SMALL SCALE INDUSTRY
DEFINITION
Its defined in 3 ways:
1. Conventional
It includes cottage and handicraft industries that employ conventional labour oriented methods to produce conventional products, mainly in the rural areas.
2. Operational
The operational definition for the policy purpose includes “ all the undertakings having an investment in fixed assests in plant and machinery, whether held on ownership terms or tease or hire-purchase,not exceeding RS 60lakhs.
3. National income accounting
National income accounting includes all manufacturing and processing activities ,including maintenance and repair services, undertaken by both household small scale manufacturing units not registered under factories act.
CHARACTERISTICS OF SSI’s
1) Capital investments are small and most of them have small number of workers.
2) Most of them are family owned industries.
3) Technology may become obsolete, resulting in closure of SSI’s
4) Few of them may grow as medium scale industries.
5) Profit margins are less due to competition.
6) Faces cut throat competition.
7) Generally found in urban or semi urban areas.
8) Funded by owners savings or short term loans.
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