Subject: Bussiness studies

Topic:
Small bussiness
 - -------·------------y----- - - -- - - ~
!11111111m1.11 Group 3
Name- Nikhil, roll no.-11

• Name- Divanshu,rollno.-13 Mr Jiten Sir

{HOD of Commerce)
Name- Hitika, roll no.-14

Name - Shivam, roll no.-15

Introduction And Meaning
INTRODUCTION: Small business is important
sector of Indian economy. Small scale industries
accounted for 40% of value added by the whole:
manufacturing sector and So% of employment. Small
industries have contributed to the extent of 42% with
regard to exports.

MEANING: A Small scale industry is an industrial

undertaking in which the investment in fixed assets in
plant & machinery, whether held on ownership term or
on lease or hire purchase, does not exceed Rs.1crore.
However this investment limit is varied by the
government from time to time
 DEFINITIONS
According to Fiscal Commission-1950,''A unit
operating mainly with hired labour usually 10 to 50
hands"
According to Small Scale Industries Board-
1995,''A unit employing less than 50 persons if using
power and less than 100 persons without the use of
power and with a capital investment not exceeding
Rs. 5Lal(hs."
According to the government of India -
2000,"An undertal<ing having an investment in plant
and machinery of not more than Rs .1crore"
 Why We Need SSI?

1)Employment generation
2)Balanced regional
development
3)Savings in foreign exchange
4)Mobilization of capital
5)Equitable distribution of
•
income
6)Setf employment
Small Enterprise As A Seedbed
Of Entrepreneurship
Seedbed refers to -
How to Start aBusiness?
preparation of soil for the
sowing of seeds for a good
crop. As small-scale
industries provide
conductive and favourable
conditions for the
emergence and growth of
entrepreneurship hence it is
treated as seedbed for
entrepreneurship.
 Steps In Setting Up Of SSI

Prepare A Location of
Selection Arrangemen
Business an
Of Product t Of Finance
Plan enterprise

Installation
Provlslonal Permanent Profit
Of Plant &
Registration Registration Generation
Machinery
 Features Of Small Enterprise
1)Labour Intensive: Small scale industries are
generally labour-intensive. They do not require
costly tools and techniques. The energy of people
may be used for productive processes.
2)Mobilization Of Resources: Small industrial
units helps to mobilize the resources of capital
and skills which often would remain inadequately
utilized.
3)Small Amount Of Risi<:: Small amount of risk
is involved in small scale industry because it
require small amount of investment.
4)Shorter Gestation Period: Small scale
industries
can be established in a short period and ensuring
equitable distribution of income.
5)Employment opportunities: Small business
creates job in the rural areas. This will help in
reducing the problem of unemployment and
poverty
 Better
Industrial
Regio,.a.au.a Relation
Dispersal N11mher
Of of11nits
Industries

Equitable Role Of Employment

Distribution Generation
Small
Of Income
Enterprise
in INDIA

Helpful In Investment
Exports
Output
1. Number Of Units: Total no. registered small
scale units has been increasing rapidly from 16000 in
1950 to 36000 in 1961 and 14.96 lakh in 1991-92. There
are also unregistered small scale units in India. The
small scale units are producing various types of
commodities starting from simple consumer goods to
manufacture of sophisticated electronic goods.

No of SSI Units in India In ·ooo

12.000
l.O,OOO
1------------
a .ooo
5.000
4,000
l
2. Employment Generation: Small-scale industries are
labour intensive . Total employment generated by The se s mall-
sca le industries has increased to 185.6Iakh in 2000- 01. The se
units provide large employment than large sca le industries

Employment In sn1a11 scale s ecto r

17c; -
17 C _ 167 . ~
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.:!II: I f'l f
CIO

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c : 16( -
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- 130.38

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3. Investment: Investment in small scale sector has
been increasing at a faster rate. Total amount investment
in small scale sector in India has increased significantly
from Rs. 2333crore in 1972-73 to Rs.9588crore in 1985-86.
4. Output: Total production of small scale industries
has increased from Rs. 72oocrores in 1973-74 to Rs.
9588crore in 1985-86.

