IMPACT OF

TECHNOLOGICAL ENVIRONMENT
ON
SMALL SCALE INDUSTRIES

Name:

Course name:

Professor name:

25th April 2020

 DECLARATION

. I, _______________ student of ________________ hereby declare that the my report entitled “Impact of
technological environment small scale industries” which is submitted by me to department of ____________,
Amity school of business, Amity university Uttar Pradesh, in partial fulfillment of the requirement of the award
of the degree of _________________ has not been previously formed the basis for the award of any degree,
diploma or any other similar type of recognition.

Date: 24th April, 2020 Name:

(Enrolment no. : )
 ACKNOWLEDGEMENT

I would like to express my gratitude and appreciation to all those who gave me the possibility to
complete this report on “IMPACT OF TECHNOLOGICAL ENVIRONMENT ON SMALL SCALE
INDUSTRIES”. A special thanks to our ____ year coordinator, Mr. ______________ whose help, stimulating
suggestions and encouragement, helped me to coordinate my project especially in writing this report.

I would also like to acknowledge with much appreciation the crucial role of my professor
____________________, who gave me an opportunity and knowledge for the same. He guided me very
professionally about this very report. A special thanks to my friends too who helped me through with this
project.

Last but not the least, many thanks to the head of the project who has given his full efforts in guiding
the team in achieving the goal as well as his encouragement to maintain our progress in track. I would also
appreciate the guidance given by other supervisors as well as the panels especially in our project report, which
was enhanced and improved by their valuable comments and tips.
 AMITY SCHOOL OF BUSINESS, AMITY UNIVERSITY, NOIDA,
UTTAR PRADESH

PROJECT REPORT ON
IMPACT OF TECHNOLOGICAL ENVIRONMENT ON
SMALL SCALE INDUSTRIES
A report submitted in partial fulfillment for the (course name) course (20__-2020) of Amity University

Submitted to: Submitted by:

(Prof Name) (Student name)

Faculty guide
(Enrollment no.)
(Course name)
Professor-academics
(Year of course)
 TABLE OF CONTENTS

Declaration …………………………………………………………….2
Acknowledgement……………………………………………………....3
Faculty guide approval…………………………………………………4
Objectives of the study …………………………………………………6
Why I chose this topic………………………………………………….7
Introduction to small scale industries……………………………….…8
Role of small scale Industries…………………………………………9
Need/rationale and objectives of small scale industries…………...…10
Impact of technology on small scale industries ………………….….11
Challenges of change…………………………………………….…..12
Noticeable benefits of technology for small scale industries…….….13
Key findings……………………………………………………….….14
Conclusions and recommendations………………………………….16
Bibliography………………………………………………………….17
 OBJECTIVES OF THE STUDY

General objective: To understand the improvement and problems of Small Scale Industries (SSI) in the
Liberalized economy supported and uplifted by technological advancements. The objectives include the impact
of strategic thinking and planning of the technology sector in regards of business sector, Small scale industries,
to be précised.

Specific objectives:
 To understand how problems like delay in implementation of projects were overcome.

 To understand the contribution of technology towards lack of finance and credit for SSI.

 To understand how Infrastructure issues were cut down.

 To understand how SSI were benefitted in regards of competition.

 To analyze the series of changes in stability and sustainability of SSI.

 WHY I CHOSE THIS TOPIC

I chose this topic as it served me as a great opportunity to explore some important benefits of technology in
the business world. The technological aspects in this modern world take business to heights of success. Many
small scale industries and MSSIs have been benefitted due to these advancements. The economic sector
bloomed like never before. I tried my best to extract most reliable and useful information in regards of my
topic which gave me immense and deep knowledge with some unbelievable facts about our business world.
The report consists of many facts and figures as well as many quoted lines of famous economists and
successful businesspersons which also contributed in enhancing my perspective about quite a number of
things. Famous people like Sir Philip Kotler once said that “The most important thing is to forecast where
customers are moving, and be in front of them” This actually became possible because of the technological
environment we live in today. The environment made most of the SSIs grow better than before. My deep
interest in the business field drew me towards the curiosity of looking into the technological impacts;
therefore I was very keen and happy to work on this project.
 WHAT IS A SMALL SCALE INDUSTRY?

The small enterprise is a logical step forward inside the improvement technique of groups from the extent of

the enterprising artisan to that of a very huge agency. The small enterprises encompass the areas other than the
ones of production, which includes agriculture, change and service industries. Small organizations play
a crucial role inside the Indian economy.

