Table of Contents
What are Small Scale Industries?
Small Scale Industries – Characteristics:
Small Scale Industries are those industries which have a small production capacity. They are typically family-owned and operated, and may only produce a limited range of products.
What are the Characteristics of Small Scale Industries?
The characteristics of small-scale industries vary, but often include the following:
- Small-scale industries are typically family-owned and operated businesses.
- Small-scale industries are often more labor-intensive than larger industries.
- Small-scale industries often have limited resources, including financial resources and human resources.
- Small-scale industries often have shorter production times and are more flexible than larger industries.
- Small-scale industries often have a more personal relationship with their customers and clients.
Classification of Small Scale Industries
Small-scale industries can be classified into the following categories:
1. Traditional small-scale industries:
This category includes industries that have been around for a long time and are typically family-owned and operated. Examples include food processing, textiles, and metalworking.
2. Modern small-scale industries:
This category includes industries that are newer and typically use modern technology and equipment. Examples include computer hardware, telecommunications, and pharmaceuticals.
3. Specialized small-scale industries:
This category includes industries that are specialized and typically produce a single type of product. Examples include aircraft, boats, and medical equipment.
Classification of Small Scale Industries on Basis of Amount of Capital Invested
Small Scale Industries are classified into the following categories on the basis of the amount of capital invested:
1. Micro Small Scale Industries
2. Small Scale Industries
3. Medium Scale Industries
1. Micro Small Scale Industries:
Micro Small Scale Industries are those industries which have a capital investment of up to Rs. 25 lakh.
2. Small Scale Industries:
Small Scale Industries are those industries which have a capital investment of more than Rs. 25 lakh but less than Rs. 5 crore.
3. Medium Scale Industries:
Medium Scale Industries are those industries which have a capital investment of more than Rs. 5 crore but less than Rs. 10 crore.
List of Small Scale Industries In the Manufacturing Sector
1. Textile industry
2. Garment industry
3. Leather industry
4. Food processing industry
5. Chemical processing industry
6. Metal processing industry
7. Plastic processing industry
8. Wood processing industry
List of Small Scale Industries In the Service Sector
1. Tourist guide services
2. Translation and interpretation services
3. Tax consulting services
4. Technical writing and editing services
5. Training and development services
6. Web design and development services
7. Wedding planning services
8. Wholesale trade of used cars and light motor vehicles
Objectives and Features of Small Scale Industries
The objectives of small-scale industries are as follows:
1. To provide employment opportunities.
2. To promote cottage industries.
3. To promote small businesses.
4. To promote entrepreneurship.
5. To promote the use of local resources.
6. To promote the use of renewable resources.
7. To promote the use of environmentally friendly technologies.
8. To promote the use of appropriate technology.
9. To promote the use of traditional technology.
10. To promote the use of modern technology.
What are Some Examples of Small Scale Industries in India?
Some small scale industries in India include the manufacture of textiles, garments, leather goods, metal products, food items, beverages, and chemicals.
How Does the Government of India Encourage Small Scale Industries?
The government of India encourages small scale industries by providing various incentives, including tax breaks, subsidies, and easy access to credit. Additionally, the government operates various schemes and programs specifically designed to help small businesses grow and thrive.
FAQs on small Scale Industries
1. What are the benefits of starting a small scale industry?
There are many benefits to starting a small scale industry, including:
1. Reduced costs and overheads – small businesses typically have lower overheads and fixed costs than larger businesses, which can make them more profitable.
2. Increased flexibility and creativity – small businesses can be more agile and responsive to changes in the market, and are more likely to be able to innovate and experiment with new products and services.
3. Greater job creation – small businesses are often the engine of job growth, creating more jobs than large businesses.
4. Enhanced community engagement – small businesses are more likely to be engaged with their local community, and are often more supportive of local charities and organisations.
2. What are the key steps to starting a small scale industry?
There are a number of key steps to starting a small scale industry, including:
1. Research your industry and sector – it is important to have a good understanding of your industry and the market conditions before starting a business.
2. Develop a business plan – a business plan is a key document that outlines your business goals and how you plan to achieve them.
3. Secure finance – most small businesses require some form of finance in order to get started. There are a number of options available, including bank loans, crowd-funding, and venture capital.
