Q. Define small scale
Ans. The definition used by
Government of India is "A small scale industry is one in which the investment
in fixed assets of plant and machinery does not exceed one crore”.
Q. What are the measures
taken by the government to support small scale industries?
Ans. The measures
taken by the government to support small scale industries are given here:
Q. What are the
parameters to measure the size of business?
Ans. The parameters used to
measure the size of business are:
Number of persons employed
Capital invested in business
Volume of Output
Value of Output
Investment in Plant & Machinery
Q. Explain the
administrative setup of small scale industry.
Ans. The administrative set
up of small scale industry consists of two ministries:
of Small Scale Industry-It formulates policies and coordinates
central assistance for the promotion and development of small scale industries
of Agricultural and rural industry-The ministry of Agricultural and
rural industry coordinates and develops village and khadi industries, tiny and
micro enterprises in both rural and urban areas.
Q. What measures
government has taken to solve problem of finance & marketing?
Ans. Problems of
The public sector banks have tried to help the small industries by
involving various credit schemes at concessional rate of interest. Fiscal
concessions like exemption from excise duty, subsidy, and tax holidays are made
available to the small firms.
Following are the special schemes for financial assistance:
finance assistance for development, expansion,
diversification under small industries development fund.
ii. Equity support
for new projects and rehabilitating sick units under national equity fund. Working
capital loans and term loans under single window schemes.
of Marketing: The government buys some of its products only from small firms.
The National Small Industries Corporations was set up in 1955 which helps small
scale units securing from director general of supplies and disposals. The
activities of middleman have been regulated.
Q. Mention the forms of
support to small industries by the government.
Ans. The support offered by
the government to small industries is:
for credit facilities
for training facilities
of machinery on hire purchase
for settingup enterprises in backward areas
Q. Mention problems of
Ans. The problems
of Small Business are given here :
Problem of Finance
Problem of Raw-materials
Problem of Marketing
Problem of Capacity utilisation
Q. State the features of
Ans. Following are the
features of Cottage Industries:
Cottage industries use family labour and locally available talent.
Cottage industries are organised by individuals with private
The capital investment is small.
industries produce goods using indigenous technology.
Cottage industries produce
industries operate in owner’s premises.