SMALL SCALE INDUSTRIES

Submi t ted by :- Mon u Goyat

DEFlNlTION OF SMALL SCALE
lNDUSTRY
Defin ing small-scale industry is a difficult task because the
definition of small-scale industry varies from country to country
and from one time to the another in the same country and by
industry.
Small businesses are normally privately owned corporations ,
pm·tnersh ips, or sole proprietorships , which constitutes small in
terms of government support and tax policy varies depending on
the country and industry.
Definition of Small Scale
Industries in India-
An industrial undertaking in which the investment in fixed assets in
plant and machinery whether held on ownership terms on lease or
on hire purchase does not exceed Rs.JO million.

ACCORDING TO SS!BOARD- "A unit employing less than 50

persons if power and
laess than JOO persons without the use of power and with a
capital investment rupees 5 lakh"
ADVANTAGES OF SMALL SCALE
INDUSTRl ES
The following arc the merits of small scale industries-
1 .Close Supervision
2.Naturc of Demand 3.Morc Employment 4.Necd of Small Capital
5.Dircct Relation between the workers and the employers
ADVANTAGES OF SMALL SCALE
lNDUSTRlES
6.Direct Relation between thecustomers and the
producers
7.Easy Management
8.Freedom of Work
9.Extcrnal Economies
10.Less possibilities of strikeand lockouts
DlSADVANTAGES OF SMALL
SCALE lNDUSTRlES
The following are the demerits of smal l scale
industries-
!.High cost of production 2.Wastage of by-
products 3.Less use of Machines 4.Lack of
Division of Labour 5.Difficulty in getting
Loans
DlSADVANTAGES OF SMALL
SCALE lNDUSTRlES
6.Difficult to face Economic Crisis
7.Costly Raw Materials 8.Lack of Standardised Goods
9.0ldTechniques
JO.Lack of Research
CHARACTERlSTICS OF SMALL
SCALE lNDUSTRlES
I.Labour Intensive 2.Flexibility
3.0ne-man Show
4.Use of indegenous ra w materials 5.Localised Operation
6.Lesser gestation period
7.Education level 8.Profit Moti ve
Manufacturing
industries
ROLE OF SMALL SCALE
lNDUSTRlES

:·Dynamic and vibrant sector of the economy .

··Prominen t rolein socio-economic transformation of the
country.
:·Accounts for 35 percent of employment SS!sector has, over
past six prominent place in the socio­economic development
in the country.
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 Smalt Scale lndustries as a Seedbedfor larger
business
Seedbed refers to the preparing of soil for the sowing of seeds so
that we may have good crop.Small business is regarded as a
seedbed tor entrepreneurship as it provides conducive conditions
for the emergence and growth of enterpreneurs.
SSl's are called seedbed of enterpreneurship due to the following
reasons.
o Small Scale enterprises can be started with lesser investment
Small scale unit carry on business on a small scale and as such
the element of risk too is less.
Small Scale units are generally based on local resources and as
such there is no problem regarding their availability.
o Small scale unit can be located anywhere and thus help in
the development of backward areas of the country.
Small scale units help in building achievement motivation amongst
entrepreneurs
 THAN K
YOU
Monu Goyat MBA
1st year
20220038