Presentation on small business industry

1. Presented By:
Kirti Gupta

2. 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 80% 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.

3. 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.5Lakhs.”
According to the government of India-
2000,”An undertaking having an investment in plant
and machinery of not more than Rs.1crore”

4. Why We Need SSI?

5. Small Enterprise As A Seedbed
Of Entrepreneurship
Seedbed refers to
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.

6. Steps In Setting Up Of SSI
Prepare A
Business
Plan
Selection
Of Product
Location of
an
enterprise
Arrangemen
t Of Finance
Installation
Of Plant &
Machinery
Provisional
Registration
Permanent
Registration
Profit
Generation

7. 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 Risk: Small amount of risk
is involved in small scale industry because it
require small amount of investment.
4)Shorter Gestation Period: Small scale
industries

8. 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.

10. 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.

11. 2. Employment Generation: Small-scale industries are
labour intensive. Total employment generated by These small-
scale industries has increased to 185.6lakh in 2000-01. These
units provide large employment than large scale industries.

12. 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. 7200crores in 1973-74 to Rs.
9588crore in 1985-86.

13. 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 .
6. Equitable Distribution Of Income: Small-
scale and

14. 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.

15. 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

16. Problem Of Small Enterprise

17. 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:

18. 1. Public Sector Banks: 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
2. National Bank for Agriculture and Rural
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 businesses.
3. National Small Industries Corporation
Limited (NSIC): Set up with the objective to boost small
scale industries in India, NSIC helps import machines on easy
hire purchase terms.

19. 4. Small Industries Development Bank of India
(SIDBI): As the name suggests, SIDBI 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.
5. National Commission for Enterprises in the
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.
6. Rural and Women Entrepreneurship
Development (RWED): This programe is focused on
encouraging entrepreneurship among women and the rural
population. It supports various business and entrepreneurial
initiatives by providing timely advice and counselling,
initiating training and development programes and helping
secure credit opportunities.

20. Contribution Of Banks In
Promoting SSI
State Bank Of India
Punjab National Bank
Union Bank Of India
Bank Of India

22. THANK YOU