm mechanisation, mushroom
cultivation, dairy, poultry, sheep and goat rearing, fisheries, plantation/ horticulture, agro-
processing units including food processing, forestry, wasteland development, etc

9. Scheme of national institute for entrepreneurship and small business development

(niesbud):

Niesbud is an apex body under the ministry of micro, small & medium enterprises, and
government of india for coordinating and overseeing the activities of various
institutions/agencies engaged in entrepreneurship development particularly in the area of small
industry and small business.

10. Sc/st and physically handicapped entrepreneurs scheme:

Investment subsidy, seed capital, concessional loan, reservation of plot in midc, freeedp
training, marketing, income tax, margin money, etc. Facilities are provided tosc/st and
physically handicapped entrepreneurs by the state/central government.

11. Maharashtra state small industrial development corporation Scheme(mssidc):

Ssidcs established under the companies act, 1956, are state

Government undertakings, responsible for catering to the needs of the small, tiny and cottage
industries in the state or union territories under their justification. Ssidcs enjoy operational
flexibility and can undertake a variety of activities for development of thesmall sector,
especially marketing. Ssidcs help the tiny and small industries increase their market share.

Institutions for technical guidance as a source of financing smallscaleindustries:

1. State bank of India :

State bank of India provides financial support for technical guidance.

2. Small industries socio institute :

The small industries service institutes have been set up in state capitals and other places all over
the country to provide consultancy and training to small entrepreneurs both existing and
prospective. It serve as interface between central and state government, render technical support
services, conduct entrepreneurship development programmes, initiate promotional
programmes, economic consultancy/information/edp consultancy, trade and market
information, project profiles, state industrial potential surveys, district industrial potential
surveys, modernization and in plant studies, workshop facilities, training in various
trade/activities.

3. Small industries development corporation (sidco):

Central small industry organization (csio) is the heart of all agencies dealing with the
development of small industry, renamed as small industries development organisation (sido). It
is a policy-making, coordinating and monitoring agency forth development of ssi entrepreneurs.
It is the nodal agency that advises the ministry of industry and other ministries in formulating
policies and programmes for the development of ssis. It also overseas the 'package of services'
rendered by the Sisi sat field level and provides comprehensive range of consultancy services
and technical, managerial and marketing assistance to ssi units.

4. National research and development corporation :

The national research development corporation (nrdc) was a non- departmental government
body established by the British government to transfer technology from the public sector to the
private sector. National research development corporation(nrdc) was established in 1953 by the
government of India, with the primary objective to promote, develop and commercialise the
technologies/know-how/inventions/ patents/processes emanating from various national r&d
institutions /universities and is presently working under the administrative control of the dept.
Of scientific & industrial research, ministry of science & technology.

5. Development of science and technology :

Development in science and technological referred to as science and technology studies, is the
study of how social, political, and cultural values affect scientific research and technological
innovation, and how these, in turn, affect society, politics and culture.

6. Gic and unit trust of india :

The general insurance corporation of India (gic) was established in January 1973 on
nationalization of general insurance companies in the country. Gic has four subsidiaries, operate
a number of insurance schemes to meet the diverse and emerging needs of various segments of
society. According to government guidelines, 70percent of the annual accretions to their
investible funds are required to be invested in socially oriented sectors of the economy. Since
April 1976, gic has been participating with other financial institutions in extending term loans
to industrial undertakings and providing facilities for underwriting/direct subscription to their
shares and debentures.
Some aspects of innovative sources of financing small scale industries:
Types of sources of financing small scale industries:

1. Leasing:

A lease is an agreement between two parties, the "lessor" and the "lessee". The lessor owns a
capital asset, but allows the lessee to use it. The lessee makes payments under the terms of the
lease to the lessor, for a specified period of time. Leasing is a form of rental. Leased assets have
usually been plant and machinery, cars and commercial vehicles, but might also be computers
and office equipment. There are two basic forms of lease: "operating leases" and "finance
leases". The leasing business in India started, in seventies when the first leasing company of
India was promoted by Chidambaram group in 1973 in Chennai. Now their number is very large
and leasing has emerged as an important source. It is very helpful for the small and medium
sized undertakings, which have limited financial resources.

