Introduction
The development of small
scale industries has been one of the most significant and characteristic
features of industrial development in India. One of the distinctive characteristics
of small – scale sector is that the development of these industries would
create broader employment opportunities assist in entrepreneurship and skills
development and ensure a better use of scarce financial resources and
appropriate technology.
Steps of the ladder the
entrepreneur (small) has to climb. It is a continuous process of
industrialization.
34. Ancillary
development.
33. Grow bigger.
32. Compete with others.
31. Modernization.
30. Diversification.
29.Plough back profits.
28. Keep up to date.
27. Sell.
26. Produce.
25. Plan out record keeping.
24. Organise marketing.
23. Decide on pricing
policy.
22. Trial run.
21. Recruit personnel.
20. Procure materials.
19. Install Machinery.
18. Plan buying.
17. Apply for materials ( if
imported or controlled)
16. Place order for
machinery ( preferably on hire purchase)
15. Plan sources of
machinery.
14. Plan finance.
13. Obtain clearance from
central state and local authorities and SI regn.
12. Make sure what lows will
particularly affect you.
11. Arrange the work shed
with facilities ( preferably on rent)
10. Decide on location and
site.
9. Obtain the project report
from SISI or elsewhere or prepare it yourself.
8. Decide whether to
purchase a going concern or to start a new one.
7. Decide on form of
ownership (sole proprietary / partnership / co – operative / company )
6. Choose a line.
5. Date with yourself for a
decision.
4. Discuss with all around
you with SISI and D.I office.
3. Consult publications and
agencies.
2. Date with yourself for
newer ideas.
1. Analyze yourself and your
objectives.
STARTING A SMALL SCALE
INDUSTRY
A small entrepreneur is the
chief executive of his unit, its floor supervisor, accounts clerk, purchase
manager, salesman, legal and economic adviser, planner and visionary – all
rolled into one.
Any entrepreneur may be
qualified engineer. Even so he should not dream of becoming a small
entrepreneur unless he is confident of meeting the flowing twelve essential
requirements:
1.
The entrepreneurs
should be fully conversant with the product line. It is not enough that he
knows the method of manufacture he has to know how to operate the machines etc.
2.
He should have
adequate shop floor experience to guide the machine operators in fool – setting
techniques or the die – maker on the specific needs of his press tools.
3.
He should be familiar
with the raw materials he requires, their specifications how to ensure their
quality and where to get them at reasonable prices.
4.
He should know how to
keep accounts how to maintain stores, how to prepare the balance sheet. Etc.
5.
He should have
knowledge of marketing channels, distribution network agency practices,
transport intricacies and the economic of packaging.
6.
He should know how to
ensure the stipulated quality of his product.
7.
He should be well
versed in taxation and to her laws governing SSIs.
8.
He should be well
versed in taxation and other laws governing SSIs.
9.
He should be willing
to put up with bureaucratic regulations and insults, and be fractional under
any circumstances.
10. He
should know how to avail himself of the various benefits available to the SSIs.
11. He should possess expertise, shrewdness,
resourcefulness and most important preservance in his business dealings. There
is no substitute for hard work.
12. He
should have the guts to with stand the high pleasure climate in which he has to
build his unit.
Objectives
Any entrepreneur desirous of
starting a small – scale industry should have a clear picture of the objectives
of his project. It is advisable a comprehensive check list.
Licenses
An impression seems to have
gained ground among some people that there are some restrictions on the getting
up of small scale industrial units and that licenses from either the central or
state governments have to be taken out before an entrepreneur to set up an
industrial unit in the small scale sector no formal permission from the state
or Central government is necessary for this purpose. Also industries employing
less than 100 workers and having fixed assets of less than Rs.10 lakh need not
obtain any license under the Industries. ( Development and Regulation) Act.
Registration of Small scale
industries
In their won interest all
existing small – scale units or intending entrepreneurs employing more than 10
workers should get themselves registered with the Director of industries in
their State. A copy of this application for registration should be sent to the
Director of small industries service Institute in the concerned state.
Machinery
The small entrepreneur needs
the requisite type of machines for production. He can get the necessary
machinery from the National Small Industries Corporation under a hire –
purchase scheme.
Raw materials
The raw materials required
by SSIs may broadly be classified as under:
1.
Raw materials
components and spares both indigenous and imported.
2.
Non – ferrous
materials – both indigenous and imported.
3.
Iron and steel – both
indigenous and imported and
4.
Chemicals –
indigenous and imported
Finance
The finance function in a
small – scale industry is similar to the financial function in any other
organization, but with this essential difference – that there are a host of
banking and insurance regulations to be strictly adhered to and quite to fe
precautions to be taken.
