Small business and Enterprises notes in hindi (full chapter)
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Explanation:
business which operates on a small scale and required less capital, less labour and less machines is called small business. The goods are produces on a small scale. This business is operated and managed by the owner of the business. In India, the village and small Industries sector consists of both traditional Handlooms, Handicrafts, khadi and Village Industries. Modern small Industries – Small scale industries and Power looms.
According to The Micro,Small and Medium Enterprise Development (MSMED) Act, 2006, a small scale enterprise defined as one where the investment in Plant and Machinery is more than Rs. 25 lakhs but does not exceed Rs. 5 crore.
Several parameters can be used to measure the size of business. These include
the number of persons employed in business,
Capital invested in business,
Volume of output of business and
power consumed for business activities.
The definition used by the Government of India to describe small Industries is based on the investment in plant and machinery. It can be divided as follows:
Category Manufacturing Unit Service Providers
Micro Enterprise Less than Rs. 25 Lakhs Less than Rs. 10 Lakhs
Small Enterprise Between Rs. 25 Lakhs to Rs. 5 Crore Between Rs. 10 Lakhs to Rs. 2 Crore
Medium Enterprise Between Rs. 5 Crore to Rs. 10 Crore Between Rs. 2 Crore to Rs. 5 Crore
ROLE OF SMALL SCALE INDUSTRIES IN SOCIO ECONOMIC DEVELOPMENT OF INDIA
1. Employment: Small scale Industries are second largest employers of human resources after Agriculture. It has 95% of the industrial unit in the country. These enterprises are labour intensive and labour is available in abundants amount is rural areas of India.
2. Variety of product: Small scale Industries produce an enormous Variety of goods e.g. readymade garments, stationery, soaps, Leather’s goods Plastic and rubber goods.
3. Export: The share of product from SSI is 45% of total export from India. So it earn valuable foreign exchange and solve the problem of balance of payment.
4. Balance regional development: SSI can be set anywhere in the country. They use local resources, less capital and simple technology.
5. Complementary to large scale Industries: SSI. supply various types of components, spare parts, tools etc, which are required by large scale enterprises.
6. Low cost of production: SSI also enjoy the advantage of low cost of production because they used local resources in their product.
7. Quick and timely decision Due to the small size of the organization quick and timely decisions can be taken without consulting many people.
8. Development of entrepreneurship: SSI provide opportunity of young men and women to start their own business.
ROLE OF SMALL BUSINESS IN RURAL INDIA
1. Provides Employment in Rural Areas: Cottage and rural industries provide employment opportunities in the rural areas as these are labour oriented enterprises. In Indian rural areas ample labour is available.
2. Improve Economic Condition: Small business provide multiple source of income to the rural households. SSI improves economic conditions and standard of living of people living in those Areas.
3. Prevent migration: Development of rural and village industries can also prevent migration of the rural population to urban areas in search of employment.
4. Utilisation of Local Resources: SSI use local resources e.g. coir, wood and other products.
5. Equitable distribution of rational Income: Small Scale Industries and cottage Industries ensure equitable distribution of national income. This helps to reduce the gap between rich and the poor in the country.
6. Balanced Regional development – These enterprises are often dependent on local source of production. This way, industries do not just limit themselves to a particular place but diversify. This helps in balanced regional development.