2. Hire purchase:

Hire purchase is a form of instalment credit. Hire purchase is similar to leasing, with the
exception that ownership of the goods passes to the hire purchase customer on payment of the
final credit instalment, whereas a lessee never becomes the owner of the goods. An industrial
or commercial business can use hire purchase as a source of finance. With industrial hire
purchase, a business customer obtains hire purchase finance from a finance house in order to
purchase the fixed asset. Goods bought by businesses on hire purchase include company
vehicles, plant and machinery, office equipment and farming machinery.

3. Venture capital:

Venture capital is money put into an enterprise which may all be lost if the enterprise fails. A
businessman starting up a new business will invest venture capital of his own, but he will
probably need extra funding from a source other than his own pocket. So, the term 'venture
capital' is more exclusively associated with putting money, usually in return for an equity stake,
into a new business, a management buy-out or a
Major expansion scheme. The institution that puts in the money recognizes the gamble inherent
in the funding. There is a serious risk of losing the entire investment, and it might take a long
time before any profits and returns materialize. But there is also the prospect of very high profits
and a substantial return on the investment. A venture capitalist will require ahigh expected rate
of return on investments, to compensate for the high risk. A high percentage of requests for
venture capital are rejected on an initial screening, and only a small percentage of all requests
survive both this screening and further investigation and result in actual investments.

4. Franchising:

Franchising may be defined as an arrangement where one party (franchiser) grants another party
(franchisee) the right to use trade name as well as certain business systems and process, to
produce and market goods or services according to certain specifications. The franchisee usually
pays a one-time franchisee fee plus a percentage of sales revenue as royalty and gains.
Franchising is a method of expanding business on less capital than would otherwise be needed.
For suitable
Businesses, it is an alternative to raising extra capital for growth. Franchisors include budget
rent-a-car, wimpy, Nando’s chicken and chicken inn. Under a franchising arrangement, a
franchisee pays a franchisor for the right to operate a local business, under the franchisor's trade
name. The franchisor must bear certain costs (possibly for architect's work, establishment costs,
legal costs, marketing costs and the cost of other support services) and will charge the franchisee
an initial franchise fee to cover set-up costs, relying on the subsequent regular payments by the
franchisee for an operating profit. These regular payments will usually be a percentage of the
franchisee's turnover. The advantage of a franchise to a franchisee is that he obtains ownership
of a business for an agreed number of years (including stock and premises, although premises
might be leased from the franchisor) together with the backing of a large organisation’s
marketing effort and experience. The franchisee is able to avoid some of the mistakes of many
small businesses, because the franchisor has already learned from its own past mistakes and
developed a scheme that works. This is also treated as financing.

5. Mutual funds:

Mutual fund refers to a fund established in the form of a trust by a sponsor to raise money
through one or more schemes for investing in securities. It is a special type of investment
institution, which acts as an investment intermediary that collectsor pools the savings of a large
number of investors and invests them in a fairly large and well diversified portfolio of sound
investments. This minimizes their risk and ensures good returns to the investors. Thus, they act
as an investment agency for small investors and a good source for long-term finance for the
business.

6. Joint venture:

A joint venture is an entity formed by two or more companies to undertake financial activity
together. The parties agree to contribute equity to form a new entity and share the revenues,
expenses, and control of the company. It may be project based joint venture or functional based
joint venture. Project based joint venture, the joint venture entered into by the companies in
order to achieve a specific task is known as project based joint venture. Functional based joint
venture: the joint venture entered into by the companies in order to achieve mutual benefit is
known as functional based joint venture.

7. FAMILY & FRIENDS:

Parents, sibling, extended relatives & friends who have excess cash to lend may be willing to
finance your business. They may lend the money to the business in the form of a loan or may
be willing to take an equity stake in the company.

