Title of Micro-Project

“STUDY ON SMALL SCALE

BUSINESS”
1.0) Rationale:
-

Studying small-scale businesses is essential for several reasons, as they play a crucial
role in the economy and have unique characteristics that warrant focused attention. Here
are some key rationales for studying small-scale businesses:

• Economic Contribution:
Job Creation: Small businesses are significant contributors to employment, often
being major sources of job opportunities, especially in local communities.

• Economic Diversity:
They contribute to economic diversity by operating in various sectors, reducing
dependence on a few large Business.

• Innovation and Flexibility:

Innovation Hubs: Small businesses are often more agile and innovative, fostering
creativity and serving as hubs for new ideas and technologies.

• Adaptability:
Their size allows for quick decision-making and adaptability to changing market
conditions.

• Entrepreneurship Development:
Incubators of Entrepreneurs: Small businesses are often the starting point for
entrepreneurs, providing a platform for individuals to learn and grow in the
business world.

• Skill Development:
Running a small business requires a diverse skill set, contributing to the
development of entrepreneurs' capabilities.

• Local and Community Impact:

Community Development: Small businesses are integral to community
development, contributing to local economic growth, infrastructure, and social
cohesion.

Ashok Institute of Engineering and Technology , Polytechnic Page 1

2.0) Course Outcomes Integrated:-

• Demonstrate a general knowledge framework and understanding of key functions in

management as applied in practice
• Obtain through electives in-depth knowledge and understanding in more specific
management related areas
• Identify and appreciate the ethical issues in management decision areas
• Obtain an understanding of how to undertake qualitative and quantitative research
and apply this knowledge in the context of a major independent work (e.g. final
dissertation)

3.0) Literature Review:-

A comprehensive literature review on small-scale businesses encompasses a wide range of

topics, including their role in the economy, challenges faced, factors influencing success,
and the impact of various external factors. Below is a condensed overview of the
literature on small-scale businesses:

• Economic Significance:
Small businesses significantly contribute to employment and economic development
(Birch, 1979).
They play a crucial role in poverty alleviation and income generation in
bothdeveloped and developing economies (Acs & Audretsch, 1990).

• Definition and Classification:

Defining small businesses involves considerations of size, employment, turnover, and
industry specifics (Storey, 1994).
Classifications may include micro, small, and medium enterprises (MSMEs) based on
criteria such as the number of employees or annual revenue (Beck et al., 2005).

• Entrepreneurship and Innovation:

Small businesses are often viewed as hotbeds of entrepreneurship, fostering
innovation and economic dynamism (Shane, 2009).
Entrepreneurial orientation is crucial for small business success, driving innovation
and adaptability (Rauch & Frese, 2007).

• Challenges and Constraints:

Ashok Institute of Engineering and Technology , Polytechnic Page 2

 Common challenges include limited access to finance, market constraints, regulatory
burdens, and lack of managerial skills (Beck et al., 2005; Lussier & Corman, 2012).
Social and cultural factors may also pose challenges, especially in developing
countries (Brush & Hisrich, 2009).

• Financial Management and Access to Finance:

Small businesses often face difficulties in accessing capital, and financial
management skills are critical for survival (Coleman, 2007).
Studies explore the impact of financial literacy programs and access to microfinance
on small business performance (Karlan & Valdivia, 2011).

• Marketing and Market Orientation:

Small businesses benefit from adopting a market-oriented approach, focusing on
customer needs and market trends (Narver & Slater, 1990).
Relationship marketing is emphasized for building long-term customer connections in
small business contexts (Morgan & Hunt, 1994).

• Government Policies and Support:

Government interventions and policies significantly influence small business success
(Ayyagari, Beck, & Demirguc-Kunt, 2003).
Research evaluates the effectiveness of various support programs, including grants,
subsidies, and training initiatives (Parker, 2006).

• Technology Adoption:
The adoption of technology, including e-commerce and digital marketing, is explored
as a factor influencing small business competitiveness (Baptista & Swann, 1998).
The digital divide and technology readiness impact the ability of small businesses to
leverage technological advancements (Chen & Nath, 2009).

• Social and Environmental Responsibility:

Increasing attention is given to the social and environmental responsibilities of small
businesses, examining their impact on sustainability and corporate social
responsibility (Spence & Rutherfoord, 2003).

• Globalization and Internationalization:

The literature explores the challenges and opportunities for small businesses in the
global marketplace, emphasizing the role of international entrepreneurship (McDougall
& Oviatt, 2000).
Factors influencing internationalization strategies and the role of networks are
investigated (Etemad, 2004).

Ashok Institute of Engineering and Technology , Polytechnic Page 3

4.0) Actual Methodology Followed:-

• The work will be distributed among the 5 students involved in a group.