There is a rapid increase in the offerings area of economy because of development of small companies,

particularly inside the areas of exchange, transport, construction and different ancillary offerings. One of the
principle reasons for his or her rapid growth is that, they have been left entirely to the non-
public entrepreneurs, which can be comparatively unfastened from the government interference.

Since approximately one-third of the gross production output is from the small industry sector, it's

far important to increase due attention for this area whilst formulating boom promotion strategies.
Such techniques may enhance international competitiveness.
One of the most critical reasons for the fulfillment of small establishments is the interest and motivation of the
entrepreneurs, whereas huge industries do not provide sufficient room for experimentation and
innovation with the aid of the creative humans because of big hierarchical enterprise structure.

“Small scale industry” is an industry, investment of which does no longer exceed Rs. 300 lakhs (Rs. 300 lakhs

in case of ancillary industrial units also) in flora and machinery, irrespective of the number of men and
women employed. Generally, those industries hire 10 to 50 persons.

“Ancillary industries” are the ones small scale industries which can be engaged in:

The manufacture of parts, components, sub-assemblies and tooling etc. For supply in opposition
to acknowledged or anticipated demand of 1 or more huge industries.

“Cottage Industries” in keeping with Fiscal Commission, are the industries which might be run through the
numbers of the family either for full time or for part time.

According to “Mumbai Economic and Industrial Investigation Committee” cottage indus-

tries are those industries, which do not use modern energy and engage a maximum of 9 individuals.
 ROLE OF SMALL SCALE INDUSTRIES

The contribution of this quarter is huge to the Indian economy. About four million gadgets

are supplying employment to over 14 million people, and contributing over a third of the general gross output
of the producing region. Output from small companies now stands at Rs. 236,500 crore and is developing at
a fee of about 8% per annum. This sector is likewise contributing about a third of U. S. A.’s exports.

Today Central and State governments are providing all styles of help of the interested persons

to solve their issues including money troubles. These play a dynamic role in accelerating the price of
industrial boom and achieving economic prosperity of a developing nation. Therefore, in
a growing country like India, small industries are of much importance for building up
of countrywide economy.

The Planning Commission discovered that these industries can play the following essential roles in

accelerating the fee of industrial growth and financial prosperity:
(a) These create on the spot and permanent employment on a big scale at pretty small capital cost.

(b) These can straight away meet a substantial part of the

increased demand for customer items and easy producer’s items.

(c) These provide a good technique of making sure greater equitable distribution of country wide income.

(d) These assist for developing into a green and revolutionary decentralized sector of economy.

(e) These provide greater possibilities of work and income.

In this regard once Dr. Shyma Prasad Mukerjee the then Minister of Industries said, “If we really
need to tackle the grave hassle of unemployment that faces the country today, we are able to do so not only by
using having large scale industries in one of a kind parts of the us of a however also by regional planning of
small scale and medium sized industries in distinct areas”.
 NEED AND RATIONALE OF SMALL SCALE INDUSTRIES

Small scale industries are:

 Innovative
 Self satisfaction
 Caters to individual taste and styles
 Small in operation
 Strength of nation
 Spread over wide areas

