How Are Small Scale Industries Formed?

Forming small-scale industries involves going through a lot of stages. Firstly the entrepreneur should determine the ownership structure and then they must decide whether they would like to produce or provide any service finally the production choice must be made. After this, the location of the industry set up is to be decided which would be the registered address from which the operations can take place. The latest technology, machinery, and equipment required must be purchased and integrated. 

The power and water supply should also be checked as well. Then to run the business unit a workforce should be employed. After getting all the required raw materials the products can be manufactured and sold to the market after a quality check. Later the entrepreneurs should promote their products to reach a wide range of people.

The small-scale industries are divided into two enterprises:

1. Manufacturing Enterprise

This industry focuses on the production of physical goods, and finished products to be sold in the market. Various Manufacturing processes are followed to create these products. A careful balance of supply and demand is maintained while delivering goods to the marketplace. A few examples of Manufacturing Enterprises are clothing, chemicals, machinery, computers, and electronics.

2. Service Enterprise

This industry focuses on providing services to customers, based on their demands. It requires more public contact. These services are either provided through online apps or physical centers. A few examples of Service enterprises include consultancy, training, advertising, banking, restaurants, hotels, etc.

These Industries Have Two Specific Rules to Follow :

• The manufacturing investment of machinery and plant to produce goods and services should be between 25 lakhs to 5 crores.
• The service providers’ investment in machinery should be between 10 lakhs to 2 crores.

SSI means Small Scale Industries. These are also known as micro-level industries. They are involved in the manufacturing, production, and rendering of the services on a small scale. SSI falls under the guidelines specified by the Government of India and works with small enterprises where the number of workers, employees as well as machinery used by them is less in number. A lot of labor and workforce is required to work for the production of these services which creates huge employment.