• Then getting the overview of project and understanding the concepts.
• Making the proposal.
• Building the code for the microproject and removing the errors.
• Making reports.
• We complete the project on “STUDY ON SMALL SCALE BUSINESS”.

5.0 Actual Resources Used:-

Sr. No. Name of Resource/ Material Specifications Quantity

I5 2nd Gen , 8GB
1. Computer System 1
RAM
2. Software MS-WORD 1

3. References Chatgpt3.5 , google 1

6.0 Some Detail Info of the Micro-Project:-

• Introduction:-

1) Small scale Business 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 ar as follows.

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

3) For Service Providers: Investment in machinery should be between ten lakhs and
2 crores. In developing countries like Asian nation, these tiny scale Business ar the
lifeline of the economy. These ar usually labor-intensive Business, so that they
produce abundant employment. They additionally facilitate with per capita

Ashok Institute of Engineering and Technology , Polytechnic Page 4

 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 SSB:-

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 every day
activities of the business.

3) Labor Intensive: SSI’s dependence on technology is pretty restricted. thus they

have an inclination to use labour and work force for his or her production
activities.

4) 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 Business.

5) restricted Reach: Small scale Business have a restricted zone of operations. Hence,
they will meet their native and regional demand. 6. Resources utilisation: They
use native and pronto out there resources that helps the economy totally utilize
natural resources with minimum wastage.

• Objectives of SSB:-

The basic objectives of small-scale business are:

1) Providing accumulated employment opportunities on honest and cheap terms.

2) Promoting production of an oversized kind of goods-specially goods through

effortful ways.

3) Encouraging adoption of contemporary techniques within the unorganised ancient

sector of the trade while not inflicting any perceptible technological state.

Ashok Institute of Engineering and Technology , Polytechnic Page 5

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

5) group action the viable little sector with the very important massive scale-sector.

6) Encouraging and supporting the native talent and utilising native resources to
realize native self-reliance.

7) Avoiding the issues of unplanned urbanisation of Business,

8) guaranteeing a additional even handed 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.

9) making a replacement cadre of small-entrepreneurs, skilled and self used

consultants.

10) Correcting regional disparities in industrial growth through locational spread of

small-enterprises.

• Role of Small Scale Business:-

1) Small Scale Business 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 Business:-

Ashok Institute of Engineering and Technology , Polytechnic Page 6

 Small-scale Business are classified into 5 main categories:

1) producing Business-producing articles for direct consumption also as process

Business.

2) Feeder Business-specialising specific|especially|specially|particularly|above

all|specifically} sorts of particular product and services, e.g., casting,
electroplating, fastening etc.

3) sexual union Business-covering light-weight repair retailers necessary to take care

of mechanical instrumentality.

4) Mining or production.

5) 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 productivity and 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.

Ashok Institute of Engineering and Technology , Polytechnic Page 7

 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:

1) 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.

2) 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 the way to use a line of
credit. They use it fastidiously for short-run money desires, and not long funding
desires like promoting expenses.

3) A coterie of Advisors You will got to develop relationships with people that square
measure already entrepreneurs or different business people in an exceedingly

Ashok Institute of Engineering and Technology , Polytechnic Page 8

 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 valuable insight 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 to Associate in
Nursing adviser will save heaps of symptom and cash.

4) an 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.

5) a distinct segment Market Successful little businesses homeowners perceive that

solely a restricted variety of individuals can obtain their product or service. They
solely pursue promoting efforts toward the precise individuals they're targeting as
customers. Having a narrowly outlined cluster of shoppers is however they’ve
engineered their business.

6) glorious client Service Successful entrepreneurs recognize glorious client service

can keep customers coming.In today’s customer-oriented business setting,
“people skills” square measure 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.

7) 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 relationship with the manager and head teller at their bank.
They additionally use 2 banks to form positive that their personal and business
assets don't seem to be situated within the same bank.

• Role of Small Scale Business in the Indian Economy:-

Ashok Institute of Engineering and Technology , Polytechnic Page 9

 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 Business 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 labor-intensive Business 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
square measure 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 Business. therefore India’s
export business majorly depends on these tiny Business for his or her
growth and development.

4) Welfare of the general public Other than economic reasons, these Business also
are vital for the social growth and development of our country. These Business
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:-

1) Close supervision.
2) Nature of demand.
3) More employment.
4) Need of small capital.
5) Easy management.
6) Freedom of work.
7) External economies.
8) Direct relation between the workers and the employee.
9) Direct relation between the customers and the produce.

• Disadvantages Of SSI:-

1) High cost of production.

Ashok Institute of Engineering and Technology , Polytechnic Page 10

 2) Wastage of by-products.
3) Less use of machine.
4) Lack of division of labour.
5) Lack of research.
6) Old techniques.
7) Costly raw material.
8) Difficulty in getting loans.
9) 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.
whereas your 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 you don’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.