7. Own capital:

Number one & the easiest source of finance for a small business is one's own savings. At any
stage of business, when a business is in need of capital, an entrepreneur can tap into his personal
assets such as stocks, mutual funds, real estate or jewellery - to raise money. He can either sell
the assets to raise money or take a loan on any of the assets. Entrepreneurs can invest such
personal capital in their business as equity capital, or they can give loans to their own company.
8. Personal loan :

If a company is unable to get a business loan, the entrepreneur might consider getting a personal
loan & using it in their business. The entrepreneur must have a good credit history for raising a
personal loan. We can get a personal loan by mortgaging home, jewellery, etc.

9. Crowd funding :

Crowd funding is a relatively new method when we consider sources of finance. It is a method
of raising funds by borrowing a small amount of money from a large group of people. A typical
typical example of crowd funding is proposing people to invest US$ 10, and even if 1000 people
invest, the company can raise US$ 10,000. Such financing is usually done for a particular
project. The benefit of crowd funding is that small company can make flexible proposals as per
their requirement. They can offer equity against the money or take the money on loan; they can
offer simple interest payments as against compound interest like most regular loans.
Crowd funding gained popularity after the rise of social media because it became easier to reach
a number of people by putting minimum effort.

10. Small business loan:

Each country has certain banks or institutions dedicated to providing loans only to small
businesses, an example of such institute in India is SIDBI, in the USA there is SBA. The main
target of these institutions is to lend money to small businesses who have not been able to obtain
financing on reasonable terms through normal lending channels. These entities usually give
money as loans only.

11. Trade credit:

Some small businesses might have suppliers willing to sell on credit. Such credit may range
anywhere from one month to three months. This is a very good method for small companies to
fulfil short-term funding needs. This is an inexpensive method of finance for any small business.

12. Banks:

Banks have a special department dedicated to providing loans to small companies. To get a loan
from a bank, companies have to qualify for bank's minimum criteria. Every bank has its own
criteria with regards to earning potential, annual turnover, credit scores, etc. There are many
types of loans that banks offer such as working capital loans, term loans, loan against property,
etc. Companies can choose the type of loans as per their requirement.
Role in the Indian Economy:-

Employment

SSI’s are a major source of employment for developing countries like India. Because of the
limited technology and resource availability, they tend to use labour and manpower for their
production activities.

Total Production

These enterprises account for almost 40% of the total production of goods and services in India.
They are one of the main reasons for the growth and strengthening of the economy.

Make in India

SSI’s are the best examples for the Make in India initiative. They focus on the mission to
manufacture in India and sell the products worldwide. This also helps create more demands
from all over the world.

Export Contribution

India’s export industry majorly relies on these small industries for their growth and
development. Nearly half of the goods that are exported from India are manufactured or
produced by these industries.
Public Welfare

These industries have an opportunity to earn wealth and create employment. SSIs are also
important for the social growth and development of our country.

Seedbed for Large Scale Industries

SSI acts as the seedbed for Large Scale Industries (LSI) as it provides conducive conditions for
the development and growth of entrepreneurs. Small enterprises require low investment and
simple technology and use local resources to meet local demands through personal contacts.
Thus, it creates scope for the growth and development of LSI.

Self Employment

They provide immense opportunities for self employment as they can be started with very less
capital and training.

Equal Distribution of Income

They have a capacity to bring about more balanced distribution of income and wealth as they
are generally set up in the backward areas.

Decentralization of Industries

These are usually located in backward regions instead of already developed urban industrial
hubs. Thus they promote the objective of regional development.

Support to Large Scale Industries

They are responsible for providing all the basic raw materials to the large scale industries which
are the basis of their operations and development.

Agricultural Development
The development of SSI’s will divert labour from agriculture to industries which will bring
about a more desirable occupational structure. SSI’s can bring about agricultural development
through promotion of agro based industries like agricultural machinery, repairs and service
workshops, etc.

