SMALL SCALE INDUSTRIES

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SMALL SCALE INDUSTRIES AND COTTAGE INDUSTRIES PRESENTED BY NEHA MANCHANDA MBA-1ST SEM :

SMALL SCALE INDUSTRIES AND COTTAGE INDUSTRIES PRESENTED BY NEHA MANCHANDA MBA-1 ST SEM

SMALL SCALE INDUSTRIES:

These industries are defined as- Investment does not exceed Rs.10 million . Mainly engaged in the manufacture of parts , components or rendering of services . It exports 30% of its production . It invests Rs.25 lakhs in Plant and Machinery . SMALL SCALE INDUSTRIES

COTTAGE INDUSTRIES:

These industries which provide part time or whole time work in rural & semi-urban areas . They are generally associated with agriculture . COTTAGE INDUSTRIES

CHARACTERISTICS 0F SSI’S:

Personal Character Labour Intensive Limited Capital Independent Management Simple Organisation CHARACTERISTICS 0F SSI’S

ROLE OF SSI’S IN INDIAN ECONOMY:

EMPLOYMENT - SSI’S use labour intensive technique . For every Rs. 1 lakh of fixed investment provides employment to 26 persons as against 4 persons in the large scale sector . B. OPTIMISATION OF CAPITAL - It require less capital & provide quick returns on investment . ROLE OF SSI’S IN INDIAN ECONOMY

OTHERS ARE -:

C. MOBILISATION OF LOCAL RESOURSES - SSI’S help to mobilise and utilise local resources . D. EXPORT PROMOTION - It reduces pressure on the country’s B.O.P as they do not require imports of machinery or raw material and they earn foreign exchange through exports . E. FEEDER OF LARGE SCALE INDUSTRIES – It plays a complementary role to large scale sector . F. SHARE IN INDUSTRIAL PRODUCTION – It contribute more than one-half of the total industrial production . OTHERS ARE -

PROBLEMS OF SSI’S:

PROBLEM OF RAW-MATERIAL – A major problem that the SSI’S have to contend with is the procurement of raw material . PROBLEM OF FINANCE – It is because of scarcity of capital & weak credit worthiness . PROBLEM OF MARKETING – They doesn't spend on advertisement & publicity . They find it difficult to export due to lack of skills . PROBLEMS OF SSI’S

OTHERS ARE-:

D. OUTDATED TECHNOLOGY – It depends upon old techniques & equipments because of limited capital . E. POOR PROJECT PLANNING – In the absence of education and experience , they don't understand the details due to which poor planning of projects arise . F. INADEQUATE INFRASTRUCTURE – Other problems are transportation , communication & other basic services . OTHERS ARE-

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