Small Scale Industries

2. What is Small Scale Industries..?
“It is an industrial undertaking in
which the investment is fixed assets in
plant & machinery, whether held on
ownership term or on lease or hire
purchase, does not exceed Rs 1 Crore.
However, the investment limit is varied by
the Government from time to time.”

3. IMPORTANCE OF SSI
• Employment generation
• Self employment
• Optimum use of Capital
• Facilitate Entrepreneurial Development
• Use of Local Resources
• Balanced Regional Development
• Supporting Large Scale Industries

4. Steps in Setting up Small Scale Units
Selecting the
activity or service
Selection of
the product
Conduction
Market Survey
Selection of the
Form of Ownership
Selection of
Location
Selection of
Technology
Ascertainment of
Inputs Required
Preparation of
Project Report
Arrangement
of Finance
Registration

5. Advantages
• Close supervision
• Nature of demand
• More employeement
• Need of small capital
• Easy management
• Direct relationship between the
workers and the employees
• Direct relationship between the
customers and the producers
• Less possibilities of strike and lockouts

6. Disadvantages
• Less use of machines
• Lack of division of labor
• Wastage of by-products
• Costly raw materials
• Old technologies
• Lack of research