What Is Small Scale Industries and How Does It Work?

small scale industries

Online Business has given rise to more openings of Small Scale Industries in India and across the world. People are buying and selling online. There are many e-commerce platforms which have emerged due to an increase in demand for online buying and selling activities. It is very easy now to start an ecommerce business in India or in any nation for an Individual as well.

There are many sellers who are having offline business and now they are seeing an online business opportunity as their second mode of Income source. So, there is definitely a scope of e-commerce in india.

What is Small Scale Industries?

The definition of small scale industries can be defined as the Industries which do bulk production, bulk manufacturing, provide services by the use of very less number of employees and small sized machines. Small scale industries in India are playing a crucial role in growing the economy of the nation. They also contribute to providing employment to the citizens. There are many parameters through which It can lead to a growing economy structure.

These industries have to fall under the defined rules and regulations which are set by the Government of India. It is always advisable to accept the terms and conditions and work accordingly with the defined policies. 

All types of small scale industries are exporting products and services to the foreign countries. It is also found that nearly half of the total 100% of all categories of items are shipped through SSI. This is really a striking point to note for the increase in nation’s economy.

Small Scale Industries also apply for the government support schemes to scale the Industry to the Next level. There are many schemes through which registration becomes easy and after the approval of the application they can get the defined benefits under the scheme. It is also found that Some Small Scale Industries are capable of getting revenue in crores after getting support by government schemes.

Many of the SSI can take time to grow their tasks and various operations. Because of the limited resources and employees, they somehow manage to get the work done for their manufacturing or bulk production items.

Characteristics of Small Scale Industries

Small Scale Industries can be Characterised With the following Features mentioned below:

1. Ownership

small scale industries projects

In this category the ownership is mainly single. It can be a partnership also and a sole proprietorship. You can consider this as a single owner providing services to the community and with very less number of employees with them.  The owner of SSI must be registered under the GST to avail the benefits of various schemes.

2. Management

types of small scale industries

The management have to be very strategized in order to execute different tasks in a single day. Because of limited labour It may take time for the task completion in small scale industries. If they invest some amount in good resources like project or task management tools then It can be easily organized and tracked which definitely provide productivity to the Industry.

3. Number of Employee Requirements

small scale industries registration

The financial investment is almost negligible or has a tiny fraction in majorly small scale industries and therefore the employees are also limited. This makes the tasks dependencies and tasks overload on each labour. It might become unproductive in the field of work and chances are their client’s service is not fulfilled by the SSI.

The owner has to be involved in every labour task sometimes just to clarify the things and make the tasks execution in very less time. There are many responsibilities on all the employees and owners also.

4. Resources

resources

Resources are very essential to any small scale industries and sometimes there may be lack of resources can put the work execution with low delivery rate. It is always recommended to make use of all the resources that are needed to perform various work in SSI. Those resources will definitely help them to scale up their operations in limited time and thus also soars the productivity.

Small scale industries can use ready available resources or those resources which can be made locally. However, the resources can be easily found with many options available on e-commerce marketplace. There are all types of sellers on e-commerce platform which are surely useful for the business customers in finding the hardware parts or software tools.

5. Tasks Limitations

task limitations

Tasks are totally dependent on the workflow of any SSI. By looking into the demand flow, tasks can be assigned to the labour and at the primary stage they normally have burden on their work. The tasks are very limited and mainly it requires automation. Once the top management strategized different tasks then Monitoring have to be done by SSI.

6. Flexibility

small scale industries ideas

Small scale industries are very capable of adapting themselves with business demand requirements. They can produce the item in bulk if the demand goes high and capture the market. Accordingly, they are also able to increase the labour staff if an overflow task process comes in within the Industry. 

The labour cost can be easily manageable if the production comes in demand and supplies have to be increased and shipped to various locations across the country.

7. Reach

Some Small scale industries have limited area to perform the tasks or daily operations. So, they can fulfill the needs as per local or national demand. But there are also SSI Which are capable of fulfilling demands to the foreign countries. It is always good to have a maximum reach so that they can contribute more to economic growth.

Small Scale Industries In India

There is a big scope of small scale industries in India and the reasons are numerous for it. It is due to an increase in Online Buying selling activities the businesses are expanding with maximum potential. More and more people are joining e-commerce platforms to grow in their career and It also soars the economic growth of the nation.

There are many small scale industries in bangalore and other cities in India. It has been observed that SSI can also be considered in the priority sources of employment in India which is said to be a rapidly developing country. The technology and resources in India are also good; these SSI can perform various work within the limited time period.