SSI Facilitates Women Growth

1. It provides employment opportunities to women in India.

2. It promotes entrepreneurial skills among women as special incentives are given to women
entrepreneurs.
SSI Brings Balanced Regional Development

1. SSI promotes decentralized development of industries as most of the small scale industries
are set up in backward and rural areas.
2. It removes regional disparities by industrializing rural and backward areas and brings
balanced regional development.
3. It promotes urban and rural growth in India.
4. It helps to reduce the problems of congestion, slums, sanitation and pollution in cities by
providing employment and income to people living in rural areas. It plays an important role
by initiating the government to build the infrastructural facilities in rural areas.
5. It helps in improving the standard of living of people residing in suburban and rural areas in
India.
6. The entrepreneurial talent is tapped in different regions and the income is also distributed
instead of being concentrated in the hands of a few individuals or business families.

SSI Helps in Mobilization of Local Resources

1. It helps to mobilize and utilize local resources like small savings, entrepreneurial talent,
etc., of the entrepreneurs, which might otherwise remain idle and unutilized. Thus it helps in
effective utilization of resources.

2. It paves way for promoting traditional family skills and handicrafts. There is a great
demand for handicraft goods in foreign countries.

3. It helps to improve the growth of local entrepreneurs and self-employed professionals

in small towns and villages in India.

SSI Paves for Optimization of Capital

1. SSI requires less capital per unit of output. It provides quick return on investment due
to shorter gestation period. The pay back period is quite short in small scale industries.

2. SSI functions as a stabilizing force by providing high output capital ratio as well as high
employment capital ratio.

SSI Meets Consumer Demands

1. SSI produces wide range of products required by consumers in India.

2. SSI meets the demand of the consumers without creating a shortage for goods. Hence, it
serves as an anti-inflationary force by providing goods of daily use.
Develops Entrepreneurship

1. It helps to develop a class of entrepreneurs in the society. It helps the job seekers to turn out
as job givers.

2. It promotes self-employment and spirit of self-reliance in the society.

3. Development of small scale industries helps to increase the per capita income of India in
various ways.

4. It facilitates development of backward areas and weaker sections of the society.

5. Small Scale Industries are adept in distributing national income in more efficient and
equitable manner among the various participants of the society.

Objectives of SSI
The objectives of the small scale industries are:

• To create more employment opportunities.

• To help develop the rural and less developed regions of the economy.
• To reduce regional imbalances.
• To ensure optimum utilisation of unexploited resources of the country.
• To improve the standard of living of people.
• To ensure equal distribution of income and wealth.
• To solve the unemployment problem.
• To attain self-reliance.
• To adopt the latest technology aimed at producing better quality products at lower
costs.
Examples and Ideas of SSIs in India

• Bakeries
• School stationeries
• Water bottles
• Leather belt
• Small toys
• Paper Bags
• Photography
• Beauty parlors
• Spinning and weaving industry
• Coconut oil making
• Cashew nut processing
• Clay products
• Agarbatti making
• Chalk making
• Biodiesel production
• Rice mill
• Toys making
• Honey processing
• Slippers making
• Detergent powder making
• Spices making
• Chocolate making
• Water bottles manufacturing
• Toothpick making
• Xerox and printing
• Pickle manufacturing industry
• Incense stick manufacturing industry
• Paper plate manufacturing industry
• Candle manufacturing
Registration of SSI

SSI registration is a registration provided by the Ministry of MSME. A business should obtain
SSI registration in order to be eligible for a number of schemes, subsidies and other incentives
provided by the Government to such SSI’s. SSI registration can be obtained online too.

Overview of SSI Registration

SSI registration is provided by the Ministry of Micro, Small and Medium Enterprises (MSME)
through the Directorate of Industries of the State Government. The main logic behind the SSI
registration is to set up new SSI businesses in India. SSI registration helps the business to be
eligible for a number of subsidies given by the Government. We can also get SSI/MSME
registration online through Udyam Registration. Let’s look at the process of SSI/MSME
registration online:

• Visit the Udaym Registration portal and click on the “For New Entrepreneurs who are
not Registered yet as MSME or those with EM-II”.