3) 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.

4) create changes For Growth Keep Associate in Nursing open mind to those areas
which will ought 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.

Ashok Institute of Engineering and Technology , Polytechnic Page 11

 5) kind an excellent Support Team You’ve detected the phrase “you area unit solely
as robust as your weakest link”. enable your team members to play to their
strengths and reward them for it. In turn, they'll reward you with unimaginable
results and create the bottom upon that you're growing that way more solid.

6) 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 mind as 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 each revision,
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 ar calculated on an individual basis, it’s necessary to open separate
personal accounts that ar 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
guage 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 ar trying to find success instead of
creating a fast buck. As atiny low business owner, you wish to understand a way

Ashok Institute of Engineering and Technology , Polytechnic Page 12

 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 along to 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.

6) Keep track of your finances When you begin a brand new business, it’s
straightforward to stay track of the cash coming back in and going out of the
business. However, as your business operations grow, this task will become a
headache. this is often why you must either rent a full-time , on-staff controller
or just invest in AN easy-to-use accounting package that helps you retain track of
your finances and save your precious bucks.

7) Invest in selling In a world wherever brands ar perpetually competitive for

consumers’ attention, tiny businesses have to be compelled to force their
approach before of individuals, show them one thing valuable and somehow
have them hear their pitch. analysis the various tiny business advertising and
selling choices before selecting a selling model that works best for you and also
the business.

8) Learn to delegate Time management is crucial for little business homeowners. a

neighborhood of managing it slow involves having the ability to delegate work to
those impressive staff you’ve employed and trained–especially tasks that you just
don’t extremely relish doing or those you recognize you’re not superb at.

Ashok Institute of Engineering and Technology , Polytechnic Page 13

 • CONCLUSION

In this project we learnt about the actual management of Small Scale Business, we
learned about the principles and tips of management that should be applied to the
Small Scale Business. We also learned about the role of SSI in Indian Economy, the
Steps to manage Small Scale Business, 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 Business.
This Project help us to gain all the knowledge that is required to manage a Small
Scale Industry in an efficient way.

Ashok Institute of Engineering and Technology , Polytechnic Page 14

 1) Adaptability: Navigating the challenges of a small business environment hones the
ability to adapt to changing circumstances and market dynamics.

2) Problem-Solving: Small business owners often face unique challenges, fostering the
development of effective problem-solving skills.

3) Financial Management: Managing limited resources enhances financial literacy and

the ability to make strategic financial decisions.

4) Customer Service: Direct interaction with customers in a small business setting

cultivates strong customer service and relationship-building skills.

5) Communication: Effective communication, both internal and external, becomes

crucial for conveying ideas, negotiating, and building partnerships.

6) Decision-Making: Quick decision-making is a necessity in a small business,

fostering decisiveness and accountability.

7) Entrepreneurial Mindset: Developing an entrepreneurial mindset involves taking

calculated risks, seeking opportunities, and thinking innovatively.

8) Marketing and Sales: Understanding target markets, promoting products or services,

and closing deals contribute to marketing and sales proficiency.

9) Time Management: Juggling multiple responsibilities in a small business setting

enhances time management and prioritization skills.

10) Networking: Building and maintaining relationships with suppliers, customers, and
other stakeholders contributes to effective networking.

11) Leadership: Managing a small team or business unit fosters leadership skills,
including motivating and guiding others.

12) Resilience: Overcoming setbacks and challenges in a small business environment

builds resilience and a capacity to bounce back from adversity.

13) Negotiation: Engaging in negotiations with suppliers, clients, and partners helps
develop effective negotiation skills.

Ashok Institute of Engineering and Technology , Polytechnic Page 15

7.0 Applications of this Micro-Project:-

1) Local Retail and Services:

2) Food and Hospitality:
3) Manufacturing and Craftsmanship:
4) Technology and Innovation:
5) Agribusiness:
6) Personal and Professional Services:
7) Tourism and Hospitality:
8) Health and Wellness:
9) Creative Arts and Media:
10) E-commerce and Online Ventures:
11) Environmental and Sustainable Initiatives:
12) Social Enterprises and Nonprofits

Ashok Institute of Engineering and Technology , Polytechnic Page 16

 REFERENCES

1) Birch, D. L. (1979). The Job Generation Process. MIT Program on Neighborhood

and Regional Change.
2) Acs, Z. J., & Audretsch, D. B. (1990). Innovation and Small Firms. MIT Press.
3) Storey, D. J. (1994). Understanding the Small Business Sector. Routledge.
4) Shane, S. (2009). Why Encouraging More People to Become Entrepreneurs is Bad
Public Policy. Small Business Economics, 33(2), 141-149.

Ashok Institute of Engineering and Technology , Polytechnic Page 17