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Small Business

❖ Meaning and Nature of Small-Scale Business
In India, the industries where the amount of investment in fixed assets is less than Rs 1 crore are regarded as small-scale industries (SSIs). However, for export-oriented units, this limit is Rs 5 crores.
The following are some of the parameters that are used to categorise small-scale industries:
i. Number of people hired in the business
ii. Amount of capital invested in the business
iii. Volume or value or units of output produced by the business
iv. Power consumption by the business

❖ Features of Small-Scale Enterprises
The following are some of the main features of SSIs:
i. Are labour-intensive and require very less amount of capital for investment in plant and machinery
ii. Operations/activities are generally confined to the local areas as per the demands of the local people
iii. Use indigenous raw materials and outdated technology for production
iv. Mostly owned by individuals (partnership firm/private limited company), with decision-making power and managerial rights lying in the hands of a few people

❖ Micro, Small and Medium Enterprises according to MSMED Act.
The Act differentiates between the three types of enterprises on the basis of the investment made in…

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