“A STUDY ON SMALL SCALE INDUSTRIES”

A Mini project report to be submitted to VIIT [A], for the partial

Fulfillment of the academic requirements for the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

J.MADHUKUMAR
21L31E0044
Under the Esteemed Guidance of

Mr.V.Sivajee:
MBA,(Phd)
Assistant professor
Department of Management Studies

VIGNAN’S INSTITUTE OF INFORMATION TECHNOLOGY (A)

Duvvada VISAKHAPATNAM- 530049

(Approved by AICTE and Permanently Affiliated to JNTUK)

 2021 -2023
VIGNAN’S INSTITUTE OF INFORMATION TECHNOLOGY (A)
Duvvada, Visakhapatnam - 49
Department of Management Studies

Date:

FACULTY GUIDE CE R T I F I C A T E

This is to certify that the Mini project report titled “A study on small
scale industries”is a bonafide work of J.MADHUKUMAR,
21L31E0044 carried out in partial fulfillment for the award of Degree
of MBA under my direct guidance and supervision. This Mini Project
Work is original work and not Submitted earlier for the award of any
Degree for any other
University/Institution.

Faculty Guide (HOD - MBA)

 DECLARATION

I hereby declare that this Mini Project work entitled “A study on small scale

industries” submitted by me to JNTUKKakinada, in partial fulfillment for the

award of Degree of Master of Business Administration is entirely based on my own

study is being submitted for the first time and it has not been submitted to any other

university or institution for any degree or diploma.

Place: Visakhapatnam. Name of the Student

Date:
 ACKNOWLEDGEMENT

Apart from the efforts of me, the success of this project depends largely on the
encouragement and guidelines of many others. I take this opportunity to express my gratitude to
the concerned that have been instrumental in the successful completion of this project.
I extended my sincere gratitude to my Internal Miniproject guide Mr. V.Sivajee for hi/her
consistent encouragement, benevolent criticism, inseparable suggestions which were the main
reasons to bring the work to present shape.
I honored to extend my sincere regards to esteemed Head of the Department

Dr.S.M.Murali Krishna for giving me the permission to carry out the Internship work.
I am also thankful to our beloved Principal Dr. B. Arundathi for giving me the
permission to carry out the Internship work.
Finally I would like to express my deep sense of gratitude to my beloved parents and my
family members for their love and blessings to complete the Internship successfully.

Name of the student

 CONTENTS
S.no Content Page No
CHAPTER: I Introduction
1 1.1 Background of the study
2 1.2 Problem Statement
3 1.3 Objectives of the Study
1.5 Research Design – Research type, data source (Primary/Secondary),
4 Techniques of analysis, data visualization
5 1.7 Limitation of the Study
6 1.8 Chapterization
CHAPTER: II Theoretical concept
7 2.1 Introduction
8 2.2 Core concept
9 2.3 Related key concepts to the study- Formula
CHAPTER: III Data Analysis
10 3.1 Simple Analysis using percentages
11 3.2 Presentation of analysis using Charts etc
CHAPTER: IV Summary
12 4.1 Summary
13 4.2 Findings
14 4.3 Conclusion
15 4.4 Bibliography
 1.1 BACKGROUND OF THE STUDY
SMALL SCALE INDUSTRIES
A small enterprise is a business which uses a small number of
workers and does nothave a majority series of sales. Such enterprises are general in
private property andserved sole property rights, unions or partnerships.In the
Indian economy small and home industry taken important place due to
theiremployment potentially and their contribution to the complete industry
production andexports. The government of India has done several steps to promote
them. Howeverwith the new measures small and home industry which faces of
both internalcompetitions as well as outside competition. There is no clear
differentiation betweensmall and home industry. However it is thought of it
general that home industry that iswhich is continued completely or primarily with
the help of the members of the family.

In the comparison with it small industry uses leasehold work. In

addition, industries arecombined in general with the agriculture and make available
support employment inrural areas.
In the comparison Small business discovered was of about more than
4000 years ago, the economic historyof the world records the origin of industrial
activities when people civilized tookeconomic activities in the initial stadium of
civilization. Evolution and development ofindustry had across the ancient period,
the Medieval Period and the Modern period. Inancient time industries was far
developed in west parts of IndiaIndia made outstanding performance in its arts and
artistic goods, woolen goods, textile,etc. India was more developed when
compared to western countries in form of smallscale industries in historical period.
In the time of Mogul rule India was advanceddrastically but later British took over
the regions of IndiaIndia was famous for both agricultural and non agricultural
product Indian small scaleindustries had rich past back at 2000 B.C. where
Egyptian used Indian muslin of finestquality to wrap mummies.
 HISTORY OF SMALL SCALE INDUSTRIES

