Report on Small - Scale Industry

1. Rationale:-
The rationale behind this project is to understand the working of a small-scale industry, its
operations, challenges, and growth potential. Small-scale industries play a vital role in
economic development by generating employment, promoting entrepreneurship, and
contributing to local markets.

2. Course Outcome (CO):–

a. Use principles of planning and organising for accomplishment of tasks.

3.Literature Review:-
Small-scale industries (SSIs) are businesses with limited resources but high potential for
innovation and economic contribution. They are characterized by minimal capital investment
and labor-intensive production. Various government schemes and financial assistance
programs support SSIs for growth and sustainability.

4. Actual Methodology Followed:-

1. First I decided the topic.
2.I collected information.
3. Took guidance from my guide.
4. Then I will start to create the project for topic.
5. At first, I will arrange this information as per instructions.
6. Then I will prepare a report on the topic.
7. We I present it to my guide and ask her for the queries.
8.I will make changes as per the guidance.
9. Will make our final project.
10. Submit it to my guide.
Sr. Name of
Specification Quantity Remark
no Resources
Processor:- Intel core i5,
Computer RAM:- 8 GB It is used to perform some
1) System Operating System:- Windows project related task.
1
11.

2) Software word 1 information.

5. Resources Required:-

6. Introduction:-
Small Scale Industries (SSI) are industries that manufacture, produce and render services on a
small or micro scale level. In India, several SSIs exists in various fields such as handicrafts,
toys, weaving, pickle making, food products, etc. These industries make a one-time
investment in machinery, plant, and equipment, but it does not exceed Rs.10 crore and annual
turnover does not exceed Rs.50 crore.

Introduction of SSI
Essentially the small scale industries are generally comprised of those industries which
manufacture, produce and render services with the help of small machines and less
manpower. These enterprises must fall under the guidelines, set by the Government of India.

The SSI’s are the lifeline of the economy, especially in developing countries like India. These
industries are generally labour-intensive, and hence they play an important role in the
creation of employment. SSI’s are a crucial sector of the economy both from a financial and
social point of view, as they help with the per capita income and resource utilisation in the
economy.

Characteristics of SSI
 Ownership
SSI’s generally are under single ownership. So it can either be a sole proprietorship or
sometimes a partnership firm.

 Management
Generally, both the management and the control is with the owner/owners. Hence the owner
is actively involved in the day-to-day activities of the business.

 Labor Intensive
 SSI’s dependence on technology is pretty limited. Hence they tend to use labour and
manpower for their production activities.

 Flexibility
SSI’s are more adaptable to their changing business environment. So in case of amendments
or unexpected developments, they are flexible enough to adapt and carry on, unlike large
industries.

 Limited Reach
Small scale industries have a restricted zone of operations. Hence, they can meet their local
and regional demand.

 Resources Utilisation
They use local and readily available resources which helps the economy fully utilise natural
resources with minimum wastage.

Objectives of SSI
The objectives of the small scale industries are:
 To create more employment opportunities.
 To help develop the rural and less developed regions of the economy.
 To reduce regional imbalances.
 To ensure optimum utilisation of unexploited resources of the country.
 To improve the standard of living of people.
 To ensure equal distribution of income and wealth.
 To solve the unemployment problem.
 To attain self-reliance.
 To adopt the latest technology aimed at producing better quality products at lower
costs.

Types of SSI
SSI are primarily categorised into 3 types, based on the nature of work carried out, which
are as follows:

 Manufacturing Industries
The manufacturing industries manufacture finished goods for consumption or used further in
processing. Some examples of such SSIs are food processing units, power looms, engineering
units, etc.

 Ancillary Industries
Ancillary industries manufacture components for other manufacturers. These manufacturers
then assemble the final product. Big companies manufacture finished goods, but they do not
generally make all the parts themselves. The vendors of such big companies are ancillary
industries.

 Service Industries
Service-based industries are not involved in any kind of manufacturing products. They
provide services such as repair, maintenance and upkeep of the products after-sales.

Other types of SSIs are as follows:

 Export Units
An SSI is considered as an export unit when the exporting is more than 50% of its
production.

 Cottage Units
The cottage units are considered as SSIs when they do not involve a dedicated facility and are
carried out within living spaces or houses of the owners.

 Village Industries
An SSI is considered village industries when they are established in rural areas and are not
part of the organised sector. Typically, these industries solely depend on human labour for
production.

7. Skill Developed / Learning Outcome: -

1. Understanding small business management.

2. Analyzing financial and operational efficiency.
3. Learning about government policies and support programs.
4. Developing problem-solving skills in business growth strategies.
5. Enhancing practical knowledge of supply chain and marketing.

8. Benefits:-
1. Gaining real-world industry exposure.
2. Learning business strategies for small enterprises.
3. Understanding challenges and solutions in small-scale industries.
4. Developing analytical skills for business growth.
5. Enhancing entrepreneurial mindset and decision-making skills.

9. Future improvement:-
1. Implementing better financial planning strategies.
2. Adopting digital marketing and e-commerce solutions.
3. Exploring automation for production efficiency.
4. Studying government policies for funding and support.
5. Identifying new market expansion opportunities.
10. Conclusion: -
This microproject on small-scale industries provides a deep understanding of the business
ecosystem, operational challenges, and growth opportunities. By analyzing real-world
examples, we learn how small enterprises contribute to economic development and
innovation. Future improvements can be made by integrating modern technologies and better
financial management strategies.

11. References: -
1. Government Websites (MSME, Startup India)
1. Business Case Studies
2. Industry Reports
3. Online Business Journals