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Small Scale Industries: Characteristics Importance Advantages of Running An SSI

The document defines small scale industries as manufacturing or processing businesses with plant and machinery investments up to 100 lakh rupees. It notes key characteristics include small capital investment, employment of around 10 people, and location in rural or semi-urban areas. Advantages of small scale industries are listed as being labor intensive, ensuring equal distribution of income and wealth, acting as a link to large industries, mobilizing resources, and generating local employment.

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717 views5 pages

Small Scale Industries: Characteristics Importance Advantages of Running An SSI

The document defines small scale industries as manufacturing or processing businesses with plant and machinery investments up to 100 lakh rupees. It notes key characteristics include small capital investment, employment of around 10 people, and location in rural or semi-urban areas. Advantages of small scale industries are listed as being labor intensive, ensuring equal distribution of income and wealth, acting as a link to large industries, mobilizing resources, and generating local employment.

Uploaded by

ynkamat
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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Entrepreneurship Management

Small Scale Industries

Definition
Characteristics
Importance
Advantages of running an SSI
Entrepreneurship Management

A few definitions..
• Small scale undertakings - Engaged in manufacturing, processing
or preservation of goods; investment in plant and machinery up to
Rs. 1 crore

• Tiny enterprises - Investment in plant and machinery up to Rs. 25


Lakh

• Small scale service/business enterprise - Investment in fixed


assets up to Rs.25 Lakh (excluding plant and machinery)

• Women enterprises- Small scale units with financial holding of


minimum 51% by one or more women entrepreneurs

• Artisans, village and cottage industries – Artisans and small


industrial activities in villages/towns with population of max.
50,000; utilising locally available natural resources; individual
credit requirement up to Rs.50,000/-
Entrepreneurship Management

Characteristics of a SSI

• Small capital investment


• Generates employment, generally around 10 employees
• Located in rural and semi urban areas
• Generally a sole proprietorship business
• Funding from the entrepreneur’s personal funds
• Exploitation of human resources (Women and child labour)
• Organising and management skills are often neglected
• Financial discipline is weak
• Encourages entrepreneurial growth
• Balanced regional development is ensured
Entrepreneurship Management

Importance of SSI

• Labour intensive
• Ensure an equal distribution of income and wealth
• Act as a link to large scale
• Act as a training ground for entrepreneurs
• Mobilize resources and services
• Give rise to capital formation
• Has a huge export potential
• Are extremely innovative and productive
Entrepreneurship Management

Advantages of running a SSI

• Most do not need high level of technology and are labour intensive
and hence do not need huge start up or working capital

• SSI projects can be undertaken in a short time frame

• Use of abundant local natural resources is possible

• Small scale enterprises can be linked to large businesses which


help in their growth and progress

• Able to generate local and permanent employment

• Have a short gestation period

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