Commerce Notes | EduRev

 Page 1


SMALL BUSINESS
BUSINESS STUDIES
Page 2


SMALL BUSINESS
BUSINESS STUDIES
MEANING
? A business which operates on a small scale 
and required less capital, less labour and less 
machines is called small business.
? A small scale enterprise according to MSMED 
Act, 2006 is defined as one where the 
investment in Plant and Machinery is more 
than 25 lacs but does not exceed Rs. 5 crore
Page 3


SMALL BUSINESS
BUSINESS STUDIES
MEANING
? A business which operates on a small scale 
and required less capital, less labour and less 
machines is called small business.
? A small scale enterprise according to MSMED 
Act, 2006 is defined as one where the 
investment in Plant and Machinery is more 
than 25 lacs but does not exceed Rs. 5 crore
TYPES OF SMALL SCALE INDUSTRY
? 1.Small scale Industries 
? 2. Ancillary small 
? Industrial Unit parent unit
? 3. Women Enterprises Any of the Owned and 
managed by woman
? 4. Mirco Business
? 5. Village Industries Investment 
? 6. Cottage Industries
Page 4


SMALL BUSINESS
BUSINESS STUDIES
MEANING
? A business which operates on a small scale 
and required less capital, less labour and less 
machines is called small business.
? A small scale enterprise according to MSMED 
Act, 2006 is defined as one where the 
investment in Plant and Machinery is more 
than 25 lacs but does not exceed Rs. 5 crore
TYPES OF SMALL SCALE INDUSTRY
? 1.Small scale Industries 
? 2. Ancillary small 
? Industrial Unit parent unit
? 3. Women Enterprises Any of the Owned and 
managed by woman
? 4. Mirco Business
? 5. Village Industries Investment 
? 6. Cottage Industries
ROLE OF SMALL SCALE INDUSTRIES IN 
SOCIO ECONOMIC
DEVELOPMENT OF INDIA
Page 5


SMALL BUSINESS
BUSINESS STUDIES
MEANING
? A business which operates on a small scale 
and required less capital, less labour and less 
machines is called small business.
? A small scale enterprise according to MSMED 
Act, 2006 is defined as one where the 
investment in Plant and Machinery is more 
than 25 lacs but does not exceed Rs. 5 crore
TYPES OF SMALL SCALE INDUSTRY
? 1.Small scale Industries 
? 2. Ancillary small 
? Industrial Unit parent unit
? 3. Women Enterprises Any of the Owned and 
managed by woman
? 4. Mirco Business
? 5. Village Industries Investment 
? 6. Cottage Industries
ROLE OF SMALL SCALE INDUSTRIES IN 
SOCIO ECONOMIC
DEVELOPMENT OF INDIA
1.Employment : Small scale Industries are second largest 
employers of human resources after Agriculture. It has 95% of 
the industrial unit in the country.
2. Variety of product : Small scale Industries produce an enormous 
variety of goods e.g. readymade garments, stationery, soaps, 
Leather s goods, Plastic  and rubber goods.
3. Export : The share of product from SSI is 45% of total export 
from India. So it earn valuable foreign exchange and solve the 
problem of balance of payment.
4. Balance regional development : S.S.I can be set any where in 
the country.
They use local resources. Less capital and simple technology.
5. Low cost of production : S.S.I. also enjoy the advantage of low 
cost of production because they used local resources in their 
product.