Small Business

By Shivam Lamba
XI - D

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At a Glimpse

• MEANING OF SMALL BUSINESS

• MAIN FEATURE OF SMALL BUSINESS
• NATURE OF SBU( SMALL BUSINESS UNITS) IN
INDIA
• CLASSIFICATION OF SMALL BUSINESS IN INDIA
• Some Other Form of small business
• Administrative Setup For The Small Scale, Agro &
Rural Industries
• Other Chapter
•
 2
MEANING OF SMALL
BUSINESS
A small business is a business that is privately
owned and operated, with a small number of
employees and relatively low volume of sales.
The legal definition of "small" often varies by
country and industry, but is generally under 100
employees in the United States and under 50
employees in the European Union. In
comparison, the definition of mid-sized
business by the number of employees is
generally under 500 in the U.S. and 250 for the
European Union. In Australia, a small business
is defined as 1-19 employees and a medium
business as 20-200 employees. In india, small
business is defined on the basis of investment
on plant and machinery whose maximum limit
for small business is Rs. 1 Crore/10 million.

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MAIN FEATURE OF SMALL
BUSINESS
• Small businesses are normally
privately owned corporations,
partnerships, or
sole proprietorships.
• In addition to number of employees,
other methods used to classify
small companies include annual
sales (turnover), value of assets
and net profit (balance sheet),
alone or in a mixed definition.
These criteria are followed by the
European Union, for instance
(headcount, turnover and balance
sheet totals). Small businesses are
usually not dominant in their field of
operation.
• 4
NATURE OF SBU( SMALL
BUSINESS UNITS) IN INDIA
In India ,village & small industries
sector consists of both the traditional &
modern small industries . This sector
has 8 sub group which are
1.Handlooms
2.Handicraft
3.Coir
4.Sericulture
5.Khadi
6.Small scale industries
7.Village Industries Sericulture
8.Power looms
9.
10.

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CLASSIFICATION OF
SMALL BUSINESS IN INDIA
The small business in india can be classified as:-

Type Investment Limit(Rs) Remarks

Small Scale Industry One Crore For specific product it
Ancillary Industry One Crore is 5 Crore(71
Half product
the output
Tiny Enterprise 25 Lakhs so
No far)
supplied to the
Location parent
Limit
Service & business 10 Lakhs unit
No Location Limit
enterprise
Women Enterprise Any Of the Above 51% equity hold &
Export Oriented One Crore managed
100% EOUbyCan
women
Sell
Units(EOU`s) their 25% in domestic
market

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Some Other Form of small
business

ØMicro Business
ØVillage Industries
ØCottage Industries
People on work on power
looms.

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Administrative Setup For The Small
Scale, Agro & Rural Industries

Note : These ministries were disassociated from 1 single ministry

that is Ministry of small industries & Agro and rural Industries till
September 2001 8
 Ministry of Agro & Rural
industries ,India
• It is a nodal agency for coordination & development
of village industries.
• It exist in urban and rural area because it acts as a
link between the two.
• It control Khadi & Village Industries commission
(KVIC), Handicraft Board, Coir board, Silk Board.

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ROLE OF SMALL
BUSINESS IN INDIA
1. Small Scale Industries contribute 40% of gross industrial
value & provide foreign exchange.
2. Small industries are second largest employer in india as
it has large capacity to absorb man power.
3. Small Scale industries lead to Balanced regional
balance.
4. It is also provide a space for entrepreneurship ,low cost
of production.
5. Due to Small size of industries , quick& timely decision
can be taken.
6. Small Scale industries have an abalitity of adopting to
situation.
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7.
Problem Faced By Small
Industries
• Finance
• Raw Material
• Managerial Skills
• Technology
• Shortage Of Working Capital
• Global Competition Caricature for cow
rearing

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Institutional Support By Govt.

1. National Bank For Agriculture & Rural

Development(NABARD)
2. Rural Small Business Development Centre
(RSBDC)
3. National Small Industries Corporation (NSIC)
4. Small Industries Development Bank Of India (SIDBI)
5. The National Commission For Enterprises in
Unorganised Sector(NCEUS)
6. District Industries Centres(DICs)
7.
8. 12
INCENTIVES BY GOVT.OF
INDIA
• Land Every State Offer a developed plot
• for small scale industries on highly
• rebated price.
• Power It is supplied to industries on 50%
 & water concession rate as a incentive.
• Tax Govt. provide tax rebate in initial year to
Holiday set up the business.


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THE FUTURE
PROSPECTUS
• At the world level, WTO should instead of ending
subsidies, either support small business as the
small business are major exporter for an
economy.
• In India, The govt. instead of being a mere market
regulator should lead the small business to
development by the means of subsidies and other
facilities.
•

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Motto Of Success of Small
Business

Think Global,
Act Local

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THANK YOU

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