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To get loans for small scale industries, first create your business plan. Then, access banks that offer loans for businesses and share your business plan and business mode…l.
Advantages of establishing small scale industries: 1. Employment 2. Meets the demand of local market 3. Gainful Employment to women 4. Less burden on imports 5. Less Capital 6…. Less sophisticated technology 7. Good use of raw material
Characteristics of a Small Scale Business A few examples of small-scale businesses include a flea market or shopping mall booth, a consultancy business, or even a computer rep…air shop that moves into retail space. Small-scale businesses typically consist of one owner and his shop. The business owner sells products and/or services supplied by a franchise company or created by the owner himself. This type of business is flexible, which means that the owner can generally set hours at any time to accommodate customers. Startup The initial start-up costs for a small-scale business are usually pretty low, depending on the specific business model and what products/services are being sold. A small-scale business selling retail goods at flea markets will only need require funds to purchase initial inventory and pay for a spot at the flea market. Likewise, the owner of a small business selling homemade goods only needs to worry about purchasing materials to make the goods. Small-scale businesses that offer consultation services, such as tax preparation or nutritional services, also have very low overhead costs. Portability A small-scale business is generally portable, making it easy to set up and tear down. Holiday gift shops that sell candles and novelty items are a perfect example of portability; all that's typically required is empty space at a shopping mall with a small table or booth to display products. Small-scale businesses also need a way to accept payments. Small credit card terminals and portable cash registers are perfect for these needs. Employees Usually very few employees, if any, work for a small-scale business. This type of business may have one or two employees for busy times. Typically, however, such businesses cannot afford to pay wages since a majority of the profits goes back into the business or pays for the owner's personal expenses. As such, owners often staff small-scale businesses themselves, allowing them to keep whatever profits they make.
Some of the trades in the small scale industry include weaving, sculpting and tailoring. Landscaping, daycare centers and nanny care jobs also fall in small scale industry….
limitations of small scale industries
types of small scale industry
base automation Select Automation Focaal automation selec
Small scale industries have a big impact. They provide more personalized services in the area, more jobs, and more money to the economy.
small scale industry:- 1.these industry employ less no. of persons. 2.most of the wok is done by man power and small machines. 3.Raw-material used are less so production als…o less. 4.they are scattered in rural and urban areas and are in the private sectors e.g.cycle,T.V.radio. large scale industry:- 1.these industries employ a large no of persons. 2. mostly work is done by machines and laborers. 3.Raw material used is large and production is mass. 4.they are located in urban centers and are in the public sectors and run by big industries.
Here is one case study.. which will answer your question... A number of large-scale factories (with more than 1,000 employees) in Japan have shut down since the second oil cr…isis, and this can be attributed to technological innovation. The need to save energy and resources has had an effect in the areas of labour, materials usage, and energy consumption. A fierce competition to continually come up with a new product has emerged and has led to notably shortened life spans of goods. These developments have resulted in a decrease in the number of large-scale factories. High consumption levels have transformed the mass-production system into a system producing high-quality goods in small quantities to meet market needs and to diversify risks. Under these circumstances, the traditional Japanese employment pattern has been eroded, some of the effects of which have been mentioned in the preceding section on female labour. The size and importance of the role of medium- and small-scale industry in the whole of the Japanese manufacturing industry is not widely known in the third world. Neither is it known that there is a structure linking these industries with the more internationally famous Japanese enterprises in business and technology. The definition of medium- and small-scale industry has differed according to the period, varying in maximum complement from 10 to 20 to 100 employees. Today, government classification designates enterprises with less than 300 employees and capital of less than Y100 million as medium- to small-scale.45 According to statistics, factories with fewer than 20 employees account for 87.3 per cent of the total number in Japan, employ 20.1 per cent of all workers, and contribute 12.6 per cent of the total national output. Factories with more than 500 employees, on the other hand, comprise only 0.3 per cent (1.807 total of all factories in Japan; they employ 20.5 per cent of the nation's workers (2,246,000) and account for 38.3 per cent of total output. While in Japan factories with fewer than 100 workers make up 98.0 per cent of the total and employ 58.0 per cent of all workers, in the United States, the respective figures are 87.7 per cent and 25.4 per cent, and in West Germany the corresponding proportions are 72.6 per cent and 18.7 per cent. The percentages for factories in Japan employing more than 1,000 workers are 0.1 per cent and 13.4 per cent, in the United States 0.6 per cent and 27.5 percent, and in West Germany 2.2 per cent and 38.0 percent.46 Aside from the statistical significance of these comparisons, it is clear that even in highly industrialized countries, medium- and small-scale factories have a role, and that, depending on the type of technology and industry, an enlargement of scale may be unwise or impossible. Japanese medium- and small-scale enterprises were forced to renew their equipment in search of high efficiency as they faced a serious shortage of labour during and after the rapid economic growth of the 1960s. The two oil crises forced them to confront increased costs in both labour and materials. The changes and intensification in competition forced them to renovate their operations. Some of Japan's famous enterprises that maintained a small scale as an ideal size for the development of new products also underwent this process of adjustment. From around 1975, the upgrading of facilities by small and medium enterprises brought about a new phase. The attainment of a high technological level has given the exports of these enterprises a competitiveness in international markets. The