• Fill in your “Aadhaar Number” and “Name of the Entrepreneur” and click on the
“Validate and Generate OTP” button.

• You will receive OTP to your mobile number. Enter OPT on the PAN verification page
will open. Enter PAN details and click on the “PAN Validate” button.
 • The Udyam Registration page will open. Fill in all the personal details and industry
details such as industry name, address, bank account details and some common
information and click on the “Submit and Get Final OTP” button.

• With this the MSME registration is complete and a message of successful registration
with a reference number will appear. After verification of registration, the MSME
Registration Certificate is issued.

If a person wants to get registration for more than one industry then also he/she can opt for an
individual SSI registration. The documents required for the SSI registration are the Aadhar
number and PAN number. No registration fees are required for the registration.

Eligibility Criteria for SSI Registration:

SSI registration can be obtained for enterprises that are considered as micro and small
enterprises under the MSME Act, 2006.

A micro enterprise is an enterprise whose investment in plant, machinery and equipment does
not exceed Rs.1 crore, and turnover does not exceed Rs.5 crore.

A small enterprise is an enterprise whose investment in plant, machinery and equipment does
not exceed Rs.10 crore, and turnover does not exceed Rs.50 crore.
Benefits of obtaining SSI Registration:

• There are various tax rebates offered to SSI’s.

• A credit for Minimum Alternate Tax (MAT) is allowed to be carried forward for up to 15
years instead of 10 years.
• There are many government tenders that are only open to the SSI.
• Easy access to credit as banks and financial institutions offer many loan schemes for
small businesses.
• Once registered the cost of acquiring a patent, or the cost of setting up the industry
reduces as many rebates and concessions are available.
• Businesses registered as SSI are given a higher preference for government licenses and
certification.
• SSIs can obtain collateral-free automatic loans for the purchase of raw materials,
fulfilling operational liabilities or restarting the business.
• There are several government schemes that provide support to SSIs. These schemes
are listed below:
• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides
institutional credit to small scale industries.
• Credit Linked Capital Subsidy Scheme (CLCSS) is an extension of credit for the
upgradation of technology in SSIs.
• Market Promotion and Development Scheme (MPDA) helps SSIs to set up marketing
complexes or khadi plazas to expand the marketing network of Khadi and Gram Udyog
products.
• Coir Vikas Yojana (CVY) scheme envisages a wide range of activities like skill
development of artisans, mahila coir yojana, upgrading and establishing a new unit
under Coir Industry Technology Upgradation Scheme (CITUS), promoting the domestic
as well as an export market, providing of trade and industry-related functional support
services, and welfare of coir workers.
• International Cooperation Scheme arranges for delegations to other countries for
exploring technology upgradation, facilitating buyer-seller meets in foreign states.
• Marketing Assistance Scheme allows for arranging overseas exhibitions, campaigns and
other promotional activities.
• Procurement and Marketing Support Scheme aims at improving the domestic markets
and promoting new market access.
Presentation of analysis of data:-

Primary Data :-

This chapter deals with presentation and analysis of the data. data has been collected from
questionnaire. It’s a real time data and it is more Accurate of reliable.
Any personal opinion on small scale industries?

1. No
2. Nothing
3. Small scale industry play most important role in the Indian economy.
4. In a country like India, the small scale industries play a very important role in generating
employment, improving the financial status of people, development of rural areas and
removing the regional imbalances.
5. Nothing
6. Yes, They play a crucial role in creating employment in an economy because they are the main
sources of employment for those who live in rural areas.
7. Small scales industries help to employment generate.
8. Yes, It improves the growth of the country by increasing urban and rural growth.
9. I think we should promote more
10. We should support the small scale business as they provide opportunities for entrepreneurs
and jobs for the residents.
11. Yes, Small Scale Industries have important place in the economic development of India. These
industries are labour intensive which generate more employment.
Problems faced by Small Scale Industries:-

The following are the problems faced by Small Scale Industries:

1.Poor capacity utilization :-

In many of the Small Scale Industries, the capacity utilization is not even 50% of the installed
capacity. Nearly half of the machinery remains idle. Capital is unnecessarily locked up and idle
machinery also occupies space and needs to be serviced resulting in increased costs.

