Defining Small Scale Industry

Small-scale industries require a small  capital but require a lot of labours.Industries like Manufacturing and service based industries are examples of small size industries. Small  scale industries have limited business capital  that produce things or offer services using smaller machines and a small number of workers and employees.

Guidelines For Small Scale Industries

These companies follow a certain set of rules given by the Indian government. They are playing a vital role in making the Indian economy and they also  provide a wide variety  of job opportunities for trained workers. They are critical to the economy’s financial and social well-being.

These sectors join hands  in a developing country like India due to high demand and opportunities. They export commodities, helps in bringing foreign currency into the country. Small and mid-scale industries govern over half of all products delivered in India (45-55 percent). Vendor demand for global enterprises has resulted in the formation of several small-scale industries.

In terms of investment and revenue, the Government of India has specific guidelines for small scale industries. Manufacturing/production, auxiliary, and service sectors are the three types of small-scale enterprises.

1.Units that create completed commodities for consumption or use in processing industries are referred to as manufacturing industries. Individually owned businesses make up the majority of small-scale industry. Power looms, engineering industries, food processing, and other manufacturing  are examples of small scale industries.

2.Ancillary Industries: Large corporations or multinational corporations (MNCs) produce finished goods, but they do not typically manufacture all of the components themselves. Auxiliary industries are the companies’ vendors. Ancillary industries can also be defined as businesses that manufacture machines for multinational corporations or medium-sized businesses.

3.Industries that provide services: The category of service industries includes repair shops and maintenance businesses.

There are other feeder industries and mining or quarries, in addition to these types of businesses.

Registration of Small scale businesses 

Small-scale industries can be owned or invested in with minimal paperwork and capital. Small-scale business registration is simple, and the government will provide funding to help you invest in small-scale businesses. You can also get the registry done through the Udyog Aadhar scheme by filling out an online registration form. You do not have to pay for SSI registration, and you do not have to pay for processing. After the executives have verified the documents and processed them, the certificate will be sent to your registered email address. Contact information, bank account information, other business information, employee information, and investment information are all required fields on the registration form. You may also be required to submit a scanned copy of any documents that require an Aadhar card. The government of India has made it very easy to register micro and small scale industries through a number of initiatives.

Benefits of the Registration for SSI 

After SSI registration, banks and financial institutions provide loans for the firm, and it becomes hassle-free. Once you’ve made your reservation, you’ll be able to get a tax refund. It is now necessary to register in order to participate in government bids. It becomes smoother as a result of the numerous concessions and reductions provided, and the cost of establishing the industry decreases.

Small-scale industry classification

According to the MSMED Act of 2006, the manufacturing process is classified.

1.If an industry’s investment in plant and machinery is greater than 25 lakhs but less than five crores, it is considered a small business.

The MSMED Act of 2006 establishes a classification system for service businesses.

2.If an industry’s equipment investment exceeds ten lakhs but does not surpass two crores, it is classified as a small business.

Small industrial unit as an add-on: The parent unit shall receive at least 50% of the production, and the investment in equipment and machinery should not exceed one crore.

Women-owned and managed small-scale businesses include: Women entrepreneurs own at least 51 percent of the company (individual or jointly)

A list of small scale industries

Manufacturing industries in small scale industries grow very quickly due to the abundant supply of raw materials and high public demand. In January 2019, a summit in south India, where KSSIA (Karnataka Small Scale Industries Association) was also present, had the goal of discussing critical challenges and finding solutions while also providing the ideal climate for growth and development. Spinning and weaving, coconut oil production, cashew nut processing, and clay goods are some of the prominent small scale businesses in Tamilnadu and Kerala. Due to several international firms, small scale ancillary industries in Hyderabad employ a large number of people. Foreign investment is critical because it generates a large number of ancillary small-scale industries and so jobs.

Agarbatti making, Chalk making, Biodiesel production, Sugar candy production, Wood making, Rice mill, Potato chips production, Toys production, Microbrewery, Liquid soap production, Honey processing, Slippers production, Detergent powder production, Fruit juice production plant, Spices production, and Chocolate production are some examples of small scale industries.

Tips to remember in order to avoid complications when managing a small business

1.The most serious difficulty is a lack of funds and raw materials, and money management should be done at all levels.

2.Marketing issues – Proper advertising is required to keep the show running at all times.

3.Quality – In order to meet the demand, the condition should not be compromised.

4.Technology – Keep up with the newest developments in technology. It aids in the reduction of investment costs while also improving the quality.

5.Managerial skills – To deal with the labour class and get the job done. 

Conclusion

We conclude that the Small-Scale Industries have acquired an important place in the socio-economic development of the country. The number of Small-Scale Industries stood at 28.03 lakhs in 1996-97 and increased to 34.64 lakhs.