Small scale industries..ppt
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Small scale industries are defined differently in various countries and over time. In India, a small scale industry has fixed assets of less than Rs. 10 million. They employ less than 50 workers if power-driven, or less than 100 without power. Small industries have advantages like close supervision, more employment, and easy management. Their disadvantages include high production costs, outdated techniques, and difficulty accessing loans. They are typically labor-intensive, flexible, and use local resources and raw materials. Small industries play an important role in India's socio-economic development and account for a large portion of employment.
Small scale industries..ppt
- 2. DEFINITION OF SMALL SCALE INDUSTRY Defining 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 , partnerships, or sole proprietorships , which constitutes small in terms of government support and tax policy varies depending on the country and industry.
- 3. 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.10 million. ACCORDING TO SSI BOARD- “A unit employing less than 50 persons if power and laess than 100 persons without the use of power and with a capital investment rupees 5 lakh”
- 4. ADVANTAGES OF SMALL SCALE INDUSTRIES The following are the merits of small scale industries- 1.Close Supervision 2.Nature of Demand 3.More Employment 4.Need of Small Capital 5.Direct Relation between the workers and the employers
- 5. ADVANTAGES OF SMALL SCALE INDUSTRIES 6.Direct Relation between the customers and the producers 7.Easy Management 8. Freedom of Work 9.External Economies 10. Less possibilities of strike and lockouts
- 6. DISADVANTAGES OF SMALL SCALE INDUSTRIES The following are the demerits of small scale industries- 1.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
- 7. DISADVANTAGES OF SMALL SCALE INDUSTRIES 6.Difficult to face Economic Crisis 7.Costly Raw Materials 8.Lack of Standardised Goods 9.Old Techniques 10.Lack of Research
- 8. CHARACTERISTICS OF SMALL SCALE INDUSTRIES 1.Labour Intensive 2.Flexibility 3.One-man Show 4.Use of indegenous raw materials 5.Localised Operation 6.Lesser gestation period 7.Education level 8.Profit Motive
- 10. ROLE OF SMALL SCALE INDUSTRIES Dynamic and vibrant sector of the economy . Prominent role in socio-economic transformation of the country. Accounts for 35 percent of employment SSI sector has, over past six prominent place in the socio- economic development in the country.
- 12. Small Scale Industries as a Seedbed for 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 for entrepreneurship as it provides conducive conditions for the emergence and growth of enterpreneurs. SSI’s are called seedbed of enterpreneurship due to the following reasons. o Small Scale enterprises can be started with lesser investment
- 13. o Small scale unit carry on business on a small scale and as such the element of risk too is less. o 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. o Small scale units help in building achievement motivation amongst entrepreneurs
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