MINOR PROJECT REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF BACHELOR OF BUSINESS

ADMINISTRATION

A PROJECT REPORT
ON

Small Scale Industries And Their Management

Problems
Batch: 2021-2024

Submitted By: PROJECT GUIDE

Manya Samania Ms Kratika Gupta

04027901721

Trinity Institute of Innovations in Professional Studies

(Affiliated To Guru Gobind Singh Indraprastha University)
 CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project work “Small scale industries and their
management problems” made by Manya Samania BBA, 2nd Semester,
04027901721 is an authentic work carried out by her under guidance and
supervision of Ms Kratika Gupta.

The project report submitted has been found satisfactory for the partial
fulfilment of the degree of Bachelor of Business Administration.

Ms Kratika Gupta

Signature
 ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my

mentors who graciously gave me their time and expertise.

They have provided me with the valuable guidance, sustained efforts and
friendly approach. It would have been difficult to achieve the results in
such a short span of time without their help.

I deem it my duty to record my gratitude towards the Project Supervisor

Ms Kratika Gupta who devoted her precious time to interact, guide and
gave me the right approach to accomplish the task and also helped me to
enhance my knowledge and understanding of the project.

MANYA SAMANIA
04027901721
BBA
2nd Semester

DECLARATION
I hereby declare that the following documented project report titled “Small
scale industries and their management problems” is an original and
authentic work done by me for the partial fulfilment of Bachelors of
Business Administration degree program.
I hereby certify that all the Endeavour put in the fulfilment of the task are
genuine and original to the best of my knowledge & I have not submitted it
earlier elsewhere.

Manya Samania
04027901721
BBA
2nd semester
 TABLE OF CONTENTS

S.No. Particulars
1. CHAPTER 1: INTRODUCTION

2. CHAPTER 2: RESEARCH METHODOLOGY

3. CHAPTER 3: DATA ANALYSIS AND INTERPRETATION

4. FINDINGS

5. LIMITATIONS OF THE PROJECT

6. SUGGESTIONS AND RECOMMENDATIONS

7. CONCLUSION

8. BIBLIOGRAPHY

9. ANNEXURE
 CHAPTER-1
INTRODUCTION
Introduction of SSI
Essentially the small scale industries are generally comprised of
those industries which manufacture, produce and render services
with the help of small machines and less manpower. These
enterprises must fall under the guidelines, set by the
Government of India.
The SSI’s are the lifeline of the economy, especially in
developing countries like India. These industries are generally
labour-intensive, and hence they play an important role in the
creation of employment. SSI’s are a crucial sector of the
economy both from a financial and social point of view, as they
help with the per capita income and resource utilisation in the
economy.
India is predominantly an agricultural country. Apart from
agriculture, small scale & large scale
industries have been also developed. Small scale industries are
the backbone of our industrial
structure as they provide a variety of non-traditional, low
technology products. They are also
engaged in the processing, preserving, manufacturing &
servicing activities and play a vital role in
balanced and sustainable economic growth. Thus, a proper
development of small scale industries is
essential for the healthy growth of economy.
The primary object of developing small scale industries in rural
areas is to generate better
employment opportunities, raise income levels & standards of
living of people. Small scale industries are essential for
providing subsidiary or alternate occupations and utilization of
local labour
& raw materials. They facilitate an effective mobilization of
resources of capital and skill and
also stimulate the growth of industrial entrepreneurship. Thus,
the development of small scale
industries is an integral part of the overall economic, social and
industrial development of a country.
Characteristics of SSI
Ownership
SSI’s generally are under single ownership. So it can either be a
sole proprietorship or sometimes a partnership.

Management
Generally, both the management and the control is with the
owner/owners. Hence the owner is actively involved in the day-
to-day activities of the business.

Labor Intensive
SSI’s dependence on technology is pretty limited. Hence they
tend to use labour and manpower for their production activities.

Flexibility
SSI’s are more adaptable to their changing business
environment. So in case of amendments or unexpected
developments, they are flexible enough to adapt and carry on,
unlike large industries.

Limited Reach
Small scale industries have a restricted zone of operations.
Hence, they can meet their local and regional demand.

