Hello and welcome to our blog Knowledgeonet - A place to learn new and knowledgable things..
So our today's topic is - Small business
# What is a small business ?
So small business refers to a enterprise which has generally low investment and employee up to 50 person when using power and up to 100 persons when not using the power. the capital assest of that enterprise should not exceed more than Rs. 5 Lakh.
# How government defines a Small business?
Government decide whether an enterprise is a small business or a large business by comparing its Investment in plant and machinery.
# Classification of Small Business .
the Small business is classified into mainly 2 sub types on the basis of workdone -
1. Manufacturing Small Industry
2. Service small Industry
(note:- industry is a sub type of business thus is used .)
the business is also classified in 2 more ways but on the basis of time - 
1.Traditional business - in this business all the business such as handicraft , sericulture , cottage industry comes
2.Modern Business - this business include SSI (Small Scale Industry) and Powerlooms.
#Features of SSI (Small scale industry)
some features or charactersticks of SSI are as follows -
1.Independence of management
2. Dominance of Labour
3.Limited Investment
4.Personal character (own by single propriter or partner)
5.located in semi rural and urban areas,
#Role of Small Business in India
the small business is very popular and widely accepted in India . the roles of small business in India are as follows -
1.Employment generator - Small Scale Industries are generally Labour intensive thus provide huge employment . SSI are the second most employment generator in india after agriculture.
2.Rural Devlopment - SSI are generally set up at rural areas. As they are setup there it creates employment for the rural people and also devlope good infrastructure in villages.
3.Improving Economic Condition - Setting up industry in rural areas is widely promoted by gov. as it improves Economic condition of people working and living there . it also help them as they can sell their Raw material directly to them.
4.Variety of products - SSI in our country supplies an enormous variety of goods such as readymade garment , leather , hosiery goods etc.
5.Low cost of production - Small Scale Industries also get the advantage of low cost of production as locally availble resources are less expensive.
# Problems faced by small scale enterprise
Being a good platform for new enterpenuors small business is also faces many problems . some of them are mentioned here -
1.Lack of funds or financial support - it is the main problem faced by every SSI. it is also a main cause for many other problems.
2.Less Promotion - Due to limited funds SSI can't go for a good promotion and hence it affects its sales.
3.Global Competition - Small businesses or SSI's are greatly affected due to such high competition from MNC's . MNC's always tries to exhibit the small industries and want to reduce its competition.
4.Limited resources - As good quality resources are purchased by large scale enterprises. Small business have to go for low quality raw materials nd hence produce less quality products.
5.Managerial skills - SSI are generally owned and managed by single individuals or by partners thus due to limited funds they are unable to go for a professional management.
# How government defines a Small business?
Government decide whether an enterprise is a small business or a large business by comparing its Investment in plant and machinery.
# Classification of Small Business .
the Small business is classified into mainly 2 sub types on the basis of workdone -
1. Manufacturing Small Industry
2. Service small Industry
(note:- industry is a sub type of business thus is used .)
the business is also classified in 2 more ways but on the basis of time - 1.Traditional business - in this business all the business such as handicraft , sericulture , cottage industry comes
2.Modern Business - this business include SSI (Small Scale Industry) and Powerlooms.
#Features of SSI (Small scale industry)
some features or charactersticks of SSI are as follows -
1.Independence of management
2. Dominance of Labour
3.Limited Investment
4.Personal character (own by single propriter or partner)
5.located in semi rural and urban areas,
#Role of Small Business in India
the small business is very popular and widely accepted in India . the roles of small business in India are as follows -
1.Employment generator - Small Scale Industries are generally Labour intensive thus provide huge employment . SSI are the second most employment generator in india after agriculture.
2.Rural Devlopment - SSI are generally set up at rural areas. As they are setup there it creates employment for the rural people and also devlope good infrastructure in villages.
3.Improving Economic Condition - Setting up industry in rural areas is widely promoted by gov. as it improves Economic condition of people working and living there . it also help them as they can sell their Raw material directly to them.
4.Variety of products - SSI in our country supplies an enormous variety of goods such as readymade garment , leather , hosiery goods etc.
5.Low cost of production - Small Scale Industries also get the advantage of low cost of production as locally availble resources are less expensive.
# Problems faced by small scale enterprise
Being a good platform for new enterpenuors small business is also faces many problems . some of them are mentioned here -
1.Lack of funds or financial support - it is the main problem faced by every SSI. it is also a main cause for many other problems.
2.Less Promotion - Due to limited funds SSI can't go for a good promotion and hence it affects its sales.
3.Global Competition - Small businesses or SSI's are greatly affected due to such high competition from MNC's . MNC's always tries to exhibit the small industries and want to reduce its competition.
4.Limited resources - As good quality resources are purchased by large scale enterprises. Small business have to go for low quality raw materials nd hence produce less quality products.
5.Managerial skills - SSI are generally owned and managed by single individuals or by partners thus due to limited funds they are unable to go for a professional management.
1. Manufacturing Small Industry
2. Service small Industry
(note:- industry is a sub type of business thus is used .)
the business is also classified in 2 more ways but on the basis of time -
2.Modern Business - this business include SSI (Small Scale Industry) and Powerlooms.
#Features of SSI (Small scale industry)
some features or charactersticks of SSI are as follows -
1.Independence of management
2. Dominance of Labour
3.Limited Investment
4.Personal character (own by single propriter or partner)
5.located in semi rural and urban areas,
#Role of Small Business in India
the small business is very popular and widely accepted in India . the roles of small business in India are as follows -
1.Employment generator - Small Scale Industries are generally Labour intensive thus provide huge employment . SSI are the second most employment generator in india after agriculture.
2.Rural Devlopment - SSI are generally set up at rural areas. As they are setup there it creates employment for the rural people and also devlope good infrastructure in villages.
3.Improving Economic Condition - Setting up industry in rural areas is widely promoted by gov. as it improves Economic condition of people working and living there . it also help them as they can sell their Raw material directly to them.
4.Variety of products - SSI in our country supplies an enormous variety of goods such as readymade garment , leather , hosiery goods etc.
5.Low cost of production - Small Scale Industries also get the advantage of low cost of production as locally availble resources are less expensive.
# Problems faced by small scale enterprise
Being a good platform for new enterpenuors small business is also faces many problems . some of them are mentioned here -
2.Less Promotion - Due to limited funds SSI can't go for a good promotion and hence it affects its sales.
3.Global Competition - Small businesses or SSI's are greatly affected due to such high competition from MNC's . MNC's always tries to exhibit the small industries and want to reduce its competition.
4.Limited resources - As good quality resources are purchased by large scale enterprises. Small business have to go for low quality raw materials nd hence produce less quality products.
5.Managerial skills - SSI are generally owned and managed by single individuals or by partners thus due to limited funds they are unable to go for a professional management.
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