2.Incompetent management :-

Many Small Scale Industries are run in an incompetent manner by poorly qualified
entrepreneurs without much skill or experience. Very little thought has gone into matters such
as demand, production level and techniques, financial availability, plant location, future
prospects etc. According to one official study, the major reason for SSI sickness is deficiency
in project Management i.e., inexperience of promoters in the basic processes of production, cash
flow etc.

3.Inadequate Finance :-

Many Small Scale Industries face the problem of scarcity of funds. They are not able to access
the domestic capital market to raise resources. They are also not able to tap foreign markets by
issuing ADR’s (American Depository Receipts) GDR’s (Global Depository Receipts) etc
because of their small capital base. Banks and financial institutions require various procedures
and formalities to be completed. Even after a long delay, the funds allocated are inadequate.

Bank credit to the small scale sector as a percentage of total credit has been declining. It fell
from 16% in 1999 to 12.5% in 2002. Small Scale Industries are not able to get funds
immediately for their needs. They have to depend on private money lenders who charge high
interest. Finance, as a whole, both long and short term, accounts for as large as 43% of the
sector’s sickness.

4. Raw material shortages :-

Raw materials are not available at the required quantity and quality. Since demand for raw
materials is more than the supply, the prices of raw materials are quite high which pushes up
the cost. Scarcity of raw materials results in idle capacity, low production, inability to meet
demand and loss of customers.

5. Lack of marketing support:-

Small Scale Industries lack market knowledge with regard to competitors, consumer
preferences, market trends. Since their production volume is small and cannot meet demand for
large quantities their market is very restricted. Now with the process of liberalization and
globalization they are facing competition from local industries as well as foreign competitors
who sell better quality products at lower prices. For e.g. heavily subsidized but better quality
imports from China has made most of the Indian SSI units producing toys, electronic goods,
machine tools, chemicals, locks and paper etc., unviable.

6. Problem of working capital:-

Many Small Scale Industries face the problem of inadequate working capital. Due to lack of
market knowledge their production exceeds demand, and capital gets locked in unsold stock.
They do not have enough funds to meet operational expenses and run the business.

7. Problems in Export:-

They lack knowledge about the export procedures, demand patterns, product preferences,
international currency rates and foreign buyer behavior. Small Scale Industries are not able to
penetrate foreign markets because of their poor quality and lack of cost competitiveness. In
countries like Taiwan, Japan etc. products produced by Small Scale Industries are exported to
many foreign countries. But in India not much thought and focus has gone into improving the
export competitiveness of Small Scale Industries.

8. Lack of technology up-gradation:-

Many Small Scale Industries still use primitive, outdated technology leading to poor quality and
low productivity. They do not have adequate funds, skills or resources to engage in research
and development to develop new technologies. Acquiring technology from other firms is costly.
Therefore Small Scale Industries are left with no choice but to continue with their old
techniques.

9. Multiplicity of labour laws:-

One of the merits of Small Scale Industries are that they are labour intensive and can provide
employment to a large number of people. But the multiplicity of labour laws, need to maintain
several records (PF, ESI, Muster Rolls etc), fines and penalties for minor violations etc place
Small Scale Industries at a great disadvantage.

10. Inability to meet environmental standards :-

The government lays down strict environmental standards and Courts have ordered closure of
polluting industries. Small Scale Industries which are already facing shortage of funds to carry
out their business are not able to spend huge sums on erecting chimneys, setting up effluent
treatment plants etc.

