SMALL SCALE INDUSTRY

SSIs : Small Scale Industries may sound small but actually plays a very important part in the overall growth of an economy. Small Scale Industries can be characterized by the unique feature of labor intensiveness. The total number of people employed in this industry has been calculated to be near about one crore and ninety lakhs in India, the main proponents of Small scale industries.

The importance of this industry increases manifold due to the immense employment generating potential. The countries which are characterized by acute unemployment problem especially put emphasis on the model of Small Scale Industries. It has been observed that India along with the countries in the Indian continent have gone long strides in this field.



CHARACTERISTICS
Small capital investment,small no. of workers, owned by individual or at most two persons,poor management,less profit margin,faces cut throat competition etc.

SCOPE
Manufacturing,repairing,servicing,construction,financial,retailing activities etc.
ADVANTAGES
Don't require high level technology or large capital,can be based on processing of raw materials, projects can be short and productive,uses source and capabilities of unemployed and under employed for productive purpose etc.

Organization

Legal forms of organization:
Sole proprietorship-business owned or operated by one person.
Partnership-association of two or more partners to carry on as co-owners.
Corporations-legal entities owned by shareholders.
Organization is the identification and classification of required activity,the grouping of activities necessary to attain objectives,the assignment of each grouping to a manager with the authority necessary to supervise it,and the provision for coordination horizontally and vertically.