Resources Utilisation
They use local and readily available resources which helps the
economy fully utilise natural resources with minimum wastage.
Role in the Indian Economy
Employment
SSI’s are a major source of employment for developing
countries like India. Because of the limited technology and
resource availability, they tend to use labour and manpower for
their production activities.

Total Production
These enterprises account for almost 40% of the total production
of goods and services in India. They are one of the main reasons
for the growth and strengthening of the economy.

Make in India
SSI’s are the best examples for the Make in India initiative.
They focus on the mission to manufacture in India and sell the
products worldwide. This also helps create more demands from
all over the world.

Export Contribution
India’s export industry majorly relies on these small industries
for their growth and development. Nearly half of the goods that
are exported from India are manufactured or produced by these
industries.

Public Welfare
These industries have an opportunity to earn wealth and create
employment. SSIs are also important for the social growth and
development of our country.
Seedbed for Large Scale Industries
SSI acts as the seedbed for Large Scale Industries (LSI) as it
provides conducive conditions for the development and growth
of entrepreneurs. Small enterprises require low investment and
simple technology and use local resources to meet local
demands through personal contacts. Thus, it creates scope for
the growth and development of LSI.

Objectives of SSI
The objectives of the small scale industries are:

 To create more employment opportunities.

 To help develop the rural and less developed regions of the
economy.
 To reduce regional imbalances.
 To ensure optimum utilisation of unexploited resources of
the country.
 To improve the standard of living of people.
 To ensure equal distribution of income and wealth.
 To solve the unemployment problem.
 To attain self-reliance.
 To adopt the latest technology aimed at producing better
quality products at lower costs.
Types of SSI
SSI are primarily categorised into 3 types, based on the nature
of work carried out, which are as follows:

Manufacturing Industries
The manufacturing industries manufacture finished goods for
consumption or used further in processing. Some examples of
such SSIs are food processing units, power looms, engineering
units, etc.
Ancillary Industries
Ancillary industries manufacture components for other
manufacturers. These manufacturers then assemble the final
product. Big companies manufacture finished goods, but they do
not generally make all the parts themselves. The vendors of such
big companies are ancillary industries.

Service Industries
Service-based industries are not involved in any kind of
manufacturing products. They provide services such as repair,
maintenance and upkeep of the products after-sales.

Other types of SSIs are as follows:

Export Units

An SSI is considered as an export unit when the exporting is

more than 50% of its production.

Cottage Units

The cottage units are considered as SSIs when they do not

involve a dedicated facility and are carried out within living
spaces or houses of the owners.

Village Industries

An SSI is considered village industries when they are

established in rural areas and are not part of the organised
sector. Typically, these industries solely depend on human
labour for production.

Examples and Ideas of SSIs in India

 1. Bakeries
2. School stationeries
3. Water bottles

Small Scale Industries do not enjoy much of the advantages enjoyed

by large scale enterprises because of their nature and size. Though
they have made significant contribution to economic development,
they have not realized their full potential. They face many problems in
their functioning and many Small Scale Industries are sick. The
government had reserved certain items for exclusive production by
Small Scale Industries. Large scale enterprises were not allowed to
produce the items which were reserved for the SSI sector. With the
opening up of the economy and following the principles of
liberalization and globalization, many items have been successively
De-reserved. Therefore Small Scale Industries have to now counter
the twin forces of competition from Indian large scale enterprises as
well as foreign competitors.