use of ICs in the production process has minimized differences in manufacturing capability and in the quality of products among manufacturers, so that the original equipment manufacturer (OEM) system has spread rapidly to enterprises of all sizes, small, medium, and large. Whether this represents a new stage of internal structure in the national network of technology is uncertain, but we may say it is a new phase, inasmuch as in the manufacturing industry, there have always been two opposing types, one seeking stability, the other continuous growth.47 The need in Japan for small and medium enterprises and their significance in society will not likely change. A good example of the trend is the fact that factories with fewer than 300 workers account for 99.5 per cent of the factories in Tokyo and employ 74 per cent of all factory workers there. Also of note is that small, medium' and large factories are located strategically, in accordance with the vital technological and business relationships they share. In terms of development, what this process represents is the dissemination and development of modern urban industrial technology. In effect, the process is one in which those who have mastered the technology of a production process (or kind of job) at a specific level have separated it from the mainstream and become independent entrepreneurs (i.e. from process subdivision to process separation). Providing an entrepreneur has a clientele, it is his technological ability that assures his independence. However, if the separation is made merely in the form of a change in the place of production as simply an extension of the subdivision of the production process, the new establishment represents in fact an affiliate of the parent company, much like a subcontractor within the plant. Furthermore, in some cases, depending on the type of industry and general business conditions, it will become necessary to master the technology of the entire production process to make the separation. In establishing independence, technology is transferred from the head shop, much as skills and knowledge are handed down from a master craftsman to his apprentice or, in the Japanese custom of norenwake (giving the name of one's shop to a former employee), one merchant helps another set up a business. This is easier to do with technology that needs little start-up investment (most such technology usually requires higher skills). If the amount of initial investment is large, it becomes necessary to depend on borrowed capital, especially commercial financing. When this happens and materials and machines are leased, customarily the business starts as a processor and operates under a processing-fee system. As long as production is divided into separate small production processes, the processing fees remain low. Under these circumstances, the differences of skills, that is, the technologies of small independent enterprises, determine the differences in efficiency of production and of the use of raw materials. Many owners of small- and medium-scale enterprises are self-made men who accumulated technology and forged ahead on the road to self-reliance. In addition to the classification of industry in terms of scale, it can be classified according to modern vs. traditional. Applying this classification, what one discovers is that most small-scale enterprises are in traditional industries and engaged in the production of consumer goods and services. While factory production uses modern technology, native industry depends on traditional technology, machines, and tools. In terms of scale, the range is from several workers to several hundred, and yet, according to one study, even in the 1930s, traditional industry output occupied a quarter of the gross industrial production. According to statistics since the middle of the past century, 80 per cent of gross national expenditure has been for personal consumption and most of it for the consumption of traditional goods (foods, clothing, textiles, china ware, and other general merchandise). The position of small-scale industry in the national economy has been highest after agriculture. As stated in regard to textile technology, yarn was manufactured at modern factories, while fabrics were woven in the traditional manner and places of production and sold through the historical wholesale system. Thus, the two were not in an exclusive relationship, but in a mutually supplementary, interdependent relationship, which aided the development of both. After World War II, the modernization of traditional technology changed this situation, and the scale of enterprise began to reflect the specialization in technology, though not without exception. What is important is the formation of an interlinkage between traditional and new technologies by which traditional technology is finally modernized. It is the transition from a stage in which technology determines management to one in which management decides the orientation and level of the technology. For this reason, the process of technological improvement is characterized by integration of management ability and the potential of the technology. The smaller the enterprise, the more it depends on management's technological ability. It is noteworthy that, as early as 1900, before Japanese technology became self-reliant, the products of small industries made up a high percentage of Japan's exports. Raw silk accounted for 22.3 per cent, woven silk 9.3 per cent, green tea 4.0 per cent, matches 2.9 per cent, and silk handkerchiefs 2.2 per cent; thus, manufacturers using traditional technology accounted for more than 40 per cent of total exports. The last stage in match production (i.e. packing) depended on people working at home and was so labor-intensive that even young children were used among the urban poor, especially in the large cities, notably Tokyo and Osaka.
because it employs less than 10 person
A cottage industry is a small industrial unit which the owner and his or her family run thamselves
for creating a job for a single person, in any country irrespective of their economic backgrounds government need atleast 0.5million usd to create a permanent job for that per…son,which is very difficult to implement so government encourage new entreprenuer's to start up small scale industry and give's some concession's to it,these small scale industries's depending upon their scale of profit level can give employement and can give a descent salary.these small scale industries contribute to the majority of GDP of a nation.
The industries in India which are organised on a small scale and produce goods with the help of small machines, hired labour and power, are the small scale industries . In Ind…ia, the investments required should not be more than Rs. 1 Crore for small-scale industry
Alexander Hamilton was the leader and he lead the Federalists so the political party who favored development of industry on a national scale and favored a national bank is the… federalists.