PPT - Small Business | Business Studies (BST) Class 11 - Commerce PDF Download

 Page 1


Introduction And Meaning
INTRODUCTION: Small business is important 
sector of Indian economy. Small scale industries 
accounted for 40% of value added by the whole 
manufacturing sector and 80% of employment. Small 
industries have contributed to the extent of 42% with 
regard to exports.
MEANING: A Small scale industry is an industrial 
undertaking in which the investment in fixed assets in 
plant & machinery, whether held on ownership term or 
on lease or hire purchase, does not exceed Rs.1crore. 
However this investment limit is varied by the 
government from time to time.
Page 2


Introduction And Meaning
INTRODUCTION: Small business is important 
sector of Indian economy. Small scale industries 
accounted for 40% of value added by the whole 
manufacturing sector and 80% of employment. Small 
industries have contributed to the extent of 42% with 
regard to exports.
MEANING: A Small scale industry is an industrial 
undertaking in which the investment in fixed assets in 
plant & machinery, whether held on ownership term or 
on lease or hire purchase, does not exceed Rs.1crore. 
However this investment limit is varied by the 
government from time to time.
DEFINITIONS
According to Fiscal Commission-1950 ,”A unit 
operating mainly with hired labour usually 10 to 50 
hands”
According to Small Scale Industries Board-
1995,”A unit employing less than 50 persons if using 
power and less than 100 persons without the use of 
power and with a  capital investment not exceeding 
Rs.5Lakhs.”
According to the government of India-
2000,”An undertaking having an investment in plant 
and machinery of not more than Rs.1crore ”
Page 3


Introduction And Meaning
INTRODUCTION: Small business is important 
sector of Indian economy. Small scale industries 
accounted for 40% of value added by the whole 
manufacturing sector and 80% of employment. Small 
industries have contributed to the extent of 42% with 
regard to exports.
MEANING: A Small scale industry is an industrial 
undertaking in which the investment in fixed assets in 
plant & machinery, whether held on ownership term or 
on lease or hire purchase, does not exceed Rs.1crore. 
However this investment limit is varied by the 
government from time to time.
DEFINITIONS
According to Fiscal Commission-1950 ,”A unit 
operating mainly with hired labour usually 10 to 50 
hands”
According to Small Scale Industries Board-
1995,”A unit employing less than 50 persons if using 
power and less than 100 persons without the use of 
power and with a  capital investment not exceeding 
Rs.5Lakhs.”
According to the government of India-
2000,”An undertaking having an investment in plant 
and machinery of not more than Rs.1crore ”
Why We Need SSI?
Page 4


Introduction And Meaning
INTRODUCTION: Small business is important 
sector of Indian economy. Small scale industries 
accounted for 40% of value added by the whole 
manufacturing sector and 80% of employment. Small 
industries have contributed to the extent of 42% with 
regard to exports.
MEANING: A Small scale industry is an industrial 
undertaking in which the investment in fixed assets in 
plant & machinery, whether held on ownership term or 
on lease or hire purchase, does not exceed Rs.1crore. 
However this investment limit is varied by the 
government from time to time.
DEFINITIONS
According to Fiscal Commission-1950 ,”A unit 
operating mainly with hired labour usually 10 to 50 
hands”
According to Small Scale Industries Board-
1995,”A unit employing less than 50 persons if using 
power and less than 100 persons without the use of 
power and with a  capital investment not exceeding 
Rs.5Lakhs.”
According to the government of India-
2000,”An undertaking having an investment in plant 
and machinery of not more than Rs.1crore ”
Why We Need SSI?
Small Enterprise As A Seedbed 
Of Entrepreneurship
Seedbed refers to 
preparation of soil for the 
sowing of seeds for a good 
crop. As small-scale 
industries provide 
conductive and favourable
conditions for the 
emergence and growth of 
entrepreneurship hence it is 
treated as seedbed for 
entrepreneurship.
Page 5


Introduction And Meaning
INTRODUCTION: Small business is important 
sector of Indian economy. Small scale industries 
accounted for 40% of value added by the whole 
manufacturing sector and 80% of employment. Small 
industries have contributed to the extent of 42% with 
regard to exports.
MEANING: A Small scale industry is an industrial 
undertaking in which the investment in fixed assets in 
plant & machinery, whether held on ownership term or 
on lease or hire purchase, does not exceed Rs.1crore. 
However this investment limit is varied by the 
government from time to time.
DEFINITIONS
According to Fiscal Commission-1950 ,”A unit 
operating mainly with hired labour usually 10 to 50 
hands”
According to Small Scale Industries Board-
1995,”A unit employing less than 50 persons if using 
power and less than 100 persons without the use of 
power and with a  capital investment not exceeding 
Rs.5Lakhs.”
According to the government of India-
2000,”An undertaking having an investment in plant 
and machinery of not more than Rs.1crore ”
Why We Need SSI?
Small Enterprise As A Seedbed 
Of Entrepreneurship
Seedbed refers to 
preparation of soil for the 
sowing of seeds for a good 
crop. As small-scale 
industries provide 
conductive and favourable
conditions for the 
emergence and growth of 
entrepreneurship hence it is 
treated as seedbed for 
entrepreneurship.
Steps In Setting Up Of SSI
Prepare A 
Business 
Plan
Selection  
Of Product
Location of 
an 
enterprise
Arrangemen
t Of Finance
Installation 
Of Plant & 
Machinery
Provisional 
Registration 
Permanent 
Registration
Profit 
Generation