OBJECTIVES OF A SMALL SCALE INDUSTRY

 Advent of employment opportunities

 Development of output, income and a better general of living
 Removal of monetary backwardness of rural and underdeveloped areas
 To lessen regional imbalance
 To improve employment and manner of a ordinary supply of income to the needy people
 To enhance the best of industrial products produced in cottage industries
and boom production and profits
 To facilitate import substitution
 To encourage entrepreneurship and self-reliance
 To mobilize local sources of capital
 IMPACT OF TECNOLOGY/ TECHNOLOGICAL ENVIRONMENT ON SMALL SCALE
INDUSTRIES
Technology is converting the sector around us in surprising ways. While there have truly been a number of
things that we should do without, era has also added about lots of good. The powerful,
transformative effect is without a doubt seen within the international of commercial enterprise, with
small businesses enjoying the best and the bad results of era.
According to a current Chamber of Commerce study within the US, small agencies use era and, specifically,
social media alternatively widely. Around 75% are the use of tech platforms for sale whilst 84% use at the
least one major digital platform to tell their customers. Technology is a part of the commercial
enterprise material and that allows you to succeed, a small commercial enterprise can’t overlook generation and
the digital global.
But how is this widening use of era changing the manner small corporations operate? What are the
tangible areas of impact? Here is a look at how technology can transform a small business and the way it
operates.
Technology is an external force so hard to predict that managers are often at a loss for words about a way
to plan it effectively specifically in Small scale Industries (SSI) where  funding  in  technology  is visible as
very highly-priced and expensive to manage. Spending much money on acquisition of recent generation way a
deviation from manual (simple) to sophisticated and automated way. Technological change in most cases
requires more training and capital intensive despite the achievement of
latest business possibilities for companies. In SSIs engaged in manufacturing goods, slack time is discouraged
in production. Also, service providers where ICT makes data processing will
become faster to network clients, customers and different stakeholders world-wide through internet facilities
technological change is embraced. That is why many dynamic agencies through the adoption of
recent technologies are capable of move in advance at the same time as others are left in the back
of in aggressive markets.
The needs of higher-technology firms require that much extra emphasis be placed on anticipations and
positioning the company for technological change this is vital in other industries. The  need  to  gather 
technology creates primary tensions between the preference to use  the  quality  era  (frequently  found out of
doors the organization) and the preference for manipulate that's weakened via reliance on out of doors sources.
Organizations that have achieved a sophisticated understanding of the dynamics of technology are in
a better position to develop abilities with which they are able to react appropriately to environmental
and market changes. Therefore, in both reacting to and forecasting technological change, the nature of
technological development needs to be well understood.
 CHALLENGES OF CHANGE

It is essential for leaders to observe that changing the walking of an organization from a command and

control nature of management to the nurturing and motivational nature of leadership
is important for effective alternate to take place. Without a regular focus, it will become incumbent
on each member to interpret the environment and to make choices on which possibilities to explore. In
addition, individuals who are asked to make an alternate are really being asked to make a commitment of
private energy. Company resources should be committed to assist workers recognize the
impending exchange, persuade them of its value, and manipulate the resistance to be able
to unavoidably surface.
Due to its importance, alternate control is becoming imperative and needs appropriate managerial skills and
strategy. For firm to survive, succeed and remain aggressive in nowadays highly
risky and constantly evolving business environment, it must have the ability to efficaciously
control the alternate which is as a dependence of fact a necessity. “Organizations today have increasingly
turned out to be privy to the importance of change control practices. This awareness in a system is an
important dimension inside the overall performance of organizations (Rees, 2008: 87-89)”.

“Organizations had been faced with threats of competition and changing personnel needs which had to be

met the use of different strategies and production models aside from the prevailing ones (Katter, 2008)”.
When the difficulty of alternate is brought to the employees, they tend to fear and often expect a defensive
and resistant role. It is important to note that employees do not perceive change positively. Change
interferes with their recurring activities and they’re subjected to a deviation from what they are used to
doing. They feel threatened and unsure of their future. This brings approximately mental and emotional
instability, often with implications on their overall performance. During the implementation of alternate,
the employees are noted to have negative emotions and they battle in finding how to cope with the effects
of alternate. “Resistance displayed is deeply rooted in pre-conditioned and ordinary subjection that
the employees have been previously exposed to within the paintings environment
 NOTICEABLE BENEFITS FOR SMALL SCALE INDUSTRIES DUE TO
TECHNOLOGY

 According to a current Chamber of Commerce take a look at in the US,

small corporations use generation and, specifically, social media as a substitute widely. Around 75%
are using tech structures for sale while 84% use as a minimum one major digital platform to tell their
customers. Technology is part of the commercial enterprise material and with a purpose to succeed; a
small enterprise can’t overlook generation and the virtual world.
 Small industries used to have an actual resource deficit as compared to the huge players.
But era has transformed the playing subject and made it a miles more identical experience. It isn't
always to mention that large business still doesn’t have an aggressive gain in phrases of resources
however small companies do have more opportunities at their disposal. Technology has made
it viable for small commercial enterprise to collaborate better with other corporations in addition
to their customers.
 Small businesses have additionally felt the impact of generation within the workplace.
Small corporations, due to their apparent nature, have often had trouble coping with the small however
rigid workforce. The resources are often not there to attract the best talent and business owners have
had to rely on commissions or component-time work. But technology has made talent acquisition and
retention slightly easier. One massive part has been the progressed collaboration. Due to on the
spot messaging and cloud-based mission platforms, small organizations have been able
to provide flexible work conditions. The employees don’t must paintings within the office and
they don’t have to be local – small corporations have the same possibility to draw talent around the
arena as many large companies.
 The control of these personnel has additionally changed. HR software program for small enterprise has
helped ease the administrative burden. Many software program answers in the field use artificial
intelligence and machine learning. This facilitates automate many mundane tasks, freeing the HR to
recognition on more essential matters than submitting forms or monitoring payroll information.
The vintage days of  submitting and filling cabinets with paper have
been changed with digital answers that can keep time and money.
 Technology has also had an effect on how small companies can educate talent.
The traditional method of placing personnel on guides or every day training events was replaced by
virtual learning. This is lots extra cost-effective, because it doesn’t need to intervene with the
person’s capacity to perform the standard tasks.
 RESULTS AND DISCUSSIONS (KEY FINDINGS)

