2.

3 TYPES OF SSI
The various types of SSI are as follows:
1. Ancillary industries: It is an industrial undertaking engaged or is proposed to be engaged
in the manufacture or production of parts, components or the rendering of services and the
undertaking of supplies or renders or proposes to supply or render not less than 50 per cent
of its production or services and whose investment in fixed assets in plant and machinery,
whether held on ownership terms or on lease or on hire-purchase, does not exceed 10 million.
2. Tiny enterprises: A tiny enterprise is a unit in which the investment limit in plant and
machinery is 2.5 million irespective of the location of the unit.
3. Enterprises managed by women: It is an enterprise which is promoted or managed by a
woman in which she individually or jointly has a share capital of not less than 5 l per cent
of the total share. The government offers some special concessions to such enterprises.
4. Export-oriented industries: An export-oriented unit must export at least 50 per cent
of its output within 3 years from the date of commencement of production and the
investment limit in plant and machinery is 5 crore.
5. Enterprises engaged in the manufacture, production, processing or preservation of goods
are as follows:

Amicroenterprise is an enterprise where investment in plant and machinery does

not exceed 25 1akhs.
14 Entrepreneurship Development

A Small enterprise is an enteprise where the investment in plant and machinery is

(25 lakhs but does not exceed 5 crore.
Amedium enterprise is an enterprise where the investment in plant and machinery
is more than S crore but does not exceed 10crore.
0. Enterprises engaged in providing or rendering of services are as follows:
A microenterprise is an enterprise where the investment in equipment does not
exceed i0 lakhs.
A small enterprise is an enterprise where the investment in equipment is more than
10lakhs but does not exceed 2 crore.
A medium enterprise is an enterprise where the investment in equipment is more
than 2crore but does not exceed 5 crOre.
7. Village industries: Those industries that are
located in rural areas and produce any goods
or render any services with or without the use of power.
8. Cottage
industries/Rural/Traditional industries: Some of the pronminent feaures of
these industries are as follows:
The tools and equipment used in these industries are simple.
They normally employ family and other locally available talent.
They are usually organized by individuals with private resources
The capital investment is small.
They produce simple products.