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Definition

• An industrial undertaking in which the investment in


fixed assets in plant and machinery whether held on
ownership terms on lease or on hire purchase does
not exceed Rs.10 million.
• ACCORDING TO SSI BOARD- “A unit
employing less than 50 persons if power and less than
100 persons without the use of power and with a
capital investment rupees 5lakh”
Formalities for starting up of an SSI
 Selection of a project
 Decide on the constitution
 Obtain SSI registration
 Obtain clearances from departments as applicable
 Arrange for land
 Arrange for machinery
 Arrange for infrastructure
 Prepare project report
 Apply and obtain finance
 Implementation
Objectives of Small Scale Industries
• To create more employment opportunities with less
investment.
• To remove economic backwardness of rural and less
developed regions of the economy.
• To reduce regional imbalances.
• To mobilize and ensure optimum utilization of unexploited
resources of the country.
• To improve standard of living of people.
• To ensure equitable distribution of income and wealth.
• To solve unemployment problem.
• To attain self-reliance.
• To adopt latest technology aimed at producing better quality
products at lower costs.
Small Scale Industry in INDIA
• Small Scale Industries may sound small but actually plays a
very important part in the overall growth of an economy. Small
Scale Industries can be characterized by the unique feature of
labor intensiveness.

• The total number of people employed in this industry has been


calculated to be near about one crore and ninety lakhs in India.

• The importance of this industry increases manifold due to the


immense employment generating potential. The countries
which are characterized by acute unemployment problem
especially put emphasis on the model of Small
Scale Industries.
Types of SSI
ADVANTAGES OF SMALL SCALE
INDUSTRIES
• Close Supervision
• Nature of Demand
• More Employment
• Need of Small Capital
• Direct Relation between the workers and the employers
• Direct Relation between the customers and producers
• Easy Management
• Freedom of Work
• External Economies
• Less possibilities of strike and lockouts
DISADVANTAGES OF SMALL
SCALE INDUSTRIES
• High cost of production
• Wastage of by-products
• Less use of Machines
• Lack of Division of Labor
• Difficulty in getting Loans
Few Examples of SSI
• Weaving
• Pottery
• and other cottage industries
COTTAGE INDUSTRIES
• Definition
• An industry where the creation of products and services is home-
based, rather than factory-based. While products and services
created by cottage industry are often unique and distinctive given
the fact that they are usually not mass-produced, producers in this
sector often face numerous disadvantages when trying to compete
with much larger factory-based companies.
• 1. an industry whose labor force consists of family units or
individuals working at home with their own equipment
• 2. a small and often informally organized industry
• 3. a limited but enthusiastically pursued activity or subject
Government policies for SSI
Conclusion
• TO SUM UP WE CAN SAY THAT SSI SERVES AS
A SEED BED OF ENTREPRENEURISHIP AS IT
PROVIDES CONDUCIVE CONDITIONS FOR THE
DEVLOPMENT AND GROWTH OF
ENTREPRENEURS .
• SMALL ENTREPRISES REQUIER LOW
INVESTMENT AND SIMPLE TECHNOLOGY AND
USE LOCAL RESOURCES TO MEET LOCAL
DEMANDS THROUGH PERSONAL CONTACTS.