A MICRO PROJECT

On

Small Scale Industry

Aims/Benefits of the micro project

The aim of this course is to help the student to affined following industry identifiedcompetency
through various teaching learning experience.

Course outcome addressed.

Develop a project report on study on Small Scale Industry.

Proposed methodology

In this project we learnt about applying management principles to a small scale industry.
 Index

Sr.no Topic

1 ABSTRACT
2 INTODUCTON
3 CHARACTERISTICS(SSI)
4 OBJECTIVES SSI
5 ROLE OF SSI
6 ADVANTAGES OF SSI
7 PRICIPLES OD SSI
8 SEVEN ESSENTIALPRINCIPLES OF
ECONOMY
9 ADVANTAGES OF SSI
10 DISADVANTAGES OF SSI
11 STEPSTO MANAGE SSI
12 IMPORTANT TIPS TO MANAGE SSI
13 IMPORTANT TIPS TO MANAGE SSI
14 CONCLUSION
15 REFERNCES
 Abstract:-

Small Scale industries play a key role within the industrial economy everywhere the world.They
contribute considerably to economic growth, innovation, and employment generation. globalisation,
fast technological changes, and greater competitive pressure ar having a seriousimpact on little scale
industries round the globe. little scale industries got to upgrade their organisation strategies to succeed
in money, social and environmental improvement while notgiant investments or in depth changes. the
combination of lean and 6 letter of the alphabet is that the best response to the current challenge.
However, the adoption of lean Six letter of the alphabet in little scale industries is not widespread due
to the worry of high implementation value and therefore the sequent edges. With the restricted
resources to implement Lean six letter of the alphabet for little scale industries while not external
aid. Essentially the littlescale industries are usually comprised of these industries that manufacture,
manufacture and render services with the assistance of little machines and fewer personnel. These
enterprises should make up the rules, set by the govt. of India. The SSI’s are the lifeline of the
economy, particularly in developing countries like India. These industries are usually effortful, and
thence they play a very important role within the creation of employment. SSI’s are an important
sector of the economy each from a money and social purpose of read, as they assistwith the per capita
financial gain and resource usage within the economy

Introduction:-
Small scale industries comprise of tiny enterprises WHO manufacture merchandise or services
with the assistance of comparatively smaller machines and a number of employees and workers.
Basically, the enterprise should constitute the rules set by the govt. of Asian nation. At the nonce such
limits are as follows,

For producing Units for Goods: Investment in plant and machinery should be between twenty {five}
lakhs and five crores.

For Service Providers: Investment in machinery should be between ten lakhs and 2 crores. In
developing countries like Asian nation, these tiny scale industries are the lifeline of the economy.
These are usually labor-intensive industries, so that they produce abundant employment. They
additionally facilitate with per capita financial gain and resource utilization within the economy.
they're a awfully necessary sector of the economy from a money and social purpose of read.

Characteristics of SSI:-

1. Ownership: SSI’s typically square measure below single possession. thus it will either be a sole
proprietary or generally a partnership.

2. Management: Generally, each the management and therefore the management is with the
owner/owners. thus the owner is actively concerned within the everyday activities of the business.

3. Flexibility: SSI’s square measure additional adaptable to their dynamic business surroundings.
thus just in case of amendments or sudden developments, they're versatile enough to adapt and
continue, not like massive industries.

4. CFlexibility: SSI’s square measure additional adaptable to their dynamic business surroundings.
thus just in case of amendments or sudden developments, they're versatile enough to adapt and
continue, not like massive industries.
Objectives of SSI:-

Small enterprises generally aim at enjoying complementary role within the socio economic found
out of a rustic. Its practical objectives aren't solely business however additionally social.

• The basic objectives of small-scale business are:

(i) Providing accumulated employment opportunities on honest and cheap terms.

(ii) Promoting production of an oversized kind of goods-specially goods through effortfulways.

(iii) Encouraging adoption of contemporary techniques within the unorganised ancient sectorof the
trade while not inflicting any perceptible technological state.

(iv) Facilitating a good mobilisation of resources of capital and talent which might have
otherwise remained unutilised.

(v) group action the viable little sector with the very important massive scale-sector.
 (vi) Encouraging and supporting the native talent and utilising native resources to realize native self-
reliance.

(vii) Avoiding the issues of unplanned urbanisation of industries,

(viii) guaranteeing a additional evenhanded distribution of the value Associate in Nursingd a

balanced industrial growth in numerous regions thus on lay down a basis for an primarily localised
socio-economic set-up.
(ix) making a replacement cadre of small-entrepreneurs, skilled and self used consultants.

(x) Correcting regional disparities in industrial growth through locational spread of small- enterprises.
Role of Small Scale Industries:-

1) Small Scale industries give Brobdingnagian scope for increasing employment.

2) They area unit labour intensive and need relatively very little capital to start out with.

3) They facilitate production of commodity and thus will meet the demand for shopper merchandise.

4) They facilitate reduction of costs.

5) They accelerate the speed of commercial growth.

6) They facilitate in equitable distribution of national wealth.