11. Delayed payments :-

Small Scale Industries buy raw materials on cash but due to the intense competition have to sell
their products on credit. Buying on cash and selling on credit itself places a great strain on
finances. The greater problem is payments are delayed, sometimes even by 6 months to one
year. It is not only the private sector but even government departments are equally guilty.
Delayed payments severely impact the survival of many Small Scale Industries.
12. Poor industrial relations :-

Many Small Scale Industries are not able to match the pay and benefits offered by large
enterprises, because their revenues and profitability are low and also uncertain. This leads to
labour problems. Employees fight for higher wages and benefits which the SSI is not able to
provide. This may lead to strikes, resulting in damage to property in case of violence by
employees, production losses etc.

13. Strain on government finances :-

Marketing of products manufactured by Small Scale Industries is a problem area. The

government has to provide high subsidies to promote sales of products produced by Khadi and
Village Industries. This places a great strain on government finances.

14.Concentration of industrial units :-

There is high concentration of small scale industrial units in a few states. Of the estimated 1.37
million registered units as on 2020-21, nearly 35% were located in three states. Uttar Pradesh,
Tamil Nadu and Kerala alone account for 35% of Small Scale Industries. Due to concentration,
there is high competition among them to procure raw materials and other industrial inputs. This
leads to high costs and scarcity of raw materials and other inputs affecting their production and
increasing costs.

15. Inadequate dispersal :-

One of the objectives of the government in promoting Small Scale Industries was to increase
industrial development and employment opportunities throughout the country. Since nearly
60% of the Small Scale Industries are concentrated in few states, the objective of balanced
regional development and promotion of backward areas has not been achieved. Further majority
of Small Scale Industries are located in urban areas and the aim of industrial development in
rural areas has also been defeated.

16. Widespread sickness:-

Sickness among Small Scale Industries is widespread. Sickness is not detected in the initial
stages and large amount of funds are locked in them. Due to this new entrepreneurs are not able
to get loans, workers in the sick units lose their jobs and industrial and economic development
is affected.
17. Lack of awareness :-

The government has set up many organizations to support and provide assistance to Small Scale
Industries. But, many of the entrepreneurs running Small Scale Industries are not aware of the
various support services.

18. Government interference :-

Small Scale Industries have to maintain a number of records and there are endless government
inspections. A lot of time, money and effort is wasted in complying with various inspections
and records verification. This prevents Small Scale Industries from fully concentrating on their
business activities.
 CHAPTER 5:- FINDINGS AND SUGGESTIONS

FINDINGS:-

 SSIs help to create more and more employment opportunities.

 SSI units provide medical facilities and safety uniforms to their workers at the workplace. They
also provide other facilities such as subsidized food, transport facilities, education etc.

 Due to the competition from large scale industries, SSI faces problems related to marketing,
Labour etc.

 The study observed a growth in the number of SSI units, and SSI units also contribute to
Production, employment generation, promotion of exports.

 It indicates that globalization has harmed the SSI units. It clearly shows that SSI units were not
at all prepared to face the challenges of globalization
SUGGESTIONS:-

• The documents desired should be reduced at the time of opening the industry, and then
more enterprises will try to set up.
• The subsidy should be provided as early as possible. The persons should not have to
wait much time for getting the subsidy, and then the enterprises will grow.
• The financial institutions and the DICC should organize seminars jointly for starting the
relevant businesses to cater to the needs of the society and the country.
• The entire process of registration of an enterprise should be made online and the viability
of the project should be approved online only, the entrepreneurs need not submit documents
unnecessarily again and again.
• The information regarding the registration and other project information should be
shared by the DICC directly to the financial institutions, so the entrepreneurs need not have to
submit the same documents again at the time of getting the loan.
• The bank should grant short, medium and long term loans at low-interest rate to small
business.
• The SSI units must provide appropriate training to their managers from the professionals
to improve their managerial abilities .
• It is always preferable to assign jobs and responsibilities based on merit. They have to
consider the individuals experience and follow the “right person – right job” concept in human
resources management.
• Special efforts should be made to educate employees about visions, goals and objectives.
 CHAPTER 6:- CONCLUSION
From the study it can be concluded that the financial institutions are adequately financing the
small scale enterprises and the government is also working for the growth of the enterprises
with adequate schemes. The entrepreneurs are unaware of the schemes of the government, so
the entrepreneurs themselves and the government should work more for the awareness of the
entrepreneurs. Although the financial institutions are adequately financing but the process is
lengthy which in the competitive era demands to be made as easy as possible. If the entire
process of financing and set up of an enterprise is made easier, many new small scale enterprises
will be inspired and established in the rural areas leading to the development of the rural areas
and the economy.