180 copies of questionnaires were administered and 153 were returned and used for analysis.

Table 1. Descriptive Statistics

of Respondents’ Demographic
Information
Frequency
Percentage (%)
Sex Male 69 45.1%
Female 84 54.9%
Age 20-29 31 20.3%
30-39 68 44.4%
40-49 41
26.8%
50 and above 13
8.5%
Marital status: Single 92
60.1%
Married 61
39.9%
Educational background
MSc/MBA 13 8.5%
B.Sc / HND 19
12.4%
OND/NCE 28 18.3%
SSCE 31 20.3%
No formal education 62
40.5%
Source: Researcher’s field
work (2017)
Table 1. Descriptive Statistics
of Respondents’ Demographic
Information
Frequency
Percentage (%)
Sex Male 69 45.1%
Female 84 54.9%
Age 20-29 31 20.3%
30-39 68 44.4%
40-49 41
26.8%
50 and above 13
8.5%
Marital status: Single 92
60.1%
Married 61
39.9%
Educational background
MSc/MBA 13 8.5%
B.Sc / HND 19
12.4%
OND/NCE 28 18.3%
SSCE 31 20.3%
No formal education 62
40.5%
Source: Researcher’s field
work (2017)
Table 1. Descriptive Statistics of Respondents’ Demographic Information
 FREQUENCY PERCENTAGE
SEX MALE 69 45.1%
FEMALE 84 54.9%
AGE 20-29 31 20.3%
30-39 68 44.4%
40-49 41 26.8%
50 AND ABOVE 13 8.5%
EDUCATIONAL MSC/MBA 13 8.5%
BACKGROUND
BSC/HND 19 12.4%
OND/NCE 28 18.3%
SSCE 31 20.3%
NO FORMAL 62 40.5%
EDUCATION
Source: Researcher’s field work (2017)

Hypothesis One
Change in technology does not
have an impact on Small and
Medium Enterprises
Performance
Hypothesis One
Change in technology does not
have an impact on Small and
Medium Enterprises
Performance
Hypothesis One
Change in technology does not
have an impact on Small and
Medium Enterprises
Performance
Hypothesis One
Change in technology does not have an impact on Small Scale Industries performance.

Table 2: Model summary

MODEL R R SQUARE ADJUSTED R STD. ERROR F
SQUARE OF THE
ESTIMATE
1 .752a .566 .521 .46937 5.639
Source: researcher’s field work (2017)

The model summary indicates the quantity to which technological trade complements SSIs performance. The

coefficient of determination (R2 = 0.566) suggests that 56.6% of the success recorded in the SSIs overall
performance is accounted for with the aid of technological exchange. This result is statistically substantial due
to the fact the p-price of the result (0.000) is less than 0.05 stage of significance used for the study. This
indicates that technological trade has a positive and considerable impact on SSIs overall performance in Lagos
State.
Table 3. ANOVA
Table 3. ANOVA The model
summary shows the extent to
which technological change
enhances SSIs performance.
The coefficient of
determination (R
2
= 0.566) shows that 56.6% of
the success recorded in the
SSIs performance is accounted
for by technological change.
This result is statistically
significant
Because the p-value of the
result (0.000) is less than 0.05
level of significance used for
the study.
This indicates that
technological change has a
positive and significant
impact on SSIs
Performance in Lagos State.
Table 3: Anovaa
MODEL SUM OF DF MEAN F SIG.
SQUARES SQUARE
REGRESSION 9.755 1 9.755 8.866 .003b
RESIDUAL 166.146 151 1.100
TOTAL 175.901 152

a. Dependent variable: SSI’s performance

b. Predictors : (constant), technological changes
Source: Researcher’s field work (2017)
The ANOVAa value F of (3.90) whilst the calculated F cost is (8.866), at the degree of freedom of
151 showed that technological change has a fantastic and significant effect on SSIs overall performance in
Lagos State for the reason that F fee is lesser than F calculated. The model signifies that a unit change in
technological change will increase SSIs overall performance with the aid of the rate of 0.226. This means
that technological change is very essential to the growth and improvement of SSIs. Therefore, the
null speculation changed into rejected at the same time as opportunity speculation was accepted.