Problems faced by Small Scale Industries

1. Poor capacity utilization

In many of the Small Scale Industries, the capacity utilization is not
even 50% of the installed capacity. Nearly half of the machinery
remains idle. Capital is unnecessarily locked up and idle machinery
also occupies space and needs to be serviced resulting in increased
costs.
2. Incompetent management
Many Small Scale Industries are run in an incompetent manner by
poorly qualified entrepreneurs without much skill or experience. Very
little thought has gone into matters such as demand, production level
and techniques, financial availability, plant location, future prospects
etc. According to one official study, the major reason for SSI sickness
is deficiency in project Management i.e., inexperience of promoters in
the basic processes of production, cash flow etc
3. Inadequate Finance
Many Small Scale Industries face the problem of scarcity of funds.
They are not able to access the domestic capital market to raise
resources. They are also not able to tap foreign markets by issuing
ADR’s (American Depository Receipts) GDR’s (Global Depository
Receipts) etc because of their small capital base. Banks and financial
institutions require various procedures and formalities to be
completed. Even after a long delay, the funds allocated are
inadequate.Bank credit to the small scale sector as a percentage of
total credit has been declining. It fell from 16% in 1999 to 12.5% in
2002. Small Scale Industries are not able to get funds immediately for
their needs. They have to depend on private money lenders who
charge high interest. Finance, as a whole, both long and short term,
accounts for as large as 43% of the sector’s sickness.

4. Raw material shortages

Raw materials are not available at the required quantity and quality.
Since demand for raw materials is more than the supply, the prices of
raw materials are quite high which pushes up the cost. Scarcity of raw
materials results in idle capacity, low production, inability to meet
demand and loss of customers.
5. Lack of marketing support
Small Scale Industries lack market knowledge with regard to
competitors, consumer preferences, market trends. Since their
production volume is small and cannot meet demand for large
quantities their market is very restricted. Now with the process of
liberalization and globalization they are facing competition from local
industries as well as foreign competitors who sell better quality
products at lower prices. For e.g. heavily subsidized but better quality
imports from China has made most of the Indian SSI units producing
toys, electronic goods, machine tools, chemicals, locks and paper etc.,
unviable.
Advantages of Small Scale Industries
1. Potential for large employment
Small Scale Industries have potential to create employment
opportunities on a massive scale. They are labor intensive in
character. They use more labor than other factors of
production. They can be set up in short time and can provide
employment opportunities to more number of people. This is
important for a labor abundant country like India.

2. Requirement of less capital

Small Scale Industries require less capital when compared to
large scale industries. India is a capital scarce country and
therefore Small Scale Industries are more suitable in the Indian
context. They can be started and run by small entrepreneurs
who have limited capital resources

3. Contribution to industrial output

Products manufactured by Small Scale Industries form a
significant portion of the industrial output of the country. They
produce a number of consumer good’s as well as industrial
components in large quantities and satisfy the needs of
consumers. The consumer goods produced by Small Scale
Industries are cheaper and satisfy the requirements of the
poorer sections.

4. Contribution to exports
Small Scale Industries contribute nearly 40 per cent to the
industrial exports of the country. Products such as hosiery,
knitwear, hand loom, gems and jewellery, handicrafts, coir
products, textiles, sports goods, finished leather, leather
products, woolen garments, processed food, chemicals and
allied products and a large number of engineering goods
produced by the SSI sector contribute substantially to India’s
exports. Further products produced by Small Scale Industries
are used in the manufacture of products manufactured and
exported by large scale industries. Therefore they contribute
both directly and indirectly to exports and earn valuable foreign
exchange.

5. Earning foreign exchange

Small Scale Industries earn valuable foreign exchange for the
country by exporting products to different countries of the
world. At the same time, their imports are very little and so
there is less foreign exchange outgo. Therefore Small Scale
Industries are net foreign exchange earners. For e.g. Small
Scale Industries in Tiruppur contribute to a substantial portion
of India’s textile exports and earn valuable foreign exchange for
the country.
Examples and Ideas of Small Scale
Industries

 Bakeries
 Candles
 Water bottles
 Leather belt
 Small toys
 Paper Bags
 Xerox and printing
 T-shirt Printing
 Photography
 Beauty parlours
Performance of small scale industries
CHAPTER-2
RESEARCH METHODOLOGY
OBJECTIVES OF THE STUDY

1. To help develop the rural and less developed regions of the

economy. To reduce regional imbalances.
2. To ensure optimum utilisation of unexploited resources of the
country.
3. To improve the standard of living of people

RESEARCH METHODOLOGY

6 Measures to Remove Difficulties faced

by Small-Scale Industries in India
Measures to remove difficulties faced by Small-Scale Industries in
India!

