Notes on Small scale industries and importance


The small scale industry as the name itself specifies that the small level of business, which the people could invest a small amount of money which helps in developing entrepreneurship across the country. Apart from these, it plays a major role in developing the employment opportunities across the country.

Well on the basis of the plan on investment on the machinery and also on the basis of the investment in equipment in case of service sector industries we can Categorise as:

small scale industries

  1. Microscale Enterprise: This area of sectors in which the initial investment is in the range between 10L-25L are also called as the microscale enterprise.
  2. Small scale Enterprise: This area of the business sectors in which the investments ranges from 25L to 2C, where the investments in plants and machinery are more and not exceeding 2crores are called as small-scale enterprises.
  3. Medium scale Enterprises: These are the area of the business in which where the business sector ranges from more than 5 crore and not more than 10 crores Services sectors industries, not more than 5 crores are termed as medium scale enterprise.

Importance of the Small Scale Industries:

SSI  is  the backbone of the country’s economy and also the world’s economy

examples of small scale industries

That’s y all the governments are encouraging the small-scale industries across the states to increase the employment opportunities. By approving the loans, and by the small funds across the nation, thereby few  of them are listed below as:

  1. National building partner: SSI employment opportunities plays a very major role in nation building and not only providing them the opportunities and also their lifestyle has been made a remarkable process.
  2. Well quality of products: The quality of the products which they manufacture is full-fledged and clean and sustainable for a longer amount of time.
  3. Job opportunities: The major remarkable progress across which every youth, not only the youths all kinds of men and women also gets the job, Increasing the job is the major agenda of the small scale industry where all people should get the job and also local peoples also giving the employment chances enhances the confidences among workers and increases productivity.

Not only these reasons there are also major reasons for which the small scale industries creation and implementation have to be enforced.

In fact as the small scale industries existences goes beyond the ancient days where the people used to do the small types of manufacturing like the cottage industry, wooden toys, eatable plates manufacturing, and much more.

The era of ancient days where the homemade industry ruled most of the small level of people used to live a happy life and more of the profits.

The most well-known industries in the ancient days were the khadi industry Where   Swadeshi goods played a major role in the revolution of the country during the British rule. But the industry has vanished on that time since the deploying of the foreign goods has completely vanished as a result more of the unemployment occurred.

Small scale industries played a major vital in the industrial development in  the country, moreover they play the major role in capital investment, However they are more vanishing day by day and government authorities also aware of their role in Economical process of the country but today’s scenario is completely different as other country made goods is increasing  day by day.

Few of the industrial policies which I would like to share now is that our Indian government has been implemented to boost the Indian industries to compete for the international market. Industrial policy of 1991 focused on the liberalization (private sector) where the industrial policies and new policies emphasis on decentralization.

Public sector contributed a major role in the infrastructure development and also the employment generation but it has been declined from few  past years

Due to the insufficient funds and also corrupted officers have made a major reason for declination of public sector industries. SSI’s major problems are the :

  1. Insufficient availability of the raw materials: Raw materials are the major requirement for any product development and also the main component in the development.
  2. Insufficient of the funds: The major problem in which every small enterpriser is the small level people who don’t have the huge amount of the capital.
  3. Marketing problem: The SSI products developed don’t have huge market, as they are failing in the marketing as the intermediates cheat’s and moreover there is a huge gap between the buyers and also sellers
  4. Large-scale industry: The large-scale industry has also increased day by day declining the small-scale industry.

Apart from above problems, there are more problems which the small scale industry is facing . The major step that the government is the  Development of the small Industry organisation, The  ministry of the SSI, ministry of the agro and rural industries also promoting the small enterprises industries

There were also the public sectors where the huge undertakings were the NSIC their major goal is to encourage the small enterprises, technical trainings, assisting the export, consultancies etc.


Although  current situations of unemployment and lack of the capitals etc. many  such problems has to be overcomed by the use of the government policies would have a tremendous impact on society

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