Small business discovered was of about more than 4000 years ago, the
economic historyof the world records the origin of industrial activities when people
civilized tookeconomic activities in the initial stadium of civilization. Evolution
and development ofindustry had across the ancient period, the Medieval Period and
the Modern period. Inancient time industries was far developed in west parts of
India
India made outstanding performance in its arts and artistic goods, woolen goods,
textile,etc. India was more developed when compared to western countries in form
of smallscale industries in historical period. In the time of Mogul rule India was
advanceddrastically but later British took over the regions of Indi

Most of the countries used shawl of our ancient Kashmir aswool was finest
quality compared to other countriesMost of western merchants had tried and was
trying to build good relationship withIndia and countries like Syria, Arabs,
Turkeys, Persians was also traded with India
 
CLASSIFICATION OF SMALL SCALE INDUSTRIES
Small scale industries are usually classified into two they are
1)Traditional small industries
2)Modern small industries
Traditional small industries
Small traditional industries include khadi and the textile industry weaved in the
hand,the industries of the village, manual skills, the sericulture, coconut matting,
SSIs etc.Modern produce the broad range of the goods from comparatively the
simple articlessophisticated products as television, electronics, control the system,
products different
from mechanical engineering, particularly as ancillary’s to the big industries
 Small traditional industries are extremely labored while modern units of small
laddertake advantage from extremely sophisticated machines and from equipment.
Forinstance, during 1979-80, the traditional industries of small ladder represented
only 135of complete production but their part in complete job was 56 %.
 Modern small industries
The industries of small ladder at present Indian are especially modern industries of
smallladder. Modernization enlarged the list of products given by this industry.
Articlesfabricated in the service of Small modern ladder and firms Of business in
India includerubber products, products of plastic, chemicals, the glass and ceramics
now, the articlesof mechanical genius, the equipment, the electrical articles,
transport equipment, theelectronic elements and equipment, the parties of auto, the
parties of bike, theinstruments, the sports goods, the articles of stationery shop and
the clocks and thewatchesThese types of industries are usually based on light
machineries and also use powersupply; these industries support large scale
industries and medium scale industries, thefinished product of these industries are
raw materials for other large scale industriesand medium scale
 
ROLE OF SMALL SCALE INDUSTRIES IN INDIAN ECONOMY
The small-scale industrial sector plays an essential role in Indian
economy from thepoint of view of job and from growth recorded a high growth
rate since Independence inspite of the rigid competition of industries on a large
scale. There are several importantreasons why these industries contribute to
the progress of Indian economy a lot

1)PRODUCTION

The area of industries of small ladder plays an essential role in the growth
of thecountry. It contributes almost 40 % of the raw industrial value added in
Indianeconomy. It was thought that a million Rs. of investment in the fixed assets
in thesmall area of ladder produces 4.62 million stocks of the goods or services
with anaddition of rough value of ten points of percentage. The area of small
laddergrew fast in the course of the years. Growth rates during the different periods
ofplan were very impressive. The number of units of small ladder augmented
about0.87 million units in year 1980-81 in most than 3 millions in 2000. When
theperformance of this area is seen against growth in manufacture and area
ofindustry as a whole, it instills the trust in impact strength of the area of
smallladde
2)EMPLOYMENT

The Area of so in India creates the biggest opportunities of job for the
Indianpeople, then only in Agriculture. It was thought that 100,000 rupees
ofinvestment in the fixed assets in the area of small ladder produce job for
fourpersons.
The area of Small scale industries is one of the quickest areas of growth ofthe
country. It provides huge opportunities of job and its presence is veryimportant for
countries appearing as India. The contribution of area Smallscale industries in
economy augments day after day. It is provider's area ofsecond job in value of the
country after agriculture. The contribution ofSmall scale industries in complete
exportation am also significant which isa third of the complete exports of the
country Except all these thecontribution the area of Small scale industries always
faces up a littlehostile treatment of the big organizations.
The area of
Small scale industries
in India becomes competitive day after dayas the liberalizing country. In this title
Small scale industries
do not acceptfinancial support of the government owing to deregulation, but to
develop thisarea and make it competitive with the government of multinationals
mustdevelop a little of policy based institutional support in favor of the area
Smallscale industries
 