It will be noted that small scale industrial units experience serious

handicaps by an inequitable allocation system for scarce raw
materials, inadequate institutional finance, poor technical skill and
managerial ability, and lack of marketing channels.It is, therefore,
essential to develop an overall approach to remove these difficulties
and put the small-scale industrial sector on a sound path of
development.
In this connection, the following measures may be
suggested:
1. Equitable allocation of raw materials, imported components and
equipment.
2. Improvement in the methods and techniques of production.
3. Provision for adequate finance.
4. Marketing assistance.
5. Provision for industrial education and training.
(1) Equitable Allocation of Raw Materials, Imported
Components and Equipment:
The small scale industrial units should be given adequate degree of
priority in the allocation pattern of essential, but scarce, raw
materials, imported components and equipment.

(2) Improvement in the Methods and Techniques of

Production:
The small scale industrial units should be encouraged to replace their
outmoded equipment with that incorporating an up-to-date
technology, and facilities and incentives should be provided
wherever required.Up-dating the methods and techniques of
production of quality goods conforming to standards. The role of the
Government in this respect is quite significant. Standardisation of
certain products should be ensured, the quality of products should
be guaranteed, and malpractices like adulteration,
misrepresentation, etc., need to be curbed drastically.
(3) Provision of Adequate Finance:
Promoter’s own capital in the small-scale industrial units is generally
small and generation of internal resources small and slow. They
depend, therefore, on the external sources of finance in a substantial
measure.
This factor requires, therefore, a system of integrated credit whereby
the long-term as well as short-term finance is made available in an
adequate measure and at a rate of interest which these undertakings
can bear.
(4) Marketing Assistance:
Marketing of their products at remunerative prices is the major
problem of small-scale industrial units. There is, therefore, a clear
case for government intervention with a view to reducing the
disadvantages arising out of market imperfections. Market research,
intelligence and information systems should be strengthened and
the results made available to those units.
(5) Industrial Education and Training:
With full advantages of changing technique of production,
dispensation of technical knowledge, both to the small-scale
entrepreneurs as well as their workers, should form an essential
element of the overall strategy. Provision of adequate facilities for
industrial education and training, therefore cannot be over-
emphasised.
(6) Demarcation of Spheres of Large-Scale and
Small-Scale Industrial Units:
Once the role of small-scale industries in the national economy is
recognised, it becomes imperative that a secured berth is provided
to it. In this connection the guiding principle should be to clearly
demarcate, as possible, the spheres of production for these units. It
may be pointed out that all the measures suggested above should be
viewed as a package and applied simultaneously.

10 Step Process for Effective Business

Problem Solving
By following this 10-step process, you can develop your problem-
solving skills and approach any issue that arises with confidence.
1. Define the problem
When a problem arises, it can be very easy to jump right into creating
a solution. However, if you don’t thoroughly examine what led to the
problem in the first place, you may create a strategy that doesn’t
actually solve it. You may just be treating the symptoms.For instance,
if you realize that your sales from new customers are dropping, your
first inclination might be to rush into putting together a marketing
plan to increase exposure. But what if decreasing sales are just a
symptom of the real problem?
When you define the problem, you want to be sure you’re not missing
the forest for the trees. If you have a large issue on your hands, you’ll
want to look at it from several different angles:
Competition
Is a competitor’s promotion or pricing affecting your sales? Are there
new entrants in your market? How are they marketing their product or
business?
Business model
Is your business model sustainable? Is it realistic for how fast you
want to grow? Should you explore different pricing or cost strategies?

