Pic - :: A Wall Of A Small Scale Industries
Meaning and Scope of Small Scale Industries:
The “small sector”, as the name
implies, consists of small-scale industries.
Following Dhar and Lydall, we can divide the small-scale industries into following three categories, viz.:
(a) Cottage industries,
(b) Agro-based industries, and
(c) Small industries.
(a) Cottage Industries:
These are generally associated with agriculture and part-time and whole- time occupations in rural and semi-urban areas. (Mahalanobis had used the term ‘hand industries’ for them.)
(b) Agro-Based Industries:
These industries are based on the
processing of agricultural produce, or they cater to the input needs of the
agriculturist Agro-based industries may be organised on a (i) cottage scale,
(ii) small scale, or (iii) large scale. Large- scale agro-based industries are
generally set up in large cities, or in semi- urban areas. Rural agro-based
industries are generally organised either on a cottage or small-scale basis,
and possess most of their characteristics.
(c) Small Industries:
We can distinguish between two types of small industries:
(i) Modern small-scale manufacturing enterprises:
These are small-firms using ‘modem
techniques to produce modern product’. Technology used by these firms is on par
with or closely approximates the modem large-scale industry.
These firms, by their very nature,
are located in large towns in order to take advantage of external production
economies; they use hired labour and raw materials supplied by large-scale
enterprises located at a long distance. Their market is also dispersed in a
region or throughout the country, sometimes they operate in export markets.
(ii) Intermediate group of small enterprises:
These firms use more or less
traditional techniques to produce more or less modern products’. Here machine
production is substituted by labour-intensive non-mechanised (capital-saving)
techniques. The orientation of these enterprises, however, is towards urban
areas, rather than to villages as they have to procure their raw materials from
towns, which also provide market for finished products.
(iii) Cottage Industry and Small Industry:
We can distinguish between these two types on the basis of their links with the rest of the system rather than in terms of their absolute size or technological considerations alone. These links are of the technical or input-output kind as well as of the general economic kind. Small industries are technically and economically connected with the large-scale sector while the cottage industries generally are not
(iv) Small Industry and Large Industry:
The differences between the small
and the large industries arise largely because of the distinct organisational
character of the former which is indicated by such factors as ownership,
management, technique, flow of inputs and output, localisation, and finally the
historic sequence of development.
In the official industrial policy formulation, a small industry is defined as a unit having investment up to Rs. 1 crore in plant and machinery. (It takes into account investments in plant and machinery only and does not consider money put into effluent treatment, quality control, fire-fighting equipment and safety. It also excludes the ‘stand by” investments in land and buildings) It also defines a ‘tiny unit’ as an enterprise having an investment up to Rs. 25 lakh (95% of the small scale units are within the investment range of Rs.251akhs.)
Well , that is it and That sums it all.
Regards and Thanks
Pics
Shyamal Bhattacharjee
Mr Shyamal Bhattacharjee, the author was born at West Chirimiri Colliery at District Surguja, Chattisgarh on July 6th 1959 He received his early education at Carmel Convent School Bishrampur and later at Christ Church Boys' Higher Secondary School at Jabalpur. He later joined Hislop College at Nagpur and completed his graduation in Science and he also added a degree in B A thereafter. He joined the HITAVADA, a leading dailies of Central India at Nagpur as a Sub-Editor ( Sports ) but gave up to complete his MBA in 1984 He thereafter added a Diploma In Export Management. He has authored THREE books namely Notable Quotes and Noble Thought published by Pustak Mahal in 2001 Indian Cricket : Faces That Changed It published by Manas Publications in 2009 and Essential Of Office Management published by NBCA, Kolkatta in 2012. He has a experience of about 35 years in Marketing .
This website is maintained , controlled and managed by OOK’S Technologies, by Mr Amook Vandan Yadav , Phone Number 8090848585 , Varanasi
Comments
Post a Comment