However, the technology of developed countries like the USA, UK, and many other countries are truly exceptional. Those developed countries have adapted automation in almost every field of work. That makes them unique in all aspects from production to distribution. Developing countries have to learn the exact method to get the desired result in their Industries.

small scale industries in india

Production is totally automated in the majority of small scale industries in India but the machines which perform automation are very outdated and consumes high electricity and power. There is definitely an update in every machine but due to limited financial resources the industry does not take updates necessary in developing countries.

Small scale industries in chennai have the same rules to follow and also small scale industries in hyderabad or in any other cities across India. Every SSI has to work accordingly with the defined policy set by Government authorities.

It is a real fact that many of the SSI comprises more than fifty percent manufacturing of items and services. They are also responsible for rapid economic growth of India. The world is now operating online in the majority of tasks which have made it easy for the business consumers to deal from any part of the world. The availability of different payment gateways made the process very easier to carry out financial transactions.

In recent years many micro and small scale industries have emerged and scaled up. Social media has made the reach of many SSI to millions of people across the globe. Social media has much more dominance in many sectors of work. SSI have found the social media people presence online and which have resulted in growth of them.

Make in India initiative has given rise to many small scale industries. This concept mainly focuses on manufacturing the items in almost every category and selling them globally. This will also generate employment in India and various demands from many parts of the world can be fulfilled. This program does make sense to grow the economy of the country.

India is reliable on many SSI in the export industry. The most part of items are produced in north India by SSI and then those are transported to other countries. The SSI are also increasing the products limit in their niche category which they make productions. This is really a good sign of them to fulfil the demands across the globe.

Small Scale Industries Registration

Small scale industries registration is an application process which is processed through the Ministry of Micro, Small & Medium Enterprises. Any business which need to expand must get the SSI registration done. There are various schemes through which they can avail the benefits, subsidies and other useful things which are going to benefit them in their business operations.

The Small scale industries registration can be done online too. If you have setup the new business with GST number then SSI registration becomes very simple and after that you are eligible for many subsidies given by the Government of India or State Government.

Eligibility Criteria:

SSI registration can be done for:

  1. Service Industries
  2. Manufacturing Industries

1. For the service industries If you have done the Investment in within defined limits then you can obtained SSI registration for your Business.

A. Micro industries: If the Investment is upto ten lakhs Rupees in machines or in house factory.
B. Small industries: If the Investment is upto two crores Rupees in machines or in house factory.
C. Medium industries: If the Investment is upto five crores Rupees in machines or in house factory.

2. For the manufacturing industries If the Investment is processed within explained limits then SSI registration can be possible for your business.

A. Micro industries: If the Investment is upto twenty five lakhs Rupees in machines or in house factory.
B. Small industries: If the Investment is upto five crores Rupees in machines or in house factory.
C. Medium industries: If the Investment is upto ten crores Rupees in machines or in house factory.

Advantages of getting SSI registration:

  1. Those businesses which are registered with SSI are provided with higher choice for various government certification and licenses.
  2. Many concessions and rebates are available after the SSI is fully set up.
  3. SSI can take advantage of many government tenders.
  4. Many tax rebates are offered to all registered small scale industries.

Small scale industries owners just have to fill an online registration form with their business details, GST Number, Name, Email id, and other identities. This registration process can also be done offline. You must keep in mind that the registration fee is not there. So, once the details are submitted you will get the SSI registration number very easily. All the details or information you provide must be authenticated and true.

List of Small Scale Industries Ideas

  1. Papers
  2. Pen
  3. Chocolates
  4. Stationery Items
  5. Small sized Toys
  6. Water bottles

FAQ:

1. What are small scale industries?

SSI are the industries which do manufacturing and production in bulk with limited number of resources and labours.

2. What are the examples of small scale industries?

Industries which produces watter bottle, paper, stationaries item, small toys, etc.

3. What is the role of small scale industries in economic development?

They are responsible for mass production of items and exports to different countries and it definitely helps in economic development of the country.

4. How small scale industries are helpful in economic development?

These industries are capable of exporting products and services in large quantities to many nations.

5. How to start small scale industries in tamilnadu?

Apply for the SSI registrations and then you can setup your SSI in tamil nadu or anywhere in India.

6. How to apply for subsidy for small scale industries?

Visit MSME Website and then you will get to know about the process of getting subsidies for SSI.

7. What is small scale industries in india?

SSI are the major source of income and expansion of economic development in India.

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