Market factors
How are world events and the nation’s economy affecting your
customers and your sales?
Team
Are there any issues affecting your team? Do they have the tools and
resources they need to succeed?
Goal alignment
Is everyone on your team working toward the same goal? Have you
communicated your short-term and long-term business goals clearly
and often?There are a lot of ways to approach the issue when you’re
facing a serious business problem. The key is to make sure you’re
getting a full snapshot of what’s going on so you don’t waste money
and resources on band-aid solutions. Going back to our example, by
looking at every facet of your business, you may discover that you’re
spending more on advertising than your competitors already. And
instead, there’s a communication gap within your team that’s leading
to the mishandling of new customers and therefore lost sales. If you
jumped into fixing the exposure of your brand, you would have been
dumping more money into an area you’re already winning. Potentially
leading to greater losses as more and more new customers are
dropped due to poor internal communication.This is why it’s so vital
that you explore your blind spots and track the problem to its source.
2. Conduct a SWOT analysis
All good businesses solve some sort of problem for customers. What
if your particular business problem is actually an opportunity, or even
a strength if considered from a different angle? This is when you’d
want to conduct a SWOT analysis to determine if that is in fact the
case.SWOT is a great tool for strategic planning and bringing multiple
viewpoints to the table when you’re looking at investing resources to
solve a problem. This may even be incorporated in your attempts to
identify the source of your problem, as it can quickly outline specific
strengths and weaknesses of your business. And then by identifying
any potential opportunities or threats, you can utilize your findings to
kickstart a solution.
3. Identify multiple solutions with design thinking
As you approach solving your problem, you may want to consider
using the design thinking approach. It’s often used by organizations
looking to solve big, community-based problems. One of its strengths
is that it requires involving a wide range of people in the problem-
solving process. Which leads to multiple perspectives and solutions
arising.This approach—applying your company’s skills and expertise
to a problem in the market—is the basis for design thinking.It’s not
about finding the most complex problems to solve, but about finding
common needs within the organization and in the real world and
coming up with solutions that fit those needs. When you’re solving
business problems, this applies in the sense that you’re looking for
solutions that address underlying issues—you’re looking at the big
picture.
4. Conduct market research and customer
outreach
Market research and customer outreach aren’t the sorts of things small
business owners and startups can do once and then cross off the list.
When you’re facing a roadblock, think back to the last time you did
some solid market research or took a deep dive into understanding the
competitive landscape. Market research and the insights you get from
customer outreach aren’t a silver bullet. Many companies struggle
with what they should do with conflicting data points. But it’s worth
struggling through and gathering information that can help you better
understand your target market. Plus, your customers can be one of the
best sources of criticism. It’s actually a gift if you can avoid taking
the negatives personally.The worst thing you can do when you’re
facing challenges is isolating yourself from your customers and ignore
your competition. So survey your customers. Put together a
competitive matrix.
5. Seek input from your team and your mentors
Don’t do your SWOT analysis or design thinking work by yourself.
The freedom to express concerns, opinions, and ideas will allow
people in an organization to speak up. Their feedback is going to help
you move faster and more efficiently. If you have a team in place,
bring them into the discussion. You hired them to be experts in their
area; use their expertise to navigate and dig deeper into underlying
causes of problems and potential solutions.If you’re running your
business solo, at least bring in a trusted mentor. SCORE offers a free
business mentorship program if you don’t already have one. It can
also be helpful to connect with a strategic business advisor, especially
if business financials aren’t your strongest suit.Quoting Stephen
Covey, who said that “strength lies in differences, not in similarities,”
speaking to the importance of diversity when it comes to problem-
solving in business. The more diverse a team is, the more often
innovative solutions to the problems faced by the organization
appear.In fact, it has been found that groups that show greater
diversity were better at solving problems than groups made up
specifically of highly skilled problem solvers. So whoever you bring
in to help you problem-solve, resist the urge to surround yourself with
people who already agree with you about everything.
6. Apply lean planning for nimble execution
So you do your SWOT analysis and your design thinking exercise.
You come up with a set of strong, data-driven ideas. But
implementing them requires you to adjust your budget, or your
strategic plan, or even your understanding of your target market.Are
you willing to change course? Can you quickly make adjustments?
Well in order to grow, you can’t be afraid to be nimble. By adopting
the lean business planning method—the process of revising your
business strategy regularly—you’ll be able to shift your strategies
more fluidly. You don’t want to change course every week, and you
don’t want to fall victim to shiny object thinking. But you can strike a
balance that allows you to reduce your business’s risk while keeping
your team heading in the right direction.Along the way, you’ll make
strategic decisions that don’t pan out the way you hoped. The best
thing you can do is test your ideas and iterate often so you’re not
wasting money and resources on things that don’t work. That’s Lean
Planning.
7. Model different financial scenarios
When you’re trying to solve a serious business problem, one of the
best things you can do is build a few different financial forecasts so
you can model different scenarios. You might find that the idea that
seemed the strongest will take longer than you thought to reverse a
negative financial trend. At the very least you’ll have better insight
into the financial impact of moving in a different direction.The real
benefit here is looking at different tactical approaches to the same
problem. Maybe instead of increasing sales right now, you’re better
off in the long run if you adopt a strategy to reduce churn and retain
your best customers. You won’t know unless you model a few
different scenarios. You can do this by using spreadsheets, and a tool
like LivePlan can make it easier and quicker.
8. Watch your cash flow
While you’re working to solve a challenging business problem, pay
particular attention to your cash flow and your cash flow forecast.
Understanding when your company is at risk of running out of cash in
the bank can help you be proactive. It’s a lot easier to get a line of
credit while your financials still look good and healthy, than when
you’re one pay period away from ruin.If you’re dealing with a serious
issue, it’s easy to start to get tunnel vision. You’ll benefit
from maintaining a little breathing room for your business as you
figure out what to do next.
9. Use a decision-making framework
Once you’ve gathered all the information you need, generated a
number of ideas, and done some financial modeling, you might still
feel uncertain. It’s natural—you’re not a fortune-teller. You’re trying
to make the best decision you can with the information you have.
10. Identify key metrics to track
How will you know your problem is solved? And not just the
symptom—how will you know when you’ve addressed the underlying
issues? Before you dive into enacting the solution, make sure you
know what success looks like.Decide on a few key performance
indicators. Take a baseline measurement, and set a goal and a
timeframe. You’re essentially translating your solution into a plan,
complete with milestones and goals. Without these, you’ve simply
made a blind decision with no way to track success. You need those
goals and milestones to make your plan real.
RESEARCH DESIGN

