Ancillary Unit, Entrepreneurship

Tiny

Unit

&

Role

of

Small Scale Industries(SSIs)

A very important segment of the Indian economy and has emerged as a Dynamic & Vibrant sector of the economy

This Sector accounts for about 40% of the Countrys Total Exports.
Various Policy Initiatives undertaken by the Central Govt. & Various State Govt. whether by way of Incentives or protection, have helped the sector in acquiring the Status of a Major Contributor in the Growth Process.

SSIs have been assigned to fulfill the expectations of accelerating the productivity of many important areas like agriculture and industry by improving the techniques of production in a

more economic and diversified way.

The Process of Liberalization & Economic Reforms, since 1991, while creating Tremendous Opportunities for the Growth of Small Scale Industrial Sector, have however thrown up new Challenges for the Sector.

This changed Industrial Scenario, has called for

building Competitive Strengths,

Improving Quality & Productivity, Introducing Technology Up gradation, reducing Wastages & Rejections, Intelligent Use of Resources, Employing Modern Management Techniques in order to withstand growing competition & for ensuring sustained

growth.

Ancillary Units

An Industrial undertaking which is engaged or is proposed to be engaged in the manufacture or production of parts, components, sub-assemblies, tooling or intermediates, or the rendering

of services is termed as ancillary units.

These units provide inputs to other industries. These are engaged in the manufacture of parts, components, light engineering products like cycles, sewing machines, diesel engines, machine tools, mathematical instruments, office and household equipment etc.

The ancillary undertaking has to supply or render or propose to supply or render not less than 50% of its production or services, as the case may be, to one or more other industrial undertakings.

The investment in plant and machinery, whether held on ownership terms or on lease or on hire purchase, should not exceed Rs.10 million

Tiny Units

A unit is treated as tiny enterprise where investment in plant and machinery does not exceed Rs. 2.5 million, irrespective of the location of the unit. These units include all industry related services and business enterprises.

Problems of SSI

Inefficient Labour Defective system of supply of Raw materials Absence of credit facility Lack of machinery and equipment Huge number of Bogus small firms

Unsuitable location

Competition from Large scale units

Obsolete technology

Absence of Organized Marketing Facility

Poor Recoveries

Entrepreneur & Entrepreneurship

Entrepreneur is the one who brings together the factors of production and combines them into a product.

The most important factor in the process of economic development

The one who recognizes and seizes opportunities, convert these opportunities into marketable ideas, adds value through time ,effort, money or skills, assumes the risk to implement these ideas, and realizes the rewards from these efforts

Entrepreneurship is the process of identifying opportunities in the market place , arranging the resources required to pursue these opportunities and investing the resources to exploit the opportunities for long term gains.

It is a set of activities performed by an entrepreneur

Need for Entrepreneurship

Providing leadership in the industrial development Introducing innovation and changes

Increasing productivity
Providing employment

Increasing the standard of living of the people

Promoting balanced regional growth

Concentration of economic power, regional imbalances, exploitation by monopolists and many other bigger problems can be solved through entrepreneurship development

Entrepreneurs are regarded as the nation builders and wealth creators. They are the

change agents and contribute to the economic development