3)E XPORT 

The Area of SSI plays a role mattering in the present performance

ofexportation of India. The Area of SSI contributes 45 %-50 % of IndianExports.
The direct exports of the Area SSI represent almost 35 % ofcomplete exports.
Besides direct exports, it is thought that the small ladderindustrial units contribute
about 15 % to exports indirectly. It happens bythe salable exporters, the
commercial houses and the houses ofexportation. They can also be in the form of
orders of exportation of bigunits or the production of parties and elements for use
for the finishedexportable goods. It would be surprising a lot to know that the non-
traditional products represent more than % than95 of the exports of SSI.
The exports of the area SSI sector the meter of the very good growth rates in
thisdecade. It was especially fed by the performance of clothes, leather and
preciousstones and units of jeweler of this area. The groups of product where the
area SSIprevails in exports are the sports goods, the ready-made clothes, wool
clothesand the knit clothes, the products of plastic, treated the food and
leatherproducts. The area SSI re-orientates its strategy of exportation towards the
newcommercial regime being introduced by WTO
 
4.OPPORTUNITY 
Less Capital Requirement

Higher support from government

Machinery Procurement

Procurement of Raw Materials

  Training

  Technical & Managerial skills

 
Provides funds and subsidies

 
Export promotionThe request of growth in the domestic greatness of the market
owing to thegeneral economic fast growth Augmenting the Potential Of
exportation forthe Indian Growth of products in Requirements for auxiliary units
owing toincrease in the number of green units of ground getting up in the area on
alarge scale. The small area of industry played extremely well and allowed
ourcountry to fulfill a broad measure of industrial growth and diversification
5) WELFARE

These industries are also very important for the reasons of casework.
People ofsmall means can organize these industries. It augments in its turn their
levels ofincome and quality of life. In this title these can help in decreasing poverty
in thecountry. Besides, these industries have tendency to promote the
equitabledistribution of income. Reasons are obvious.

One
A big proportion of income produced in these firms is distributed among
theworkers.

Two
Income is distributed among a vast number of persons across all country. Allthese
advantages run due to the fact that these industries are extremely whichrequires the
job of a strong work force and due to the fact that these can havegone up anywhere
in the country. The distributive aspect of industries of smallladder undoes their
favorable double character more. On one hand, theseindustries allow a vast number
of people to win
 1.2 STATEMENT OF PROBLEM:
The particular topic is chosen because Small scale industries of India play
therole mattering in India which is the very important element of Indian
Economy. The view of eye of worm provides a channel to the new businessman at
theirstarts ups and to announce their view on broad range ideas in more trust This
helps to show the accurate picture of how small scale industries in India
1.5 Research Design – Research type, data source
(Primary/Secondary),
Techniques of analysis, data visualization
METHODOLOGY:
 The methodology that is most suitable for this study is
Analytical study

TOOLS USED FOR DATA COLLECTION:

Both primary and secondary data have collected. The primary data havecollected
through questionnaire

SAMPLING TECHNIQUE:
 The sampling technique chosen for his study is based on Random sampling

SAMPLING FRAME
Aadithri industries. A small scale industry in visakhapatnam
SAMPLING SIZE
  The sample size is 1
DATA COLLECTION
Primary Data : Survey
 Tools : Questionnaire
Secondary Data : Articles and Website
e
1.6 LIMITATION TO THE STUDY

 The most of information shared by the industrialist were subjected tobias.
 
Birds view is difficult in the sector as every industry is based on
differentperspective
 
Some of the financial information was provided has it was confidentia

1.3 OBJECTIVES OF THE STUDY:

 To understand practices of the Small scale industries in India

 To know how small scale industries work

 To know the advantages and disadvantages of entrepreneur

To understand correct scenario of small scale industrieS

SCOPE OF THE STUDY:

Small Scale Industries is an essential yield that represents countrieseconomy 
 
 The study implicates towards the outside and the inborn factors andcontinues to
help start ups
 
It is important area of research
1.8 CHAPTERIZATION
CHAPTER 2: THEORITICAL CONCEPT
 2.1INTRODUCTION

SMALL SCALE INDUSTRIES

A small enterprise is a business which uses a small number of
workers and does nothave a majority series of sales. Such enterprises are general in
private property andserved sole property rights, unions or partnerships.In the
Indian economy small and home industry taken important place due to
theiremployment potentially and their contribution to the complete industry
production andexports. The government of India has done several steps to promote
them. Howeverwith the new measures small and home industry which faces of
both internalcompetitions as well as outside competition. There is no clear
differentiation betweensmall and home industry. However it is thought of it
general that home industry that iswhich is continued completely or primarily with
the help of the members of the family.