DATA SOURCE

 Primary Data collected through questionnaire. On the basis of

this primary data the analysis, interpretation and the finding of
the study have been concluded.
 Secondary Data collected through websites, books and other
corporate publications

Books:

 Quick Result of 4th All India Census of MSME

 Final Results : Third All India Census of Small Scale
Industries 2001-2002
 SSI in India - An engine of growth
  Handbook of Circulars on Small Scale Industries

Websites

 https://www.indiabudget.gov.in
 https://cleartax.in
 https://www.vedantu.com
 http://www.importexportplatform.com

DATA COLLECTION

SAMPLING DESIGN

Universe
The first step in developing any sample design is to clearly define the

set of objects technically called the universe to be studied. In this case

the universe

includes population of Delhi/NCR.

Sampling units
General Public

Sampling size
This research was carried out with general public.
These were 100 respondents.
Sampling area
East Delhi
SAMPLING INSTRUMENT

Questionnaire (see Annexure A)

Questionnaire refers to a device for securing answer to formally
arranged list of questions by using a term, which the respondents fill
in himself.
The questionnaire comprises of 5 questions.

Questionnaire design:
 Open-ended
 Close-ended
 Multiple choice

CHAPTER-3
DATA ANALYSIS

A survey was conducted in the form of questionnaire from the general

public of East Delhi .The data collected through questionnaire was
analyzed, interpreted with the help of table and pie chart.
Q1. Are you aware about the small scale
industries?
Particulars No. of Respondents Percentage
YES 62 62%
NO 38 38%

AWARE ABOUT SMALL SCALE INDUSTRIES

38%

YES
62%
NO

Interpretation:
The survey reveals that only 62% have the knowledge about Small
Scale industries in Delhi.

Q2. What do you think the term ‘Small scale

industries’ means?
No. of Percentage
Particulars Respondents
Making charitable donations 25 25%
Protecting the environment 15 15%
Addition in shareholder’s value 8 8%
Community development 20 20%
Meeting legal obligation 32 32%

Knowledge About Small Scale Industries

35%
30%
25%
20%
15% 32%
25% Knowledge About Small Scale
10% 20% Industries
15%
5% 8%
0%
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g
a rit g
th s ha
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ch cti
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Interpretation:
In the view of the 32% people feel that “Small scale industries”
means meeting legal obligation, 25% people feel it means making
charitable donations, 15 % people feel it is protecting the
environment, 20% people feel it is community development.It
explains that majority of people have a basic idea of what Small scale
industries means.

