Micro & Small

Scale
Industries
By Hriday Bhadouria
Class - XI C
What are Small Scale Industries?
● Small scale industries are referred to as those industries in
which the process of manufacturing, production and servicing
are done on a small scale. The investment on such industries is
one time and these investments are mostly done on plant and
machinery, the total investment on such industries do not
exceed 1 crore.
● In small scale industries, the manufacturing of goods and
rendering of services are done with the help of smaller machines
and very limited manpower.
● Small scale industries or SSIs are known as the lifeline of an
economy, which is very important for a country like India. Being
a labor intensive industry, it is very helpful in creating
employment opportunities for the population of the country.
● They are also a crucial part of an economy from a financial
standpoint, as they help in stabilising the per capita income of
the country.
Objectives of Small Scale Industries

1. 2. 3.
To create job To help in the To play an active role in
opportunities for the development of the rural reducing the regional
population. areas of the economy. imbalances in the nation.

4. 5.
To help in improving the To ensure there is equal
standard of living for distribution of wealth
people in rural areas. and income
Role of Small Scale Industries in
Indian Economy
● They are the major sources of employment for the people
living in rural areas and therefore, play a vital role in
generating employment in an economy.
● Small scale industries account for almost 40% of the total
goods and services in India hence, is a very important
contributor to the economy.
● Small scale industries help in promoting the Make in India
initiative which helps in increasing demand for local made
products.
● Majority of the export materials are provided to the Indian
companies from the small scale industries. It is estimated
that around 50% of all the material exported are produced
Example of Small Scale Industries
Paper Plates
Manufacturing

Tissue Paper
Manufacturing

Chocolate
Manufacturing

Candle
Manufacturing
What are Micro Scale Industries?
● Micro scale industries are businesses that are
typically smaller than a traditional large-scale
corporation. They are often family-owned and
operated, and they often provide specialized goods or
services. These businesses usually employ fewer
people than larger companies, but they can still have
a big impact on their local economy.
Characteristics of Small Scale
Industries
1. Micro scale industries typically have fewer resources than large-
scale companies, and they often focus on providing specialized
goods or services to customers.
2. These businesses tend to be concentrated in rural areas and
often employ fewer people than larger companies, but they can
still have a significant impact on their local economy.
Objectives of Micro Scale
Industries

● Micro scale industries have the potential to provide

essential goods and services to local communities
and to create economic opportunities for those
living in rural areas.
● The objectives of micro scale industries are to
create sustainable jobs and to stimulate economic
growth in the local area, while also providing
quality products and services to customers.
Role of Micro Scale Industries in
Indian Economy
● Micro scale industries have been playing a vital role in the
economic development of India, contributing significantly
to the growth of the country.
● These industries provide employment opportunities to
people in rural areas, help in reducing poverty and also
contribute to the overall economic growth of the country.
Benefits of Small Scale and Micro Scale
Industries
● Small scale and micro scale industries are
beneficial to their local economies because they
provide jobs and create products that are often
unique to the area. They also often employ local
residents, which can help to boost the local
economy.
● These businesses also provide important services
to their communities, such as providing food,
clothing, and other essential items. They can also
help to create a sense of community by providing a
Challenges Faced by Small Scale
and Micro Scale Industries
● Small scale and micro scale industries often face
challenges due to their size, such as limited access
to capital, lack of access to markets, and lack of
access to technology. They also often lack the
resources to compete with larger businesses.
● These businesses also face challenges due to their
limited size, such as difficulty in obtaining loans
and other forms of financing, difficulty in finding
qualified employees, and difficulty in competing
with larger businesses. These challenges can make
Government Support for Small
Scale and Micro Scale Industries
● The government provides support to small scale
and micro scale industries through various
programs and initiatives. These include tax
incentives, grants, loans, and other forms of
assistance. The government also provides access
to markets and technology, which can help these
businesses to succeed.
● The government also provides support to small
scale and micro scale industries through various
training and education programs. These programs
Government Support for Small
Scale and Micro Scale Industries
● The government provides support to small scale
and micro scale industries through various
programs and initiatives. These include tax
incentives, grants, loans, and other forms of
assistance. The government also provides access
to markets and technology, which can help these
businesses to succeed.
● The government also provides support to small
scale and micro scale industries through various
training and education programs. These programs
Impact of Small Scale and Micro
Scale Industries
● Small scale and micro scale industries have a
positive impact on their local economies. They
provide jobs, create products, and contribute to
the local tax base. They can also provide valuable
services to their communities, such as providing
food, clothing, and other essential items.
● These businesses also help to create a sense of
community by providing a place for people to
gather and interact. They can help to foster
economic development in their local areas, and
Difference in Size of Small Scale
and Micro Scale Industries
● Small scale industries are typically larger than
micro scale industries, with more employees,
capital and resources.
● Micro scale industries are typically smaller, with
fewer employees, capital and resources.
Difference in Scope of Small
Scale and Micro Scale Industries
● Small scale industries generally focus on the
production of goods for a larger market, whereas
micro scale industries may be more specialized,
producing goods for a smaller market.
● Whereas small scale industries may have more
resources to invest in research and development,
micro scale industries may have fewer resources,
but can also be more nimble and agile, able to
quickly pivot and change direction.
Difference in Ownership Small
Scale and Micro Scale Industries
● Small scale industries are typically owned by
individuals, families or groups of investors, while
micro scale industries are often owned by single
proprietors or small teams.
● Small scale and micro scale industries may have
different ownership structures, but both can
benefit from the advantages of scale, such as lower
costs and increased market reach.
Difference in Location Small
Scale and Micro Scale Industries
● Small scale industries are typically located in large
cities, while micro scale industries are often found
in smaller towns or rural areas.
● These differences in location can help define the
scope of the industry and how it will be able to
reach potential customers.
Conclusion
● Small scale and micro scale industries are important to the
economy because they provide jobs, create products, and
contribute to the local tax base. They can also provide valuable
services to their communities, such as providing food, clothing,
and other essential items. The government provides support to
these businesses through various programs and initiatives, and
these businesses can have a positive impact on their local
economies.
● Small scale and micro scale industries are an important part of
the economy and can have a big impact on their local
communities. They provide jobs, create products, and contribute
to the local tax base. They can also provide valuable services to
their communities, such as providing food, clothing, and other
essential items.