12
10 . . . . - - - - - - - - 1
8 . i - - - - - -----,
6---
4 .i.--------,

2
o....-
9 1-92 93-94 95-96 97-98 99-00

, ... Target ■ A c h ievem e nt I

5. Helpful in Exports: The contribution of SSI
sector towards export increasing at a faster rate. The
share of exports has increased from 9.6 percent in 1971-72
to 35 percent in 1999-2000. Thus they help in increasing
the country's foreign exchange reserves

Exports
55000

5 0000 : I I

45000

40000
70
35000

30000

25000
1994-95 1995- 96 1996-97 l997-98 1998- 99 1999-00*
Year

6. Equitable Distribution Of Income: Small-

scale and
Cottage industries have been resulting more equitable
distribution of national income and wealth. This is
mainly due to the fact that the ownership of small-scale
industries is quite widespread as compared to large scale
industries and SSI having high employment potential
than that of large scale sector
7. Regional dispersal of industries: People migrate
from rural and semi urban areas to these highly
developed centres in search of employment which leads
to overcrowding , pollution, creation of slums etc. This
problem is solved by SSI which utilise local resources and
brings about dispersion of industries in the various parts
of the country thus promotes balanced regional
development.
8. Better industrial relation: Better industrial
relations between the employer and employees helps in
increasing the efficiency of employees and reducing the
frequency of industrial disputes. The loss of production
is less in small-scale industries. Due to good employee-
employer relationship, there is increase in production,
employment and exports in SSI
Problem Of Small Enterprise

Problems & Challenges Faced by SSls

Problem of Inadequate Irregular Absence of

skilled credit supply of raw organized
man ower assistance material marketln

Lack of Absence of
Other
machinery and adequate Competition
problems
e ul ment Infrastructure
Role Of Government In
Promoting SSI
The government of India provides various opportunities
through its ministries, bodies and programes. Few of
these are listed below:

0
1. Public Sector Banl<:s: Banks are the most
accessible source for financial support for SMEs. They offer a
range of services and schemes including loans and credit
facilities for various business needs
National Bank for Agl'iculture and Rural
2.

Development (NABARD): NABARD works towards

integrated rural development and helps promote rural
businesses and small industries, agriculture and cottage
industries. They offer various training and development and
consultancy services as well as credit facilities to support
these busi nesses
National Small Industries Corporation
3.
Limited (NSI C): Set up with the objective to boost small
scale industries in India, NSIC helps import machines on easy
hire purchase terms.
4.Small Industries Development Bank of India
{SID BI): As the name suggests, SID BI was primarily set up
to provide financial assistance to small scale industries in
India. It is one of the leading government bodies that provides
various financial schemes across a range of industries and
•
services.
National Commission for Enterprises in the
5•
Unorganized Sector (NCEUS): This Commission was
constituted for the welfare of enterprises in the unorganized
and informal sector. Their primary role is to generate business
and employment opportunities, in the unorganized sector.
Rural and Women Entrepreneurship
6.
Development (RWED): This programe is focused on
encouraging entrepreneurship among women and the rural
population. It supports various business and entrepreneurial
initiatives b y providing timely advice and counselling,
initiating training and development programes and helping
secure credit opport11nities .
Contribution Of Banks In
Promoting SSI

State Bank Of India

I' ~ ~ ~
Bank Of India I
_ , • . , .-
, ,
3TJq, ~ - ~ - ·
Bank of India

Punjab National Bank punJC'lb•·-n..

nC'ltionC'll bC'lnk
n.ame vou c:•n BA.HK upo,nl

Union Bank Of India [ lj] Union Bc!,IJJ!,

 Conclusion
So in the end, we can say that Small Scale industries is developing
industries in our economy. We should encourage the entrepreneur to set
the small scale industries in rural areas, so that we can develop the rural
areas by giving opportunities to unemployed persons. Government should
also help the small scale industries by giving marketing assistance and also
help in technologyupgradation. Loans should also be given by various
banks at concessional rate of interest . This all is done for the balanced
regional development.
 THANK YOU

For Your Attention