Q3. In the current economic climate, will you

participate in any ongoing SSI activity around you?
 Particulars Percentage
Yes 60%
No 40%

Percentage

Yes
40%
No
60%

Interpretation:
In the view 60% people will participate in any ongoing SSI activity
and 40% will not participate. It explains that majority of people have
a basic idea of what Small scale industries means.
 FINDINGS

 The survey reveals that only 62% have the knowledge about
Small Scale industries in Delhi.

 In the view of the 32% people feel that “Small scale industries”
means meeting legal obligation, 25% people feel it means
making charitable donations, 15 % people feel it is protecting
 the environment, 20% people feel it is community
development.It explains that majority of people have a basic
idea of what Small scale industries means.

 The Small Scale Industrial sector contributed about 40 percent

of value addition in the manufacturing sector and about 30
percent of export.

 More the 118.53 lakh units are spread all over the country
producing over 7500 items and providing employment to more
than 282.82 lakh persons.

 SSI sector has acquired a permanent place in the socio-

economic development of the country during the past 50 years
and constitutes an important segment of the economy and also
has emerged as an engine of growth in the millennium by
bringing Industrialization of rural, backward areas and reducing
regional imbalance.

LIMITATIONS OF THE PROJECT

Although the study and the subsequent statistical analysis were done
with careful proofing, yet there are always some limitations to any
research work done, and this one is no exception. Some of the
limitations of this work are as follows:
 Some of the information given by the respondents may be
biased.

 The respondents might hesitate to give the actual answers.

 The analysis is done on the assumption that respondents have
given correct information through the Questionnaire.

 Due to the limitation of the time the research could not be made
more detailed.

 The study might not produce absolutely accurate results as it

was based on a sample taken from the population.

SUGGESTIONS & RECOMMENDATIONS

 Government should ensure that adequate financial assistance is

provided to SSls through banks and financial institutions. The

rate of interest on loans should be low. Financial assistance must

be provided to SSI through unsecured loans or after obtaining

minimum security.
 Insurance coverage must be extended to new and existing small

scale industries.

 The gap that exists between consumers and small business must

be bridged through effective marketing. Lot of industrial fairs,

exhibitions must be organized by the government to encourage

the sale of SSI products.

 Technological support must be provided to SSI to import

machinery at lower cost.

 CONCLUSION

Small scale industries are referred to as those industries in which the process of

manufacturing, production and servicing are done on a small scale.

The investment on such industries is one time and these investments are mostly

done on plant and machinery, the total investment on such industries do not

exceed 1 crore.

In small scale industries, the manufacturing of goods and rendering of services

are done with the help of smaller machines and very limited manpower.

Small scale industries or SSIs are known as the lifeline of an economy, which is

very important for a country like India. Being a labor intensive industry, it is
very helpful in creating employment opportunities for the population of the

country.

They are also a crucial part of an economy from a financial standpoint, as they

help in stabilising the per capita income of the country.

BIBLIOGRAPHY

Books:

 Quick Result of 4th All India Census of MSME

 Final Results : Third All India Census of Small Scale Industries
2001-2002
 SSI in India - An engine of growth
 Handbook of Circulars on Small Scale Industries

Websites

 https://www.indiabudget.gov.in
 https://cleartax.in
 https://www.vedantu.com
 http://www.importexportplatform.com
Annexure- A

QUESTIONNAIRE

Name :
Age :
Occupation :

Q1. Do you know about small scale industries?

YES NO

Q2. What do you think the term ‘Small scale industrie’ means? (More than 1 answer allowed)

Making charitable donations

Protecting the environment

Meeting legal obligation

Addition in shareholders’ value

Community development

Q3. In the current economic climate, will you participate in any ongoing SSI activity
around you?

1. YES NO
Q4. Do you think SSI helps in the overall development of the economy?

2. YES NO CAN’T SAY

Q5. Do you think Government is doing enough for SSI?

YES NO CAN’T SAY