In the comparison with it small industry uses leasehold work. In

addition, industries arecombined in general with the agriculture and make available
support employment inrural areas.
In the comparison Small business discovered was of about more than
4000 years ago, the economic historyof the world records the origin of industrial
activities when people civilized tookeconomic activities in the initial stadium of
civilization. Evolution and development ofindustry had across the ancient period,
the Medieval Period and the Modern period. Inancient time industries was far
developed in west parts of IndiaIndia made outstanding performance in its arts and
artistic goods, woolen goods, textile,etc. India was more developed when
compared to western countries in form of smallscale industries in historical period.
In the time of Mogul rule India was advanceddrastically but later British took over
the regions of IndiaIndia was famous for both agricultural and non agricultural
product Indian small scaleindustries had rich past back at 2000 B.C. where
Egyptian used Indian muslin of finestquality to wrap mummies.
 HISTORY OF SMALL SCALE INDUSTRIES

Small business discovered was of about more than 4000 years ago, the
economic historyof the world records the origin of industrial activities when people
civilized tookeconomic activities in the initial stadium of civilization. Evolution
and development ofindustry had across the ancient period, the Medieval Period and
the Modern period. Inancient time industries was far developed in west parts of
India
India made outstanding performance in its arts and artistic goods, woolen goods,
textile,etc. India was more developed when compared to western countries in form
of smallscale industries in historical period. In the time of Mogul rule India was
advanceddrastically but later British took over the regions of Indi

Most of the countries used shawl of our ancient Kashmir aswool was finest
quality compared to other countriesMost of western merchants had tried and was
trying to build good relationship withIndia and countries like Syria, Arabs,
Turkeys, Persians was also traded with India
 
CLASSIFICATION OF SMALL SCALE INDUSTRIES
Small scale industries are usually classified into two they are
1)Traditional small industries
2)Modern small industries
Traditional small industries
Small traditional industries include khadi and the textile industry weaved in the
hand,the industries of the village, manual skills, the sericulture, coconut matting,
SSIs etc.Modern produce the broad range of the goods from comparatively the
simple articlessophisticated products as television, electronics, control the system,
products different
from mechanical engineering, particularly as ancillary’s to the big industries
 Small traditional industries are extremely labored while modern units of small
laddertake advantage from extremely sophisticated machines and from equipment.
Forinstance, during 1979-80, the traditional industries of small ladder represented
only 135of complete production but their part in complete job was 56 %.

Modern small industries

The industries of small ladder at present Indian are especially modern industries of
smallladder. Modernization enlarged the list of products given by this industry.
Articlesfabricated in the service of Small modern ladder and firms Of business in
India includerubber products, products of plastic, chemicals, the glass and ceramics
now, the articlesof mechanical genius, the equipment, the electrical articles,
transport equipment, theelectronic elements and equipment, the parties of auto, the
parties of bike, theinstruments, the sports goods, the articles of stationery shop and
the clocks and thewatchesThese types of industries are usually based on light
machineries and also use powersupply; these industries support large scale
industries and medium scale industries, thefinished product of these industries are
raw materials for other large scale industriesand medium scale
 
ROLE OF SMALL SCALE INDUSTRIES IN INDIAN ECONOMY
The small-scale industrial sector plays an essential role in Indian
economy from thepoint of view of job and from growth recorded a high growth
rate since Independence inspite of the rigid competition of industries on a large
scale. There are several importantreasons why these industries contribute to
the progress of Indian economy a lot

1)PRODUCTION

The area of industries of small ladder plays an essential role in the growth
of thecountry. It contributes almost 40 % of the raw industrial value added in
Indianeconomy. It was thought that a million Rs. of investment in the fixed assets
in thesmall area of ladder produces 4.62 million stocks of the goods or services
with anaddition of rough value of ten points of percentage. The area of small
laddergrew fast in the course of the years. Growth rates during the different periods
ofplan were very impressive. The number of units of small ladder augmented
about0.87 million units in year 1980-81 in most than 3 millions in 2000. When
theperformance of this area is seen against growth in manufacture and area
ofindustry as a whole, it instills the trust in impact strength of the area of
smallladde
2)EMPLOYMENT

