Scribd
Upload
86 views4 pages

Capital Investment Is Low1

This document discusses the classification and characteristics of small businesses in Nepal. It categorizes traditional small industries as cottage industries like textiles and craft industries. Modern small industries mentioned include the first jute mill and other processing mills. Key characteristics of small businesses are low capital investment, fewer than 10 workers, production of consumer goods, rural/semi-urban locations, and personalized management by owners. Advantages include being labor-intensive, using local resources, creating rural employment, and economic stability. Small businesses are important for Nepal due to its labor abundance and capital scarcity, with potential for employment, industry dispersal, entrepreneurship, and foreign exchange earnings.

Uploaded by

raazoo19
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
86 views4 pages

Capital Investment Is Low1

This document discusses the classification and characteristics of small businesses in Nepal. It categorizes traditional small industries as cottage industries like textiles and craft industries. Modern small industries mentioned include the first jute mill and other processing mills. Key characteristics of small businesses are low capital investment, fewer than 10 workers, production of consumer goods, rural/semi-urban locations, and personalized management by owners. Advantages include being labor-intensive, using local resources, creating rural employment, and economic stability. Small businesses are important for Nepal due to its labor abundance and capital scarcity, with potential for employment, industry dispersal, entrepreneurship, and foreign exchange earnings.

Uploaded by

raazoo19
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 4

CLASSIFIACTION OF SMALL BUSINESS

Small-scale
Industries

Traditional

Modern

Traditional Industries
a. Cottage industries:
Sinning and weaving of cotton and wool textiles
Manufacturing of paper products, rope, baskets, wood
products and leather products.
b. Craft industries:
The creative skill of craftsmen in temples, palaces, works
of art and architecture.
MODERN INDUSTRIES
a. Biratnagar jute mill: it was a joint venture of Nepal and India. It
was the first modern industry of Nepal
b. Other Mills: Moran cotton mill, cigarette, glass, chemicals,
cement etc

CHARACTERISTICS OF SMALL BUSINESS

1. Capital investment is low


2. Most have fewer then 10 workers
3. Generally engaged in the production of light consumer goods, processing etc
4. Located on rural and semi- urban areas.
5. Small scale unit generally is a one man show. Even the small units which are run
by partnership firms or company, the activities are mainly carried out by one of
the partners or directors.
6. Family workers generally form the largest component of small- industry labor
force.
7. Due to various constraints corruption, cheating is a common feature.
8. financial discipline is very weak
9. Small industries fairly labor intensive with comparatively smaller capital
investment than the larger units.
10. The owner himself/ herself is a manager also. Thus, these units are managed in
personalized fashion.

ADVANTAGES OF SMALL SCALE BUSINESS

Small enterprises have distinct advantages both economic and social. Some of these
are:
1. Small scale business is generally labour- intensive and do not require a large
amount of capital.
2. Some small- scale industries do not require a high level of technology.
3. Most developing countries are rich in certain agriculture, forest and mineral
resources; small- scale enterprises can be based on the processing o locallyproducing raw material.
4. The development of small-scale enterprises will create jobs in rural areas of
the developing countries where unemployment and underemployment are very
high.
5. Small-scale enterprises in developing countries help to create economic
stability in society.
6. Small enterprises create immediate and permanent employment at a relatively
small capital cost.
7. They do not require as heavy and costly infrastructure as larger enterprises.

IMPORTANCE OF SMALL BUSINESS


I n labour abundant and capital scarce country like Nepal, small scale industries have
come to occupy a significant position in the planned industrialization of the economy.
Most small scale industries have a low capital intensity and high potential for
employment generation.

The small scale business has a high potential for employment, dispersal of industries,
promoting entrepreneurship and earning foreign exchange to the country. The
following points further demonstrate the importance of small scale industries.

1. Small is beautiful: it emphasizes on small working units, communal


ownership and regional work places utilizing local labour and resources. It
focuses on person and not on product.
2. Innovative and productive: it is small business which is highly innovative
though they do not maintain their own research and development wings.
3. Individual taste, fashions and personalized service: small firms are quick in
studying changes in taste and fashions of consumers and in adjusting the
production process.
4. Happier in work: people who work in small enterprises are happier in their
work than those who work in large ones.
5. Always the winner of the game: small enterprises were at the forefront of
practically every business boom of the last decade, whether it was computers,
television sets, consumers electronics, garments.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy