Small Enterprise:Meaning and Defination.

A small-scale enterprise is a business that employs a small number of workers and does

not have a high volume of sales and Sometimes it is called small business. Such enterprises are generally privately owned and operated sole proprietorships, corporations or partnerships.Small scale enterprises (also, small scale businesses) are essential to the economy for industrial growth and diversification. The definition of a small scale enterprise may vary in different economies of the world, but the underlying concept is the same. In most of the developing countries like india,small scale industry(SSI) constitute an important and crucial segment of industrial sector.They played an important role in employment creation,resource utilization and income generation and helping to promote changes in gradual and phased manner.They have been given an important place in the framework of Indian planning since beginning both for economic and ideological manner. Small scale industry aregenerally more labour intensive than larger organisations.As a matter of fact small sacle sector has emerged as dynamic and vibrant sector for Indian economy.It has attracted so much attention not only from industrial planner and economists but also from sociologists,administrators and politicians.
Definition of Small Scale Industry: Defining small-scale industry is a difficult task because the definition of small-scale industry varies from country to country and from one time to the another in the same country depending upon the pattern and stage of development, government policy and administrative set up of the particular country. Every country has set its own parameters in defining small-scale sector. Generally, small-scale sector is defined in terms of investment ceilings on the original value of the installed plant and machinery. But in the earlier times the definition was based on employment. In the Indian context, the parameter are as follows. The Fiscal Commission, Government of India, New Delhi, 1950, for the first time defined a smallscale industry as, one which is operated mainly with hired labour usually 10 to 50 hands. Fixed capital investment in a unit has also been adopted as the other criteria to make a distinction between small-scale and large-scale industries. This limit is being continuously raised up wards by government. The Small Scale Industries Board in 1955 defined, "Small-scale industry as a unit employing less than 50 employees if using power and less than 100 employees if not using power and with a capital asset not exceeding Rs. 5 lakhs". 'The initial capital investment of Rs. 5 lakhs has been changed to Rs. 10 lakhs for sma industries and Rs. 15 lakhs for ancillaries in 1975. Again this fixed capital investment limit was raised to Rs. 15 lakhs for small units and Rs. 20 lakhs for ancillary units in 1980. The Government of India in

1985, has further increased the investment limit to Rs. 35 lakhs for small-scale units and 45 lakhs for ancillary units. Again the new Industrial Policy in 1991, raised the investment ceilings in plant an machinery to Rs. 60 lakhs for small-scale units and Rs. 75 lakhs for ancillary units. As per the Abid Hussain Committee's recommendations on small-scale industry, the Government of India has, in March 1997 further raised investment ceilings to Rs. 3 crores for small-scale and ancillary industries and to Rs. 50 lakhs for tiny industry. The new Policy Initiatives in 1999-2000 defined small-scale industry as a unit engage in manufacturing, repairing, processing and preservation of goods having investment in plant and machinery at an original cost not exceeding Rs. 100 lakhs. In case of tiny units, the cost limitation is up to Rs. 5 lakhs. Again, the Government of India in its budget for 2007-08 has raised the investment limit in plant and machinery of small-scale industries to 1.5 corers An ancillary unit is one which is engaged or proposed to be engaged in the manufacture c production of parts, components, sub-assemblies, tooling or intermediaries or rendering services and the undertaking supplies or renders or proposes to supply or render not less than 50% of its production or services, as the case may be, to one or more other Industries undertakings and whose investment in fixed assets in plant and machinery whether held on ownership terms or lease or on hire-purchase does not exceed Rs. 75 lakhs. For small-scale industries, the Planning Commission of India uses terms 'village an small-scale industries'. These include modern small-scale industry and the traditional cottage and household industry.