The furtherance and advancement of SSIs are essential for the development of Indian economy
to achieve an impartial distribution of income and wealth, economic self-dependence, and
economic sustainable developments. To boost the SSI sector so that it can take deserved a place
in the growth mechanism of the Indian economy, it is essential to support MSMEs by educating
them to make optimum utilization of inbuilt capacity to be successful both under human and
economic activity. capital as one of the key component of any sort of business activity, without
adequate capital it makes a difficult path for achieving the ultimate objective of business and
their set- up. Financial Institutions thus performs a pivotal role in rural alliance with the
globalized world by supporting the rural population in small business set up through their
several schemes and packages. In the last decade, financial institution had contributed a lot in
providing finance and by delivering expertise services to these small scale enterprises but a lot
of work to be accomplished for better growth and prosperity. Here, it must be noted that
Financial Institution Work on Front Desk of the society and try to diagnosis the problem of new
potential entrepreneurs.

In India, the small-scale industries play an important role in the growth of the economy.
Industries can be classified on the basis of their size in terms of money invested on the basis of
investment, industries are classified into-large-scale industries, small-scale industries, ancillary
industries and tiny industries.

Industries whose investment is up to rs. 60 laces are treated as small-scale industries. This limit
of investment was fixed in the year 1991. It has been changing from time to time. Small-scale
industries have an important place in the-Indian economy. As we know India is a developing
country. There is shortage of capital in our country. We are not so advanced in using technology.

Small-scale industries do not need huge amount of capital. They provide immediate large- scale
employment. Small-scale industries do not depend on very advanced technology. The industrial
policy resolution of 1956 was in favor of small-scale industries. 836 items were reserved for
manufacturing in the small-scale industries.
Small-scale industries have great importance in the growth and development of the Indian
economy. Small-scale industries require a low amount of capital. Entrepreneurs with a small
amount of capital can start of a small-scale units.

In India there is shortage of capital. So, it has great importance. Small-scale industries employ
more workers per unit of investment as compared to large scale units. In India unemployment
is high so, small-scale industries can reduce the problem. Small-scale industries use the locally
available resources which otherwise would remain unutilized. By locally available resources
we mean natural resources available
 REFERENCES
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Chaudhari, International journal of engineering and management research, Vol-4, issue-2,
April-2014
[5] ‘Opportunities and challenges for small scale industries of India in a global economy’ by
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[6] Annual Report, Ministry of Micro, Small and Medium Enterprises, Govt. of India 2015-16
[7] ‘Small Scale Industries In India: Opportunities And Challenges’ by S. Banik,
International Journal of Creative Research Thoughts, Vol-6, issue-1, January-2018
[8] ‘Role of SMES in Economic Development of India’ by Dr. Uma P, Asia Pacific Journal of
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[9] Singh I, NS Gupta (1971) Financing of Small Industry. S. Chand & Co Ltd, New Delhi.
[10] Abor, J. (2005). “The Effect of Capital Structure on Profitability: An Empirical Analysis
of Listed Firms in Ghana.” Journal of Risk Finance, Emerald Group Publishing, Vol.6 (5),
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[11] Abor, J. and N. Biekpe. (2007). “Small Business Reliance on Bank Financing in Ghana.”
Emerging Market Finance & Trade, 43(4), pp. 93 – 102.
[12] Alhassan, A. (2012). “SME Quick Loan”, URL:Http://www.Dailyguide.Com (March
20, 2012)Aryeetey, E. (1998). “Informal Finance for Private Sector Development in Africa.”
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 Website Reference

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• https://cleartax.in/s/small-scale-industries-ssi