Classification of Small-Scale Industries:-

• Small-scale industries are classified into 5 main categories:

(a) producing industries-producing articles for direct consumption also as process industries.

(b) Feeder industries-specialising specific|especially|specially|particularly|above all| specifically} sorts

of particular product and services, e.g., casting, electroplating, fastening etc.
(c) sexual union industries-covering light-weight repair retailers necessary to take care of
mechanical instrumentality.

(d) Mining or production.

(e) Ancillaries-producing elements and parts for light-weight engineering product cycles, stitching
machines, diesel engines, machine tools, mathematical instruments, workplace and home
instrumentality, electrical appliances, air-conditioners, etc.
 Principles of management:-

1. Division of work:- Dividing the complete work of the organization among people and making
departments is named the division of labor. Division of labor ends up in specialization helps to
extend potency which ends up in enhancements within the productivityand profit of the organization.
2. Discipline:- Discipline suggests that relevancy the foundations and rules of the organization.
Discipline could also be self-discipline, or it should be implemented discipline.
3. Unity of command:- in line with this principle subordinate should have and receive orders from
just one superior.
4. Unity of direction:- One head and one arrange for a bunch of activities with an equivalent
objectives. Al activities that have an equivalent objective should be directed by one manager, and he
should use one arrange. this can be known as unity of direction.
5. Authority and responsibility:- There ought to be a balanced between authority and
responsibility .The right to present orders ought to be thought of while not regard to responsibility.
6. Scalar chain:- The chain of command, generally known as the scalar chain, is that the formal line
of authority, communications, and responsibility at intervals a company.
7. Equity:- in line with this principal , manager , ought to treat all staff with fairness, kindness and
justice. this may build staff to be additional loyal and devoted towards the organization.

7 Essential Principles of Small scale industry Success:

Associate in Nursing Entrepreneurial mentality To develop a mentality for achievement, you want to
understand that however you understand your business and your life determines your reality. Business
homeowners with Associate in Nursing entrepreneurial mentality don't suppose like employee bees.
they need many characteristics that cause them to square get in
the gang. Entrepreneurs don't seem to be born. they're engineered through constant study and
determination. Entrepreneurs square measure willing to fail to eventually win. They perceive that not
each plan could be a sensible one. there'll be times once you are going to be doing all your best, however
feel annoyed by a scarcity of progress in your business. each businessperson goes through these
troublesome periods. I actually are there on quite one occasion. it's sometimes like this that you just got
to concentrate on the positive and keep your optimism operating. The key's to avoid negative thinking.

1. Strict commercial enterprise Discipline Successful business individuals use budgets and realistic
sales projections to run their businesses. They recognize by the fifteenth of the month however well
their business did financially the month previous. they are doing not pay cash
on travel, events or trade shows that don't seem to be budgeted. they are doing not rent
employees while not have the money or contracts in situ ahead. They additionally perceive theway to
use a line of credit. They use it fastidiously for short-run money desires, and not long funding desires
like promoting expenses.
2. A coterie of Advisors You will got to develop relationships with people that square measure
already entrepreneurs or different business people in an exceedingly position to present nice insight
into what you would like to be a business success. it's terribly useful to additionally embrace a
possible consumer in your line conversations. purchasers will offer valuableinsight into budget cycles
and current pain points, and most significantly introduce you to different potential customers. Keep
the corporate of good individuals. typically a telephone toAssociate in Nursing adviser will save heaps
of symptom and cas.
3. n outlined complete Your complete is that the temperament of your product, company or service,
however what makes the complete great? you want to shield your complete with the required
emblems, patents and/or copyrights for everything from your brand, colours and style of your
packaging to the invention of a replacement product or method. Your complete enhances the
performance, innovation, transparency of your company and it's the ability to project a way of social
responsibility outside the corporate
4. distinct segment Market Successful little businesses homeowners perceive that solely a restricted
variety of individuals can obtain their product or service. They solely pursuepromoting efforts toward
the precise individuals they're targeting as customers. Having a narrowly outlined cluster of shoppers
is however they’ve engineered their business.

5.glorious client Service Successful entrepreneurs recognize glorious client service can keep customers
coming. In today’s customer-oriented business setting, “people skills” squaremeasure important for little
business success. however you handle your customers will directly have an effect on your company’s
performance. robust businesses offer manuals and employees coaching on the talents required to speak
expertness, gain respect and enhance client relationships. They additionally use client relationship
management (CRM) software package to trace the worth {of clients of consumers of shoppers} to the
business and to manage customer contacts.

6..money Position and sensible Banking Relationship On a every day basis, prospering entrepreneurs
perceive what their money position is in terms of assets and accounts collectible. they are doing not
simply build deposits and withdrawals. they need a relationshipwith the manager and head teller at
their bank. They additionally use 2 banks to form positivethat their personal and business assets don't
seem to be situated within the same bank.

Role of Small Scale Industries in the Indian Economy:-

1. Total Production These enterprises account for pretty much four-hundredth of the full merchandise
and services created within the Indian economy. they're one in all the most reasons for the expansion
and strengthening of the economy.
2. Employment These tiny scale industries square measure a serious supply of employment within the
country. the full labour force cannot realize add the formal sector of the economy. therefore these
labour-intensive industries offer a keep to an outsized portion of the personnel.

