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    Role of Small Bussiness in Indian Economy

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    jitendra
    The document discusses definitions of small business across different countries. Small businesses are typically defined based on size metrics like total capital investment, number of employees, production or sales volume. Countries use different criteria - India, Pakistan, and Indonesia define small businesses based on investment in plant and machinery, while the US and UK use employment. Small businesses make up a large share of India's GDP and industrial output, providing employment, optimizing capital use, and promoting exports and entrepreneurship.

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    Role of Small Bussiness in Indian Economy

    Uploaded by

    jitendra
    5K views9 pages
    The document discusses definitions of small business across different countries. Small businesses are typically defined based on size metrics like total capital investment, number of employees, production or sales volume. Countries use different criteria - India, Pakistan, and Indonesia define small businesses based on investment in plant and machinery, while the US and UK use employment. Small businesses make up a large share of India's GDP and industrial output, providing employment, optimizing capital use, and promoting exports and entrepreneurship.

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    The document discusses definitions of small business across different countries. Small businesses are typically defined based on size metrics like total capital investment, number of employees, production or sales volume. Countries use different criteria - India, Pakistan, and Indonesia define small businesses based on investment in plant and machinery, while the US and UK use employment. Small businesses make up a large share of India's GDP and industrial output, providing employment, optimizing capital use, and promoting exports and entrepreneurship.

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    Attribution Non-Commercial (BY-NC)
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    5K views9 pages

    Role of Small Bussiness in Indian Economy

    Uploaded by

    jitendra
    The document discusses definitions of small business across different countries. Small businesses are typically defined based on size metrics like total capital investment, number of employees, production or sales volume. Countries use different criteria - India, Pakistan, and Indonesia define small businesses based on investment in plant and machinery, while the US and UK use employment. Small businesses make up a large share of India's GDP and industrial output, providing employment, optimizing capital use, and promoting exports and entrepreneurship.

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    of 9

    The concept of small business has been defined

    by different countries in different ways. The two


    main criteria used to define small business are
    as follows
    Size refers to the scale of operations. Size may be
    measured in the following ways : -
    1.Total capital investment
    – The value of total assets or fixed assets.
    – Total investment in plant and machinery
    – The total number of persons employed
    – Volume/value of production
    – Volume/value of sales turnover
    – A combination of above
    Criterion Countries

    1. Investment in plant and machinery India, Pakistan, Indonesia


    2. Employment USA and UK
    3. Investment and employment Japan, Korea and Phillipines
    4. Production/sales turnover China, UK (commercial)
    5. Employment and sales turnover Korea (commerce)
    6. Investment and sales turnover Malayasia

    Table 5.1 Bases of Defining small business in various


    countries
    Size does not always reflect the true nature of an
    enterprise. Its characteristics differentiate between big
    and small business. These characteristics are :-

    1.Ownership
    – Nature of management
    – Technology
    – Geographical area of operations
    Definition of small business in India
    1. “An undertaking having an investment in plant and
    machinery of not more than Rs. 3 crores.”

    Now the government of India has raised the limit of Rs.


    3 crores .In 1996, the official definition of small business
    was as follows:

    • Small Scale Industries


    • Ancillary Industries
    • Tint Units
    • Small Scale Service Establishments
    • Household Industries
    Role Of Small Business In Indian
    Economy
    1.Employment
    2.Optimisation Of Capital
    3.Balanced Regional Development
    4.Mobilisation Of Local Resources
    5.Export Promotion
    6.Consumer Surplus
    7.Feeder To Large Scale Industries
    8.Social Advantage
    9.Share In Industrial Production
    10.Development Of Entrepreneurship
    IMPORTANCE OF SMALL BUSINESS

    The small scale industries are playing an important


    role in the GDP of India. The small scale industries
    have nearly 40% share in the total industrial output and
    35% share in exports

    • To increase employment.
    • To prevent unequal distribution of income.
    • To develop capital investment.
    THANK YOU

    Sandhya Singh
    M.B.A. part IInd

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