The Area of so in India creates the biggest opportunities of job for the
Indianpeople, then only in Agriculture. It was thought that 100,000 rupees
ofinvestment in the fixed assets in the area of small ladder produce job for
fourpersons.
The area of Small scale industries is one of the quickest areas of growth ofthe
country. It provides huge opportunities of job and its presence is veryimportant for
countries appearing as India. The contribution of area Smallscale industries in
economy augments day after day. It is provider's area ofsecond job in value of the
country after agriculture. The contribution ofSmall scale industries in complete
exportation am also significant which isa third of the complete exports of the
country Except all these thecontribution the area of Small scale industries always
faces up a littlehostile treatment of the big organizations.
The area of
Small scale industries
in India becomes competitive day after dayas the liberalizing country. In this title
Small scale industries
do not acceptfinancial support of the government owing to deregulation, but to
develop thisarea and make it competitive with the government of multinationals
mustdevelop a little of policy based institutional support in favor of the area
Smallscale industries
 
3)E XPORT 
 The Area of SSI plays a role mattering in the present performance
ofexportation of India. The Area of SSI contributes 45 %-50 % of IndianExports.
The direct exports of the Area SSI represent almost 35 % ofcomplete exports.
Besides direct exports, it is thought that the small ladderindustrial units contribute
about 15 % to exports indirectly. It happens bythe salable exporters, the
commercial houses and the houses ofexportation. They can also be in the form of
orders of exportation of bigunits or the production of parties and elements for use
for the finishedexportable goods. It would be surprising a lot to know that the non-
traditional products represent more than % than95 of the exports of SSI.
The exports of the area SSI sector the meter of the very good growth rates in
thisdecade. It was especially fed by the performance of clothes, leather and
preciousstones and units of jeweler of this area. The groups of product where the
area SSIprevails in exports are the sports goods, the ready-made clothes, wool
clothesand the knit clothes, the products of plastic, treated the food and
leatherproducts. The area SSI re-orientates its strategy of exportation towards the
newcommercial regime being introduced by WTO
 
4.OPPORTUNITY 
Less Capital Requirement

Higher support from government

Machinery Procurement
 2.2CORE CONCEPT

Small scale industries are referred to as those industries in which the

process of manufacturing, production and servicing are done on a small scale.
The investment on such industries is one time and these investments are mostly
done on plant and machinery, the total investment on such industries do not exceed
1 crore.
In small scale industries, the manufacturing of goods and rendering of
services are done with the help of smaller machines and very limited manpower.
Small scale industries or SSIs are known as the lifeline of an economy, which is
very important for a country like India. Being a labor intensive industry, it is very
helpful in creating employment opportunities for the population of the country.
They are also a crucial part of an economy from a financial standpoint, as they help
in stabilising the per capita income of the country.
CHARECTERESTIC OF SMALL SCALE INDUSTRIES
Following are the characteristics of Small scale industries in India:

1. Small scale industries generally have a single ownership, which means it

either has a sole proprietorship structure or a partnership.
2. The management of the small scale industries rests with the owners and
therefore, the owner plays an active role in the day to day functions of the
business.
3. Small scale industries are very much labor intensive, hence there is limited
use of technology.
4. Small scale industries are flexible and adaptable to a changing business
environment, unlike the large industries.
5. Small scale industries work in a restricted area which makes them able to
meet local and regional requirements.
 6. Small scale industries use resources that are local and readily available,
which helps the economy fully utilise the natural resources and bear
minimum wastage.

Procurement of Raw Materials

Training

Technical & Managerial skills

Provides funds and subsidies

  Export promotionThe request of growth in the domestic greatness of the

market owing to thegeneral economic fast growth Augmenting the Potential Of
exportation forthe Indian Growth of products in Requirements for auxiliary units
owing toincrease in the number of green units of ground getting up in the area on
alarge scale. The small area of industry played extremely well and allowed
ourcountry to fulfill a broad measure of industrial growth and diversification
5) WELFARE
These industries are also very important for the reasons of casework.
People ofsmall means can organize these industries. It augments in its turn their
levels ofincome and quality of life. In this title these can help in decreasing poverty
in thecountry. Besides, these industries have tendency to promote the
equitabledistribution of income. Reasons are obvious.
One
A big proportion of income produced in these firms is distributed among
theworkers.

Two
Income is distributed among a vast number of persons across all country. Allthese
advantages run due to the fact that these industries are extremely whichrequires
job of a strong work force and due to the fact that these can havegone up anywhere
in the country.
2.3 RELATED TO KEY CONCEPT TO THE STUDY
FORMULA
CHAPTER-3 DATA ANALYSIS
CHAPTER-4 SUMMARY