STRATEGIES FOR IMPROVING

SMALL SCALE ENTERPRISES

Submitted by:-
RITIKA
DHWANI DHINGRA
SANCHIT KAUSHAL
SCOPE OF THE PROJECT

The consumer industry in India is not only growing horizontally, but the configuration of consumer profile
is also changing rapidly, said Mr RK Shukla of National Council for Applied Economic Research
(NCAER), the organisation engaged in market research and analyses.

“The affordability is increasing and the size of low income segment is shrinking, whereas the middle
income class is growing,” he said at a panel discussion on Indian consumer market during a conference
here on investment opportunities in India.

This, however, may not necessarily be benefited by all segments of consumer industry, he said, adding
that while the auto industry has seen a stable growth, fast moving consumer goods (FMCG) have faced a
downturn.
Speaking about the consumer product industry, Mr Adi Godrej of Godrej Consumer Products said uniform tax
structure in the country and bringing down of value-added and other taxes would help the growth of consumer
industry.

About the FMCG industry, Mr SP Mustafa, Hindustan Lever group treasurer and Head M&A and investor
relations, said the industry faced challenges from domestic and global markets.

He said there was a large potential in the industry and it had global competency.

Later, giving a presentation about his own company, Mr Mustafa said Hindustan Lever worked out a new
strategy two years ago and since has seen a growth pattern.
IMPORTANCE OF STUDY

7.65 The small scale sector has played a very important role in the socio-

development of the country during the past 50 years. It has significantly contributed to the overall growth in
terms of the Gross Domestic

Product (GDP), employment generation and sector, there

the growth of the overall economy. The performance of the small scale sector fore, has a direct impact on
in terms of parameters like number of

units (both registered and unregistered),, production, employment and exports is given
LIST OF SMALL SCALE INDUSTRIES FOR PURPOSE OF DELEGATION OF POWERS TO
ENVIRONMENT ENGINEERS / ASSISTANT ENVIRONMENT ENGINEERS IN THE
MATTERS RELATED TO CONSENT.
IMPACT OF SMALL SCALE SECTORE IN INSURANCE SECTORE INSURANCE IN INDIA

The insurance sector in India has come a full circle from being an open
competitive market to nationalization and back to a liberalized market again.
Tracing the developments in the Indian insurance sector reveals the 360 degree
turn witnessed over a period of almost two centuries.
A brief history of the Insurance sector

The business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in
Calcutta.
Some of the important milestones in the life insurance business in India are:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance
businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for
ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff
Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance
business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four
companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.
Impact of the COVID-19 pandemic on SMEs
The COVID-19 pandemic has affected firms of all sizes, but SMEs can be particularly vulnerable for several
reasons. First, they tend to be more prevalent in countries and sectors more affected by the crisis. Second,
SMEs are more vulnerable to some of the pandemic’s channels of impact than larger firms within the same
country and sector. Finally, SMEs can have fewer avenues to respond, which we discuss in the next section.

Consequently, SMEs are more 8 percent more likely to have temporarily shut down due to COVID than
larger firms, across all countries and sectors in our sample (see Figure 1). In every country in our sample,
SMEs are at least as likely to have shut down as larger firms, and in some cases such as Albania and Togo,
they are around 30% more likely to have closed temporarily. Clearly, the country context is important, with
less pronounced differences for higher-income economies – which may in part reflect differences in the
characteristics of SMEs across countries and differences in the support packages available (which we
discuss in section 3). The additional likelihood of SME shutdown may appear relatively small, but this is on
top of the substantial impact on larger firms - on average 51% of large firms have temporarily closed
These temporary shutdowns
may quickly translate into SME
exits the longer the crisis
persists. Compared to larger
firms, SMEs have less liquidity
from external financing or
previous years’ profits from
which to weather any
shutdown or demand shock
(see Figure 2). SMEs on
average are estimated to have
liquidity to cover fixed costs for
an average of 10 weeks, 3
weeks less than larger firms
(Bosio et al., 2020).
LIMITATIONS OF STUDY

While preparing this research project report, the following obstacles had been faced by me:

Ø The topic is very wide and has to be covered in limited words. Therefore, it is not possible to cover all other related issues.

Ø The help from faculty is not enough due to their busy schedule.

Ø Proper source of information from Govt. could not be provided.

Ø Only internet, magazines and various surveys are available.

Ø Questionnaire cannot be created due to the limitation of subject.

Ø Scope of study is quite large but the time is limited.

 CONCLUSION
The small scale industry is so far dependent on internal market alone barring a few industrial units who export their products. It is therefore, imperative

that not only for great utilization of capacity but for providing stability to the production units concerned efforts are made to boost internal demand as also

export market. However, it must be emphasized that strengthening of the home base should have precedence over creation of capacity exclusively for

export market. Over dependence on export market exposed the industry, especially to the one which is composed of small and cottage sector units to the

vicissitudes of external environmeCreation of capacity for new and non-traditional items does not imply as complete break of the industry away from the

existing manufacturing pattern. What is in fact needed is to utilized the available skill and manufacturing capacity on the selective basis to produce those

items which have a rising One of the reasons restraining the growth of small industry is the acute shortage of skilled workers capable of making quality

goods at competitive prices. Most of the workers do not have formal institutional training. Existing training institutions have not been able to cater to the

requirements of some specialized trades and they suffer from many weaknesses. High rate of labor turnover is another problem faced by small industry.

In some units turnover of labor is caused by worker’s behavior and to some extent by entrepreneurs themselves.