INTRODUCTION

The small scale business today is immense for the growth of the country. Small scale industries are the industries which are run with the help of their labours and which also use some simple machine and power. The investment scale in this industry from 50 lakh to 1 crore for fixed assets. Irrespective number of worker engaged is small scale industry unit. In India these type of industries are permuted to meet with the problem of excess population and unemployment so the government of India prate entrepreneur to step up small scale industries by aiding him by giving loans, land ,guidance etc .

OBJECTIVES
The purposes of the report are: to give a brief description of small scale industry. to discuss its role in economic development.

METHODOLOGY
The seminar report is prepared from the secondary sources of related websites in the internet and no primary data has been used in it.

FINDINGS AND ANALYSIS

Small scale industries are small in size but play a big role in the economic development of a developing country like India. India has adopted the ideal of a socialistic pattern of society with full employment balanced regional development and self-reliance as the major objectives. The following are the important contributions of small business towards economic development: (i)The small businesses have greater flexibility in their operations. They are much better placed in catering to individual tastes and changing fashions. (ii)The small business are generally labour-intensive. They thus ideally suit the country where capital is scarce while labour is super abundant.
1

(iii)The developing nations are endowed with large fund of traditional skills. Small scale industries provide opportunities for profitable employment of these skills. (iv) The only practical way to provide the people with livelihood is to ensure expanding employment opportunities to them. Small scale industry with their extensive employment potential can thus play a vital role in relieving the widespread and object poverty. (v) The small businesses often make use of local resources which otherwise may go waste. They provide opportunities for entrepreneurship to many more persons. They thus promote entrepreneurship which is an essential factor in economic development. (vi) Artistic handicrafts earn valuable foreign exchange for the country. It is able to contribute 35% of the much needed foreign exchange earnings through exports. (vii)The distributions of net value added is less unequal in small scale industries. Hence they help to avoid extreme inequalities of income, wealth and economic power. (viii) While large businesses take years to put up and attain reasonable levels of capacity utilization, small scale units can be contributed and brought up into operation in a much shorter period. In a situation where there is need to avoid inflation and to raise the level of living of the masses calls for quick increases in output, the small businesses play important role. (ix) Decentralization of production made possible by small businesses can provide a check on excessive and premature urbanization which is a serious problem. (x) The intimate and personal relationship that exists in small industries are more conducive to peaceful and cooperative industrial relations. At present there are about 16 lakh small scale units in India producing more than 500 times. The Seventh Fiver Year Plan envisages a growth rate of 10 per cent in the small scale sector. By the end of 1990 the production of small scale sector is expected to be Rs. 8,000 crores and employment 1.19 crore persons. At current prices the total output of small scale sector in 198-87 amounted to Rs. 72,250 crores.

CONCLUSION
Today, the small scale business contributes nearly 8 percent of the countrys GDP, 45 percent of the manufacturing output and 40 percent of the exports. They provide the largest share of employment after agriculture. They are the nurseries for entrepreneurship and innovation. They are widely dispersed across the country and produce a diverse range of products and services to meet the needs of the local markets, the global market and the national and international value chains.

BIBLIOGRAPHY
Websites: http://www.boddunan.com/articles/education/19-engineering/10764-smallscale-industry.html http://msme.gov.in/Web/Portal/New-Default.aspx