SMALL SCALE
INDUSTRIES
An Overview
Characteristics of Small Scale Industries
Ownership: Generally under single ownership.
Sole proprietorship or sometimes a partnership.
Management: management and the control
generally is with the owner/owners. The owner is
actively involved with the daily running of the
business.
Limited Reach: Restricted area of operations.
Generally meet local and regional demand.
Labor Intensive
Flexibility to adopt changes
Uses local and readily available resources
Role and Importance of SSI’s
Helps in increasing employment and economic
development
Improves the growth of the country by increasing urban
and rural growth
Increases production
Increases total exports
Opens new opportunities
Advances welfare
Reduces poverty, income inequality and raises standards
of living of poor people.
Classification of SSI
1. Traditional small industries(khadi and handloom,
village industries, handicrafts, etc.)
2. Modern small industries(produce a wide range of
goods from comparatively simple items to
sophisticated products such as television sets;
electronics control system, various engineering
products, particularly as ancillaries to large industries)
Manufacturing Industries: Producing complete
articles for direct consumption and also for
processing industries(Powerlooms, engineering
industries, coin industries, khadi industries, food
processing industries etc.)
Service Industries: Covering light repair shops
necessary to maintain mechanical equipments.
These re essentially machine- based.
Ancillary Industries: Producing parts and
components and rendering services to large
industries
Feeder Industries: Specialising in certain types of
products and services, e.g. casting, electro-plating,
welding, etc.
Mining or Quarries.
Steps in setting SSI
Information Collection
Information Organization
Acquiring Required/Vocational Skills
Financial Requirements
Market Assessment
Provision for Crisis
Steps in setting SSI
1. Selection of Product
2. Location of Enterprise
3. Deciding Organisation Pattern/Ownership
4. Preparation of Project/Feasibility Report
5. Registration with Authorities
6. Statutory Licences/Clearances
7. Arranging Finance
8. Obtaining Land and Building and Few Others
Problems faced by SSI
Problem of Finance
Problem of Raw Materials (Scarcity, Quality, Cost)
Problem of power shortage
Problem of Marketing
Underutilization of the capacity
Technological Problem
Other Problems (Tax, open competition in every
sphere of activity etc.)
Types of Measures taken by govt. for SSI
Protection Measures, measures that are designed to protect small scale industries
from the competition of existing large firms.
Promotional Measures, measures which have been undertaken for the promotion
of the growth related to the small scale sector in the country such as programs,
guidelines, procurement of goods and services and government grants.
Institutional Measures, measures which have been undertaken by the
government by setting up of several institutions or related agencies for the
provision of liberal and multifaceted assistance to the small scale industry sector.
Suggested Readings
https://www.indiatoday.in/magazine/economy/stor
y/19791115-unending-debate-small-scale-industrie
s-vs-large-scale-industries-822332-2014-02-19
https://www.bloombergquint.com/politics/demonet
isation-gst-effects-continue-deepen-indores-jobs-cr
isis
https://www.forbes.com/sites/allbusiness/2018/07/
15/35-step-guide-entrepreneurs-starting-a-business
/#21d1b5b0184b
http://www.yourarticlelibrary.com/industries/small
-scale-industries/problems-of-small-scale-industrie
s-with-measures/75913
