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Small Scale and Cottage Industries

Small scale industries are located in urban areas, employ outside labor with partially or wholly mechanized equipment, and have small capital and workforce. Cottage industries are rural, involve hand operations mostly in homes, and primarily use family members. Small scale industries are defined as employing less than 50 people and having capital investment of less than 1 crore, while cottage firms have investment of less than 15 lakhs. They provide employment, use local resources, promote regional development, and train entrepreneurs, but face problems with financing, raw materials, marketing, technology, and underutilized capacity.

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Hemant Dwivedi
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245 views5 pages

Small Scale and Cottage Industries

Small scale industries are located in urban areas, employ outside labor with partially or wholly mechanized equipment, and have small capital and workforce. Cottage industries are rural, involve hand operations mostly in homes, and primarily use family members. Small scale industries are defined as employing less than 50 people and having capital investment of less than 1 crore, while cottage firms have investment of less than 15 lakhs. They provide employment, use local resources, promote regional development, and train entrepreneurs, but face problems with financing, raw materials, marketing, technology, and underutilized capacity.

Uploaded by

Hemant Dwivedi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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SMALL SCALE AND COTTAGE INDUSTRIES

Meaning

A small scale industries are located in urban centers and produce goods with partially or wholly mechanized equipment employing outside labour, small in size, having little capital resources and a small labour force. Cottage Industries are mainly rural in character and are generally associated with agriculture involving operations mostly by hands and are carried on in the home either as a whole time or as a part time occupation, primarily with the help of members of the family.

The Small scale Industries Board define the SSI A Unit employing less then 50 persons, with a capital investment not more than 1 crore . A business firm which is having an investment not more than 15 lakhs is known as cottage firm.

Importance of Small-Scale Industry

Employment Generation Use of Local Raw Material Balanced Regional Development Decentralization of Industries Mobilization of Capital Developing Entrepreneurship Equitable Distribution of Wealth Training Ground for Local Entrepreneur Efficient Use of Productive Factors Promotion of Exports.

Problems of Small Scale Industries

Finance Raw Material Marketing Technology Underutilization of Capacity Other Problems.

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