3. Contribution to Export Nearly 1/2 the products (45-55%) of the products that squaremeasure
exported from Republic of India square measure created by these tiny enterprises. concerning thirty
fifth of direct exports and 15 August 1945 of the indirect exports square measure from the little scale
industries. therefore India’s export business majorly depends on these tiny industries for his or her
growth and development.

4. Welfare of the general public Other than economic reasons, these industries also are vital for the
social growth and development of our country. These industries square measure sometimes started by
the lower or bourgeois public. they need a chance to earn wealth and worker others. It helps with
financial gain distribution and contributes to social progress.
Advantages Of SSI:-
• Close supervision
• Nature of demand
• More employment
• Need of small capital
• Easy management
• Freedom of work
• External economies
• Direct relation between the workers and the employee
• Direct relation between the customers and the produce

Disadvantages Of SSI:-
• High cost of production
• Wastage of by-products
• Less use of machine
• Lack of division of labour
• Lack of research
• Old techniques
• Costly raw material
• Difficulty in getting loans
• Difficult to face economic crisis

Steps to manage Small Scale Industry:-

1. Be ready To Grow When you launched your company your goal was to succeed. whereasyour
business arrange could have printed metrics of what that growth would possibly seem like, actively
getting ready for it had been a additional holistic approach. Be proactive concerning next steps
before they happen thus you'll manage them fitly while not losing your grip on them.
2. Get Your internal control so as It’s straightforward to lose sight of maintaining quality standards
once your company is apace increasing. Remember, it’s not solely however you’ve given yourself to
your customers, however what you provide that LED to your success. If youdon’t have already got
one, place along a team to possess oversight over your internal systems, development, producing, etc.
the kind of internal control required to succeed is totally different for every business, thus gear yours
to what suits you and your standards best.
remain prime Of rock bottom Line Your profits could look superb, however if you see a
disconnection with the value of doing business you’ll need to stay a watch thereon increase.There’s
forever a touch risk once moving forward, however you don’t need to search out yourself outspending
what you'll afford to urge to ensuing level. Keep your eye on the numbers and follow them
consequently. This truly leads US right into step range four.

3. create changes For Growth Keep Associate in Nursing open mind to those areas which willought to
decrease whereas being aware of wherever you actually do ought to expand. for instance, to form a
additional economical team you'll ought to add additional managers, however lose performance
reviews. or even you lose causation out paper memos, however add sensible tablets. creating the
foremost effective shift required to assist you manage your growth can assist you to remain relevant
and economical.

4. bear in mind Your Customers Don’t forget that ultimately the rationale your business is growing
is owing to your customers. it's imperative to stay their desires and wishes in mindas you progress
forward. you'll conjointly embrace them as you expand. absorb their comments, hear their thoughts
and take into account their suggestions. There area unit lots of cautionary tales of tiny firms that lost
sight of those essential assets and went out of business owing to it. Keeping your shopper base at the
forefront of your strategy through eachrevision, growth and discovery can keep you connected and
make sure you gain even additional fans.
Important Tips to manage SSI:-
1. produce a business set up To create a good business set up, define your business goals and
objectives and supply a compendious description of your business and also the product or services.
embody the main points regarding the market you’re on the point of enter, your selling and sales plans
and your money projections. Review your business goals often to envision what’s modified, what’s
been achieved, and what has to be revamped.
2. Separate your personal and business finances Since the taxes for you and also the business are
calculated on an individual basis, it’s necessary to open separate personal accounts that are selected
for under business transactions.
3. verify funding needs If you’re beginning a brand new business, funding the operations of the
business is that the upmost priority. whether or not you’re choosing personal investment, angel
investment, business incubators, bank loans or government grants, it’s vital to acquaint yourself with
the benefits and downsides of those funding sources furthermore because the criteria they use to
gauge the business.
4. rent the proper folks If you wish your business to thrive, it’s vital to rent impelled, high- energy
trainable people that are trying to find success instead of creating a fast buck. As atinylow business
owner, you wish to understand a way to retain valuable staff by giving them perks like versatile
schedules, happy hours and team building activities.
5. Train your staff Even if you rent the best folks within the world, it’s aiming to take it slow for them
to know the ins and outs of your business and make out a way to place things alongto attain long goals.
this is often why coaching your staff well is important for atiny low business. produce a coaching set
up that creates your staff feel additional competent and authorised in their jobs.

Conclusion:-
In this project we learnt about the actual management of Small Scale Industries, we learnedabout
the principles and tips of management that should be applied to the Small Scale Industries. We also
learned about the role of SSI in Indian Economy, the Steps to manage Small Scale Industries,
Characteristics of SSI, Objectives of SSI and also saw the Seven essential principles to manage SSI.
In this project we also discussed about some of the advantages and disadvantages of Small Scale
Industries. This Project help us to gain all the knowledge that is required to manage a Small Scale
Industry in an efficient way. .