Small Scale Industries may sound small but actually plays a very important part in the overall growth of an economy. Small Scale Industries can be characterized by the unique feature of labor intensiveness. The total number of people employed in this industry has been calculated to be near about one crore and ninety lakhs in India, the main proponents of Small scale industries.The importance of this industry increases manifold due to the immense employment generating potential. The countries which are characterized by acute unemployment problem especially put emphasis on the model of Small Scale Industries. Small Scale Industries help the economy in promoting balanced development of industries across all the regions of the economy. This industry helps the various sections of the society to hone their skills required for entrepreneurship. Small Scale Industries act as an essential medium for the efficient utilization of the skills as well as resources available locally Types of Small Scale Industry. Small sacle industries are divided into five types.
1. Manufacturing Industries:

Those units which are producing complete articles for direct consumption and also for processing industries are called as manufacturing industries. For example : Powerlooms, engineering industries, coin industries, khadi industries, food processing industries etc. 2. Ancillary Industries: The industries which are producing parts and components and rendering services to large industries are called as ancillary industries. 3. Service Industries: Service industries are those which are covering light repair shops necessary to maintain mechanical equipments. These industries are essentially machine- based. 4. Feeder Industries: Feeder industries are those which are specialising in certain types of products and services, e.g. casting, electro-plating, welding, etc. 5.Mining or Quarries.
A quarry

is a kind of open-pit mine from which rock or minerals are extracted. Quarries are normally utilized for extracting building materials, like dimension stone. Quarries are normally shallower than other kinds of open-pit mines. Quarries are also at times used as filming locations.

In other words a quarry is a big man-made hole in the ground from where minerals or rock are taken out. Quarries are made when big deposits of commercially helpful minerals or rock are found close to the Earth's surface. Quarrying is a type of mining and is also called as open pit mining or strip mining. When minerals are found profound beneath the surface, a deep mine has to be dug to dig out them. Quarries are normally dug deeper and bigger; awaiting the mineral resource is worn out. When they are no longer used, quarries are frequently utilized as landfill sites for the disposal of waste.

Charecteristics/features of small sacle industries. Following are the characteristics of some industries which identify them as small-scale industries: 1. Labour intensive: Small-scale industries are fairly labour-intensive. They provide an economic solution by creating employment opportunities in urban and rural areas at a relatively low cost of capital investment. 2. Flexibility: Small-scale industries are flexible in their operation. They adopt quickly to various factors that play a large part in daily management. Their flexibility makes them best suited to constantly changing environment. 3. One-man show:

A small-scale unit is generally a one-man show. It is mostly set up by individuals. Even some small units are run by partnership firm or company, the activities are mainly carried out by one of the partners or directors. Therefore,' they provide an outlet for expression of the entrepreneurial spirit. As they are their own boss, the decision making process is fast and at times more innovative. 4. Use of indigenous raw materials: Small-scale industries use indigenous raw materials and promote intermediate and capital goods. They contribute to faster balanced economic growth in a transitional economy through decentralisation and dispersal of industries in the local areas. 5. Localised operation: Small-scale industries generally restrict their operation to local areas in order to meet the local and regional demands of the people. They cannot enlarge their business activities due to limited resources. 6. Lesser gestation period: Gestation period is the period after which the return or investment starts. It is the time period between setting the units and commencement ol production. Small-scale industries usually have a lesser gestation period than large industries. This helps the entrepreneur to earn after a short period of time. Capital will not be blocked for a longer period. 7. Educational level: The educational level of the employees of small industries is normally low or moderate. Hardly there is any need of specialised knowledge and skill to operate and manage the SSI. 8. Profit motive: The owners of small industries are too much profit conscious. They always try to keep high margins in their pricing. This is one of the reason for which the unit may lead to closure. Micro and Macro units

Macro unit:-A small business that employs a small number of employees. A microenterprise will usually operate with fewer than 10 people and is started with a small amount of capital. Most microenterprises specialize in providing goods or services for their local areas. Microenterprises serve a vital purpose in improving the quality of life for people in developing countries. Microfinance seeks to help microenterprises by loaning small amounts of capital to these businesses.This allows poor individuals or families to start their own businesses,earn income and benefit communities.

For example, a woman in a developing country may use microcredit to take out a loan and purchase a sewing machine. She could use the machine to establish a microenterprise that specializes in tailoring. The woman would increase her wealth and help her community by providing a service.