SMALL SCALE INDUSTRIES

what is Small Scale Industries?

The meaning or definition of Small Scale Industries varies from one country to another. in most of the countries the criteria for defining a Small Scale Industries relates to the size of employment or capital or both.
In India, the ministry of commerce and industries defined a Small Scale Industries as a unit with a capital investment of not more than Rs. 5 lakhs irrespective of the number of person employed.

The Reserve Bank Of India (RBI) adopts an expanded definition of SSIs which includes traditional industries as well :-

• Small Scale Industries undertaking which are engaged in the manufacture, processing or preservation of goods in which the investment in plant and machinery does not exceed Rs. 1 crore . 
• tiny enterprises whose investment in plant and machinery does not exceed Rs. 25 lakhs 
• powerlooms
• the decentalised  and informal sector like hand looms, handicraft coir etc.
• the industry related services/ business enterprises which are notified as such.

 Advantages of Small Scale Industries :-

1.   Small Scale Industries can be started as per convenience of the owner in terms of space, finance ,product and manpower.
2. the setting up of the unit and starting of production requires a small gestation period of only 2 to 6 months
3. locality available skilled and semi-skilled people can be appointed at short notice and at a much lower wages compared to the medium and large industries.
4. some Small Scale Industries do not require a high level of technology.
5. Small Scale Industries are generally labour intensive.
6. It is one of the best of self employment as well as giving employment opportunity to own kith and kin, friends or relatives etc.
7. in case of rural sector the SSI unit will be able to have cheaper labour especially in off seasons.
8. Small Scale Enterprises in developing countries help to create economic stability in society by diffusing prosperity and by checking the expansion of monopolies.