The hypothesis was tested

using regression analysis and
the findings revealed that
technology
Change has a significant
impact on SSIs performance in
Lagos State. Human resources
are the
most difficult to change and
employers of labour must be
sure they encourage
employees job
Satisfaction and also promote
organization citizenship
behavior Robbins et al (2008).
This will
Enable employees to perform
maximally when change in
whatever form such as
technology takes
place in the organization and
promote harmonious
cooperation between
management and
Stakeholders.
According to Albert (2007:
51-57) sustainable growth and
profitability require
Technological change and
attentive control perspectives.
Innovation through new
products and
Technologies have a
tremendous impact on SSIs
growth especially in Lagos
State. Lagos State has
An estimated population of
about 22 million in 2017. Of
all the 36 Nigerian states,
Lagos state is
the smallest and at the same
time the most populous state
in Nigeria. The state of Lagos
is
Considered to be among the
fastest growing states in the
world. (Population of
2017.com)
The hypothesis was tested using regression analysis and the findings revealed that era alternate has
a extensive effect on SSIs performance in Lagos State. Human sources are the most difficult to exchange and
employers of labour should be sure they encourage employees job satisfaction and also
promote organization citizenship conduct Robbins et al (2008). This will enable employees to perform maximally
when alternate in whatever shape such as generation takes place in the business enterprise and promote
harmonious cooperation between management and stakeholders. According to Albert (2007: 51-57)
sustainable growth and profitability require technological alternate and attentive control perspectives. Innovation
through new products and technology has a superb impact on SSIs growth specifically in Lagos State. Lagos State
has an anticipated population of about 22 million in 2017. Of all of the 36 Nigerian states, Lagos country is the
smallest and at the same time the most populous state in Nigeria. The kingdom of Lagos is taken into
consideration to be most of the fastest growing states within the world. (Population of 2017.Com)
 CONCLUSIONS AND RECOMMENDATIONS

Financial institution should also provide loan facility to SSIs at a low cost hobby rate and less collateral

security. Technical assistance is a factor this is frequently overlooked, misunderstood, or ignored that's as
essential as monetary help to SSIs. Tax imposed on SSIs need to be reduced in order that SSIs can
undertake technological trade needed for the production in their items and services. Lack of creativity and fear
of the unknown hinders the small and medium enterprises Innovation towards competitive worldwide
technological pushed business. Competent human resources need to be developed so one can contribute
and control the acquisition of recent technologies when out of date machines and gadget are to be modified in
SSIs. The new manner of doing things, generation and skilled human sources where important must be
discussed together as a team. This will eliminate any misrepresentation of true intentions of the management
towards change action. Emotional and new ways of questioning especially through era can only be supported
with rational and participative choice making with the aid of the folks that will be laid low with change within
the organization. Managers should also undertake a new manner of combining human efforts with new
technological developments. This will reduce delinquent actions a good way to deliberately violate installed
norms that may result in negative consequences for the organizations and its members in order to enhance
organizational performance.
The effect of technological exchange will create more possibilities e.g. employment , capital inflow, foreign
exchange and so forth so that the financial system will benefit maximally from the opportunities offered by way
of era-prompted globalization in the export of products manufactured through small and medium enterprises. In
order to cope with the dynamics of trade, small and medium enterprises need to not relent on their effort closer
to improving and upgrading their obsolete machines and other equipment as at when essential in order that their
operations will be standardized and be in compliance with what obtains in developed economy. It
was consequently recommended 
 Tax imposed on SSIs that; have to be reduced to permit the sub-region to adapt to era.
 Financial institution and acquisition.  Must also offer mortgage facility to SSIs at a low
priced interest fee and less collateral security. This will permit them gather the vital facilities wished for
their production of products and services.
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