By going through these Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 3 Small Scale Industry and Business students can recall all the concepts quickly.
Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 3 Small Scale Industry and Business
Small Scale Industry-
Meaning:
Traditionally
Industries which are organized on a small scale and produce goods with the help of machines, labour and power.
- Using power with less than 50 employees
- Not using power with employees strength more than 50 but less than 100
Classification of Business-
- Micro
- Small
- Medium
Micro:
- Manufacturing Sector: Does not exceed ? 25 lakhs
- Service Sector: Does not exceed ? 10 lakhs
Small:
- Manufacturing Sector More than ? 25 lakhs but does not exceed ? 5 crores
- Service Sector: More than ?10 lakhs but does not exceed ? 2 crores
Medium:
- Manufacturing Sector: More than ? 5 crores but does not exceed ? 10 crores
- Service Sector: More than . ? 2 crores but does exceed ? 5 crores.
Definition of Small Scale Industry-
(If the following condition is satisfied)
“Investment in fixed assets like plant and equipment either held on ownership terms or on lease or hire purchase should not be more than one crore. However, the unit in no way can be owned or controlled or auxiliary for any other industrial unit.”
Classification of Small Scale Industries-
Traditional Small Scale Industries:
- Handloom
- Handicraft
- Coir
- Sericulture
- Khadi and Village Industries
Modern Small Scale Industries:
- Bicycle Parts
- Sewing Machines
- Blades, Razors
- Electric Appliances
- Spare Parts
Importance of Small Scale Industries-
- Supply if Raw Materials to Large Industries
- Balanced Development between Rural and Urban Areas
- Opportunities to Young Generation
- Large Employment
- Utilisation of Domestic Resources
Advantages of Small Scale Industries-
- Cost Savings
- Adaptability
- Limited Capital
- Low Gestation Period
- Labour intensive
- Opportunities Rural Youth
- Upliftment of Economy
- Decentralised Economy
- Export Earning
- Regional Balance
Steps in Setting up of a Small Scale Business-
- Decision of Business Area
- Study of Business Environment
- Selection of Product
- Selection of Place
- Selection of Technology
- Business Proposal
- Finance
- Registration
- Actual arrangements of Resources
- Physical resources
- Arrangement of Power and Water Supply
- Staffing
Arrangement of Power and Water Supply
- Production and Marketing of Product
- Review or feedback of Future Changes.
Challenges Before Small Scale Industries-
- Problems of Marketing
- Infrastructural Problem
- Credit and Finance
- Delayed Payment
- Sickness Problem
- Personal Problems
- Shortage of Raw Material
- Outdated Technology
- Underutilization of Capacity
- Labour Problem
Word Meaning:
vocational – particular occupation; contemplating – looking forward; procure – to obtain; notification – to inform; assistance – to help; lease – rental agreement; auxiliary – additional; significantly – important; advantages – benefits; overheads – expenses; minimises – to reduce; migrations – moving of people from one place to another; potential – capacity; aspirants – a person who has ambition; technical – specialized knowledge about a subject; abundant – plenty; gestation – development; knitwear – woollen clothes; processed food – preserved food; substantially – considerable; concentration – centring/centralisation; devastated – destroy; adopt – to accept; tremendous – in very huge amount; inheritant – from ancestors; upliftment – improvement; compromise – to settle at a point; absenteeism – regularly staying away from work; commitment – dedication; turnover – rate at which employee leave the workplace; exploit – make use of an unfair way; feasible – not possible; prevalence – commonness; load-shedding – regular interruption of electricity; voltage fluctuation – regular change in voltage; description – to describe / explain; analyse – to examine; market research – gather information about consumer needs; installed – to fix; appraisal – to evaluate; technique – skill or ability to do so; allocating – to assign / issue; quantum – share or a portion; directories – Website list; exposure – to display; envisaged – to predict.