Unit 4_ small scale industries & Entrepreneurship

Unit 4_ small scale industries & Entrepreneurship

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  preencoded.png Small Scale Industries
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  preencoded.png What Are SmallScale Industries (SSIs)? Limited Operations Businesses producing goods or services on a small scale, utilizing limited machinery and a modest workforce. Investment Benchmark enterprises with plant-and-machinery investment up to ₹10 crore employ more than 110 million people. Turn Over Annual turnover below ₹50 crore — now account for roughly one-third of India’s manufacturing output
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  preencoded.png Key Characteristics ofSSIs Owner-Managed Mostly sole proprietorships or partnerships, ensuring direct owner involvement in daily operations and decision-making. Labor-Intensive Model Relies heavily on human labor, creating numerous jobs with minimal reliance on highly advanced, automated technology. Flexibility and Adaptability Due to their smaller size, SSIs can quickly adjust production and strategy to suit rapidly changing local market demands. Local Market Focus Primarily serve local or regional markets, often utilizing materials and resources sourced from the immediate community.
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  preencoded.png Importance of Small-ScaleIndustries in India’s Economy
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  preencoded.png Types of Small-ScaleIndustries Manufacturing Units Engaged in producing finished goods, such as food processing, power looms, and precision engineering parts. Ancillary Units Specialized units that produce specific components, sub-assemblies, or intermediate goods required by larger industrial companies. Service Providers Businesses focused on delivering essential services, including general repair shops, beauty salons, and specialized printing services. Cottage & Village Industries Operate from homes or small workshops, often based on traditional skills like handicrafts, weaving, and pottery.
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  preencoded.png List of Small-Scale Industriesin India
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  preencoded.png Government Support andSchemes MSME Act (2006) Prime Minister’s Employment Generation Programme (PMEGP) Provides financial assistance to set up new micro and small enterprises. Implemented by Khadi and Village Industries Commission (KVIC). Credit Guarantee Fund Trust for Micro and Small Enterprises Offers collateral-free loans to entrepreneurs. Encourages banks to provide credit without demanding security. Cluster Development Programme Promotes common facilities, shared infrastructure, and technology upgradation for groups of small units. Provides legal framework for micro, small, and medium enterprises. Defines classification based on investment and turnover. Ensures protection and development of SSIs. Technology Upgradation Fund (TUF) Supports modernization, digitalization, and adoption of new technologies Skill India & Startup India Initiatives Provide entrepreneurship training and financial incentives for new ventures
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  preencoded.png Steps to StartSmall Scale Industries
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  preencoded.png Key Challenges Facedby SSIs Tech & Rules Big Competitors Scaling Issues Limited Finance Capital and Credit Access Many SSIs struggle to secure adequate loans and financing, which is a particular issue for aspiring women entrepreneurs. Market Competition They face significant competitive pressure from well-established large- scale industries and the influx of foreign imports. Modernization Gap There is a persistent need for technological upgrades and investment in modern equipment, coupled with skill development for the workforce. Infrastructural Barriers SSIs often encounter regulatory complexities and poor basic infrastructure, such as unreliable power or transportation, limiting their potential.
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  Project Report What isProject Report? • It is a formal document, presented to the lender/investor, containing details of the business aimed at establishing its credit worthiness. Who uses Project Report? • LENDERS: To decide whether to provide credit facilities. • INVESTORS: To decide whether to invest in the business. • OWNERS: To monitor performance in line with projections.. Why Project Report? • Develop a better understanding of the business with financial overview. Evaluate performance and identify relevant relationships among different variables • Achieve efficient management of cash flows and Be able to forecast future business growth supported by financial data
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  Section Type Purpose IntroductoryGive overview and objectives Technical Explain production, machinery, and feasibility Financial Show project cost, revenue, and profit Administrative Cover manpower and organization Analytical Include SWOT, risks, and social benefits Supporting Provide data, charts, and certificates Project Report Sections
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  1.Title Page 2.Certificate (iffor academic submission) 3.Acknowledgement 4.Table of Contents Executive SummaryMain Report Sections 6.Introduction / Background of the Project 7.Objectives of the Project 8.Business Profile / Promoter’s Details 9.Product or Service Description 10.Market Analysis ❑ Industry overview ❑ Target market and customers ❑ Competitor analysis ❑ Marketing and sales strategy 11.Technical Feasibility ❑ Location and site details ❑ Land and building requirements ❑ Machinery and equipment list ❑ Manufacturing or service process ❑ Raw materials and sources ❑ Utilities (power, water, etc.) 12.Organizational Structure & Manpower ❑ Management structure ❑ Human resource requirement ❑ Roles and responsibilities
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  13.Project Cost andFinancing ❑Fixed capital investment ❑Working capital requirement ❑Total project cost ❑Means of finance (owner’s capital, bank loan, subsidy) 14. Financial Analysis ❑Projected sales and revenue ❑Cost of production ❑Profit and loss account ❑Cash flow statement ❑Break-even analysis 15. Implementation Schedule ❑Step-by-step time plan for setup Project Report Sections 16. Government Incentives & MSME Schemes ❑Udyam Registration ❑PMEGP, MUDRA, or other schemes applicable 17. SWOT Analysis ❑Strengths, Weaknesses, Opportunities, Threats 18.Risk Analysis & Mitigation 19. Social and Environmental Impact ❑Employment generation ❑Eco-friendly aspects 20. Conclusion and Recommendations Annexures / Appendices ❑Machinery quotations ❑Layout of factory / unit ❑Market survey data ❑Financial projections in detail