PURPOSE

Business report on role of small scale industries its advantages, disadvantages and its impact on our economy. SMALL SCALE INDUSTRIES

Small-scale industries, or SSIs, are small employers a step above cottage industries, which are run within the household. SSIs are concentrated in urban areas and villages. They are more efficient than cottage industry but less efficient than large-scale businesses. The Small Scale Industry is an enterprise whose employee count and revenue falls below certain levels. Small Scale Industries in India provide job opportunity to more than 65 million people. Internationally SMEs report for 98% of business statistics and are accountable for triggering originality and competition. Small scale industry in India is renowned for its socio economic growth factors and even industrial expansion. One of the unique features of small scale industry is that its growth has generated better job prospects helping free enterprise and inculcation of expertise besides guaranteeing better utilization of limited fiscal reserves and technology. Additionally, they play an important part in attaining the economic targets and sociopolitical aims.

Advantages of small scale industries

Consumer commodities production, this industry is specialized in production of consumer commodities. SSI special features scale industries can be characterized with the special feature of adopting the labor intensive approach for commodity production. As these industries lack capital, so they utilize the labor power for the production of goods. The main advantage of such a process lies in the absorption of the surplus amount of labor in the economy who were not being absorbed by the large and capital intensive industries. This, in turn, helps the system in scaling down the extent of unemployment as well as poverty. Distributing National Income It has been empirically proved all over the world that Small Scale Industries are adept in distributing national income in more efficient and equitable manner among the various participants in the process of good production than their medium or larger counterparts. SSI Help to Economy Small Scale Industries help the economy in promoting balanced development of industries across all the regions of the economy. This industry helps the various sections of the society to hone their skills required for entrepreneurship. Small Scale Industries act as an essential medium for the efficient utilization of the skills as well as resources available locally.

 SSI Help to Economy Small Scale Industries help the economy in promoting balanced development of industries across all the regions of the economy. This industry helps the various sections of the society to hone their skills required for entrepreneurship. Small Scale Industries act as an essential medium for the efficient utilization of the skills as well as resources available locally. Small Scale Industries enjoy a lot of help and encouragement from the government through protecting these industries from the direct competition of the large scale ones, provision of subsidies in the form of capital, lenient tax structure for this industry and many more.

DISADVANTAGES OF SMALL SCALE INDUSTRY Adverse effect on capital formation. Another charge against these industries is that the cost of production is higher than in the large industries, because these industries suffer from several inefficiencies. Then there is the problem of raw materials which continues to plague these industries. Raw materials are available neither in sufficient quantity, nor of requisite quality,nor at reasonable price. Being small purchasers, the producers are notable to undertake bulk buying as the large industries can do. The result is taking whatever is available, of whatever quality and at high prices. The methods of production, which the smalland tiny enterprises use, are old and inefficient. The result is low productivity and high costs. There is little of research

anddevelopment in this field in the country. There is almost no agency to provide venture capital to cover risks associated with the introduction of new technologies.

Another serious problem,which these industries face, is that of competition from large-scale industries. Large-scale industries, organized as they are on modernlines, using latest production technology and having access to many facilities,can easily outsell the small producers.

BIBLOGRAPHY http://business.mapsofindia.com/project-report/for-small-scaleindustry.html http://en.wikipedia.org/wiki/File:Advantages_of_estabishing_small _scale_industries.png http://www.slideshare.net/jhardy2008/advantages-of-small-scaleindustries-9221051

PROJECT REPORT
ON

SMALL SCALE INDUSTRY

MADE BY, SHALU CHAUDHARY 167(SECTION C)