SummaryThe small business units can be categorized into various units which include, Small Scale Industry, Ancillary Small Industrial Unit, Export Oriented Units, Small Scale Industries Owned and Managed by Women Entrepreneur, Tiny Industrial Units, Small Scale Service and Business(industry related)Enterprise, Micro Business Enterprises, Village
Industries and Cottage Industries
The Indian government created the ministry for small scale rural and agro industries for formulation of policies and co-ordination of central assistance to promote this industry in India. The ministry was dividend into two in September 2001 as Ministry of Small scale Industry and Ministry of Agro and Rural Industries. Many policies, programmes and schemes have been incorporated by Ministry of Small scale industry for the promotion and growth of SSI. The small industries development organization (SIDO) is attached to this ministry which implements and monitors various program and policies formulated. The khadi and village industries commission (KVIC), handicraft board, coir board, silk board have all implemented various policies, programmes, schemes related to agro and rural industry. Different promotional and developmental schemes and policies have been introduced by state government through which various supporting incentives are provided to the SSI units in their respective states. These are executed by the state directorate of industries.
Role of Small Business in India
Small industries contribute 40 percent of gross industrial value added and total exports (from direct and indirect) contribute 45% total accounting to 95% of industrial unit in the country. Mass consumption goods like garments, stationery items, domestic utensils, household goods, food products, furniture etc,. are all supplied by the small scale industry in our country. Other sophisticated goods include calculators, electronic goods, television, pharmaceuticals, agricultural tools and several other engineering products. Apart from these handicrafts, handlooms and other products from village industry also should be considered for their export value.
Finally the small scale industry has strength of adaptability and sense of personal touch which allows having a smooth relationship with customers and employees. Since the size is small there is no government intervention. New business opportunities are captured at the right time in small units providing healthy competition to big business which is good for the country's economy.
Problems of Small Industries
In general all these small units face few common problems like Finance, non-availability of raw material, marketing of goods, skilled labour, lack of managerial skills, Maintaining Quality to the standard, obsolete technology, prevalence of sickness in the industry and global competition.
Governmental assistance to Small industries
The government of India's thrust has been in promoting and developing the small unit sectors, with more emphasis on rural industries and cottage industries. Some of the major institutions providing support include NABARD, SIDBI, NSIC, RSBDC, NCEUS, RWED, WASME, SFURTI and District Industries Centre all these institutions support and facilitate the small scale industries growth.